"Although the concept of Homeland Security is a relatively new one, security has been amongst the highest priorities of governments around the world since the 2001 attacks in New York," remark Frost & Sullivan Research Analysts Georgios Oikonomakis and Friso Buker. "The United Kingdom is no stranger to the threat of asymmetric warfare and is one of the highest spenders in Europe, with an annual security budget in excess of GBP2 billion."
Growth is unlikely to continue throughout the entire forecast period, because the bulk of security spending is likely to be allocated in the run-up to the 2012 Olympics. The market is nevertheless expected to remain highly competitive and to offer strong opportunities for companies with comprehensive solutions, addressing known threat domains which have so far
proven difficult to secure.
"Mass transport systems, for instance, are a particularly soft target, as the 2005 attacks on the London Underground network showed," says Oikonomakis."The vulnerability of these systems has significantly increased the terrorist threat perception in the United Kingdom and has forced the government to upgrade security measures by enhancing surveillance, detection and response capabilities across all identified threat domains."
While CCTV cameras have been the preferred method of surveillance up to now, systems that include 'intelligent' processing functionality and remote monitoring capabilities are also expected to drive the market during the forecast period. Transport authorities have also been looking at technologies other than surveillance to close any remaining security gaps. However, there are significant challenges associated with providing security solutions for open threat domains such as mass transport systems and other congested urban areas. Companies also need to address end users' very specific requirements, many of whom are struggling to develop satisfactory technological security strategies. These challenges are making it very difficult for the security industry to adequately address the relevant authorities' most pressing and complex challenges.
Inherent challenges aside, the UK homeland security market is also highly competitive. Given the large number of established participants, factors such as a company's track record and the quality of its references, particularly in the public sector, will be essential to achieving success in this market. "Responding to these challenges, companies looking to get a share of security spending in the United Kingdom need to understand customers' operational requirements and security challenges," observes Buker. "In a market with many exciting (but not always applicable) technologies, aligning the product to the customer is infinitely more important than trying to find customers for existing product lines."
