Commercial Aviation Industry Airport Safety & Security Overview


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Frost & Sullivan analysis on Commercial Aviation Industry Airport Safety & Security Overview, presented by Subhransu Sekhar Das at Indonesia Airlines Day 2012, April 3rd 2012.

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Commercial Aviation Industry Airport Safety & Security Overview

  1. 1. Commercial Aviation Industry Airport Safety & Security Overview 3rd Aprl-2012 Subhranshu Sekhar DasDirector-Asia Pacific | Aerospace & Defense Practice 1
  2. 2. Table Of Contents Airport Safety & Security Overview Introduction Market Growth Potential Asia Pacific Technology Roadmap, Challenges & Opportunities The Way Forward 2
  3. 3. Introduction Asia Pacific is now emerging hub for global economical, trade & tourist activities. The attraction to Asia Pacific countries has encouraged the growth of air travel in & out & within Asia Pacific Region. This increased demand has meant that the security & safety of the passengers & the airports is of critical importance. Increasing activity in Asia Pacific Region Many airports have been built or refurbished to cater to the rising demand. 3
  4. 4. Introduction After the sub-prime crisis in 2009, the Asia Pacific countries are experiencing significant economic growth. The strong economic growth has resulted in higher traffic volume of both passenger and cargo in the region. 3000 18.0% 90000 9.0% 16.0% 80000 8.0% 2500 Cargo (Thousand Metric Ton) 14.0% 70000 7.0%Passenger (In Millions) 2000 12.0% 60000 6.0% 10.0% 50000 5.0% 1500 8.0% 40000 4.0% 1000 6.0% 30000 3.0% 4.0% 20000 2.0% 500 2.0% 10000 1.0% 0 0.0% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Air Passengers Growth (2008 – 2015) Air Cargo Volume (2008 – 2015) As airports in the region flourished & grew, the question of their safety began to surface. Source : Frost & Sullivan 4
  5. 5. IntroductionIncreasing Air Passengers & Cargo has meant that like rest of the world, Asia pacific also faces several issuesregarding Safety & Security. However, the Airports in the region are better placed to handle these issues as they arestill in the development stage. Terrorist Threats Cost Health Threats Lack of Staff Diligence Market Drivers Increasing Passenger Volume Privacy & Other legal Issues Increasing Cargo Movement Faulty / Obsolete Airport Expansion Plans Equipment Technology Adoption Disconcerted Efforts Low Med High Impact Market Drivers Challenges Market drivers & challenges come hand in hand. Source : Frost & Sullivan 5
  6. 6. Table Of Contents Airport Safety & Security Overview Introduction Market Growth Potential Asia Pacific Technology Roadmap, Challenges & Opportunities The Way Forward 6
  7. 7. Market Growth PotentialThe airport security market has remained unaffected by the global financial crisis and will continue to show stronggrowth. Asia-Pacific will be the region with the biggest growth in this decade. Strong growth as operators upgrade current systems that are coming to the end of Screening the lifecycle and more advanced technology is introduced to the market. Integration of security systems is becoming a priority for airport operators, especially in Integration new infrastructure and terminal buildings. Intelligent surveillance Adoption of biometric will increase as security Access focus shifts to identifying Surveillance solutions will increase the threat as opposed to Control in the market. finding the bomb. There will continue to be many opportunities in the airport security market for the foreseeable future. Source : Frost & Sullivan 7
  8. 8. Market Growth Potential The expected rapid economic growth for the various Asia Pacific countries, leading to an increase in the passenger traffic, is likely to be the main driver for the airport security market in first half of the decade. The market growth is expected to slow down later as after the upgrade at the major airports, various airport operators may struggle to find incentives to fund the installation at the other airports. 12 12.0% Others / Integration, 10 10.0% 14.40%Revenue (In Billion USD) 8 8.0% Perimeter & Access Control, 6 6.0% 12.80% Security 4 4.0% Video Screening, Surveillance 65% & Monitoring, 2 2.0% 7.80% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue Segmentation, Asia Pacific Airport Security(2011) Asia Pacific Airport Security Market(2008 – 2017) The rate of growth in APAC airport security market is forecasted to flag off during second half of the decade. Source : Frost & Sullivan 8
  9. 9. Table Of Contents Airport Safety & Security Overview Introduction Market Growth Potential Asia Pacific Technology Roadmap, Challenges & Opportunities The Way Forward 9
  10. 10. Stakeholder Challenges & OpportunitiesThe advancement in technology has resulted in both challenges and opportunities for the different stakeholders inthe airport screening and inspection security market. As the technology of various security equipment advance, the various airport operators are faced with the delicate balance between customer satisfaction and security integrity. Issues such as privacy and potential Airport health concerns, brought about by new technology such as X-ray, will Operators be a key challenge for the various airport operators. As this industry moves towards integration of various security systems working seamlessly together to have a more Integrators / complete profiling of a threat this presents a huge opportunity for participants in this segment. Service Providers Due to the advancement of technology, the various key major manufacturers will be required to continue to invest significantly in R&D. Manufacturers that are able to achieve the most Manufacturers efficient R&D capabilities will gain a significant competitive advantage in this market. Airport Security Market Value Chain The challenge is to minimize the waiting times at the same time ensuring highest security 10
  11. 11. Airport Security Technology RoadmapAirport security systems have come a long way to negate the evolving risks & the evolution is expected to continuein the future. X-ray / Metal Behavioral Thermal Lie Screening Detector Detection Detector Integration of different Security Systems Integration of different Security Systems Computer Gamma- Checkpoint of Tomography millimeter wave the future Hi Def Video Bluetooth Perimeter Surveillance cameras Tracking Intrusion Systems Thermal Security Video Content CCTV Systems Analysis Access Control Fingerprints E Passport Face Detection X-ray / Metal RFID IRIS Scanner Detector 2011 2015 2018 The dynamics of the market will slowly shift away from labour-intensive activities to an increasingly technological approach. Source : Frost & Sullivan 11
  12. 12. Table Of Contents Airport Safety & Security Overview Introduction Market Growth Potential Asia Pacific Technology Roadmap, Challenges & Opportunities The Way Forward 12
  13. 13. The Way ForwardAirport Security Solutions are evolving & the ‘Product & Services Strategy’ must be in line with the changesexpected in future. Integration of Multiple / Varying security Platforms Efficient & Reduced Time on Security Procedures Real Time Data Intelligence & Decision Airport Security Solutions Modular & Upgraded Systems Training & Simulation Source : Frost & Sullivan 13
  14. 14. The Way ForwardIdentification of ‘Competitive Strategy’ is a must in the environment where it is necessary to keep up with changes inTechnology. • Invest in technology as security industries are highly Investment in R&D technologically driven due to constant evolution of security threats • Identify best business partners & formulate strategic Strategic Alliances alliances to offering security platforms & ensuring systems interoperability Supply Chain • Device efficient supply chain management to ensure fast delivery, responsive after sales support & cover Efficiencies widespread distribution into markets efficiently Customer Centric • Located close to customers to respond to requirements Services timely & efficiently Source : Frost & Sullivan 14
  15. 15. Thank YouGlobal Growth Consulting Company “We Accelerate Growth” 15