Airport security market assessment india

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venkateswaran2010avaition_ it is my aim to do this course. i offering as ppt to students

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  • 1. Airport Security Market Assessment India Aviotech
  • 2. • Aviotech is an India focussed Aerospace, Defense and Security advisory and investments practice • working with firms and their senior management throughout the value chain of enterprises, • ranging from OEMs, Component Manufacturers, Private Equity / Venture Capital firms, Law Firms • to Research and Advisory Bodies. • Our offerings comprise: • ▪ Strategic Roadmaps for market & products • ▪ Manufacturing Advisory • ▪ Offset and Policy Advisory • ▪ Aerospace & Defense Investment Advisory (buy and sell side) • ▪ Aerospace & Defense Regulatory insights and compliance • ▪ Market Assessment, mapping and Evolution insights • ▪ Sector specific thought leadership research • Our services are delivered by a sector specialist team with extensive experience in the Indian • Aerospace, Defense and Security sector and international markets. • To know more about how Aviotech can help you and your organisation leverage the • opportunity offered by Indian Aerospace, Defense and Security opportunity, please visit • www.aviotech.com or write to rahul@aviotech.com .
  • 3. • Aviotech does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of • interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision • Aviotech Defense Advisory & Investments • Rahul Gangal* • +91 (0) 770 233 1818 • Director • rahul@aviotech.com • Udit Narula • +91 (0) 965 445 2626 • Research Associate • udit.narula@aviotech.com • Airport Security Market Assessment • Synopsis • ▪ Airport security is a key component of Critical Infrastructure Protection
  • 4. • which is a subset of the larger Homeland Security spend for India. The • Homeland Security spend annually in India (across central government, • state governments and private industry) is anticipated at more than $38 Bn • The projections for the next 5 years are anticipated to be several folds more • ▪ Of the Homeland security spend the Critical Infrastructure Protection • contribution is anticipated at 16% • ▪ Airport security contributes to approximately $800 mn as an annual • opportunity. This trend is seen to have a strengthening uptick in spending • over the next 2-3 years as key airports of India are progressively modernised • alongwith the inception of new ones • ▪ Aviotech anticipates the market for Airport Security in India to be a • cumulative opportunity of $6 Bn over the next 5 years • Indian Security Market • Source: Aviotech Research
  • 5. • Aerospace and Defense Update • Aviotech does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of • interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision • Defense Advisory & Investments • ▪ The first step in analyzing the Critical Infrastructure Protection market is • defining what constitutes “Critical Infrastructure” • ▪ Critical infrastructure is a term used by governments to describe assets • that are essential for the functioning of a society and economy. Thus if the • consequential aspect of failure of an infrastructural facility is taken into • account, a large and diverse set of sectors fit into the framework of • “Critical infrastructure” • ▪ Key threats to Critical Infrastructure include: • ▪ Terrorism and internal security
  • 6. • ▪ New forms of cyber crime • ▪ Natural hazards • ▪ Increasing overall infrastructural spends are cascading into larger capital • outlays for Critical Infrastructure in specific and security market in general. • Total spend by the government on Critical Infrastructure security in India • over the next 5-6 years is anticipated to be around $32 Bn • ▪ The key focus areas of Critical Infrastructure Protection include integrated • security systems, disaster management equipment, emergency response • forces and physical manning of installations • ▪ Airport security is one of the major sub components of Critical • Infrastructure Protection. Thus this report is an attempt to provide an • overview of the Critical Infrastructure security market through a detailed • mapping of the airport security market in India
  • 7. • ▪ The same exercise when performed individually for all the other • components of Critical Infrastructure security will give us a fair idea of the • overall market • Detailed Assessment - Critical Infrastructure • Critical Infrastructure Protection - Components • Critical Infrastructure market in India • Key areas of • focus • ▪ Integrated security • systems • ▪ Disaster • management • equipment • ▪ Emergency • response forces • ▪ Physical manning of • installations • Projected • market • $32 Bn in the next 5- • 6 years • Share out of the • overall security • market • 16%
  • 8. • Aviotech does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of • interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision • Defense Advisory & Investments Aerospace and Defense Update • ▪ India's domestic aviation market continues to expand significantly: • ▪ Passenger traffic increased from 40 mn in 2000-01 to 124 mn in • 2010-111 • ▪ Cargo handled has expanded by 18% year on year1 • ▪ Investment of Rs. 12,900 Crores envisaged on creating new airport • facilities in the 12th five year plan2 • ▪ Currently there are 50 operational airports in the public domain • and 15 in the private domain. This number is expected to increase • significantly4 • ▪ The need for security equipment, therefore, is growing in tandem with
  • 9. • the growth in the number of airports and travellers. The core areas of • high-tech equipment, such as digital surveillance technology, perimeter • control equipment, access control and emergency response have • captured the attention of all airport operators (both private and • government) • ▪ The Indian airport security market is expected to present an opportunity • to the tune of $6 bn till 2015-16. This will include upgradation of existing • airports, replacement of equipment as well as procurement for the • Greenfield airports planned • Detailed Assessment - Airport Security in India • Number of Airports: Projected rise • Public-Private • partnership projects • 12 airports (till 2014)
  • 10. • Modernization of • metro airports • 5 airports (till 2014) • Modernization of non • metro airports • 35 airports (till 2014) • Airport development • in Eastern states • 5 airports (till 2014) • No frills/Low cost • airports • 25 airports (till 2014) • Private/Merchant • airport development
  • 11. • 15 airports (till 2014) • Airport Authority of • India’s projection for • 2020 • 500 airports • Airport Security in India - Classification • Source: Aviotech Research • Source: Position paper on the airports sector in India • by the Department of Economic Affairs, Ministry of • Finance, Government of India • *Source: • 1Creating World Class Infrastructure by Ministry of Civil Aviation, GoI • 215th Annual Report, Airport Authority of India • 3 List of Licensed Aerodrome (as on 31st August, 2011) by the DGCA
  • 12. Defense Advisory & Investments ▪ Focus areas for capacity building in airport security will be upgradation and integration. As an illustration, the future may be defined by systems which integrate perimetric security equipment with surveillance equipment which will further generate triggers to activate response principles and control mechanisms ▪ The process of upgradation of equipment at the existing airports and new installation at the planned airports has been set into motion with the following emerging trends: Airport security equipment market in India Airport Security Infrastructure: Key Roles Overseer Airport Authority of India Regulator Bureau of Civil Aviation Security Buyer Airport Operator (Private or Government) Implementer Central Industrial Security forces
  • 13. Aviotech does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision Defense Advisory & Investments Aerospace and Defense Update ▪ The responsibility lies with Central Industrial Security Force, although many private airport operators have now started complementing it with private security ▪ About 4000 personnel for the larger airports and 500 for the smaller airports are employed for airport security ▪ This sub-segment addresses about $300 mn of the airport security market each year ▪ Largest opportunity is seen to lie in bullet proof jackets, hand held weapons and light armored vehicles Airport Security Spend : Physical Manpower ▪ This sub-segment addresses about $250 mn of the airport security market each year ▪ Constantly evolving technologies and rapid obsolescence ensure quick turnaround of the equipment necessary ▪ Major sets of opportunities are: ▪ Scanners: Including X ray Baggage Scanners, Hand held metal
  • 14. Detectors, Hand Baggage Scanners and Door Frame Metal Detectors (about $120 mn) ▪ Surveillance equipment: Including CCTV System & surveillance monitors, IP surveillance cameras (about $80 mn) ▪ Perimetric access: Bollards, Tyre killers, Boom barriers, Electrical Fencing, Alarms and sensor systems for fencing and Turnstiles (about $50 mn) ▪ Largest opportunity is seen to lie in X ray baggage scanners, hand baggage scanners, CCTV systems and electrical fencing and sensor systems Airport Security Spend : Perimetric Security Major components as a percentage of the total physical manpower security market Major components as a percentage of the total Perimetric Security market
  • 15. Assumptions for projecting market size for each equipment class: • The classification used in the figure “Airport Security in India – Classification” and contains the same sub components • The airports for public use were divided into bigger airports in terms of footfalls (Delhi, Mumbai, Bangalore etc.) and smaller airports (Bhubaneswar, Chandigarh etc./). • The number of existing/projected equipment researched through sources at each airport was plugged in accordingly • The rate at which the government buys the listed equipment was as the benchmark price of equipment • All the security equipment was assumed as getting replaced once every three years on account of wear & tear or technology obsolescence, all the services an yearly cycle of contract renewal • Integration and installation as well as service and maintenance have each been taken 50% of the cost of equipment • The total market was projected accordingly All figures in $ mn and over a 3 year horizon
  • 16. Defense Advisory & Investments ▪ This sub-segment addresses about $210 mn of the airport security market each year ▪ Major sets of opportunity are: ▪ Bomb detection and disposal: Including Explosive Vapour Detector,Improvised Explosives Device (IED) Detector, Liquid bomb detector, Non linear Junction Detector, Water Jet Disruptors, Bomb Disposal Kit, Bomb disposal blankets, IED Jammers and Bomb Disposal Suits (about $45 mn) ▪ Disaster response Vehicles: Police vehicles, ambulances,communication vehicles and fire tenders (about $155 mn) ▪ Including Fire fighting equipment: Including smoke detectors, fireextinguishing systems and hand held extinguishers (about $10 mn) ▪ Largest opportunity is seen to lie in IED detectors & jammers and emergency vehicles Airport Security : Disaster Management & Emergency Response ▪ This sub-segment addresses about $70 mn of the airport security market each year ▪ Largest opportunity is seen to lie in smart card readers, iris recognition equipment and doorphones/intercom Identification/Access Control Major components as a percentage of the
  • 17. total Disaster Management market Major components as a percentage of the total Identification / Access Control market Aviotech Defense Advisory and Investments India 202-206 Sewa Corporate Tower, Sector 25, MG Road, Gurgaon 122002 UK 31A, St. James Square, London SW1 YJR www.aviotech.com
  • 18. omissions, mistakes or errors in this paper and for any economic or any other loss or damage, incurred or suffered by the reader/ user or any other person, arising (whether directly or indirectly) out of or in connection with such information. This note has been prepared without prejudice. Any and all information contained herein is based on good faith assumptions and is provided for general information purposes only. This information does not constitute an offer, promise, warranty, or guarantee of performance. This document should not be used or relied upon for any purpose other than as intended by Aviotech. Opinions expressed herein are subject to change without notice. Aviotech undertakes no obligation to provide the recipient with access to any further information or to correct any inaccuracies or omissions which may become apparent. Aviotech does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Analyst Undertaking: The Research Analyst(s) (marked with a (*) on the front cover of this report certifies (or, where multiple research analysts are primarily responsible for this report, with respect to each security that the research analyst covers in this research) that; 1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject companies and their securities; and 2) no part of any of the research analyst's compensation was, is or will be directly or indirectly related to the