Homeland Security to Attract increased Usage of Automated Decision Support Systems (Airport Security)


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Homeland Security to Attract increased Usage of Automated Decision Support Systems (Airport Security)

  1. 1. Homeland Security to Attract increasedUsage of Automated Decision Support Systems (Airport Security) Ravi Madavaram, Consultant Aerospace & Defense 29 August 2012
  2. 2. Ensure a great briefing experience today!1. Want to Ask a Question? – Simply press Ask a Question on theplayer.2. Want to Share this webcast? – Click on the Share button on theplayer3. Use the Full Screen button ( bottom right- hand corner) on theplayer4. Escape button to return to normal view on your keyboard.5. Ratings button on the player for your valuable feedback. 2
  3. 3. Today’s Presenter Ravi Kumar Madavaram, Consultant Aerospace & Defense Frost & Sullivan Ravi has extensive experience in Aerospace and Defense consulting for clients in Asia Pacific and India. His expertise includes Business Transformation Strategies, Market Entry Strategies, Business Plan evaluation, Technology Trends for airlines, MRO‟s, Defense and Home Land Security participants, Regulatory Authorities of different countries. 3
  4. 4. Agenda 1 Overview of the Homeland Security Market 2 Drivers and Challenges 3 Future Outlook 4 Way Forward 4
  5. 5. 1 Overview of the Homeland Security Market2 Drivers and Challenges3 Future Outlook4 Way Forward 5
  6. 6. Homeland Security – Market Segmentation Homeland Security Critical Border Economic Disaster Cyber Security Infrastructure Security Security Response Security Maritime Airport Security Security Immigration Customs Quarantine Inspection Recognition Export Duties Biological Infiltration Verification Import Duties Plant Smuggling Included in the study Not covered in this study Access Excise Duties Control 6
  7. 7. 1 Overview of the Homeland Security Market2 Drivers and Challenges3 Future Outlook4 Way Forward 7
  8. 8. IntroductionAsia Pacific is now emerging hub for global economical, trade & tourist activities. The attraction to AsiaPacific countries has encouraged the growth of air travel in & out & within Asia Pacific Region. Thisincreased demand has meant that the security & safety of the passengers & the airports is of criticalimportance. Increasing activity in Asia Pacific Region Many airports have been built or refurbished to cater to the rising demand. 8
  9. 9. Airport Traffic Projections 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 flourish & grow, safety and security become major concerns Source : Frost & Sullivan 9
  10. 10. Drivers and ChallengesIncreasing 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 asthey are still 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 10
  11. 11. 1 Overview of the Homeland Security Market2 Drivers and Challenges3 Future Outlook4 Way Forward 11
  12. 12. Market Growth Potential The airport security market has remained unaffected by the global financial crisis and will continue to show strong growth. 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 Screening of the lifecycle and more advanced technology is Integration of security introduced to the market. systems is becoming a priority for airport operators, especially in new infrastructure and terminal buildings. Integration Intelligent surveillance will increase as security Adoption of biometric solutions willfocus shifts to identifying Surveillance Access Control increase in thethe threat as opposed to finding the bomb. market. There will continue to be many opportunities in the airport security market for the foreseeable future. Source : Frost & Sullivan 12
  13. 13. 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 6 6.0% Control, 12 .80% Security 4 4.0% Video Screening, Surveillanc 65% e& 2 2.0% Monitoring, 7.80% 0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue Segmentation by technology, Asia Pacific Airport Asia Pacific Airport Security Market (2008 – 2017) Security(2011) The rate of growth in APAC airport security market is forecasted to flag off during second half of the decade. Source : Frost & Sullivan 13
  14. 14. Influences on purchasing decision of security technologies and systems Compatibility with existing security systems High Return on investment (ROI) Ease of installation and integration High reliabilityPurchasing Decision Latest technology Importance in Low operating cost Maturity of technology Ease of use Low installation cost Excellent maintenance support High degree of system intelligence Excellent installation support Low purchase price Durability Low Functionality Cost Efficiency Factors Factors Factors Source : Frost & Sullivan 14
  15. 15. e-Passport, e-Visa and e-GatesSince the inception of Electronic Passports and Electronics Visa, automation of immigration functions has beensignificantly improved. As of now, the e-Gate facility is available for nations of the installed country.However, US and Korea have been working together to Countries using e-Gates, 2012provide seamless immigration facilities for low riskcategory of passengers Total e-Gates installed, Global 7000 6000 5000 4000 3000 2000 1000 0 2009 2010 2011 2012 2013 2014 The need for speed and increase in passengers, the e-Gate adaptation is high and in next 5 years is expected to be used by more than 90% countries in Asia Pacific Source : Frost & Sullivan 15
  16. 16. Stakeholder Challenges & OpportunitiesThe advancement in technology has resulted in both challenges and opportunities for the different stakeholdersin the 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 Airport privacy and potential health concerns, brought about by new Operators technology such as X-ray, will 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 Integrators / more complete profiling of a threat this presents a huge Service Providers opportunity for participants in this segment. Due to the advancement of technology, the various key major manufacturers will be required to continue to invest significantly in R&D. Manufacturers Manufacturers that are able to achieve the most 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 16
  17. 17. Airport Security Technology Roadmap X-ray / Metal Behavioral Thermal Lie Screening Detector Detection Detector Integration of different Security Systems Computer Gamma- Checkpoint of Tomography millimeter wave the future Perimeter Hi Def Video Bluetooth Surveillance Tracking Intrusion cameras 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 17
  18. 18. 1 Overview of the Homeland Security Market2 Drivers and Challenges3 Future Outlook4 Way Forward 18
  19. 19. The Way ForwardAirport Security Solutions are evolving & the „Product & Services Strategy‟ must be in line withthe changes expected 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 19
  20. 20. The Way ForwardIdentification of „Competitive Strategy‟ is a must in the environment where it is necessary to keep up withchanges in Technology. • Invest in technology as security industries are Investment in R&D highly technologically driven due to constant evolution of security threats • Identify best business partners & formulate Strategic Alliances strategic alliances to offering security platforms & ensuring systems interoperability • Device efficient supply chain management to Supply Chain ensure fast delivery, responsive after sales support Efficiencies & cover widespread distribution into markets efficiently Customer Centric • Located close to customers to respond to Services requirements timely & efficiently Source : Frost & Sullivan 20
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