According to a report by Homeland Security Research Corporation, which was released on Friday, September 23, the cumulative Homeland Security & Homeland Defense Global Market (HLS-HLD) market–totaling $400B during the 2006-2010 period–will be more than three times larger than the cumulative market of $130B during the 2001-2005 period.
Further, the next five years will be characterized by:
•An energized focus on Intelligence and WMD mitigation;
•A greater reliance on the private sector; and
•The emergence of new market leaders.
The graphs and table above provide some points for comparison between the two periods.
Market 2001 – 2005 vs. 2006 – 2010
Size. This period was characterized by tremendous growth in the Homeland Security market, where a market of $7B in 2001 ballooned to $46.2B in 2005 – a cumulative spending of $130B in that time period. This period will mark the end of the beginning of the building of an effective HLS infrastructure. The recently restated DHS strategy, in addition to the tragic events that resulted from Hurricane Katrina, will provide for a more systematic building of the national HLS infrastructure with a much greater reliance on the private sector. HSRC forecasts that this will lead to a cumulative 2006 – 2010 global HLS market of over $400B.
Trends. Much of the funding that reached private hands was spent on vintage off-the-shelf products and services. Most of the U.S. Homeland Security will be focused on the mitigation and containment of catastrophic terror attacks. The ramifications of this policy change are that in addition to wide scale attacks using conventional weapons (e.g. 9/11), WMD mitigation will be provided with resources and budgets that in the past were allocated towards “small-scale” attacks. The responsibility for these “small- scale” attacks will now shift to the state and local level.
Leadership. No significant market leadership established. This period will determine market leadership in several HLS sectors.
More details regarding this research are available.