Huge Growth in India Civil Security Ahead

The market for civil security in India is set to grow 12 per cent for the remainder of this decade to double the revenues of 2012.

New market assessments from Frost & Sullivan reveal the civil security market was worth $10.69 billion last year. The firm predicts that the figure will reach $26.46 billion in 2020.

This research was released just weeks before the international security market descends on Greater Noida, New Delhi, for IFSEC India.

The show, in its third year, takes place 5-7 December.

The sectors covered in Frost & Sullivan’s research include:

• Border and maritime security
• Critical infrastructure protection for airports, oil and gas, and power and utilities
• Mass transportation
• First responder C3i and emergency response
• Safe cities
• Cybersecurity

The firm expects airport security and safe cities to be the fastest-expanding segments for security in the country; their growth rates are forecast at 31.2 per cent and 21.4 per cent, respectively. An increase in terror threats has been driving increased investment in technology such as video surveillance in India.

However, this investment has not been without its challenges. The Indian city of Pune was the victim of a bombing last year. However, the cameras that had been installed in public places were not operational — for whatever reason — in the leadup to the bombing. This dented the chances of catching those responsible.

Frost & Sullivan analyst Anshul Sharma said in a press release.

The demand for equipment and technologies to address the existing capability gaps in India’s civil security is attracting global suppliers to the country. Investment plans have been proposed by the central and state police agencies to improve the capabilities of various state police forces in areas such as communications, surveillance, weapon systems, combat uniforms, ammunition, ground vehicles, and airlifting.

The market in India is extremely fragmented, according to the report. This is putting pressure on prices which could result in companies moving into a position where they could be acquired. Sharma explained in the release how suppliers will also be turning to solutions, rather than products to ensure their survival.

To sustain profits, suppliers are looking to offer end-to-end security solutions. As they do not have an integrated portfolio at present, market participants are quite likely to turn to mergers and acquisitions. Market consolidation will allow market players to expand their offer.

In addition to a rapidly growing economy and burgeoning middle class, India is dealing with pressure at its borders, and the government is placing a significant emphasis on border security, which is also likely to drive the market’s growth.

IFSEC India will be taking place next month. You can still register for the event at www.ifsecindia.com.

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