Abstract
Mounting Terrorist Activities Create Need for Detection and Protection Systems
The arena of conflict is no longer restricted to the military alone, creating an urgent need for detection and protection against increasingly unconventional acts of terrorism such as the use of chemical and biological agents. Consumers require reliable detection systems that can maintain near-constant operation and have low incidence rates of false alarms. However, consumer confusion over the actual capabilities of the system can restrain the market, while high costs necessitating long procurement cycles can adversely affect smaller suppliers. Increasing technological challenges of biological detection methods are also causing consumers to adopt a cautious stance that is likely to lift as these challenges are addressed.
This Frost & Sullivan research is a detailed analysis of traditional as well as emerging markets for chemical and biological detection systems. It provides in-depth demand analysis and discusses major technological developments, besides identifying countries that have the most potential to spend on these systems.
Initial Difficulty in Market Penetration to Improve as Awareness of Systems' Capabilities Increases
Military investment in R&D of detection systems is unmatched. While governments such as that of the United States have huge resources at their disposal to obtain detection technology, converting these contractual systems into commercially available ones is a challenging task. The Department of Homeland Security has also started allocating resources to acquire systems for states and major metropolitan areas. "Entering the Homeland Security market requires a diverse marketing campaign and a sales force focused on working with individual states to generate leads," says the analyst. Entering overseas markets might prove to be tough since export restrictions may apply due to the sensitive nature of the technology used.
However, as the awareness of systems' capabilities increases, further market development is envisaged. The first responder market is growing quickly. For the short term, military spending on chemical and biological sensors will remain stable in developed markets. Developing nations will also seek to include, even if in a limited role, detection units in their militaries.
Future for Both Biological and Chemical Detection Markets Looks Positive
"Although the biological detection market may experience more dynamic growth than the chemical detection market, the outlook for both is positive," observes the analyst. Demand for these systems is growing outside the traditional military market, fuelled by the ever-present threat of terrorism and societal expectations that reliable detection systems are in place. Companies may pursue growth by looking beyond possible conventional or terrorist attacks. For example, companies with Toxic Industrial Chemical (TIC) and Toxic Industrial Material (TIM) detection capability could support environmental enforcement of standards. Modifying biological detection systems to identify other strains of agents could also broaden potential consumer base.