Government security market continues growth

Jan 7, 2004 12:00 PM

New research projects that U.S. government end-users will generate $16 billion in revenues in 2009, after the industry generated revenues totaling $7.49 billion in 2002.

The report, from research group Frost and Sullivan, points to upgrades and new installations planned in various agencies as sources of greater revenue for vendors.

Although the Department of Homeland Security (DHS) is still a young organization, it is one of the largest end-user markets for security solution and system providers, the report says. Not only have new security threats prompted the government to invest heavily in high-end defense systems (such as chemical, biological, and explosive detection equipment), but increased security awareness has also generated interest in testing new technologies.

While targeting government agencies, vendors will have to take into consideration the legacy systems that have not been upgraded for years. Since those systems represent substantial investments, they are not likely to be completely discarded in favor of new technologies. Most government agencies have diverse stand-alone systems at various locations; hence, integration will be a major challenge. The government will desire technologies that can seamlessly assimilate functions of all security systems and make them more robust, Frost and Sullivan analyst Deepak Shetty explains.

"Customers are looking for systems that can incorporate diverse applications such as security, time and attendance, and building controls," he says.

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