homeland security Market

The Homeland Security market is expected to grow to US$ 275.50 billion by 2028 from US$ 188.99 billion in 2022; it is estimated to grow at a CAGR of 6.5% from 2022 to 2028.

The security of a nation's private and public sectors is of paramount importance, and therefore, governments at state and regional levels are increasing their spending on security solutions. This trend is driving players in the global homeland security market to undertake strategic initiatives like developing new products and forming partnerships and mergers & acquisitions. Some of the leading players in this market are Elbit Systems, General Dynamics, IBM Corp, Lockheed Martin Corporation, Northrop Grumman Corporation, and Thales Group. Some of the strategic initiatives followed by these vendors are as follows:

• IBM Corp. has been actively acquiring various cyber security and threat detection solution providers to expand its range of products. For instance, in November 2021, the company acquired ReaQta to incorporate its automated technology for identifying and managing threats. Similarly, in June 2022, Randori, which provides attack surface management and offensive cyber security solutions, was also acquired by the company.

• Leidos secured a contract with the US Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) for the Priority Services Scientific, Engineering, and Technical Assistance (PS-SETA) in December 2021.

• Thales Group also made a move to strengthen its cyber security product portfolio by acquiring ONEWELCOME in July 2022. ONEWELCOME provides one of the top customer identity and access management solutions to both public and private players.

Thus, the rise in strategic initiatives taken by homeland security market players is enhancing the product portfolio offered. These factors are expected to further augment the growth of the homeland security market over the forecast period.

Impact of COVID-19 Pandemic on Global Homeland Security Market

The pandemic had an adverse impact on North America, resulting in the closure or partial operation of manufacturing units, disrupted supply of components and raw materials, and restricted entry of individuals due to airport shutdowns and border closures. These factors led to a decrease in demand for security solutions, negatively affecting the growth of the homeland security market. Despite these challenges, critical system manufacturers were able to continue their operations, aided by government support. For example, the NDI Recognition Systems surveillance system was awarded a contract by the Federal Aviation Administration after delivering the NDI Remote Surveillance System-Maritime to the Department of Homeland Security / Customs and Border Protection in 2020. From the third quarter of 2020, homeland security manufacturers and service providers started to witness stable demand, helping revive the market. In 2020, the US Department of Homeland Security made critical investments to ensure national safety, such as awarding ManTech a contract worth US$ 273 million for border control analytic services until 2025. Such investments are expected to positively impact the market growth in the region.

Terrorist attacks on the US, as well as in European countries like the UK and Spain, have led both sides of the Atlantic to strengthen their efforts to ensure homeland security and fight against terrorism. However, the US and Europe have different approaches to addressing these issues. The US has undergone significant reorganization of its domestic security and border protection institutions, while European countries have chosen to work within their existing institutional frameworks to tackle terrorism and respond to other security challenges, whether natural or man-made. For example, in July 2021, the French Ministry of the Interior chose Sopra Steria, Atos, and a collaboration between Idemia and Idakto to develop the administration system for its digital identity scheme.

The increasing cross-border conflicts among European countries have led to a rise in homeland security spending across the region. Countries like Germany and Belgium have announced that they plan to double their spending on national security operations for the year 2023. The ongoing war between Russia and Ukraine has also raised concerns about national security across European nations, which is expected to further drive the growth of the homeland security market in the region in the coming years.

This market study has profiled several major players in the homeland security market, including Elbit Systems, IBM Corporation, Leidos, Thales Group, Teledyne Flir LLC, Northrop Grumman Corporation, Raytheon Technologies Corporation, Textron Systems, and General Dynamics Information Technology Inc. Other vendors, such as Accenture, Peraton, Mantech International Corporation, AT&T, Micro-X, Echodyne, BAE Systems, L3Harris Technologies, ATOS, HFCL Limited, Mistral Solutions, Homeland Security Solutions, Inc., and Rolta have also been analyzed in the study to provide a comprehensive view of the market. The growth strategies adopted by these companies, whether through organic or inorganic means, are expected to drive the expansion of their product portfolios and global presence, thereby contributing to the growth of the homeland security market.

The overall homeland security market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the homeland security market size. The process also serves the purpose of obtaining an overview and forecast of the homeland security market growth with respect to all market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. Participants of this process include VPs, business development managers, intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the global homeland security market.