Continued terrorist threat creates boom in European airport security equipment market

City

The continued threat of terrorism is set to drive growth across the entire European airport security equipment market, especially given recent European Union legislation, which aims to impose standard security requirements across all member states.

Europe has immense market potential: estimates for the period 2006-2010 indicate 20 new airports will be built and 36 existing ones will need to be upgraded. New analysis from Frost & Sullivan predicts that this market will see top-line growth in the region of 34.3%, in part due to significant growth opportunities in the burgeoning economies of Eastern Europe. Following the September 2001 terrorist attacks, countries across Europe began to strengthen airport security, though these efforts were intensified soon after the London explosions in July 2005.

Increased airport security measures were announced by a number of countries, including Hungary, Italy, Denmark, the Czech Republic and Poland. In London, transport and leisure stocks fell following the explosions, and stocks were also affected outside Europe, including in the United States. However, shares in airport security companies' rose, with Isonics Corp, a supplier of portable devices for detecting explosives up 10% to $3.33. The ongoing terrorist threat in the wake of the London explosion has forced European authorities to rethink their approach to airport security. This includes the decision to go onto heightened alert after 24 terrorist suspects were held over an alleged plot to blow up as many as 10 transatlantic jets destined for the US in August 2006. This has created opportunities for small and medium-sized companies offering niche airport security equipment or add-on components, with growth prospects focused primarily in the explosive detection and biometrics segments - above all in the areas of baggage and cargo screening, as well as in passport verification.

There have also been a significant number of venture-capitalist and private-equity deals in this market, including deals from traditional institutional investors. Private equity investors have good prospects in the CCTV and perimeter fencing sub-segments, while venture capitalists would do well to explore areas such as biometrics and explosive detection, as these are experiencing rapid growth and are by nature technology-intensive fields. This press release is based on a recent research service, European Airport Security Equipment Market: Investment Opportunities, part of the Financial Benchmarking and Analysis Growth Partnership Service program. It provides the five main investment themes, namely, industry economics, growth monitor, private equity, mergers and acquisitions and venture capital activity.

In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: perimeter and access control (sub-segments include perimeter fencing, alarms and sensors, electronic doors and locks biometrics), monitoring (sub-segments include CCTV, digital surveillance, intercom and video door phone) and fire and explosives detection (sub-segments include metal detectors, X-ray and infrared equipment and explosives detection system). Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics. (media.prnewswire.com)

ADVERTISEMENT

MVM to Pay Early Dividend Energy Trade

MVM to Pay Early Dividend

Poland Jobless Rate Unchanged in October World

Poland Jobless Rate Unchanged in October

Business Chamber, Ministry Sign Cooperation Agreement Deals

Business Chamber, Ministry Sign Cooperation Agreement

More Guest Nights y.o.y. for Year-end Tourism

More Guest Nights y.o.y. for Year-end

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.