Analysis projects government spending on security to double
December 4, 2003
PALO ALTO, Calif. - New analysis from Frost & Sullivan projects the government end-user security market will double in size within the next five years, providing opportunity for systems integrators and manufacturers alike.
According to the report, U.S. Government End-User Security Markets, the market recorded revenues of $7.49 billion in 2002. In 2009, total market revenues are expected to reach $16 billion.
Much of this increase is thanks to the new Department of Homeland Security, with the government planning upgrades and installations throughout various agencies. Specifically, the government is investing heavily in high-end defense systems, such as chemical, biological and explosive detection equipment. Increased security awareness has also generated interest in testing new technologies.
Ã¢â‚¬Å“The DHS will ensure that there is a more streamlined approach toward security and a common security standard could be established,Ã¢â‚¬Â said Deepak Shetty, senior industry analyst for Frost & Sullivan.
Frost & Sullivan also predicts another driver in the government end-user market will be the desire to integrate security systems, which is expected to be a challenge since many agencies now deploy diverse, stand-alone systems.