The homeland security market has continued its rapid growth in spite of the global economic slowdown, growing by a healthy 12 percent. Increased government spending, growing public awareness, and rise in private sector spending has contributed to the rising demand of homeland security products and services. Discretionary spending has also increased and it continues to migrate toward services rather than products where service providers are expected to dominate the homeland security landscape in the near future.
According to Frost & Sullivan’s Asia Pacific consultant of aerospace and defense practice Kunal Sinha, under the Obama administration, the Department of Defense (DoD) homeland security budget has allocated a majority of the funding toward security, enforcement, and investigations mission area. The overall budget has grown by 6.2 percent from the year 2008-9. Customs and Border Protection (CBP) has been the top funded agency for the year 2010.
“The perceived and the real threat of terrorism continues to be the key driver of the homeland security market. Global terrorist activities have been growing dramatically since 2000, after a relative lull between the years 1990-2000,” he continues.