Frost: Security Threats Drive Chemical, Biological, Nuclear Detection Devices Market

January 30, 2007 // Published as a news service by IHS

As the post-9/11 U.S. government fortifies its buildings against advanced security threats, the effort greatly boosts the revenue of the North American chemical, biological and nuclear (CBN) detection devices market.

Recent analysis from Frost & Sullivan of the North American CBN detection markets found earned revenues of $199.6M in 2005, with estimates to reach $545.5M in 2012.

Analysts said the government is the single largest spender on threat detection equipment, with departments such as the U.S. Department of Defense (DOD) and U.S. Department of Homeland Security (DHS) installing detection systems in all critical buildings.

"Certain areas and zones have been identified as high-risk areas and the government initiatives are concentrated more strongly in these areas," said Frost & Sullivan senior research analyst Anwesha Bose. "Large government contracts for procuring advanced and efficient detection mechanisms to be installed in buildings have helped both large and small manufacturers in the market to increase their revenues."

Although the CBN detection market still relies mainly on government investments, the spending is no longer as rapid and indiscriminate as it used to be in the wake of the security threats. Analysts said government spending on CBN devices has become more organized, and has thus slowed down the growth in this market.

Manufacturers are under pressure to design versatile products that are capable of identifying a wide variety of hazardous agents. Analysts said they need to satisfy customer demand for simpler and more robust systems that are easy to operate and maintain.

Several end-users shy away from investing in CBN detection devices due to the huge costs of training and maintenance, as well as high rates of false alarms. Apart from these concerns, manufacturers also need to contend with the price competition in the market.

Manufacturers are looking to solve these issues by improving product efficiency (thereby lowering the rate of false positives) and are also adopting cost-effective manufacturing procedures. Analysts said many of them are participating in certification programs to win customer confidence and establish their position in the market.

"Continuous innovation to develop more advanced and sensitive detection techniques and greater public awareness about the importance of installing detection products will further boost the market," said Bose.

Analysts said manufacturers need to inform end-users that timely detection of CBN agents in the air supply or heating, ventilation and air conditioning (HVAC) systems can help avert disasters and widespread damage of valuable life and information. These awareness campaigns can go a long way in buoying market revenues.

Source: Frost & Sullivan.