Frost: Continued Threats Create Boom in Euro Airport Security Equipment Market

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

Recent analysis from Frost & Sullivan found that Europe has immense market potential: analysts indicate 20 new airports will be built and 36 existing ones will need to be upgraded between the forecast period of 2006-2010.

This market will see top-line growth of approximately 34.3%, in part due to significant growth opportunities in the burgeoning economies of Eastern Europe.

Following the September 2001 U.S. terrorist attacks, analysts said countries across Europe began to strengthen airport security, though their efforts were further 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.

This 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, for use 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. Analysts said private equity investors have good prospects in the closed circuit TV (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

Source: Frost & Sullivan.