The global transportation security technology market size was valued at $33,130.0 million in 2017 and is expected to garner $61,272.1 million by 2025, growing at a CAGR of 8.0% from 2018 to 2025.
Transportation security technology is used in various industry segments for safety of goods, products, or people while travelling. The technology comprises systems and services that provide security in all modes of transportation namely, airway, waterway, roadway, and railway. The technology is majorly used in airport security, courier companies, railway departments, mass transit, logistics, port security, and returnable transport items. The significantly increasing demand for the transportation security equipment has been owing to the advanced security while in transit.
Technologies, such as video surveillance and voice recognition, have now been used across a number of transportation hubs for the purpose of surveillance and identification. Over the years, there has also been the introduction of various scanners, which detect specific compounds and solutions; for instance, the Department of Homeland Security (DHS) has been exploring the expansion of passenger and luggage screening at various railway networks globally. Various security technologies, such as biometric or access controls, automated 3-D and X-ray scanning for passengers and luggage, and others, have been adopted by the government to ensure safety of passengers.
The growth of the transportation security technology market is driven by the constant need for public safety and massive transportation infrastructural development. However, high investment cost of the technology and problems associated with security applications’ implementation in all the modes of transportation hinder the market growth.
Furthermore, emerging technologies in video surveillance and screening along with high return on investment from enhanced security offer lucrative opportunities for the market.
The key market players profiled in the transportation security technology market report include Raytheon Company, Smiths Detection, Inc., Security Electronic Equipment Co. Ltd., Lockheed Martin, L-3 Communications Holdings, Inc., Honeywell International, Inc., Rapiscan Systems, United Technologies Corporation, Alstom, and Kapsch
The transportation security technology market is segmented based on transportation mode, application, and region. On the basis of transportation mode, the market is divided into airway, waterway, railway, and roadway. By application, the market is categorized into video surveillance, passenger & baggage system, cargo inspection system, perimeter intrusion detection, access control, nuclear & radiology detection, fire safety & detection system, tracking & navigation system, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America Middle East and Africa (LAMEA).
Rising need for public safety, soaring transportation infrastructural development, and emerging technologies in surveillance and screening along with high investment cost are the significant factors that affect the growth of the global transportation security technology market. These factors are anticipated to either drive or hamper the market growth.
Rising Need for Public Safety
The air, land, and marine transportation systems are designed for accessibility and efficiency to facilitate global trade and travel. However, with the surge in crime rates, antisocial behavior, and terrorist attacks, the government has introduced new technologies and strategies to ensure public safety. It has become necessary to improve the system and responses for catastrophic attacks and find safer, cost-effective, and feasible solutions. This feature adds traction to the market growth and offers lucrative growth opportunities for the global transportation security technology market.
High Investment Cost
Transport security technology is quite expensive to implement and faces significant obstacles majorly in the developing nations. Lack of adequate funding from the government in developing countries, such as India, China, South Korea, and others, for adoption of the security technologies in various transportation modes hampers the growth of the market. The use of enhanced technology involves major investment, which acts as a barrier for the transportation security technology market.
Emerging Technologies in Surveillance and Screening
With the increase in the need for public safety, the government has been exploring the expansion of passenger and luggage screenings, owing to the possible fatal threats. Further, adoption of innovations in transportation security technologies, such as biometrics, data analytics, and 3-D or multi-view scanning, provides lucrative growth opportunities for the key players operating in the global transportation security technology market. Analytics solutions that have been deployed for the surveillance systems are being made smarter and closer towards the Internet of Things (IoT), which is opportunistic for the market.
Key Benefits
- This study comprises an analytical depiction of the global transportation security technology market with current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined to understand the lucrative trends to gain a stronger foothold in the global transportation security technology industry.
- The report includes information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current market is quantitatively analyzed from 2017 to 2025 to highlight the financial competency of the global market.
- Porter’s Five Forces analysis illustrates the potency of the buyers and suppliers in this global market.
Transportation Security Technology Market Report Highlights
| Aspects | Details |
 By Transportions Type |
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 By Application |
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 By Region |
|
 Key Market Players | L3 TECHNOLOGIES, INC, UNITED TECHNOLOGIES CORPORATION, RAYTHEON COMPANY, SMITHS GROUP PLC (SMITHS DETECTION INC.), LOCKHEED MARTIN CORPORATION, KAPSCH AKTIENGESELLSCHAFT, OSI SYSTEMS, INC. (RAPISCAN SYSTEMS), ALSTOM SA, SECURITY ELECTRONIC EQUIPMENT CO., LIMITED, HONEYWELL INTERNATIONAL INC |
Analyst Review
Several technologies have been adopted by the governments across the world to implement high security in public transportation. The technological systems, solutions, and services deployed in various transportation modes include incident detection, access control, and speed limit enforcement. Moreover, stringent government regulations to strengthen the traditional security technology are expected to create ample opportunities for the global transportation security technology market expansion.
North America was dominant in the transportation security technology market and occupied a major market share in 2017. The region has major players offering advanced solutions. This is attributed to the extensive adoption of advanced technology by the region for security of public and infrastructure, which is expected to propel the market growth.
The Asia-Pacific region occupies a major market share in the global transportation security technology market. This is owing to an increase in the population and adoption of enhanced technologies in the transport security system in developing countries, such as India, China, and Indonesia.
An increase in the transportation infrastructure and a rise in the adoption of security standards across various transportation modes fuel the growth of the Asia-Pacific market. One instance of such growth is of the Asia-Pacific Economic Cooperation, which has been creating a new Global Trade Recovery Information Platform (G-TRIP) in collaboration with the World Custom Organization, to facilitate the exchange of critical information during major transportation disruption, which propels the market growth in this region.
Raytheon Company, Smiths Detection, Inc., Security Electronic Equipment Co. Ltd., Lockheed Martin, L-3 Communications Holdings, Inc., Honeywell International, Inc., Rapiscan Systems, United Technologies Corporation, Alstom, and Kapsch are the key players that occupy a significant revenue share in the global transportation security technology market.
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