New York: One of the key factors boosting the CBRN security market is increasing demand for chemical, biological, radiological, and nuclear (CBRN) security in developing nations such as China, India, and Brazil among others, says a study by Transparency Market Research.
The study also observed that the global CBRN security market displays a consolidated yet competitive vendor landscape. The crème of the market, 3M Company, Honeywell International, Ansell Ltd., and MSA Safety held more than 70% of the market in 2016.
In order to strengthen the position and for business expansion in the global CBRN market, key players are focused on mergers and acquisitions and strategic alliances. For example, 3M is focused on acquiring various companies in the CBRN security market. In March 2017, 3M announced to acquire North Carolina-based Scott Safety.
As per estimates from Transparency Market Research, the CBRN security market will rise at a CAGR of 4.8% between 2017 and 2025. Progressing at this rate, the market will reach a valuation of US$15074.8 million by 2025 increasing from US$9890.0 million in 2016.
In terms of segmentation by type, the segment of nuclear security held the leading share of more than 30% of the market in 2016 due to increasing terrorist activities in several parts of the world. By function, the segment of protection led the market driven by increasing military expenditures. North America topped among other regional markets for CBRN security in 2016 followed by Europe.
Rising Defense Budget of Nations Fuels Growth
The other reason for growth is that developed countries such as the U.S. have increased their defense budgets to upgrade surveillance and monitoring equipment. African nations are spending incessantly on surveillance systems and monitoring equipment to mitigate growing CBRN threats such as Ebola in the region.
The growth of CBRN security market is also driven by unfavorable geopolitical issues. This is because the impact of threat from unfavorable geopolitical issues is currently high and is expected to be the same over the report’s forecast period. Clashes between countries due to border insurgency, cold wars also indicate a potential threat of CBRN attacks. Thus, early detection of CBRN incidents and timely response to prevent large-scale destruction is the primary concern of governments worldwide.
Last but not the least, increasing threat from terrorist organizations across the world is one of the key factors expected to drive the CBRN security market over the report’s forecast period between 2017 and 2025. Countries across the world are adopting technology-based solutions to build their defense capabilities to combat CBRN attacks by anti-national or terrorist organizations.
High Cost of CBRN Security Equipment Restrains Market
The growth of the CBRN security is negatively impacted by the high cost of installation, maintenance, and refurbishment of CBRN security equipment. The range of equipment used for CBRN attacks includes spectrometers, unmanned vehicles, radiation detectors, training simulators, and reconnaissance vehicles among others. With the rapid advancement of technology, CBRN security equipment becomes obsolete in no time and are expensive to be replaced or refurbished.
The economic potential of countries has a huge impact on defense and security budget which includes CBRN security equipment as well. While developed and developing countries have a substantial budget for CBRN security equipment and systems, under-developed nations of the world are not capable of affording CBRN security systems to fight hostile groups.
Nevertheless, growing demand for CBRN security systems in Asia Pacific and the Middle East and Africa to mitigate CBRN threats is expected to offer lucrative growth opportunities for vendors in the CBRN security market.