Passenger Security Market Size, Share and Covid-19 Impact Analysis, By Equipment (Baggage Inspection Systems, Explosive Trace Detectors, Hand-Held Scanners, Walk-Through Metal Detectors, Full-Body Scanners, Perimeter Intrusion Detection Systems, Video Management Systems, Access Control/Biometric Systems, Bar-Coded Boarding Systems, Cyber-Security Solution), By End-user (Airport, Seaport, Railway Station and others), and Regional Forecast, 2020- 2027

The global passenger security market size was USD 5.85 billion in 2019 and is projected to reach USD 8.45 billion by 2027, exhibiting a CAGR of 5.49% during the forecast period (2020 – 2027).

Passenger security is one of the essential procedures to reduce the risk of threats and any other criminal activities across the globe. The passenger screening routine has become very important in the national and international transport infrastructure to prevent luggage from carrying any illegal items such as any sharp objects, guns, and ammunition in the fights, trains, and ships. The screening systems enhance service quality and provide safety from exposure to hazards.

Security and screening systems also provide inside images of luggage, bags, suitcases, and other items, especially with the x-ray screening machines. Moreover, they also consist of luggage inspection systems, explosive trace detectors, handheld scanners, walk-through metal detectors, and full-body scanners. The security screening systems are installed to increase passenger safety in several transport infrastructures such as airports, bus stations, railway stations, and others.

Growth in passenger traffic, along with the significant technological advancement in the screening technology and inspection system, is expected to fuel the market expansion of passenger security in the coming years. The airport authorities are improving security procedures to track possible threats by evaluating the behaviors and intentions of numerous travelers and visitors in the countries. The aviation industry is more crucial in terms of providing a safe and secure flight period due to high altitude traveling from one destination to another. Therefore, the all-possible checking of passengers is very important before taking the flying experience. The U.S. Transportation Security Administration (TSA) recorded the 3% annual growth of passenger baggage compared to passenger baggage screened in 2018. These factors are projected to fuel passenger security market growth during the forecast period.

LATEST TRENDS

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New Airport Construction Projects to Propel Passenger Security Market

Growing investment in airport construction in several countries is likely to fuel the aviation industry during the forecast period. The total number of new airport projects is projected to be more than 400 in the Asia Pacific in the coming years. The new global airport construction investment is predicted to be around USD 93 billion by 2020. The emerging countries such as India, China, and Indonesia are anticipated to build new international airports in the next few years due to the rising air passengers and world travelers in these countries. These factors are projected to fuel the growth of the passenger screening system market during the forecast period.

Increasing Adoption of Smart Screening Technology for Strengthening Passenger Safety

Several countries, such as the U.S., Canada, and Germany, are majorly focusing on the technological up-gradation of the existing systems to avoid any risk of threats around the transport infrastructure. For example, the Transport Security Administration (TSA) in the U.S. has taken initiatives for enhancing safety parameters such as the deployment of 141 screening lanes across the 14 airports. Moreover, TSA has deployed advance-imaging technology with x-ray systems and explosive trace detectors. TSA is likely to enhance existing security counters by installing baggage screening technology to improve operational efficiency. These key factors are projected to fuel the passenger security market during the forecast period.

DRIVING FACTORS

Increase in Aviation Passenger Traffic Is Resulting In Improvements in Security Procedures

A rise in the growth rate of passenger traffic, especially in developing economies such as China and India, is projected to propel this market growth during the forecast period. The strong growth of the global commercial aviation industry from the past few years has resulted in the increased necessity of several security procedures at airports, railways, and ports. The security authorities have increased the screening of passengers through specific types of machinery such as explosive detector system, handheld scanner, full-body scanners, and metal detectors. In the U.S., the Transportation Security Administration (TSA) operates around 440 airports across the country. The TSA has recorded the highest number of passengers of 813.8 billion with screening in the country in 2018. The TSA also recorded a growth of over 5.5% in travelers of around 2 billion from the past few years. These factors are projected to propel the demand for these security systems in the future years.

Increase in Outer Threats, Cyber Attacks, and Risk for Terror Attacks to Fuel Passenger Security Market

The increase of terror threats and suspicious activities in the aviation industry are creating a need for strengthening frontline security systems across the world. This, in turn, is expected to boost this market during the forecast period. Several countries are facing key concerns of passengers trying to carry prohibited drugs, liquid explosives, and illegal weapons. Therefore, the international regulatory frameworks have enhanced provisions for the aviation authorities to detect and restrict such cases. Civil aviation is always on the target of terrorist groups due to higher civilian casualties and media attention possible around the world. Air terrorisms also possess threats to the surrounding infrastructure of aviation safety of passengers during air travel.

The key threats consist of three types, such as bomb attacks, man pads, and hijacks, and to prevent these malicious exercises, the airport operators need to maximize at the screening counters. It is possible by the installation of innovative technology systems to detect potential hazards carried by the terrorists. The rise in the number of air passengers and travelers due to affordable flight rates across the globe is projected to accelerate the demand for effective security systems in the forecast period. Passenger traffic is increasing day by day owing to the growing disposable income in the middle class, especially in the emerging economies of the world.

RESTRAINING FACTORS

High Cost of Equipment and Installation Cost is a Major Restraining Factor

The OEM companies precisely manufacture the security systems across the globe due to stringent regulatory frameworks and government norms for safety measures. The security equipment is placed in airports, railways, and other infrastructure for a long duration. These are employed to provide constant checking of numerous travelers. Therefore, OEM companies are needed to manufacture security products with high-quality hardware and components to reduce the risk of operational failure. The manufacturing cost and components of security systems are highly expensive, which further increases the final prices of products. However, new product development and innovation owing to the increased R&D activities by the major players are projected to propel the passenger security market growth during the forecast period.

COVID-19 Outbreak May Hamper Future Industry Expansion Due to Higher Operational Cost

The COVID-19 outbreak has become a prominent factor in the global crisis, especially in the aviation industry. The aviation industry is exhibiting a financial fall due to the global lockdown for the inbound passenger flights in North America, Europe, Asia Pacific, and the Middle East. According to IATA’s latest updates, the major global fleet has been grounded and year on year passenger revenues are likely to decline by USD 252 billion by 2020. The operational cost for airline companies is projected to increase at a substantial value due to the global crisis. These factors are anticipated to impact the new airport construction contracts and other airport infrastructure-related industries, which can hamper growth in the coming years.

SEGMENTATION

By Equipment Analysis

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High Demand for Baggage Inspection Systems Segment to Provide Maximum Revenue Share

根据设备类型、市场分类into baggage inspection systems, explosive trace detectors, hand-held scanners, walk-through metal detectors, full-body scanners, perimeter intrusion detection systems, video management systems, bar-coded boarding systems, andcyber-security解决方案。行李检查系统部分ccounted for a major share in this market in 2019. This segment is projected to continue to hold a leading position during the forecast period. Every airport infrastructure consists of a luggage screening system to detect or capture any suspicious items such as guns, weapons, drugs, or illegal items in the baggage of the travelers.

These screening systems consist of x-ray machines, which generate high-resolution image processing features and can detect inside items, which may possess flammable liquids, explosives, and illegal drugs. Most countries, such as the U.S., are shifting towards the adoption of advanced image detection systems owing to their key benefits such as uniquesemiconductordetection and high-resolution image detection system. The inspection procedures are crucial and important for the transport authorities to ensure the overall safety and security of passengers. Rapid growth in passenger traffic in several countries is projected to boost the demand for these security systems during the forecast period.

By End-User Analysis

Growing Demand for Air Travel Due To Affordable Flights Rate to Support Growth of Airport Segment

By the end-user, this market is divided into the airport, railways, ports, and others. The airport segment held the maximum share in the market in 2019, and it is projected to continue its dominance in the next few years.

The strong growth of travelers preferring air transport infrastructure is fueling the market size of the aviation industry over the past few years. According to the IATA, in 2019, the revenue passenger kilometer rose by 4.2% as compared to the previous year. The international passenger market is exhibiting rapid growth of 4.1%, and the capacity has increased by 3% across the globe.

An increase in the number of air travelers in several countries, owing to the rise in disposable income and affordable air tickets is a key driving factor for passenger growth. These factors are anticipated to fuel the market during the forecast period.

REGIONAL INSIGHTS

North America Passenger Security Market Size, 2019 (USD Billion)

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The findings based on our research methodology indicate that North America was estimated to hold the maximum market share in 2019. Moreover, the U.S. has the presence of prominent manufacturers of passenger security systems. It is attributable to healthy market growth during the forecast period. The Asia Pacific held the second largest market share in 2019 owing to the presence of multiple passenger security system manufacturers in this region.

As per our market analysis, Asia Pacific is expected to exhibit strong growth in the market during the forecast period owing to the significant up-gradation of commercial airports in developing countries such as India, Indonesia, and China. The region is likely to showcase long-term growth in the market owing to an increase in infrastructure development initiatives across the region in the near future. Furthermore, the market in the Middle East is expected to increase at a moderate CAGR, owing to the large number of air passengers in these regions. Also, the rapid development in investment for attracting travelers to prosper in the tourism sector in this region is expected to drive the market in the Middle East. Moreover, the market in the rest of the world is anticipated to experience moderate growth due to the increase in global air passenger traffic.

KEY INDUSTRY PLAYERS

Adopting Acquisition & Collaborations Strategies To strengthen MarketPosition

The competition landscape of the market consists of major players such as Smiths Detection Group Ltd., SITA, Honeywell International Inc., and Axis Communication AB, among others. A diversified product portfolio of passenger security systems along with the increased investment in R&D for new product development and strategic acquisition are the prominent factors generating dominance of these companies. They are adopting long-term and short-term growth strategies such as mergers and acquisitions, new product launches, long-term contracts withairport securityagencies, and long-term relationships with the government authorities.

LIST OF KEY COMPANIES PROFILED:

• Smiths Detection Group Ltd. (The UK)


• Honeywell International Inc. (The US)


• Orbcomm (The US)


• L3 Security & Detection System (The US)


• Siemens AG (Germany)


• Rapiscan Systems(The US)


• Axis Communication AB (Sweden)


• Bosch Sicherheitssysteme GmbH (Germany)


• Autoclear LLC (The US)


• Nutech (China)

KEY INDUSTRY DEVELOPMENTS:

• April 2019–Axis Communication, headquartered in Sweden, launched a new multidimensional camera with four channels of Quad HD resolution. It is24x7 operational and gives 360-degree coverage.


• December 2017 –The U.S. carriers, including Delta and Jetblue, started investing in the trial activities for the fingerprint andfacial recognition technology. The successful completion of this trial can enable biometric-related processing across the globe. This will help passengers to travel without passports around the globe.

REPORT COVERAGE

The report offers qualitative and quantitative insights on the passenger security systems and a detailed analysis of market size & growth rate for the segments in the market.

而且,这份报告提供了一个elaborative analysis of market dynamics, emerging trends, and the competitive landscape. Key insights offered in the report are the adoption of advanced technology, recent industry developments such as partnerships, mergers &acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2016-2027
Base Year	2019
Forecast Period	2020-2027
Historical Period	2016-2019
Unit	Value (USD Billion)
By Equipment	Baggage Inspection Systems Explosive Trace Detectors Hand-Held Scanners Walk-Through Metal Detectors Full-Body Scanners Perimeter Intrusion Detection Systems Video Management Systems Access Control/Biometric Systems Bar-Coded Boarding Systems Cyber Security Solution
By End-User	Airport Sea Port Railway Station Others
By Region	North America (the U.S. and Canada) Europe (the U.K., Germany, France, Russia and Rest of Europe) Asia Pacific (Japan, China, India, Singapore, and Rest of Asia Pacific) Middle East (Saudi Arabia, UAE, Qatar, and Rest of the Middle East) Rest of the World (Latin America and Africa)