Airport perimeter security in the U.S. – a declining market

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The Americans do not believe in perimeter defenses around airports, in spite of the proven performance of these systems. I-HLS reports

U.S. airport perimeter manufacturers — makers of fences, gates, sensors and cameras — will likely face a steep drop in demand over the next several years, a Frost & Sullivan report found.
In 2012, the Federal Aviation Administration awarded airports $58 million in grants to improve safety, but a decline is expected through 2017, said John Hernandez, an aerospace defense senior industry analyst at Frost & Sullivan, a Mountain View, Calif.-based market consulting firm.

Demand for airport perimeter systems and barriers skyrocketed after 9/11, Hernandez said. Between 2001 and 2011, they garnered nearly $650 million. But funding is expected to taper off as demand weakens, Hernandez said. “You will see some stagnation and a decline [in the market],” said Hernandez. “It will never go up to the point it went up to after 9/11.”

Hernandez does not foresee any major airports being built soon, and most work needed at existing airports will be limited to small repairs or refurbishing. Contracts to repair most perimeter control measures will be limited to local vendors.

In 2012, nearly $69 million was invested in airport perimeter-security measures. By 2017, that number will drop to an estimated $47.5 million per year, the study found.
While the outlook for the fencing-and-gate side of the market appears grim, the security enhancement sector — which includes cameras and sensors — looks rosier, he said.

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