NEW YORK--(BUSINESS WIRE)--Sept. 8, 2006--A new market report entitled "Beyond Aviation: The Emerging Ground Transportation Security Market," cites a dramatic imbalance between federal security spending on ground transportation as compared to aviation. According to one estimate, federal funding for aviation security has approached $20 billion since 2001 compared to $400 million for ground transportation security. This despite continued threats against U.S. transit and the terrorist attacks on trains in London, Mumbai, and Madrid.
But the imbalance in government and private spending is starting to shift. The report identifies key drivers for increased spending, including the passage of government funding; growing private sector focus on the business benefits of new security technology; political pressure to increase spending on transit security; and fears raised by terrorist attacks against the Mumbai and London transit systems.
Industry players now focus on ground transportation security. Lockheed Martin is priming a $212 million electronic security project in New York; Raytheon and its team recently won a contract potentially worth over $1 billion to screen cargo - much of it on trucks - for nuclear materials. Aviation security leader Smiths Detection has identified rail security as a future growth driver.
The report predicts U.S. ground transportation security spending will exceed $300 million this year and a total of $1 billion over the coming three years. Much of the spending will be on technologies such as: "intelligent" video surveillance systems; explosives detection equipment; analytical software and systems to improve supply chain efficiency; RFID tracking; access control, from credentialing to perimeter security; and systems integration.
The report details market drivers and constraints, funding, programs and companies. It can be downloaded at no charge from: http://www.legendmerchant.com/go/1.html
The report was prepared by the Convergent Security Group (CSG), an integrated investment banking practice providing value-added capital, M&A, business advisory and market intelligence services to companies and investors in the homeland and national security technology sectors. The CSG is a business unit of Legend Merchant Group, an investment bank headquartered in NYC. GrayDome Partners, LLC, is a joint-venture partner in the CSG.
CONTACT: For Legend Merchant Group Scott L. Greiper, 212-908-6826 [email protected] or Mark Sauter, 410-800-6012 [email protected] KEYWORD: NEW YORKINDUSTRY KEYWORD: MANUFACTURING TRAVEL AIRLINES TRANSPORTATION INTERNET E-COMMERCE LEGAL/LAW HARDWARE SOFTWARE AEROSPACE/DEFENSE GOVERNMENTSOURCE: Legend Merchant Group
