ID: MRFR/SEM/9139-HCR | July 2021 | Region: Global | 145 pages
Contraband Detectors Market Overview
The contraband detectors market is estimated to reach USD 6.2 billion by 2027, registering a CAGR of 5.83% during the forecast period of 2021–2027. The contraband detectors market has a substantial growth potential owing to numerous factors, including increasing adoption of x-ray screening machines in the travel &transportation sector and growing adoption of contraband detectors in retail places primarily due to rising security concerns in public places including malls, and commercial establishments, among others.
Increasing incidents by extremist elements that can potentially lead to substantial risk to life and property have boosted the adoption of these machines over the past two decades. Security checks and drills at malls, airports, train stations, and other large venues such as stadiums and hotels have become part of the standard procedure to access these places. A marked increase in the trade of illegal narcotics and drugs over the past few years has further driven the contraband detectors market growth.
However, the significant initial investment and higher maintenance and operational costs associated with large security systems are among the key factors restricting the growth of the contraband detectors market. Contraband detector systems are increasingly used to enforce security and safety standards at public places, transit facilities, government organizations, commercial buildings, banks, critical infrastructure such as hospitals and educational institutions; however, they come at a high cost of ownership.
Many of these places require costly explosive detectors, for which the operational cost is equally high. For example, full-body X-ray scanners require a huge initial investment. Additionally, the maintenance cost of numerous explosive detectors is comparatively higher than other technologies. All these factors could result in a reluctance to deploy security measures at facilities. This is likely to impact the contraband detector market negatively in the coming years.
The market experienced a fall in March 2020, owing to the impact of COVID-19 lockdown. Supply chains were disrupted due to the global lockdown imposed by various governments and labor and raw material shortages in industries due to restrictions greatly affect the contraband detector market.
The COVID-19 pandemic has ravaged several industries around the world, including live sports and peripheral businesses such as broadcasting, hospitality, and transportation. Many scheduled tournaments events, including the Tokyo Olympics, have been postponed or have had their formats altered to adhere to social distancing norms. Stakeholders, as a result, are trying to gauge the revenue and viewership impact from interrupted revenue generation and sudden drop in audience engagement and attendance.
Global lockdowns, and particularly in Asia, in 2020, adversely impacted the adoption of contraband detectors. The significant drop in traveling and shutting down of public places for a prolonged period led to the redundancy of purchases and adoption of contraband detectors over the year. The maintenance and operational costs also mounted significantly during the lockdown period with frequent lifting and re-introduction of shutdowns, locally and globally.
Growing concerns regarding security devices due to increasing extremist activities and fast-growing urbanization are among the key factors likely to boost the demand for contraband detectors. Increasing extremist incidents involving significant loss of life and property, governments around the world are investing heavily in advanced contraband detector systems, which is projected to enhance the contraband detector market growth. Additionally, the growing need to curb the narcotics trade poses a challenge to most governments around the world, further advancing the growth of the contraband detectors market.
Contraband detector devices and systems are commonly used to safeguard security at transit facilities, hospitals, public places, banks, government organizations, educational institutions, commercial buildings, critical infrastructure, among others. However, the costs associated with the maintenance and operational upkeep are substantial. Many of the places require costly explosive detectors for which the operational cost is equally high. Additionally, the maintenance cost of several explosive detectors is comparatively high.
Increasing threats at important places, including airports, borders, places of religious significance, and government facilities, have enhanced the adoption of security measures. Over the last few decades, the number of passengers at airports has witnessed consistent growth. Owing to the easing of trading policies, convenient transportation, and cargo services across the world are being adopted increasing, thereby boosting the use of screening technologies at these places.
The global contraband detectors market is growing significantly, with forecasted growth prospects over the current decade. The rapid adoption of sophisticated surveillance devices is projected to drive market growth over the forecast period. The value chain of the contraband detectors market consists of screening device manufacturers, camera manufacturers, monitors, processors, software companies, service providers, and buyers.
The global contraband detectors market is projected to grow at a significant rate over the forecast period from 2021 to 2027. The geographic analysis of the contraband detectors market has been segmented into North America (US, Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, and the rest of Asia-Pacific), and the rest of the world (Middle East & Africa and South America). Among these, North America dominated the contraband detectors market in 2020 due to the concentration of airports, ports, and large public arenas in the region and a growing number of manufacturers. On the other hand, Asia-Pacific is expected to witness the fastest growth during the forecast period.
Dominance of North America Throughout the Forecast Period
North America has been at the forefront of innovative and emerging technologies. The regional market is a consolidated market due to the presence of a limited number of companies and device manufacturers. The contraband detectors market in the region is expected to witness steady growth over the next decade and is projected to witness similar growth prospects compared to other regions. The well-developed familiarity and adoption of contraband detectors in North America and the proliferation of the technology industry are key factors contributing to the growth of the contraband market in this region. The US and Canada are key countries considered for market analysis in this region.
Europe Continues to Show Maturity
Europe consists of various countries with robust financial and technological systems in place. The UK, France, and Germany are the key countries considered for market analysis in the European region. The contraband detectors market in Europe is witnessing significant growth due to the adoption of sophisticated surveillance devices, tracking technologies, and screening technology devices.
The global contraband detectors market is characterized by the presence of several global vendors. The contraband detectors market is competitive and consolidated, with most players vying to gain market share in the expanding market. Vendors compete based on device quality, device cost, ease of adoption and installation, and security, aftersales services, and reliability. The growth of market vendors depends upon market conditions, government support, especially in the post-pandemic scenario, and industry development.
|Market Size||USD 6.2Billion (2020)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Screening Type, Technology, Deployment, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Smiths Group, OSI Systems, Leidos, Nuctech, Metrasens, Adani Systems, Berkeley Varitronics Systems, CEIA, CSECO, and Godrej Security Solutions|
|Key Market Opportunities||Digital Transformation Through AI-Technology in Security Applications|
|Key Market Drivers||Growing Security Concerns Due to Rapid Urbanization, Increasing Government Investments to Improve Transit Facilities, and Ongoing Technological Advancements in Security Screening Systems|