Etude sur la compétitivité de l'Industrie européenne de la sécurité

318 Pages·2012·3.4 MB·French

Study on the Competitiveness of

the EU security industry

Within the Framework Contract for Sectoral

Competitiveness Studies – ENTR/06/054

Final Report

Client: Directorate-General Enterprise & Industry

In collaboration with

TNO

Brussels, 15 November 2009
Disclaimer: The views and propositions expressed herein are those of the experts and do not
necessarily represent any official view of the European Commission or any other organisations
mentioned in the Report

ECORYS SCS Group
P.O. Box 4175
3006 AD Rotterdam
Watermanweg 44
3067 GG Rotterdam
The Netherlands

T [phone]
F [phone]
E [email protected]
W www.ecorys.com
Registration no. 24316726

ECORYS Macro & Sector Policies
T +31 (0)31 (0)10 453 87 53
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Preface
This Final Report has been produced as part of the study "Study on the competitiveness
of the EU security industry" commissioned by European Commission Directorate-
General Enterprise and Industry, within the context of the Framework Contract on Sector
Competitiveness Studies (ENTR/06/054).

The report responds to the original technical specifications for the study and the
methodology and scope as set out in the Consortium's initial proposal and workplan, as
agreed and discussed with the client. As set out in the Task Specifications, the main
purpose of the study is the understanding of the competitive position of the security
industry, the main factors influencing its competitive performance, and the reflection on
potential policy options to support the development of the security industry in Europe.

The Final Report is divided into two parts: Part A provides a general assessment of the
security sector as well as a set of policy recommendations; while Part B describes the
main findings emerging from the analysis of the specific segments – which were selected
in consultation with the client and the study monitoring committee.

It should be noted that in addition to the normal difficulties associated with obtaining
information that may be commercially sensitive, the specific nature of the security sector
(from both a demand and supply perspective) presents an additional constraint to the
availability of ‘in-depth’ information and data. In addition, the frequently fragmented
nature of markets for security products and services, and often the supply of these
products and services also, is a further difficulty for developing a coherent picture of the
security sector in Europe.

The information and analysis presented in the report is based on a combination of desk
research and consultations with relevant stakeholders from the security sector itself, from
users of security equipment and systems, and from relevant policy-related and regulatory
institutions. We would like to express our gratitude to all persons and organisations that
provided information and valuable insights to the study.

The analysis contained in the report has been undertaken by a team of consultants from
ECORYS NL, DECISION Études et Conseil and TNO.

Table of contents
Executive summary i
Introduction i
General scope and perimeters of the security sector i
Market size estimates for the security sector v
Competitiveness assessment of selected EU security industry segments vii
Security market developments and implications for the EU security industry xii
Main drivers of the security market xii
Changes in the demand for security equipment and systems xii
Constraints within security markets xiii
Potential EU policy responses to strengthen the security industry and markets xv
Policy recommendations – Summary Matrix xix
PART A - GENERAL ASSESSMENT 1
1 Introduction 3
1.1 General Context 3
1.2 Study purpose and objectives 4
1.3 Preliminary scoping of the security industry 4
1.4 Principle behind the study approach 8
1.5 Contents of the Report 9
2 General assessment 10
2.1 Definition of the security sector 10
2.1.1 Security threat approach 11
2.1.2 Demand side approach 12
2.1.3 Supply side approach 14
2.1.4 General scope and perimeters of the security sector 16
2.1.5 General description of security equipment and supply 17
2.2 Characterisation of the (European) security market 21
2.2.1 Main drivers of the security market 21
2.2.2 Changes in the demand for security equipment and systems 22
2.2.3 Characteristics and constraints within security markets 23
2.2.4 Some implications of market conditions on the structure of the
security industry 25
2.2.5 Technology development issues and support 26
2.2.6 Comparison of EU and US market environments 27
2.3 Market size estimates for the security sector 28
2.3.1 Methodology 28
2.3.2 The global security market 29
2.3.3 The EU security market 30
2.4 Overall assessment of the position of the European security industry 33
2.4.1 SWOT analysis of the security industry 38
2.5 Development of strategies and business models 44
2.6 Brief analysis of main competitors 46
2.6.1 United States 48
2.6.2 China 51
2.6.3 Japan 54
2.6.4 Israel 55
2.6.5 Russia 58
3 Policy rationale and recommendations 61
3.1 Rationale for an industrial policy for the security industry 61
3.1.1 Security as a “public good” 61
3.1.2 Complexity of measuring the value of security investments 62
3.1.3 Market conduct failures (market power and competition) 62
3.2 Possible policy responses 64
3.2.1 A European 'vision' for security through enhanced public-private
dialogue 64
3.2.2 An industrial policy for the security sector 65
3.2.3 Standards and certification 67
3.2.4 Liability protection 70
3.2.5 Protection of IPR 72
3.2.6 Market access and procurement systems 73
3.2.7 Research and innovation 75
3.2.8 Linking research to markets 77
3.2.9 Raising awareness and visibility of security issues and developments 78
3.2.10 Training and enhancement of skills 80
3.2.11 Areas for further research and analysis 82
Policy Recommendations – Summary Matrix 83
PART B - SPECIFIC ASSESSMENTS 89
4 Air transport of goods (cargo) 91
4.1 General description of the segment 91
4.1.1 Segment definition 91
4.1.2 Product overview 92
4.1.3 Overview of (air) cargo screening technologies 93
4.2 Market (demand side) overview 96
4.2.1 Overview of main market (customer) segments 96
4.2.2 Cargo related security risks 97
4.2.3 Aviation terrorism impact on security equipment requirements 98
4.2.4 Current approaches to air cargo supply chain security 99
4.2.5 International market profile and market size estimates 101
4.3 Description of the supply (value) chain 105
4.3.1 General description and overview 105
4.3.2 Overview of main market players 106
4.3.3 Technology aspects 113
4.3.4 Component supply 114
4.3.5 Equipment and sub-systems 114
4.3.6 Integration and customisation 115
4.3.7 Related services 116
4.3.8 Linkages to final markets 117
4.3.9 Overall assessment of the supply chain 117
4.4 Main trends and developments 117
4.4.1 Market trends and developments 117
4.4.2 Technology trends and developments 120
4.4.3 Production trends and developments 120
4.4.4 Overall assessment of trends and developments 121
4.5 Regulatory conditions and development 122
4.5.1 International, European and national security-related regulatory
conditions 122
4.5.2 Industry and market based standards 126
4.5.3 Overall assessment of regulatory conditions and related policy
initiatives 128
4.6 The global competitiveness position of the EU industry 130
4.7 Conclusions and potential policy issues 132
5 Maritime transport of goods (cargo) 133
5.1 General description of the segment 133
5.1.1 Segment definition 133
5.1.2 Product overview 133
5.1.3 Overview of vessel and container tracking and tracing technologies 135
5.2 Market (demand-side) overview 137
5.2.1 Overview of main market (customer) segments 137
5.2.2 Current approaches to marine transport security 138
5.2.3 International market profile and market size estimates 140
5.3 Description of the supply (value) chain 142
5.3.1 General description and overview 142
5.3.2 Overview of main market players 143
5.3.3 Technology aspects 145
5.3.4 Component supply 146
5.3.5 Equipment and sub-systems 146
5.3.6 Integration and customisation 154
5.3.7 Related services 155
5.3.8 Linkages to final markets 156
5.3.9 Overall assessment of the supply chain 156
5.4 Main trends and developments 156
5.4.1 Market trends and developments 156
5.4.2 Technology trends and developments 158
5.4.3 Production trends and developments 158
5.4.4 Overall assessment of trends and developments 159
5.5 Regulatory conditions and development 159
5.5.1 International, European and national security-related regulatory
conditions 159
5.5.2 Industry and market-based standards 162
5.5.3 Overall assessment of regulatory conditions 163
5.6 The global competitiveness position of the EU industry 163
5.7 Conclusions and potential policy issues 164
6 Chemical, biological, radiological, nuclear or explosive (CBRNE) detection 165
6.1 General description of the segment 165
6.1.1 Segment definition 165
6.1.2 Product overview 166
6.1.3 Overview of CBRNE technologies 166
6.2 Market (demand-side) overview 168
6.2.1 Overview of main market (customer) segments 168
6.2.2 International market profile and market size estimates 168
6.3 Description of the supply (value) chain 169
6.3.1 General description and overview 169
6.3.2 Overview of main market players 169
6.3.3 Technology aspects 174
6.3.4 Component supply 175
6.3.5 Equipment and sub-systems 176
6.3.6 Integration and customisation 176
6.3.7 Related services 176
6.3.8 Linkages to final markets 176
6.3.9 Overall assessment of the supply chain 177
6.4 Main trends and developments 177
6.4.1 Market trends and developments 177
6.4.2 Technology trends and developments 178
6.4.3 Production trends and developments 179
6.4.4 Overall assessment of trends and developments 179
6.5 Regulatory conditions and development 179
6.5.1 International, European and national security-related regulatory
conditions 179
6.5.2 Industry and market-based standards 180
6.5.3 Overall assessment of regulatory conditions 181
6.6 The global competitiveness position of the EU industry 181
6.7 Conclusions and potential policy issues 182
7 Biometric solutions 183
7.1 General description of the segment 183
7.1.1 Segment definition 183
7.1.2 Product overview 185
7.1.3 Overview of biometric security technologies 187
7.2 Market (demand side) overview 189
7.2.1 Background to the development of the biometrics market and
industry 189
7.2.2 Overview of main market (customer) segments 190
7.2.3 International market profile and market size estimates 191
7.3 Description of the supply (value) chain 193
7.3.1 General description and overview 193
7.3.2 Overview of main market players 195
7.3.3 Technology aspects 201
7.3.4 Component supply 201
7.3.5 Equipment and sub-systems 202
7.3.6 Integration and customisation 202
7.3.7 Related services 202
7.3.8 Linkages to final (end user) markets 203
7.3.9 Overall assessment of the supply chain 203
7.4 Main trends and developments 204
7.4.1 Market trends and developments 204
7.4.2 Technology trends and developments 206
7.4.3 Production trends and developments 207
7.4.4 Overall assessment of trends and developments 207
7.5 Regulatory conditions and development 208
7.5.1 International, European and national security-related regulatory
conditions 208
7.5.2 Industry and market-based standards 211
7.5.3 Overall assessment of regulatory conditions 213
7.6 The global competitiveness position of the EU industry 213
7.7 Conclusions and potential policy issues 215
8 Secure, mobile, ad-hoc communication systems 217
8.1 General description of the segment 217
8.1.1 Segment definition 217
8.1.2 Product overview 217
8.1.3 Overview of technologies 218
8.2 Market (demand-side) overview 219
8.2.1 Overview of main market (customer) segments 219
8.2.2 International market profile and market size estimates 219
8.3 Description of the supply (value) chain 220
8.3.1 Overview of main market players 221
8.3.2 Component supply 225
8.3.3 Electronic Board Assembly 225
8.3.4 Equipment design and integration 226
8.3.5 System Integration 226
8.3.6 Related services 226
8.3.7 Linkages to final markets 227
8.3.8 Overall assessment of the supply chain 227
8.4 Main trends and developments 229
8.4.1 Market trends and developments 229
8.4.2 Technology trends and developments 229
8.4.3 Production trends and developments 232
8.5 Regulatory conditions and developments 234
8.5.1 International, European and national security-related regulatory
conditions 234
8.5.2 Industry and market based standards 235
8.5.3 Overall assessment of regulatory conditions 236
8.6 The global competitiveness position of the EU industry 236
8.7 Conclusions and potential policy issues 238
9 Protective and intelligent textiles and clothing 240
9.1 General description of the segment 240
9.1.1 Segment Definition 240
9.1.2 Product overview 242
9.1.3 Overview of technologies for protective/intelligent clothing and
textiles 243
9.2 Market (demand-side) overview 244
9.2.1 Overview of main market (customer) segments 244
9.2.2 International market profile and market size estimates 246
9.2.3 European production profile 247
9.3 Description of the supply (value) chain 249
9.3.1 General description and overview 249
9.3.2 Overview of main market players 250
9.3.3 Technology aspects 259
9.3.4 Fibres and fabric supply 260
9.3.5 Confection / garment production 260
9.3.6 Related ‘support’ services 260
9.3.7 Linkages to final (end-user) markets 262
9.3.8 Overall assessment of the supply chain 262
9.4 Main trends and developments 262
9.4.1 Market trends and developments 263
9.4.2 Technology trends and developments 264
9.4.3 Production trends and developments 266
9.4.4 Overall assessment of trends and developments 266
9.5 Regulatory conditions and development 266
9.5.1 International, European and national security-related regulatory
conditions 266
9.5.2 Industry and market-based standards 267
9.5.3 Overall assessment of regulatory conditions 268
9.6 The global competitiveness position of the EU industry 269
9.7 Conclusions and potential policy issues 271
ANNEX I: Glossary and list of acronyms 275
ANNEX II: List of interviewees 280
ANNEX III: List of references 282