Homeland Security Market Research Report and Outlook by 2028

The Homeland Security sector is projected to reach a value of US$ 275.50 billion by 2028, up from US$ 188.99 billion in 2022, reflecting a compound annual growth rate (CAGR) of 6.5% during the period from 2022 to 2028.

Ensuring the safety of both public and private sectors is crucial for any nation, prompting governments at various levels to increase their investments in security solutions. This growing emphasis on security is encouraging participants in the global homeland security market to engage in strategic actions such as product innovation and forming alliances through mergers and acquisitions. Key players in this market include Elbit Systems, General Dynamics, IBM Corp, Lockheed Martin Corporation, Northrop Grumman Corporation, and Thales Group. Below are some notable strategic initiatives undertaken by these companies:

• IBM Corp. has been actively expanding its cybersecurity and threat detection capabilities through acquisitions. For example, in November 2021, it acquired ReaQta to enhance its automated threat identification and management technologies. Additionally, in June 2022, IBM acquired Randori, a company specializing in attack surface management and offensive cybersecurity solutions.

• Leidos secured a significant contract with the US Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) for the Priority Services Scientific, Engineering, and Technical Assistance (PS-SETA) in December 2021.

• Thales Group bolstered its cybersecurity offerings by acquiring ONEWELCOME in July 2022, a firm recognized for its customer identity and access management solutions catering to both public and private sectors.

These strategic initiatives by key players in the homeland security market are enhancing their product offerings, which is anticipated to further stimulate market growth throughout the forecast period.

Effects of the COVID-19 Pandemic on the Global Homeland Security Market

The COVID-19 pandemic had a detrimental effect on North America, leading to the shutdown or limited operation of manufacturing facilities, disrupted supply chains for components and raw materials, and restricted movement due to airport closures and border restrictions. These challenges resulted in a decline in demand for security solutions, adversely impacting the growth of the homeland security market. Nevertheless, essential system manufacturers managed to maintain operations, supported by government interventions. For instance, the NDI Recognition Systems surveillance system received a contract from the Federal Aviation Administration after successfully delivering the NDI Remote Surveillance System-Maritime to the Department of Homeland Security / Customs and Border Protection in 2020. By the third quarter of 2020, manufacturers and service providers in the homeland security sector began to experience a resurgence in demand, aiding market recovery. In 2020, the US Department of Homeland Security made significant investments to bolster national security, including a contract worth US$ 273 million awarded to ManTech for border control analytics services extending to 2025. Such investments are expected to positively influence market growth in the region.

Recent terrorist incidents in the US and European nations, including the UK and Spain, have prompted both regions to intensify their homeland security measures and counter-terrorism efforts. However, the approaches taken by the US and Europe differ significantly. The US has undergone substantial restructuring of its domestic security and border protection agencies, while European nations have opted to enhance their existing frameworks to address terrorism and other security threats, whether they are natural disasters or man-made crises. For example, in July 2021, the French Ministry of the Interior selected Sopra Steria, Atos, and a partnership between Idemia and Idakto to develop the administrative system for its digital identity initiative.

Rising cross-border tensions among European nations have led to increased spending on homeland security across the continent. Countries such as Germany and Belgium have announced plans to double their national security budgets for 2023. The ongoing conflict between Russia and Ukraine has further heightened national security concerns among European countries, which is likely to drive growth in the homeland security market in the region in the coming years.

This market analysis has identified several prominent players in the homeland security sector, including Elbit Systems, IBM Corporation, Leidos, Thales Group, Teledyne Flir LLC, Northrop Grumman Corporation, Raytheon Technologies Corporation, Textron Systems, and General Dynamics Information Technology Inc. Additionally, other companies such as Accenture, Peraton, Mantech International Corporation, AT&T, Micro-X, Echodyne, BAE Systems, L3Harris Technologies, ATOS, HFCL Limited, Mistral Solutions, Homeland Security Solutions, Inc., and Rolta have also been examined to provide a comprehensive overview of the market. The growth strategies employed by these firms, whether through organic growth or acquisitions, are expected to enhance their product portfolios and global reach, thereby contributing to the expansion of the homeland security market.

The overall size of the homeland security market has been determined using both primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding the homeland security market size. This process also aimed to provide an overview and forecast of market growth across all segments. Furthermore, numerous primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants included VPs, business development managers, intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the global homeland security market.