asian the african m a r k e t s


Homeland Security, Defence and Counter Terror A


sia is now the most coveted homeland security and defence market in the world,


a market valued in excess of $1 trillion. Now all eyes, including those in Asia, are turning to Africa. Along with many US and European firms, China and India are in fierce competition to win over key African homeland security contracts. With steady growth and increasing potential, especially in the security markets, the continent has become an attractive option to companies worldwide looking for unparalleled growth opportunities abroad.


Together, Africa and Asia cover 50% of the world’s landmass and make up 22% of the world’s defence market; these are two homeland security and counter terror markets which cannot be ignored.


Along with the fast pace of growth in these economies comes the ability for consumers to purchase newer and better security solutions and technologies. Increased investment creates the need to protect infrastructure critical to the economy, especially in the energy and tourism sectors.


Exploring Asian markets, with a global focus on India


Asia, as the current driver of the global economy, has new and challenging security needs, which is creating immense opportunity for the homeland security and defence industries. With a population of over 1 billion people, the 3rd largest purchasing power


18 © CI TY S ECURI TY MAGAZ INE – AUTUMN 2013


parity in the world, and alongside its political and Ethno-religious tensions, India is now facing constant threats both internally and externally. Although the revamp of the Indian homeland security infrastructure has been underway for over 10 years, the past few years have seen modernisation undertaken with a sense of urgency, especially since events in the past decade have revealed its underlying vulnerability, such as the Mumbai attacks in 2008.


More recently, the Indian government has overseen enormous investment in the counter terror and homeland security arena. India is now transforming from a purely defence market into a homeland security market. This is due to large scale growth in infrastructure and foreign investment and concerns to keep borders safe. More specifically, HLS forces in India are substantial in size, approximately equal to the active military troops of the US, UK, Germany and France combined. Therefore, modernisation of these forces has created a huge demand for new equipment, tactics and training.


Securing critical infrastructure, including tourism related infrastructure such as airports and hotels, has become a national priority.


India has 60 airports, most of which are undergoing modernisation and security redevelopment. Mainly due to internal threats, paramilitary and police forces of Central and State Governments are likely to be the biggest


spenders in coming years. According to studies, the 2010 market for electronic security products (surveillance, CCTV) for private industry was almost $800 million, growing by an impressive 26% a year. The incredible pace of change cannot be ignored.


10 15 20 25 30 35 40 45


0 5


2005 2006 2007 2008 2009 2010 2011 2012 Sub


Saharan Africa


North Africa


Why Africa as a potential market?


Graph showing the Military Expenditure in Africa in Billions of Dollars. Africa’s growth in this field has continued to grow over the past 7 years, reaching almost 40 billion in 2012. North Africa continues to make up an increasing percentage of the continent’s total expenditure.


Due to years of rapid growth and development, certain Asian and Middle Eastern markets are already considered mature; already “emerged”. However, the view of Africa is a continent rife with conflict, stifled development and poverty. This view is quickly changing. The IMF predicts that no continent will grow as quickly over coming years. Foreign Direct Investment (FDI) into Africa increased by 5.5% last year, reaching


and the


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