Government Initiatives and Appropriations Fall Short of Providing Container Security

Research and Markets announced the addition of the Frost & Sullivan report: Container Security - A Market Analysis.

This Frost & Sullivan research service entitled Container Security: A Market Analysis provides an overview of revenues and opportunities in the container security market as well as a breakdown of the drivers, restraints and trends affecting the various market segments. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: radiation detection and non-intrusive inspection systems; mechanical and electronic seals; and container security devices and tracking systems.

With increasing security concerns in the international trade lanes, the U.S. Government has produced a plethora of port and container specific legislation and initiatives such as the SAFE Port Act, the Container Security Initiative (CSI), the Megaports Initiative, the Secure Freight Initiative (SFI), and the Customs-Trade Partnership Against Terrorism (C-TPAT). "The majority of these efforts have enhanced the market for non-intrusive inspection and radiation detection devices, in the U.S. and abroad" says the analyst of this research service. "However, recent initiatives have fallen short of providing complete container security solutions."

With such programs and appropriations, the U.S. Government has the potential and the responsibility to drive the container security market, which is still developing. The market is likely to witness massive growth in the container scanning segment in the next few years. Other market segments will be slower to grow in the near-term, but as companies begin to realize the competitive advantage of implementing security solutions, these segments are anticipated to grow further.

The government sectors increasing need for accurate and timely data to improve intelligence and risk analysis is driving demand in all major segments of the container security market. In the shipping industry, this information is likely to increase supply chain visibility, which can in turn, improve efficiency, lower inventory costs, and increase profits. "Addressing these needs through systems integration and interoperability can increase the value proposition for both public and private sectors," notes the analyst. "Hence, providers are developing increasingly integrated and environmentally and technologically interoperable container security solutions, as stand-alone systems are incapable of meeting the needs of government and the shipping industry."

Container security system providers also need to focus on technologies and solutions that comply with regional and international standards. With standardized technology eliminating doubt, governments and the commercial sectors are more likely to adopt these solutions. The use of standardized technology can allow operation in many different environments and locations, increasing the value proposition.