Airport Security Equipment Presents Strong Potential Opportunities for Investors

Frost: The events of September 11, 2001 marked a turning point in the world aviation industry. Reacting to the urgent need for enhanced airport security, the U.S. Federal Government formed the Transportation Security Administration (TSA), which, in turn, gave rise to the promising and fast-growing airport security equipment industry. TSA’s intense focus on airport security has created an unprecedented demand for equipment to safeguard airports from potential threats, . With government expenditure for this purpose exceeding an estimated $12 billion at the nation’s 429 commercial airports since 9/11, this can only spell good news for airport security equipment companies. The three main reasons why investment in the North American airport security equipment industry is crucial. Firstly, the top line growth will continue, creating both entry and exit opportunities. Secondly, security awareness is spreading to smaller and regional airports and lastly, ongoing security breaches will keep a focus on improved technology and an increased sense of budget priority.

The industry (top 30 participants) earned revenues of $2616 million in 2004 and is likely to reach $6120 million in 2009. North American Airport Security Equipment Industry – Investment Analysis and Growth Opportunities Publ 20051213