Looming Threat of Terrorist Activities Accelerate Need for Detection Systems.

Business Editors

Topical News: War On Terrorism

PALO ALTO, Calif.--(BUSINESS WIRE)--Sept. 15, 2003

Governments and individual consumers alike look for detection methods to protect themselves against potential, and increasingly, unconventional terror strikes such as

New analysis from Frost & Sullivan (http://www.frost.com), World Chemical and Biological Agent Detection Markets, reveals industry revenues forecasted to total $1.095 billion in 2003 and are projected to reach $1.687 billion by 2009.

"The global war on terror has expanded the potential for a chemical or biological event even more, with terrorists actively seeking to acquire weapons of mass destruction," observes a Frost & Sullivan Industry analyst. "Their targets push the envelope of detection and protection far beyond the previous military and federal realms."

Among various terror methods, biological agents appear to pose the greatest threat due to comparatively low costs, difficult detection, and far-reaching effects.

In this relatively new market, consumer misconceptions about detection systems' actual capabilities may be prevalent and could potentially lead to consumer frustration. Manufacturers should clarify any misgivings or risk critically hindering market growth.

A key challenge in marketing chemical and biological detectors is convincing the intended country of the need to purchase the system, as interest expressed by many countries has not yet translated to sales. Since the sensitive technology used in the systems may be subject to numerous export restrictions, penetrating emerging markets may prove challenging.

"To develop overseas revenues, countries need to work with the state department to import some of the sensors," says a Frost & Sullivan expert. "Since these licensing procedures could be lengthy, they need to be encouraged."

Smaller companies may find it difficult to enter the detection market. One of the major issues involves validating systems against live agents. If a company were to launch a line of systems without proven results, it could raise questions about all systems. The market is attempting to establish standards that could help ease this problem.

Viewed as a major technological challenge, integrating chemical and biological sensors onto a single platform may allow detection of a wider variety of agents than current technology permits. Manufacturers successful in such development would have a strong competitive edge. Growing consumer demand to make this integrated system smaller will see lab-on-a-chip emerging as the next big breakthrough in providing a viable solution.

The following is a list of key industry participants: Anniston Army Depot; BAE Systems; Battelle Memorial Institute; Bodhi Scientific (UK); Bruker Analytical Systems Inc.; Bruker-Franzen; Environmental Technologies Group Inc.; General Dynamics Land Systems; Harris Corp.; Henschel Wehrtechnik; Honeywell Technology Center; Intellitec Solutions; OPTRA Inc.; PEM; Powertronics Inc.; PSI; Recon/Optical Inc.; SBCCOM; Smiths Detection; STR Inc.; TBD; TRW; TSI Inc.

Frost & Sullivan is a global leader in strategic growth consulting. This ongoing growth opportunity analysis is part of the Defense & Security Subscription, which also includes market insights on Unmanned Aerial Vehicles, C4ISR, and Chemical & Biological Agent Detector Markets. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

World Chemical and Biological Agent Detection Markets

Report: A354