Security Systems News

March 2011

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2 SECURITY STATS MARCH 2011 SECURITY SYSTEMS NEWS SECURITY STATS Securing mass transit a growing area of opportunity for security integrators By Daniel Gelinas A recent report from Frost & Sullivan, “North American Physical Security Solutions for Mass Transit Market,” reports an area of growth opportunity for integrators of physical security solu- tions in securing the nation’s mass transit networks. The market earned revenues of $.49 billion in 2009 and Frost & Sullivan estimates that amount will triple, reaching $1.57 billion in 2016. However, analysts warn growth could be hampered by a Growth of demand for physical security solutions in mass transit lack of government mandates. “Right now there is nothing in place,” in terms of government mandates for security on mass transit networks, which include trains and busses and their associated stations and infrastructure, according to Frost & Sullivan industry analyst, physical security Dilip Sarangan. “Profit considerations will most likely win out. That being said, the security industry should take more of a leadership role to communicate the message better: ‘These solutions are out there, they work and they can protect people.’” Despite the zero-sum nature of security versus convenience in a mass transit setting, Sarangan said he believes a turning point is com- ing at which the private industries that run mass transit systems will balance the costs and inconvenience and implement security systems like surveillance, analytics, access control, intrusion sensors, perimeter security, and chemical- and biologi- cal-threat detection. “If the company that owns the mass transit system wants to put security into place, the cost is going to be passed on to the commuter, and so far nobody’s really been willing to figure out what the cost benefit would be,” Sarangan said. He noted, however, that government funding from sources like the Urban Area Initiative could turn things around. “Large cities get $50 (mil- lion) to $60 million a year. Usually that amount gets diverted to police officers and equipment. But over the next few years, that will shift from personnel and reactive measures to technology for prevention.” Sarangan said Dilip Sarangan integrators needed to also be more educated. “Not only are these [physical security systems] necessary to pro- tect people, but also there are other uses—using municipal cameras for marketing or operations purposes. Integrators need to show these transit companies how they can make some money off of the solutions as well,” Sarangan said. “Integrators need to also learn about and understand the infrastructure, and the subsidies and the grants that are available. If you’re an integrator working in a metropolitan area, understand the grants available so you can help your potential customers figure out how to mitigate the cost.” SSN Frost & Sullivan 2011

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