Border Security Market Assessment-EU Accession States

Frost & Sullivan, September 2008, Pages: 72

This service aims to forecast national security spending in the Maritime security areas in the European Union Accession States (Estonia, Latvia, Lithuania, Poland, Slovenia, Romania, Bulgaria, Czech Republic, Slovakia, Hungary) over the period 2008 - 2017, assess market dynamics and the competitive environment and present interested parties with suggestions and recommendations on how to approach the EU Accession States Civil Security markets, particularly in the Border security area.

This Frost & Sullivan research service titled Border Security Market Assessment - EU Accession States provides detailed profiles of key market participants. The research also provides a detailed outlook of four critical segments vital for this market. The research forecasts the national security spending in the border security areas in the European Union (EU) accession states of Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Romania and Bulgaria from 2008 to 2017. Assessment of market dynamics, the competitive environment, important drivers, restraints and challenges are discussed along with strategic recommendations on how to approach the EU accession states’ civil security markets, particularly in the border security area.

Market Overview

Investments Roll into Reinforcing Border Security of EU Accession States

Since accession to the EU in 2004, nearly $2.5 billion (estimated until 2009, including investments in Romania and Bulgaria after joining the EU in 2007) have been invested on the EU-accession states’ eastern external borders. In 2007, the market was worth $777.8 million. The overall market is estimated to reach $1,245.90 million in 2017. Nine of the twelve EU accession states, excluding Romania, Bulgaria and Cyprus, have joined Schengen, which has opened the internal borders between its members and increased security on the external borders. Eight of the nine new Schengen member states, excluding the Czech Republic, share a length of 4,278 km of the external EU border.

"In the last three years, nine of the twelve EU accession states (excluding Romania, Bulgaria and Cyprus) have made significant investments on border security to comply with the high-level security standards mandated by Schengen," notes the analyst of this research. "These include investments in construction, renovation and upgrading of border crossing infrastructure; operating equipment such as laboratory equipment; detection tools; hardware; software; means of transport; logistics and operations." Investments will focus on the EU external border management tools to comply with Schengen requirements. These cover operational equipment (movement control sensors-vehicles), border infrastructure, Schengen Information System (SIS) and visa information system, including biometric technology. In order to include Romania and Bulgaria in the Schengen area, the European Commission has allocated the Schengen Facility II funds for both countries, of which 70 per cent will be used for implementing the Schengen Aquis and external border control in the next three years. The European Commission’s Directorate-General (DG) for Justice, Freedom and Security has established $2 billion as part of the external border funds that will be used for implementation of common standards on control and surveillance of external border policy to be invested until 2013. About a quarter of these funds will be invested in the EU eastern border.

Bureaucracy and Complex Regulatory Framework Creates Challenges

The border security market in the EU accession states is fragmented, and there is no single institution in each of these countries that manages procurements and contracts. Governmental institutions to invest funds for border security also vary from country to country. Moreover, corrupt and fraudulent procurement practices are considered a real problem. The law on procurement is detailed and complicated, and there is insufficient knowledge on the part of the procurement staff and general disgruntlement during the tendering process. Even though there is an integrated border management system within Schengen, there is no simplified and single procurement process, instead, it varies from country to country.

"The high level of local protectionism can be significant in certain EU-accession states; local companies are preferred to foreign competitors during bidding," cautions the analyst. "To overcome this challenge, there is a need to forge strategic partnerships with local companies certifying that enforcement of the EC competition rules (policies on state aid, merger control and anti-trust) are being applied, and that efficiency and innovation are being encouraged and duly rewarded."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market areas in this research:

By Application:
- Operational equipment
- Border crossing equipment
- Border infrastructure
- Consulate, logistics and training

1 MARKET OVERVIEW

- Introduction

By Geographic Region:
- Estonia
- Latvia
- Lithuania
- Hungary
- Poland
- Slovenia
- Slovakia
- Czech Republic
- Romania
- Bulgaria

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