Frost & Sullivan Webinar: The Evolution of Converged Threats to Drive Investments in Security

The Evolution of Converged Threats to Drive The Evolution of Converged Threats to Drive Investments in SecurityInvestments in Security

Evolving Threats, Technologies and OpportunitiesEvolving Threats, Technologies and Opportunities

Balaji Srimoolanathan

Principal Consultant – Aerospace, Defence & Security

11th April, 2013

© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Today’s Presenter

Since joining Frost & Sullivan in early 2008, Balaji has provided consulting support

and thought leadership to numerous global companies on a broad range of

Balaji Srimoolanathan, Principal Consultant

Frost & Sullivan

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and thought leadership to numerous global companies on a broad range of

strategies issues across the defence and security sector.

His core focus areas include critical infrastructure protection, cyber security and

urban security with particular focus on emerging markets, new business models

and technologies.

Focus Points

� Security as a Mega Trend

� Evolution and Convergence of Threats

� Situational Awareness Beyond Security

� The Future of Security Technologies

� Opportunities for the Industry

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� Opportunities for the Industry

Security is a Major Global Mega Trend

Security

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“In the 21st century threats to our lives, identities and freedoms come from more sources

than ever before; from terrorists to hackers and overzealous governments. Individual and

collective focus on security is expected to be one of the top trends shaping our private and

public in the future.”

Growth in Spending

Global Civil Security Spending by Regions, (Excludes Cyber Spend) 2010 - 2020

45607590

105120135150165180195210

32 36 37 38 38.5 40 44 45 46 47 483032 33 34 36 40

42 45 47 48 50

810 11 12 14

1517

19 2022 25

45 6 8 9

88

8 910

15

$ B

illio

ns

Frost & Sullivan estimates the global securitymarket size at $140 billion currently and expectsit to reach $200 billion by the year 2020

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015304560

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

46 50 53 54.5 55 56 58 60 61 65 66

North America Europe

APAC (Including India and China) Middle East

South America

• Civil/ Homeland Security Market Growth to 2020: 5%

• Cyber Security Market Growth: 12%

• Global GDP Growth 2012: 3.5%

• Global Population Growth 2012: 1.2%Source: Frost & Sullivan.

Source: Frost & Sullivan.

F&S Country Rating

Region CountryThreat Factor

Strategic Factor

Country Score

1 North America United States of America 71 100 94

2 Europe United Kingdom 90 80 93

3 APAC India 75 80 85

4 CIS Russia 75 80 85

5 Middle East Saudi Arabia 70 80 80

6 Europe France 60 80 77

Top 15 Security Markets by Threat Level vs Ability to Spend

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6 Europe France 60 80 77

7 Middle East Israel 70 62 72

8 Europe Turkey 80 43 68

9 Europe Spain 70 50 66

10 Europe Germany 50 70 66

11 APAC China 45 70 63

12 APAC Indonesia 65 50 63

13 Latin America Brazil 43 70 62

14 APAC South Korea 53 60 62

15 APAC Pakistan 90 22 61

• Large existing installed base of security technology

• Reduction in central and local government budgets in developed economies

• Falling physical crime rates

• Economic recession impacting private sector

• Privacy concerns

Security Markets are Growing Despite…

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“Law and order spending falls by

10% in the first two years of the

coalition government”

Daily Mail, UK, 03/13

“Falling US Crime Rates Raises

More Questions than Answers”

LA Times, US, 07/12

“Is CCTV Creeping too Far?”

BBC, UK


Driving Global Security

Infrastructure Development

Underdeveloped security

apparatus in emerging markets

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Evolution of technology

Population growth and urbanisation

Unknown & increasingly

sophisticated threats

markets

Socio economic concerns over

income gaps and inequality


The Evolving Threat Landscape

Imminent Threats can be classified as crime or criminalbehaviour which can usually be handled by visible technologydeployment and police presence. Technology is used primarilyto enable quicker prosecution

Consequential Threats are threats which are triggered by anoccurrence or an incident such as the London Riots. These

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kind of threats can be proactively managed with advancedinterpretation of consequences and of response.

Unknown Threats are threats that occur without prior warningor indications and cannot be prepared for. Cyber attacks,DDOS, etc can be classified as unknown threats wherevulnerabilities are often exposed only after the attack hasoccurred. Advanced analytics and intelligence are required todetect and prevent such attacks.


Converging Threat Landscape

Organisations of today no longer face one type of threat. Physical and Cyber Threats areconverging and the disparate solutions and tools of today wont serve the purpose forsecuring organisations of the future.

Cyber/Network Security

Physical Threats

Competitive Threats

Economic/ Financial

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Organisation

Security Threats

Financial Threats

Revenue Losses

Loss of Brand Reputation

Business Continuity Issues

Efficiency Losses

Lack/Loss of Assets and their

AvailabilitySource: Frost & Sullivan.

Additional Pillars of Return on Security Investment

Traditional Return on Investment

Security Effectiveness

Risk Protection

Strategic Security

Situational Awareness Beyond Security

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Calculations based on Investments, Direct Gains, Loss Prevention, Risk Management,

Operational Efficiencies, Cost Savings, Revenue Implications etc.

Direct calculations based on

Investments and Gains from the

Investment

Physical Security Integration

Physical & IT Security Integration

Security and Business Process Applications Integration


Future of Security Technology

Past Present & Future

Reactive Proactive

Low Situational Awareness High Situational Awareness

Limited Intelligence Accessible and comprehensive Intelligence

Closed networks Interoperable Systems/Open Architecture

Silos Multi Agency Collaboration

Compartmental End to End Solution

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Compartmental End to End Solution

Big Data &

Analytics

High Resolution Cameras

BiometricsUnmanned Systems

Integrated Solutions

Advanced Next Generation

Communication Technologies

PSIM & Cyber C2


AIRPORTS: Free Wi-Fi Access and Real – Time Virtual Monitoring with secure, high-speed, wireless data networking

BUILDINGS: Wireless Building Automation

Systems at Homes and Offices Connected to iPhone, Laptop, Car

Systems for Easy Control and Communication

GPS: At least 75% of automobiles installed with GPS equipment enabling

intelligent traffic management system.

UTILITIES: Smart Meters, Wireless Technology and Sensors enabling Machine to Machine (M2M) communication and monitoring of energy use

CCTV surveillance with built-in Network Card, DVR and LCD Monitor integrated into the wireless platform

4G Mobile technology (LTE, WiMAX) enabling integration into any wireless platform

Integrated Solutions are Required to Enhance Situational Awareness

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HOTSPOTS: City-wide Wi-Fi Network (Eg. Sunnyvale,

California) with Hotspots in Cafes, Hotels and other

important locations

RAILWAYS: Real-Time Wireless Video Surveillance in railways stations for event detection, preparedness, prevention, protection, response and recovery.

EMERGENCY SERVICES: Wireless surveillance

connecting fire and police forces to Central Server for

monitoring, control and command communications

and Communicationinto the wireless platform

SATELLITE TECHNOLOGY (such as GALILEO) to provide navigation for aviation, ground and maritime operations

Source: Frost & Sullivan analysis.

Access Control, Video Surveillance Intrusion

Detection, Biometrics, Perimeter and

Occupancy Sensors, Fire Alarm Panels,

Detection Devices (Smoke/Heat/Gas/Flame),

Fire suppression, Notification and Evacuation

Energy Logistics, Distribution

Channels (electricity, water, gas),

Utility Monitor, Heat, Lighting,

Back-Up Power, Leakage Monitor

Integrated Fire Department, Police

and Medical Services, Centralised

and Remote Command and Control,

Scalable Decision Making Process

Communication Infrastructure is Critical and is the Backbone for Scalability

Physical Security &

Safety

Response Management

Energy Management

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Voice/Video/Data, Audio Visual,

Structured Cabling, TCP/IP/BAS

Protocols, Remote VPN Access,

Computer Logon, Network Access

Logon, Firewalls, Managed

Security Services, Mobile Security,

Security Infrastructure

Building Automation, Building Control,

Networked Systems, Crisis Management Solution

(power, infrastructure damage...)

Traffic Control & Monitoring (rail,

underground, buses, personal

vehicles), 24/7 Supply Management

(logistics)

Universal

Communication

Management

Mobility Management

Logical Security &

Communication

Management

Building Management

Advanced Communication Technologies Enable Better Technology Deployment and Interoperability

SATCOM to Increasingly Enable Communication on the Move

Wi-Fi enabled surveillance technology will enable

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technology will enable deployment in areas where

physical communication networks are difficult to deploy

4G LTE is allowing real time, high volume and high quality

data transfer from mobile sensors and devices.

Conclusions - Key Growth Geographies, Domains and Technologies

Technologies to Watch-Out Key Growth Geographies Domains to watch-out

• Biometrics

• Data and Video Analytics

• Unmanned Systems

• Cloud Security

• India

• China

• Saudi Arabia

• Turkey

• Energy & Utilities Security

• Cyber Security

• Urban Security

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• UAE

• Russia

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For Additional Information

Joanna Lewandowska

Corporate Communications

Aerospace, Defence & Security

+48 (0) 22 481 62 20

[email protected]

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Frost & Sullivan Webinar: The Evolution of Converged Threats to Drive Investments in Security

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