Technological Innovations Means Growth in Global Market for Chemical and Biological Detection Equipment

Business Wire, Sept 21, 2004

PALO ALTO, Calif. -- Since the September 11 terrorist attacks, the demand for chemical and biological detection equipment has been growing rapidly. This trend is likely to continue until 2010 if participants can overcome challenges to the market, which includes a high rate of false positives. These false alarms reduce the credibility of the industry and cause end users to lose faith in detection equipment.

New analysis from Frost & Sullivan, World Chemical and Biological Agent Detector Markets (http://www.defense.frost.com), reveals that this market generated revenue of $870.5 million in 2004 and projects to reach $2282.1 million in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the World Chemical and Biological Agent Detector Markets - then send an email to Melina Gonzalez - Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

False alarms in the midst of a war are likely to make soldiers lose time in donning chemical or biological protective gear, while in a situation involving civilians; it would result in panic, evacuation, and loss of business.

"A high rate of false alarms is an indication of a larger range of chemical and biological agents being detected while a lesser number of false alarms implies that the equipment can pick up only select agents," explains Frost & Sullivan Research Analyst Matthew A. Farr. "This would mean the end users are not likely to fully benefit from the detection equipment."

However, reducing these false alarms is expected to involve increased expenditure for manufacturers. Due to the high cost of equipment, the product consumption is largely restricted to governments. Despite manufacturers making efforts to meet each customer's needs, lowering cost of equipment is likely to be an option they cannot afford.

"The manufacturers cannot lower the price of equipment unless the market grows to a point where the cost of production decreases," elaborates Farr. "Nonetheless, increased technological innovation is making the equipment more reliable by lowering false positives while enabling the sensor to detect a wider range of agents."

While technology is still evolving in this sector, the lack of indemnification for consumers is a barrier to market growth. To avoid legal problems, most large companies do not enter the civilian market. "Makers of detection equipment can be sued if their equipment fails to identify an attack or if there is a false positive and buildings are evacuated," informs the analyst.

The problem of indemnification can be solved if the government provides the needed assurance for companies. For instance, the U.S. Department of Defense (DoD) provides indemnification to the companies it procures detection equipment from, removing the risk of litigation. Technological advancements are also expected to help the detection industry overcome challenges and increase its customer base.

World Chemical and Biological Agent Detector Markets, a part of the Defense and Security subscription, helps established participants and new entrants to understand the competitive strategies in this rapidly changing market. The research offers a comprehensive analysis and includes information on detailed trends to help identify new potential markets and their growth opportunities. The research provides an overview of the U.S. civilian and military markets, and the European, Asian and Middle Eastern chemical and biological markets. Interviews and executive summaries are available to the press.

Frost & Sullivan, a global growth consulting company, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies include custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams, to deliver market insights, and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country. For more information please visit www.frost.com.

World Chemical and Biological Agent Detector Markets

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Keywords in this release: biological agent detection, chemical detectors, false positives, protective gear, war, military, government, indemnification, Department of Defense, research, information, market, trends, technology, service, forecast