Security Technologies Industry

R&D Cooperation and Business Partnering Opportunities in Germany

Europes Largest Security Technologies Market In an increasingly globalized world, risks and threats are spreading more rapidly than ever before. Consequently, security technologies are becoming ever more important in the safety and security of peoples lives and business infrastructures. The global security technologies market was estimated at EUR 100 billion in 2010. With overall turnover of almost EUR 20 billion, the German security technologies industry is the largest in Europe. In Germany alone, the overall security technologies industry is expected to increase to EUR 31 billion by 2015 - equivalent to an annual growth rate of six percent. Security technologies made in Germany enjoy strong global brand recognition thanks to their ascribed characteristics of quality and technical know-how. State-of-the-art technology and high system competence levels are similarly helping drive security technology industry success in both domestic and international markets. Close working partnerships (between the private sector and academic research institutes) are likewise contributing signicantly to a growing market sector with stable long-term growth opportunities. Security Turnover in Germany by Technology Segments
Investigations 4% Hazardous Substances 4% IT Security 23% Identication & Authentication 5% Fire, Gas and Smoke 8% Total Turnover: EUR 20 billion Equipment 11%

Break-in Prevention 35%

Emergency Communication 10%

Source: VDI/VDE-IT GmbH 2009

R&D Cooperation Success German-based security technology companies are at the forefront of technological development and benet from the countrys unique research environment. A thriving R&D sector provides the basis for the economic success of the German security technologies industry. Close interaction between industry and science guaranteed by the provision of a number of specialized security technologies industry networks form the basis for quick time-tomarket realization of innovative products and services.

Business Partnering Success Innovative research and timely product commercialization are the driving force behind the international success of security technology companies located in Germany. Companies prot from a platform of available business partnering models for increased market synergy effects; thereby ensuring the continued development of high quality products at affordable prices.

Photo: Emrah Turudu istockphoto.com

Fact Sheet

Market Opportunities

Security Technologies in Germany Primary Segments Forecast

2015 2008
+124% +33.5%

IT Security Break-in Prevention Emergency Communication Equipment Fire, Gas and Smoke
+87% +18.5% +22.4% +4.7%

Hazardous Substances This segment refers to all innovations used to detect and classify hazardous substances. It is estimated that the German market will generate annual turnover of EUR 1.2 billion by 2015. Exceptionally high demand is foreseen for sophisticated chemical and biological analytic systems.

Value Chain Growth: Interdisciplinary Technologies

The sheer diversity of existing possible applications available means that a number of technology segments cannot be exclusively assigned to the security technology industry. However, they do have a crucial effect on functionality and performance of components for engineering security and safety products. Three segments which are expected to record signicant midterm growth are the Measurement and Sensors Technology, Biometrics and RFID sectors. Measurement and Sensors Technology German companies active in this eld enjoy an international market share of 30 percent; achieving average annually growth of nine percent over the last 10 years. This accretion will continue with a forecast growth of between 8 percent and 12 percent in the medium term. Biometrics German companies hold an internationally leading position in this segment, generating turnover of around EUR 300 million in 2010. Biometrics technology helps create new applications particularly in the access control management sectors. Fingerprint recognition remains the most important technology, with facial recognition gaining in importance. RFID (Radio Frequency Identication) According to Deutsche Bank Research, global RFID sales will grow annually by 25 percent and reach a volume of EUR 16 billion in 2016. In Germany alone RFID sales are predicted to reach EUR 2.2 billion in 2016. This crosssectional technology will inuence various industries in making operational processes more efcient.

Identication & Authentication

+50.6%

Hazardous Substances
+15%

Investigations
0
Source: VDI/VDE-IT GmbH 2009

2,500

5,000

7,500

10,000

Market turnover in EUR million

Market Growth: Primary Technology Segments

The German security technologies market can be subdivided into eight different segments; of these, the IT Security, Identication & Authentication and Hazardous Substances sectors are expected to record signicant market increases in the immediate future. IT Security The IT security segment consists of IT products and services designed to ensure the condentiality, availability, and integrity of data (i.e. anti-virus software, remote access, content ltering, mobile security, identity management et al.). This segment is expected to generate turnover of EUR 10.6 billion by 2015 (equivalent to 12 percent annual growth rate). Identication & Authentication This segment includes all systems and technologies used to verify personal identity. It is estimated that the German market will grow to EUR 1.7 billion by 2015, with an above average yearly growth in leading subsegments including biometrical identication cards (15 percent) and forgeryproof systems (10 percent).

R&D: Investor's Opportunities

Selection of Security Technologies Associations and Networks

01 02

Location

Selected Security Technologies Associations and Networks

BALTIC SEA NORTH SEA
SchleswigHolstein MecklenburgVorpommern

bavAIRia Bavarian Aerospace Cluster Gilching

Bavarian IT Security & Safety Cluster BHE National Association of Manufacturers and Installers of Security Systems BITKOM Federal Association for Information Technology, Telecommunications and New Media CAST Competence Center for Applied Security Technology KOSYnet Competence network integrated systems for ood and disaster control EASC European Aviation Security Center eurobits European Competence Centre for Information Technology Security Future Urban Security GESA German European Security Association GFPA German Fire Protection Association SeSamBB Security and Safety made in Berlin-Brandenburg Secure Identity Berlin-Brandenburg SPECTARIS German Industry Association for Optical, Medical and Mechatronical Technologies TeleTrusT IT Security Association Tusec Tunnel Safety and Security Network VDE Association for Electrical, Electronic & Information Technologies VfS Association for Security Technology ZVEI Central Association for Electrical and Electronic Industry

Regensburg Brcken (Pfalz)

03

Hamburg Bremen Niedersachsen

18 4,6,7,10, 12,13,14, 15,16

Brandenburg Saxony-Anhalt

04

Berlin
THE NETHERLANDS

POLAND

11

05

Darmstadt
BELGIUM

8
North RhineWestphalia Hessen

Saxony Thuringia

06

Potsdam

5,17, 19
LUXEMBOURG

Rheinland-Pfalz

CZECH REPUBLIC

07

Schnhagen Bochum

Saarland

Bavaria

2
FRANCE

08

Baden-Wrttemberg

1,18 9 1
AUSTRIA

09 10

Freiburg Potsdam Altenberge Potsdam Berlin

11

12

Research & Development Landscape in Germany Germany provides a unique opportunity for companies active in the security industry. The country has long been successful in harboring high-tech industries because of its highly developed R&D landscape creating optimal conditions for the commercialization of rst rate innovations. In 2010, German R&D expenditures rose to an all-time high of 2.82 percent (EUR 69.7 billion) of national GDP. The EU-27 average is around two percent (2010). Germany is home to 415 universities with world class scientic research institutions. Over 12,000 patents granted by the European Patent Organization (EPO) to companies based in Germany in 2010 (No. 1 worldwide).

13 14

Berlin

15 16 17

Berlin Berlin Frankfurt

18 19

Hamburg Frankfurt

Source: Federal Ministry of Education and Research (BMBF) 2012, www.securityresearchmap.de

This list is not intended to be exhaustive. For more information on Germanys security technology research landscape, please visit our website www.gtai.com/security or contact: jerome.hull@gtai.com

Strategic Alliances Several associations, networks, clusters, R&D institutes and companies are dedicated to exploring and promoting the possibilities of security technologies and their potential product applications. Germany holds the key to success for your security technologies business because of its R&D strength and diverse industrial landscape providing perfect opportunities for innovation, alliances and collaborations.

Cartography: roccomontoya istockphoto.com

R&D: Cooperation Opportunities

Fraunhofer Institutes 01 Applied and Integrated Security (AISEC) Heinrich-Hertz (HHI) Intelligent Analysis and Information Systems (IAIS) Factory Operation and Automation (IFF) Silicon Technology (ISIT) Transportation and Infrastructure Systems (IVI) Nondestructive Testing (IZFP) Secure Information Technology (SIT)

Selected R&D Institutes and Universities in Security Technologies

BALTIC SEA NORTH SEA
SchleswigHolstein

02 03

15
MecklenburgVorpommern

5 18
Bremen Niedersachsen

Hamburg

12 10
Berlin
POLAND

04

05 06 07 08

THE NETHERLANDS

11

13 4
Saxony-Anhalt

Brandenburg

North Rhine-Westphalia

14 3
BELGIUM

Hessen

17
Thuringia

Saxony

8
LUXEMBOURG

Rheinland-Pfalz Saarland

CZECH REPUBLIC

09 10

Technical Physics Transport Research

FRANCE

BadenWrttemberg

1
AUSTRIA

University Centers 11 12 13 14 15 Braunschweig University of Technology Hamburg University of Technology Potsdam University Ruhr-University of Bochum Wismar University of Technology

Non-University Centers 16 German Research Center for Articial Intelligence (DFKI) Friedrich-Lfer Institute (FLI) Institute of Shipping Economics and Logistics (ISL)

Institutional R&D Partners Leading research institutes active in security-related research elds in Germany include, among others, the research institutes of the Fraunhofer Society and the German Aerospace Research Center. Together with internationally renowned universities, they form the basis for the development of innovative technologies deployed in the security technology industry. Companies investing in Germany also benet from joint-research opportunities which help ensure cost-effectiveness and short time-tomarket periods.
R&D Focus Communication Equipment Computing Technologies Electronic Authentication Forensic Technologies - Biometry Information Security Technologies Information Systems Navigation, Guidance, Control and Tracking Sensor Equipment and Technologies

17 18

Source: Federal Ministry of Education and Research (BMBF) 2012, www.securityresearchmap.de

This list is not intended to be exhaustive. For more information on Germanys security technology research landscape, please visit our website www.gtai.com/security or contact: jerome.hull@gtai.com

Cartography: roccomontoya istockphoto.com

DLR German Aerospace Research Center Institutes

16

Bavaria

R&D: Business Partnering Opportunities

Large Companies 01 02 03 04 05 06 07 08 09 10 SMEs 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AirRobot Airsense Analytics AP Sensing BALTECH bbe Moldaenke BioID Cognitec Systems Dermalog DSI eyevis indurad Innominate InnoTec DATA LIVINGSOLIDS microdrones Nanotron Technologies NETFOX Securiton VOMATEC International ATIS systems Cross Match Technologies Drger Safety ELBAU Giesecke & Devrient HAVERKAMP IQ wireless L-1 Identity Solutions PSI Transcom

Selected Companies Active in the Security Technologies Value Chain

BALTIC SEA NORTH SEA 15
SchleswigHolstein

3 12

MecklenburgVorpommern

18 23 19
Niedersachsen

4,7,9, 22,26,27 24

POLAND

THE NETHERLANDS

6 8
North RhineWestphalia

Brandenburg

11

Saxony-Anhalt

Saxony

21

Smiths Heimann

25 29 10
Rheinland-Pfalz

17
Hessen Thuringia

BELGIUM

1
LUXEMBOURG CZECH REPUBLIC

Saarland BadenWrttemberg
FRANCE

16
Bavaria
Cartography: roccomontoya istockphoto.com

28 13

20

14 5
AUSTRIA

Business Partnering Opportunities The display table shows companies already located in Germany and actively engaged in security-related research elds. Germanys mature and highly diversied industrial landscape allows for diverse partnering opportunities. This helps reduce the risks normally associated with new, high-tech innovations. Specialist knowhow and core competences can be better integrated as different industry players and segments become active along the value chain.
R&D Focus Communication Equipment Computing Technologies Electronic Authentication Forensic Technologies - Biometry Information Security Technologies Information Systems Navigation, Guidance, Control and Tracking Sensor Equipment and Technologies

Source: Federal Ministry of Education and Research (BMBF) 2012, www.securityresearchmap.de

This list is not intended to be exhaustive. For more information on Germanys security technology research landscape, please visit our website www.gtai.com/security or contact: jerome.hull@gtai.com

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