Source: ITA Country Commercial Guide

Overview

The UK aerospace and defense industries are large and sophisticated. The UK aerospace industry is the second largest in the world behind that of the United States, and it is an export-driven industry. In 2022, UK civil aerospace turnover totaled approximately $34.5 billion. The UK aerospace industry is the crown jewel for UK exports and, even though the UK does not produce large civil aircraft, 70% of domestic aerospace production is exported. In 2022, the UK defense industry turnover totaled approximately $29 billion, $15 billion of which was exported. In 2021, the UK space industry turnover totaled approximately $22 billion, $9.5 billion of which was exported.

The UK has a very mature supply chain, and new entrants will need to dedicate significant resources to participate. The UK has a reputation as a global center of excellence for the design and production of engines, helicopters, wings, structures, and aircraft systems (including landing gear). All wings on Airbus commercial aircraft are designed in the UK and the majority built in North Wales. In addition to manufacturing, the UK has a thriving maintenance, repair, and overhaul sector (MRO), which provides services to the large numbers of military and civil aircraft that fly through and from the UK every year.

More than 3,000 aerospace companies operate in the UK, and the aerospace sector has the largest number of SME companies in Europe, providing over 282,000 jobs directly and indirectly. Domestic companies include BAE Systems, Cobham, GKN, Meggitt, QinetiQ, Rolls-Royce, and Ultra Electronics. Non-domestic companies with a major presence include Boeing, Airbus Group, Leonardo (including its AgustaWestland and Selex ES subsidiaries), General Electric (including its GE Aviation Systems subsidiary), Lockheed Martin, MBDA, Safran, Spirit AeroSystems and Thales Group.

Airbus in Broughton assembles the wings for all Airbus civil aircraft, including the new A350 XWB. Boeing has a production facility in Sheffield, Boeing’s first manufacturing site in Europe, and GKN Aerospace produces the Advanced Technology Winglet for the Boeing 737 MAX. Rolls-Royce-manufactured engines power more than 35 types of commercial aircraft, and the company has over 13,000 engines in service around the world.

Drones are playing an increasing role in the UK in areas ranging from emergency services to construction and oil and gas.  In April 2022, the world’s first urban drone airport, Hyundai-backed Air-One opened in Coventry, England, with intent to use the site for electric vertical take-off and landing aircraft (eVTOL) air taxis.  Estimates have forecast that by 2030 the impact of drones could increase the UK GDP by $53 billion and create over 600,000 new jobs. The use of drones in business and public services is predicted to be highly impactful and to deliver significant benefits to the British economy and society. Drones have seen a particularly significant uptake in the oil & gas industry. Drone use is also well established in the utilities industry for the inspection of long, linear assets such as powerlines.

Like the internet and GPS before them, drones are evolving beyond their military origin to become powerful business tools. Drones have already made the leap to the consumer market, and now they are being put to work in commercial and civil government applications. This is creating a market opportunity for companies that provide platforms, sensors, and software.

Leading Sub-Sectors

Space

The UK commercial space industry is growing rapidly, with a turnover of over $22 billion in 2022. The stated ambition is to capture 10% of the global space market by 2030. Accelerating growth year on year, the UK is a world leader in nano and small satellites. Forty percent of all small satellites currently in orbit were manufactured in the UK. The UK commercial space sector has seen steady investments in new and existing space technologies and services, with funding coming primarily from industry and venture capital, with some government support. The market can be broken down into four main components. Over two-thirds of total market income is derived from Space Applications, followed by the smaller components of Space Operations, Space Manufacturing, and Auxiliary Services.

The UK seeks to be at the forefront of new developments in small satellite launch and sub-orbital flight, with seven launch sites planned. The UK’s long coastline and island location make it well suited to host different types of launch services. Scotland is the best place in the UK to reach in-demand satellite orbits with vertically launched rockets. There are also several aerodromes around the UK, each with its own unique geography and local infrastructure, giving the UK the capability to host a variety of different types of spaceflight activity, including both horizontal and vertical launch. Industry and the UK Government are working together to develop UK spaceports, as well as launch vehicle and small satellite technology. These technologies will be complemented by space services, such as test facilities.

U.S. companies that would like to partner with British companies should look to the Harwell Space Cluster, which hosts 92 space organizations including the UK Space Agency, RAL Space, the Satellite Applications Catapult, the Science & Technology Facilities Council and the European Space Agency’s European Centre for Space Applications and Telecommunications.

Analysis by customer type reveals the commercial focus of the UK space industry – 81.3% of total income is commercial, comprised of sales to consumers (including DTH) at 49.7% and sales to other businesses at 31.6%. That said, there is a strong role for public demand (18.7%), Defense (8.6%), Space Agencies (4.1%), Civil Government including Research/Science (4.3%), and European Commission (1.6%).

A Technology Safeguards Agreement signed in June 2020 has made it easier for U.S. firms to bring rocket hardware into the UK. New regulations were created by the UK Space Agency and the Civil Aviation Authority to enable satellites and rockets to launch from the UK. In addition, the UK Civil Aviation Authority has started issuing spaceflight licenses. All U.S. manufacturers of spacecraft with planned export to the UK will also require a license issued by the FAA as well as the CAA. 

The UK National Space Propulsion Test Facility allows companies and academics to test propulsion engines. It also allows new types of more sustainable propellants to be tested, such as Hydrogen Peroxide and Liquid Oxygen, which are more environmentally friendly in sourcing, storage, and combustion.

Helicopters

The UK’s helicopter market is dominated by Leonardo and Airbus Helicopters UK. Leonardo is the largest inward investor in the UK defense sector, and one of the biggest suppliers of defense equipment to the UK Ministry of Defence. Leonardo implements its helicopter division activities in the UK through a strong industrial presence. The company employs around 7,000 people in the UK, while supporting an additional 10,000 jobs in the supply chain including 1,550 SMEs, serving both commercial and government customers worldwide.

For over 30 years, Airbus Helicopters UK has provided products and services for both the civil and military helicopter markets. With more than 300 civil helicopters customized and delivered in the UK, Airbus Helicopters UK is the leading provider of helicopters in the UK’s civil and para-public market with a 46% fleet share, and it dominates the UK security and emergency services market.

The National Police Service (NPAS) provides air support to the 46 police forces of England and Wales from its network of 15 bases with 19 aircraft. The NPAS fleet consists of Eurocopter EC135’s and EC145’s. The Police Commissioner of West Yorkshire plays a lead role in the governance of NPAS, and the Yorkshire and Humber Regional Procurement Team is responsible for procurement. All tenders are announced via the Bluelight eTendering portal.

Emergency air ambulances in the UK are generally helicopter based and are used to respond to medical emergencies in support of local ambulance services. In England and Wales, all air ambulance services are charitably funded and operated under contract with a private provider. Approximately 21 charities operate 40 helicopters. Scotland has the only publicly funded air ambulance service, the Scottish Ambulance Service, which operates two helicopters along with a single charity operator helicopter.

Over 99 percent of offshore oil and gas transportation is by helicopter, and the UK and Norway handle most European offshore operations in 11 European countries, mostly serving platforms in the North Sea. Offshore helicopters make up a large portion of the UK helicopter market. The leading offshore helicopter operators in the UK include Babcock and Bristow. As the North Sea remains a hostile environment for helicopter operations, several crashes in the last decade have led to a changing market for the types of helicopters used.

Unmanned Aircraft Systems (Drones)

Delivery drones could become business as usual in the UK by 2030. Large retail and logistics companies are investing in delivery drones with the aim of achieving increased efficiency, lower costs, and increased customer satisfaction. The scope of delivery drones could also be beyond dropping off parcels in the “last mile” of client logistics. Drones will be ubiquitous in warehousing and able to autonomously conduct real time stock checks by scanning inventory. This will integrate seamlessly with other ground-based autonomous warehouse robotics in an end-to-end management and movement of inventory driven by AI with no human touch.

Delivery drones in the UK could also integrate with other advances in technology, for example a driverless vehicle loaded with parcels by robotics at the warehouse that automatically dispatches multiple delivery drones when it nears the most efficient point to complete its deliveries. Such a vehicle would serve as a base station for the drones, providing charging and payload swapping as required. This scenario is some way off, as current technical and regulatory challenges remain, such as flying pilotless and beyond visual line of site (BVLOS) in congested urban areas and integrating with other airspace users.

Accident response drones may well be a common sight above roads in the UK by 2030, enabling live data from accident scenes to be shared in real time with emergency services so they know what to expect prior to arriving on scene. Drones would also be used to store evidence from an accident, reducing the time it takes to reopen the road. Accident response drones may open new revenue streams for the public sector by selling the data to insurance companies.

The UK Search and Rescue organization will also present opportunities for companies that provide technology to assist in rescue operations. The ability to carry sensors that provide real time information during inclement weather to rescue centers will keep rescue personnel away from dangerous situations while still providing needed information. In the construction industry, drones are already providing cheaper and more efficient solutions for mapping sites and recording construction progress. Drones are also providing 3D information and integrating it with existing building information modelling (BIM) systems.

UK drone laws require anyone who flies a drone that weighs between 250 grams and 20 kilograms to take a safety test consisting of 20 multiple choice questions and to register as a drone operator and flyer. The operator ID must be displayed clearly on the drone. This means it is illegal to fly a drone in the UK without meeting these requirements unless the drone weighs 249 grams or less. Police across the UK have received powers to land, inspect and seize. They also have stop and search powers around airports, prisons, and other restricted locations.

Opportunities

The opportunities in this market continue to be those associated with the manufacturing of new aircraft or engine models, or for companies that employ the latest technology such as composites or additive manufacturing. In addition, the UK aerospace industry is also seeing an increase in the use of cloud computing platforms, with innovation in integrated solutions such as flight planning tools and digital flight management systems.

The best prospects in the UK continue to include:

• Aerodynamics (e.g., wing design).
• Propulsion (e.g., rotor blades, engine assembly).
• Aero structures (e.g., fuselage & wing assembly); and
• Advanced systems (e.g., avionics, undercarriage).

The UK continues to enjoy a record backlog of orders for equipment across narrow- and wide-body aircraft, but delivering on these orders is an increasing challenge within the UK supply chain. This backlog of orders is becoming more acute for tier 2 suppliers and below and may cause UK companies to consider forming new alliances to create extra capacity to meet obligations. Suppliers should consider collaborating with a larger customer with an established presence in the UK that is looking to increase capacity. U.S. companies should also expect to enter the UK market at a lower tier of the supply chain than they might otherwise enter in the U.S. or globally. Suppliers may also need to consider using a local distributor or agent with established ties within the market.

Entering the UK aerospace market requires patience, investment, innovative products, and competitive pricing. The aerospace supply chain is well-integrated, with the primes all looking to reduce the number of their suppliers. A U.S. company can expect to have to commit both time and resources to enter or expand within the UK aerospace market, especially companies providing what are known as “me too” products and services. Selling to OEMs as well as tier 1 and 2 manufacturers entails a vendor/product qualification and assessment process. All U.S. companies desiring to become a supplier will need to register with their prospective customer. In addition, they must at a minimum meet a quality assurance standard such as AS9100 and NADCAP to do business in the aerospace supply chain in the UK. All companies desiring to become a supplier to the Ministry of Defense are required to complete Cyber Essentials accreditation.

With such a well-integrated and mature supply chain, new U.S. suppliers must demonstrate a clear competitive advantage if they are to be successful in the UK. With most of the major aerospace manufacturers in the UK looking to simplify their supply chains, there are fewer opportunities to supply, and these opportunities will tend to be further down the supply chain. If suppliers are compliant with EU regulations/standards, they should not encounter any significant technical barriers to entry.

Source: ITA Country Commercial Guide

Overview

Defense cooperation between the U.S. and the UK is well established, and the UK is considered a Tier one partner. As such, the UK has significant military capability and seeks to augment its current capability with the latest technology available. Most technology, if acquired from the U.S., requires an ITAR license, and new suppliers need to be familiar with the licensing application process. 

In 2021/22, the UK spent $58.5 billion on defense and this was $4.6 billion higher than the previous year. The Spring Budget 2023 allocated an additional $6.4 billion to defense spending over the next two years (2023/24 and 2024/25), and a further $2.5 billion per year in subsequent years up to 2027/28. This increases defense spending by a total of $14 billion over this five-year period.

The UK is one of the top NATO countries in terms of defense spending. The UK is committed to spending 2% of GDP on defense each year. It was one of just nine of NATO member countries to have met this target in 2022, spending 2.1% of GDP on defense. As part of the Integrated Review Refresh 2023, which sets out the UK Government’s national security and international policy, the Prime Minister set out a longer-term ambition to increase defense spending to 2.5% of GDP but no timeframe has been given for achieving this goal.

The Government of the UK has informed through its “Green Book” that all public money awarded to suppliers needs to demonstrate “Social Value,” the net value added to the UK society and economy. Social Value accounts for 10% of the score, rising to 25% at the contacting officer’s discretion, when contracts are evaluated and all U.S. suppliers competing for defense contracts need to demonstrate Social Value to remain competitive.

Leading Sub-Sectors

Naval

Navy Command is responsible for the procurement and support of surface warships, auxiliaries and maritime helicopters, as well as elements of submarine support, although the major submarine build programs are the responsibility of the Defence Nuclear Organisation. Navy Command plan to spend $52 billion in the Equipment Plan over the next ten years as follows:

• Production of eight Type 26 frigates and five Type 31 General Purpose Frigates and Type 32 multi-role frigates
• Development of a Type 83 destroyer to replace the Type 45
• $277 million for the Royal Marines to evolve from their standby amphibious infantry role into a forward-based, highly capable maritime “Future Commando Force”

Ground Forces

At the end of December 2022, the full-time trained strength of the army was 75,710. This was 2.2% smaller compared with the previous year. The Ministry of Defence’s command paper ‘Defence in a competitive age’ had confirmed that the full-time trained strength of the army would be reduced to 72,500 by 2025. The ‘National security strategy and strategic defence and security review 2015’ had set the strength of the army at 82,000. The British Army will reorganize into seven brigade combat teams comprised of two heavy brigades, one deep strike brigade, one air maneuver brigade, and two light brigades, plus one Combat Aviation Brigade.

Army Command is responsible for: armored fighting vehicles; ground-based air defense; artillery systems; protected and support vehicles; battlefield helicopters; certain unmanned air systems; soldier fighting systems; and communications and information systems in the land environment.

Army Command plan to spend $51.5 billion in the Equipment Plan over the next ten years as follows:

• $30 billion for a modernized long precision fire, multiple launched rocket systems; new air defenses; tactical surveillance drones, new electronic warfare, and cyberspace capabilities
• Creation of a Ranger regiment and Security Force Assistance Brigade
• Acquiring fleet of 50 AH-64 Apache helicopters, with a scheduled final delivery date of 2024
• Beginning recapitalization efforts of their MLRS platform, with initial deliveries set for 2024
• Purchased 14 MH-47 Chinook helicopters for the UK Special Operations Force

Air

The Royal Air Force is responsible for Combat Air, including fast jets and weapons; Intelligence Surveillance and Reconnaissance (ISR), including large ISR aircraft, remotely piloted aircraft and their enablers; strategic and tactical air transport; air-to-air refueling aircraft; air platform protection; training aircraft; and training systems, including synthetics such as augmented and virtual reality. Air Command plan to spend $44.6 billion in the Equipment Plan over the next ten years as follows:

• Investing $2.77 billion for Future Combat Air System (i.e., Tempest Program)
• Retiring E-3D Sentry in 2021, replacing with three E7 Wedgetails by 2023
• Committed to purchasing additional 26 F-35s bringing the total ordered to 74
• Retiring C-130 Hercules in 2023 and replacing with 22 A400s
• Replacing the 9 MQ-9A Reapers with 16 MQ-9B Protectors by 2024 and investing in swarming drone technology

UK Strategic Command

UK Strategic Command is responsible for command, control, communications, computers, intelligence, surveillance, targeting, acquisition and reconnaissance systems and capabilities (C4ISTAR) in both operational and business environments; special projects including procurement for UK Special Forces and Joint Force Protection capabilities; pan-Defence logistics systems; capabilities to support Defence operations and activities; and medical capabilities. Strategic Command plan to spend $46 billion in the Equipment Plan over the next ten years as follows:

• Investing $7 billion in Skynet-6 military communication satellite program
• $1.9 billion for a National Space Operations Centre, a Space Command, a Space Academy, an Intelligence, Surveillance and Reconnaissance satellite constellation, and for space domain awareness capabilities
• Investing in a UK space launch capability (both horizontal and vertical)
• Increasing cyber capabilities and creating the National Cyber Force, a dedicated career path for cyber specialists
• $9 billion in Research and Development over the next four years
• $415 million for research at Weapons Science and Technology Centre for novel weapons

Opportunities

The UK defense industry is sophisticated and mature. Defense suppliers looking to export to the UK can expect to find a highly competitive environment and must demonstrate a clear competitive advantage. A company with non-British ownership or without a presence in the UK is not necessarily at a competitive disadvantage compared with British firms seeking MOD business. However, a U.S. company must commit both time and resources to enter or expand within the UK defense market. Selling through an established UK company is the least risky market entry strategy for most U.S. defense providers to enter the UK defense supply chain.

Through the Defense and Security Accelerator, the MOD frequently holds industry engagement days and competitions to evaluate equipment and technology. The best way for U.S. companies desiring to engage in meaningful dialogue with the MOD is through these MOD-sponsored industry days and competitions. For announcements on MOD events relevant to a particular defense sector, suppliers should consistently monitor announcements on the Defense and Security Accelerator website.

Source: ITA Country Commercial Guide

Overview

The UK is the largest ICT market in Europe offering major opportunities for U.S. tech providers.

• $170 billion digital tech annual turnover
• Over 100,000 software companies in market
• Second largest ICT markets in ranking of ICT spending per head (U.S. #1)
• London second most connected place for tech, right after Silicon Valley
• No. 1 top scaling tech nation in Europe
• No. 1 destination for U.S. ICT businesses in Europe (often serving as EMEA HQ)
• Key subsectors offering significant opportunities to U.S. tech providers include: AI, Cloud Computing and Cyber Security
• Opportunities exist to supply organizations of all sizes from SME to large corporations, with the most substantial opportunities to be found in organizations for which IT security is mission critical.

Cybersecurity

The rapid development of digitalized services has been accompanied by significant growth in cybercrime, leading to greater spending on security in both public and private sectors and driving demand for more sophisticated and bespoke cyber solutions.

Software, Saas, and Cloud Services

About 100,000 software companies operate in the UK, including all major U.S. tech giants. The rising tide of software as a service has created an industry of products and services that require subscription-like recurring payments. The mindset of UK consumers has shifted from one-off purchases to active, recurrent purchases by many customers. Also, the vast majority of UK enterprises rely on the mobile connectivity of its workforce, which is an ideal setting for SaaS and cloud providers. Additionally, the UK datacenter market is the largest in Europe, generating new sources of demand for ICT providers.

Artificial Intelligence (AI)

The UK is committed to creating an economy that harnesses artificial intelligence (AI) and big data, providing opportunities to U.S. tech companies. The UK AI market is valued at over $21bn and it is estimated to grow to over $1tn by 2035. The UK is the third largest AI market in the world after the U.S. and China. The UK has one of the strongest AI strategies in the world with significant government funding for AI, considerable research activity in the field, major VC funding and AI startups, and substantial enterprise adoption of AI.

Opportunities

Opportunities exist to supply organizations of all sizes from SMEs to large corporations, with the most substantial opportunities found in organizations for which IT security is mission critical, e.g., major financial institutions, utilities, and especially government departments (including the Home Office, Ministry of Defense, Immigration and Border Protection, Revenue and Customs etc.).

Large Enterprises: The bulk of the ICT market is orientated around large commercial enterprises. Financial services, utilities and transportation companies are large spenders.

Public Sector: Central and local governments are investing heavily in ICT and data as they implement their digital transformation agenda to move more and more services online.

Defense and Security (D&S): The D&S market is relatively niche and is focused on the security and intelligence agencies as well as the Ministry of Defense (MoD).

Small and Medium-sized Businesses: While most large enterprises in the UK have already implemented adequate tech tools, small, and medium-sized enterprises have also started to direct their attention towards digital tools to optimize their processes.

Cybersecurity is the one of the most active ICT subsectors in the market, with U.S. cyber companies and technologies very well perceived in the UK. The impact of cybercrime is difficult to quantify but is estimated to cost the UK roughly $35 billion per year. Organizations’ IT footprints are becoming increasingly complex, driving demand for more sophisticated and customized cyber solutions. Over the last year, businesses and organizations in the UK reported hundreds of cyber incidents to the National Cyber Security Centre (NCSC), 63 of which were significant enough to require a national level response. The incidents included a range of malicious cyber activity such as ransomware, reconnaissance, malware and network intrusions, data exfiltration and disruption of services and systems.

Cloud computing offers significant growth opportunities: almost all software companies in the UK are using cloud, and opportunities exist in both the public and private sectors for companies offering cloud or linked services. The UK government strongly supported the adoption of cloud technologies, with G-Cloud frameworks allowing the government to buy directly from suppliers after reaching an agreement on basic terms of use.

Artificial intelligence and machine learning also present substantial prospects, with the UK being home to some of the biggest names in the business and with key players opening their first office outside the U.S. here. In April 2023 the UK Government pledged $125 million in funding to set up a taskforce responsible for accelerating the UK’s AI capability and support the broad adoption of safe and reliable AI. This funding is in addition to the $1.1 billion announced in the Spring Budget in March 2023 to invest in the next generation of supercomputers and a dedicated AI Research Resource. In addition to public funding, industry is also providing funding for AI solutions, with global AI powerhouses having invested significantly in developing the UK AI market.

Source: ITA Country Commercial Guide

Overview

The UK security and resilience market is valued at approximately $29 billion and growing. The market benefits from the focus on national security and counterterrorism, new post-Brexit infrastructure, the need to guard against the increased threat of crime, and the general demand for security products and services.

The UK physical security market was valued at $14 billion in 2022. It is expected to be relatively stable over the next few years with growth due to digitization. The sector will benefit from the strong performance of security for infrastructure. Surveillance technologies and managed services play a particularly important role. Border security and major events are anticipated to require significant investments in security in the coming years and will outperform other subsegments.

The UK faces a substantial threat from terrorism, with transport infrastructure dealing with higher levels of threat. Higher levels of effective and visible protective security at national infrastructure sites are likely to act as a deterrent to terrorists, who increasingly favor ‘soft’ targets. Nevertheless, with the continual diversification of the threat, the ambition and capability of terrorist groups to target UK infrastructure is likely to continue to evolve.

Cyber security concerns and digitization of current processes offer great opportunities in the expanding marketplace. Online ransomware attacks are considered a tier 1 national security threat by the UK government due to its impact on public and private institutions and its increasingly common nature. Border security digitization is also an area of interest for the UK government through the Nationality and Borders Act and the Illegal Migration Act. The UK government’s national security technology procurement strategy emphasizes the need for commercial, off-the-shelf solutions from well-established suppliers that can be deployed quickly, suggesting a good opportunity for U.S. companies with a strong existing track record in the U.S. Although the demand for security services such as consultancy, training, guarding, and risk analysis is also growing, the UK market is highly competitive and can represent challenges for U.S. businesses, as local companies include some of the world leaders in this sub-sector.

Established U.S. suppliers typically do well in the UK, but newcomers must consider the scale of the competition. There are an estimated 9,000 security companies in the UK. British companies operating in the market vary in size from small niche companies to a handful of major UK-owned global operators such as BAE Systems and Smith Group. Major foreign players active in the UK include Ansell, Draeger, EADS, Thales and Finmeccanica and many others.

Projections for the security market vary based on end-users and particular sub-sectors. Public spending is expected to increase in 2023, especially for critical infrastructure protection, but private sector spending is likely to continue contracting. Manpower levels are being cut and costs carefully considered. Spending focus in the coming period is on business continuity rather than investments in capability improvements.

The departure of the UK from the EU has increased the requirement for investment in UK border crossings. The UK government allocated over $910 million for border infrastructure, technology, and new staff to ensure British border systems are fully operational at the end of the transition period through the Nationality and Borders Act (see Opportunities below). While it did not allocate additional funding, the 2023 Illegal Migration Act further indicates the government’s commitment to border security and the opportunities in this sector.

The illegal Russian invasion of Ukraine has increased focus on UK security. Further, ransomware attacks are on the rise in the UK, increasing the need for strong cyber security precautions.

While the UK market is substantial, mature, and growing rapidly, there can be significant challenges to newcomers with no previous track record in the UK. For that reason, it is strongly advised to consider partnering with an established local partner. For UK government-related opportunities, it is often important to have a UK incorporated presence.

Leading Sub-Sectors

Access Control and Identity Management – There has been an increase in the call for solutions to combat the growing threat of identity theft. Demand for solutions that help enhance retail, property and personal security remains. Biometrics are at the forefront of opportunities in this sub-segment.

Screening and Detection – As a result of the threat of international terrorism in Europe, there is a call for investments in national security and counterterrorism, which indicate steady growth for this market in coming years. In addition, the need for increased security at high-profile national locations continues to drive the demand for better and more sophisticated screening solutions, creating potential benefits for U.S. companies offering advanced technologies in this sub-sector.

Surveillance – In the area of surveillance systems, the demand is for innovation; increased complex risks mean that customers require more agile solutions. Customer demand dictates that analog CCTV be replaced by IP surveillance systems with added functionalities such as facial recognition and incorporation of interface with smartphone technologies. The UK is following the global trend of tailoring solutions for security products customers. The thermal imaging market is also expected to grow significantly, with video surveillance representing the largest growth.

Opportunities

The UK government has dedicated additional spending on post-Brexit border crossings, with the aim to create “the world’s most effective border by 2025”. The focus is on infrastructure such as border control posts, IT systems and staffing, and seamless screening and scanning of cargo and personnel. Funds have been allocated to develop His Majesty’s Revenue and Customs (HMRC) systems in order to reduce the burden on traders, alongside additional investment in technology to ensure that new controls can be fully implemented.

Large investments in critical national infrastructure also create opportunities, particularly for the following types of products: security screening and detection (improved speed and convenience), biometric, connectivity, crowd management, hostile vehicle protection, security solution for soft targets, physical protection of assets, intelligent surveillance, anti-drone systems, blast proofing, containment, and predictive strategic security.

Contactless technologies and remote-controlled equipment that combine requirements of security and safety are in high demand. Opportunities with First Responders in the UK include Personal Protective Equipment (PPE) and integration systems and platforms.

Fire Equipment is a Safety market sub-segment that is experiencing a rise in demand in the aftermath of the widely publicized 2017 Grenfell Tower fire disaster.