X-Ray security scanner market by rapidly growing E-commerce to propel the deployment of cargo and vehicle inspection systems
The global X-ray security scanner market is valued at US$ 3.88 billion in 2017 and is estimated to reach US$ 5.95 billion by 2025. Rapidly growing e-commerce market worldwide is one of the major factor bolstering the growth of x-ray security scanner market. The growth of e-commerce is highly attributed to the availability of better and efficient internet infrastructure, which offers more favorable circumstances to businesses, especially to SMEs to sell their goods and services in the X-ray security scanner market. Rapid propagation of internet coupled with increasing smartphone penetration has resulted in the increased growth of e-commerce worldwide. According to the Information Economy Report 2015, the value of global B2B e-commerce increased significantly in the past decade. Also, global B2C is experiencing a rapid expansion, particularly in emerging economies of Asia and Africa. This growth is highly attributed to the increased use of internet and “mobile revolution”. With the increasing competition, the cost of internet is decreasing thus, making it affordable to common people. Furthermore, e-commerce offers the convenience of placing an order online to the shoppers thus, eliminating the need to visit physical stores, which is further influencing the e-commerce growth.
The rising e-commerce industry has resulted in the growth of cross-border transactions thereby, increasing the volume of parcels check points. For instance, as per the Association of Asia Pacific Airlines, the APAC airlines’ witnessed a growth of 9.8% in 2017 from 2016. Also, according to International Air Transport Association, the volume of air freight in terms of freight tonne kilometers has rose by 9.0% in 2017 in comparison to 2016. Furthermore, IATA also reported that International Freight Tonne Kilometers grew in all regions, Africa being the leading region for international growth with 25.2% Y-o-Y growth in comparison to 3.7% in 2016. Thus, increasing cross-border trade is expected to bolster the deployment of cargo inspection X-ray systems at sea ports, air cargo centers, and other such places across the globe.
In April 2018, the U.S. Custom and Border Protection’ donated four mobile vehicle and cargo inspection systems, manufactured by the Leidos Corporation to be installed at the Port of Point Lisas and the Port of Spain. The installation of these systems were aimed at preventing human trafficking and stopping drugs and other contraband to enter or leave the ports. These color-coded images generated by these systems helps in distinguishing organic materials such as dugs and explosives from inorganic materials such as shielded objects and guns. Such government investments indicate the need of enhanced border security and trade assistance. Furthermore, in December 2017, OSI Systems, Inc. was awarded with a contract of US$ 14 million to supply X-ray cargo and vehicle inspection system from a customer based in Pacific Rim region.
Some of the major players operating in the market of X-ray security scanner include Astrophysics, Inc., ADANI, Eurologix Security Group, L3 Security & Detection Systems, NUCTECH COMPANY LIMITED, OSI Systems, Inc., Gilardoni S.p.A., Kromek Group plc, Smiths Detection Inc., and TELEDYNE ICM.