Since 9/11 the security market has grown immensely. On Homeland Security alone the world spends 118 billion euro in 2009, this is expected to rise to 215 billion in 2018. Homeland security, border security and cyber security are becoming more and more militarized, and ‘solutions’ are sought in technologies developed by or in cooperation with the defence industry. Now that national defence budgets are shrinking due to the economic crisis, the security market becomes even more important for the arms industry. Security is often funded from non-traditional sources such as the home office budget and the European Union budget.
In some cases, supply is directing the market more than demand is. Privacy and civil liberties are under pressure. Homeland security is protection against internal terrorist attacks and (violent) internal upheaval. Some governments define terrorism very broadly, including legitimate opposition. Border security is the protection against unwanted border crossings, most often by migrants. Cyber security is protection of computer and data systems but increasingly includes developing an offensive cyber capacity.
The global security market is dominated by American, British and Israeli companies. For Dutch companies it is also of growing importance. The Dutch lobby organisation of the arms industry has renamed itself into NIDV, Dutch Industry for Defence and Security. An increasing number of fairs and exhibitions are focussing on security, most important are IFSEC (UK), Milipol (France and Qatar), Counter Terror Expo (UK), Security Essen (Germany), Homsec (Spain), Intersec (Dubai), ISS World (several), Security Israël (Israël) and Sfitex (Russia).
The European Union is not subsidizing defence production but through security budgets in the Framework Programs on innovation and technical development EU money is going to the arms industry. Many projects go to consortia where the arms industry works closely together with research institutions and universities. In the Netherlands EADS and TNO are profiting from EU budgets. EADS’ military division Cassidian expects to earn 50% of its income in the security sector by 20120. TNO is participating in 20 Framework Programme funded projects. Many smaller Dutch companies are developing specific products for niches in the security market. The report gives an overview of these companies.
The most recent figures show that in the first half of 2011, 1,67 billion euro of cyber equipment has been exported from the Netherlands under dual use permits. The fast developments in this sector needs a permanent updating of arms exports and dual use lists.