Financial Institution Security Measures in the United Kingdom Face Increasing Threats and Opportunities
The security and resilience market in the United Kingdom has experienced significant growth, valued at an estimated $29 billion. This growth can be attributed to the focus on national security and counterterrorism, new post-Brexit infrastructure, and the need to guard against increased crime.
Physical Security Market
The physical security market in the UK is valued at $14 billion and is expected to remain relatively stable over the next few years, driven by digitization. The sector will benefit from strong performance in security for infrastructure, with surveillance technologies and managed services playing a significant role. Border security and major events are anticipated to require significant investments in security.
Cybersecurity Concerns
The UK faces a substantial threat from terrorism, particularly at transport infrastructure sites. Higher levels of effective and visible protective security are likely to act as a deterrent to terrorists, who increasingly favor “soft” targets. Cybersecurity concerns and the digitization of current processes offer great opportunities for growth in the expanding marketplace.
Online Ransomware Attacks
Online ransomware attacks are considered a tier 1 national security threat by the UK government due to their impact on public and private institutions and increasing frequency. Border security digitization is also an area of interest, with the Nationality and Borders Act and the Illegal Migration Act emphasizing the need for commercial, off-the-shelf solutions from well-established suppliers.
Competition in the Market
Established US suppliers typically perform well in the UK market, but newcomers must consider the scale of competition. There are approximately 9,000 security companies in the UK, including small niche firms to major global operators like BAE Systems and Smith Group.
Projections for the Security Market
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, while private sector spending is likely to continue contracting.
UK Border Crossings
The departure of the UK from the EU has increased the requirement for investment in UK border crossings, with over $910 million allocated for border infrastructure, technology, and new staff. The illegal Russian invasion of Ukraine has also increased focus on UK security, along with a rise in ransomware attacks.
Challenges for Newcomers
While the UK market is substantial, mature, and growing rapidly, there can be significant challenges to newcomers without a previous track record. For this reason, it is strongly advised to consider partnering with an established local partner.
Leading Sub-Sectors
Leading sub-sectors include:
- Access control and identity management
- Screening and detection
- Surveillance
- Opportunities for US companies in these areas
Critical National Infrastructure
Large investments in critical national infrastructure also create opportunities, particularly for security screening and detection, biometric, connectivity, crowd management, hostile vehicle protection, and intelligent surveillance. Contactless technologies and remote-controlled equipment that combine requirements of security and safety are also in high demand.
Fire Equipment Market
The UK’s Fire Equipment market is experiencing a rise in demand following the 2017 Grenfell Tower fire disaster. Industry events such as Security & Policing Home Office Event, Security Event, and International Security Expo provide opportunities for networking and information sharing.
Contact Information
For further information on doing business with the UK security sector, please contact:
Rachel Fefer, Commercial Specialist at the US Commercial Service Tel: +44 (0)20 7891 3430