Chem-Bio detector market reaches $400M.

• Author: Erwin, Sandra I.
• Position: Statistical Data Included - Industry Overview

The world market for chemical and biological warfare agent detectors could reach nearly $400 million in 2002, with the United States leading this sector as both the top investor in technology and the biggest buyer of new equipment.

Global spending forecasts for chem-bio detectors were revised after the Sept. 11 terrorist attacks, said Jenny Benavidez, research analyst for Frost & Sullivan Aerospace and Defense group. Her original forecast for 2002 sales was $322 million. It jumped to $383 million, given the recent surge in spending by the U.S. government. Revenues for this industry are expected to rise to $426 million by 2003, she said in an interview. By 2007, it could grow to more than $490 million.

The customers who are fueling the increased demand for GB warfare agent detection include the U.S. military services, security forces, first responders, emergency medical services and programs that deal with chemical weapons demilitarization, chemical arsenals/site remediation, strategic port/airfield monitoring, border management, and water and food testing.

After September 11, Benavidez said, first-responder agencies in the United States and the National Guard's weapons of mass destruction teams have generated new sales of chem-bio detectors.

"In the past, most of the agencies on the non-federal level received insufficient funding to enable them to purchase sophisticated detection systems," she said. "With a limited budget, the choice often is between one $150,000 detector or multiple protective suits with gas masks or other basic items." Before September 11, she added, not many agencies believed that they would be likely to use these derectots other than in training drills.

It is not clear, however, whether the additional revenues expected in this market will translate into new corporate investments in chem-bio protective systems, Benavidez said. Firms in this market, for the most part, develop new technologies under government contracts. "Research and development is not a cheap endeavor," she said. "Companies need government funding, usually from the services or from the Defense Advanced Research Projects Agency."

Before September 11, she added, companies were "operating under the assumption that 'it hasn't happened yet, so let's not worry about it."' Iris now possible, but not certain, that the increased fear of new attacks in the United States could make commercial companies more willing to spend the capital to design and develop the...