The Russian security market is approaching a stage of significant investment as a result of the upcoming 2014 Sochi Olympics and the FIFA 2018 World Cup. These two events will provide the country with global exposure and will drive security expenditure, not only in stadia but also across infrastructure. There is also a growing need for new technology and integrated solutions. Although there are several strong Russian organizations with local networks and technical capability, there are also opportunities for international suppliers.
"Infrastructure growth is an important indicator of security demand," says Frost & Sullivan Vice President for Aerospace, Defence & Security, Steven Webb. "The largest infrastructure programmes have been planned for oil and gas, mass transportation and electricity generation. Oil and gas is critical to the Russian economy, and ensuring secure supply is essential."
The combined spend on infrastructure totals $626.20 billion and will present security integrators with significant opportunities over the next 15 years. Urban Security or Safe City programmes are likely to be expanded to more Russian cities, following the example of Moscow. Improved first responder networks leveraging LTE, increased investment in securing commercial premises, including the banking sector, and investments in state-owned services such as hospitals and education will also provide additional opportunities.
Upcoming major events in Russia might be a catalyst for larger Safe City deployments, with centralised command and control connecting multiple agencies. Certainly, Sochi has used the Winter Olympics to upgrade its IT and communications infrastructure and to improve city-wide security. With security a high priority, other cities are likely to adopt similar programmes
Also border and maritime security is a key focus of the Russian Federation. Significant investment is expected in line with Russia's modernisation programme and the focus on the Arctic arena. There are confirmed plans to secure land borders and upgrade obsolete physical security with advanced intelligence, surveillance and reconnaissance technologies. This will include radars, UAVs, surveillance cameras and night vision technology.
"Russian authorities are focusing on innovative solutions in the border control segment and are attempting to utilise biometrics to secure borders,'" adds Mr. Webb. "The first step in this transition was the introduction of ePassports in 2012. ePassports include the fingerprint data of the passport holder, which gives the traveller the ability to use electronic self-service gates (eGates). This new document has allowed Russia to further invest in innovative technology; post the trial of eGates in 2011, it is now in permanent use at several border crossings."
The Russian security market is highly fragmented with a mix of national and international organisations. At an access control level, many capable local participants provide relatively simple solutions to the market.
The route to market for international providers is through strong local distributors and relationships with local security integrators. Similar to the rest of the world, Russia's integrators fall into two distinct groups - IT/telecommunications integrators that focus on a far broader offering than just security, including enterprise solutions such as contact centres, IP telephony and data storage, and classic security integrators.
"Russia offers opportunity for organisations that are prepared to invest time in building relationships," summarises Mr. Webb. "Technology for complex security requirements is improving, and Russian organisations will increasingly compete for work in international markets. However, a technology gap does exist today and this can be filled through partnerships."
If you would like to learn more about Russian Security Market, please contact Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com. Please include your full contact details in the query.
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