North America Cargo And Vehicle Screening - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The North America Cargo And Vehicle Screening Market size is estimated at USD 0.75 billion in 2024, and is expected to reach USD 1.04 billion by 2029, growing at a CAGR of 6.90% during the forecast period (2024-2029).

The primary purpose of cargo and vehicle security screening systems is to detect explosives and other illegal products. The increasing adoption of advanced technologies in cargo and vehicle inspection systems also contributes to the market's growth. However, factors such as high installation and maintenance costs are restraining the development of this market.

Key Highlights

• North America is anticipated to remain a prominent cargo and vehicle screening solutions market. The market's growth can be attributed to the increasing demand for cargo and vehicle inspection systems for civilian, military, and other regional applications.
• Some of the major airports in North America are being renovated or expanded, and the latest technologies, such as cargo-screening technology based on X-ray radiography, robotic technology, etc., are being implemented, which is driving opportunities in the air cargo screening systems market.
• For instance, in January 2024, The Canadian Minister of Transport announced a significant investment of CAD 74.3 million (~USD 55 million) from the National Trade Corridors Fund. This funding is specifically designated for the Vancouver International Airport, focusing on expanding its operations. The expansion's goals include increasing the airport's cargo capacity, improving its facilities, enhancing operational efficiency, and, importantly, reducing pollution levels.
• With an increased threat of illegal trade and terrorism, the region has heightened its security measures, particularly in cargo and vehicle inspections. This, in turn, bolsters a conducive environment for the market under study to flourish. In a notable example from August 2023, authorities in Canada and the U.S. jointly inspected 7,572 commercial motor vehicles carrying hazardous materials/dangerous goods (HM/DG) during the Commercial Vehicle Safety Alliance's (CVSA) annual, unannounced, five-day inspection and enforcement drive. Notably, 482 dangerous goods violations were uncovered on Canadian roads during this blitz.
• Furthermore, North American countries, especially the United States, are regional hubs for trade as the country is among the leading exporters and consumers of commodities of various types. For instance, according to the Bureau of Economic Analysis, the total import value of international goods and services in the United States stood at USD 3.83 trillion in 2023.
• However, higher initial investments and operational costs associated with cargo and vehicle inspection systems significantly hinder market growth, particularly for small and medium-sized enterprises (SMEs).
• The COVID-19 outbreak significantly hampered the growth of the market under study. Lockdowns, enforced across regions, disrupted both trade volumes and the supply chains of airport cargo screening systems. Yet, the pandemic underscored the benefits of advanced cargo and vehicle screening solutions, which demand minimal human involvement. This newfound awareness is poised to propel the market's growth in the coming forecast period. Furthermore, the resumption of global trade will also drive opportunities in the studied market during the post-covid period.

North America Cargo And Vehicle Screening Market Trends

Adoption of Advancing Technologies For Screening Promotes Growth

• Technological advancements in cargo and vehicle inspection systems, including the incorporation of artificial intelligence and machine learning, bolster the efficiency and accuracy of inspection processes. Furthermore, advanced technologies, such as millimeter-wave, dual-energy X-ray, and AI-powered threat detection, are supplanting conventional X-ray detectors. They offer superior image analysis, expedited inspection times, and heightened object detection capabilities. The impetus behind this shift is the escalating need for heightened efficiency and security in cargo and border control in North America.
• Heightened worries over illegal immigration and security risks posed by terrorist groups have also driven a surge in the deployment of advanced monitoring systems at crucial transportation hubs in the North American region. Equipped with cutting-edge technology, these systems offer real-time insights into container movements, enabling authorities to preemptively identify and track suspicious containers or vehicles, even before they approach sensitive zones or reach their final destinations.
• Enhanced cargo screening not only deters smuggling and criminal activities at ports but also sets the stage for robust industry growth in the years ahead. Ongoing advancements in cargo screening have significantly expedited the process, bolstered reliability, and enabled the handling of sizable shipments. The industry's relentless pursuit of refining this technology underscores its commitment to elevating safety standards and expediting security clearances in the future.
• Another major factor driving the demand for advanced cargo and vehicle inspection systems in the North American region is the increasing trade value of goods. For instance, according to the data provided by BEA and the US Departnment of Comemrce, in 2023, total value of international exports from the United States, amounted to about USD 3 trillion U.S. dollars; while, imports amounted to approximately USD 3.86 trillion.
• Moreover, in recent years, the North American region has also witnessed a notable growth in the number of commercial vehicles crossing borders, carrying a variety of items to and from the country. For instance, the Canada Border Services Agency (CBSA) recorded about 107.7 million courier shipments entering the Canadian borders. till September 2023. Such trends are also anticipated to support the studied market's growth.

United States to Hold a Significant Market Share

• In North America, the United States is poised to uphold its position as the leading market for cargo and vehicle screening solutions. This dominance is chiefly attributed to the nation's substantial international trade volume. Additionally, given the United States' unfortunate history as a prime target for illegal and terror activities, notably exemplified by the World Trade Center attack, the nation has implemented stringent security protocols across its key transportation hubs.
• Furthermore, the country has also been among the leading adopters of advanced technologies, especially in the security and defense segment. As a result, the country has developed one of the most advanced security and surveillance infrastructures. Such trends create a favorable ecosystem for the studied market's growth in the country.
• In recent years, the United States government has significantly enhanced its investment in developing the local infrastructure, especially since the escalation of its dispute with China. For instance, in March 2024, the U.S. General Services Administration unveiled plans to inject more than USD 1 billion into the modernization of numerous federal Land Ports of Entry (LPOEs). This initiative, part of the President's Investing in America agenda, not only aims to revamp these ports but also to bolster domestic clean manufacturing and sustainable technologies.
• Furthermore, the increasing international trade value of the United States with neighbouring countries have also been influencing the cargo and vehicle traffic at the borders. For instance, according to a report by the Bureau of Transportation Statistics, in 2023, the U.S. saw a 0.6% uptick in the total number of trucks arriving from Canada compared to 2022. Specifically, the port of Detroit, Michigan, welcomed 1,562,531 trucks, accounting for a significant 28.3% share of the Northern border's traffic.

North America Cargo And Vehicle Screening Industry Overview

The North American cargo and vehicle screening market is moderately competitive, with significant players like Rapiscan Systems, LINEV Systems, Nuctech Company Limited, and Leidos, Inc., among others. Players in the market are adopting various strategies, such as partnerships, mergers, collaborations, innovations, and acquisitions, to enhance their product offerings and gain a sustainable competitive advantage. Some of the recent developments in the market include.

• March 2024 - The Transportation Security Administration (TSA) and the Department of Homeland Security (DHS) have introduced a new self-service screening system prototype at Harry Reid International Airport in Las Vegas. This system, as described by the TSA, features a video monitor that guides passengers through the screening process at their own pace. Once passengers finish the screening, automated exit doors open, allowing them to collect their belongings and proceed further.
• January 2024 - Smiths Detection, a leading threat detection and screening technology provider, has revealed its involvement in a program to create a maritime customs border control screening system, known as METEOR. According to Smiths Detection, the METEOR consortium will introduce a vapor-based portable scanner for non-intrusive inspection of large-volume shipments, such as shipping containers. The technology promises swift, high-quality detection and identification with a low false alarm rate, all without needing to open the container. The success of such products may lead to the launch of solutions leveraging such technologies in North American market as well.

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