Advanced Electronic Technologies for the Intelligence Community

Report Highlights

• Total advanced intelligence expenditures in the U.S. are expected to rise at an average annual growth rate (AAGR) of 7.8% from $25.1 billion in 2003 to $36 billion by 2008.
• Expenditures for data gathering will continue to dominate the market, but will rise more slowly (5.1% AAGR) to $14.5 billion in 2008.
• Spending for surveillance will rise the fastest, growing at an AAGR of 9.7% to $8.9 billion in 2008.
• Security expenditures will grow 1% for each 5% expansion in E-commerce transaction expenditures.

INTRODUCTION

Although in popular imagination, intelligence is viewed in terms of ferreting out secret information by “cloak and dagger” means, in fact, the vast majority of intelligence gathering, analysis and dissemination involves far more prosaic labors. No question, intelligence work often may involve such life and death matters as potential foreign enemies and terrorist threats of a biological, political, military or even informational nature (e.g., cyber-sabotage), much, if not all, work is focused on intelligence relating to industries, competitors, customers and new technologies.

No longer the sole preserve of government, the military and law enforcement, intelligence technologies now are spreading throughout the private sector including large and small companies. They increasingly are reaching the home security market, creating further opportunities for intelligence technology developers and service providers. This process has been accelerated by two factors: the rapid evolution of intelligence technologies, that have made products and services more flexible and affordable, and the tragic events of 9/11/01 that radically increased the need for, and value of critical intelligence.

The future demand for intelligence technology is going to cover both expanding government and private corporate markets, and the leaders will be those who will be able to predict and follow market trends. This timely and important BCC report identifies the key trends, and outlines the current positioning of major players in technological and end-user markets. The report also projects the likely future trends of intelligence-related expenditures, the principal barriers holding back the industry, and the key factors likely to accelerate future growth.

SCOPE OF STUDY

The report covers:

• The most critical developments in intelligence- related technologies over the past several years
• Near-term commercial opportunities and challenges
• All aspects of intelligence technologies and services in the U.S., including infrastructure hardware, software and networking equipment and telecommunications devices
• Expanding government and corporate markets, with forecasts to 2008
• International aspects.

METHODOLOGY AND SOURCES

Preparation of this report involved in-depth study and critical analysis of published data from a wide variety of governmental and private sources. Industry projections have been made by BCC based on original studies of economic, social, and technological trends, as well as a critical examination of projections made by industry and other public sources.