Study on the development of statistical data on the European security technological and industrial base

Transcription

1 Study on the developent of statistical data on the European security technological and industrial base Security Sector Survey Analysis: Poland Client: European Coission DG Migration and Hoe Affairs Brussels, April 2015

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3 Study on the developent of statistical data on the European security technological and industrial base Security Sector Survey Analysis: Poland Client: European Coission DG Migration and Hoe Affairs Brussels, April 2015

4 About Ecorys At Ecorys we ai to deliver real benefit to society through the work we do. We offer research, consultancy and project anageent, specialising in econoic, social and spatial developent. Focusing on coplex arket, policy and anageent issues we provide our clients in the public, private and not-for-profit sectors worldwide with a unique perspective and high-value solutions. Ecorys rearkable history spans ore than 85 years. Our expertise covers econoy and copetitiveness; regions, cities and real estate; energy and water; transport and obility; social policy, education, health and governance. We value our independence, integrity and partnerships. Our staff coprises dedicated experts fro acadeia and consultancy, who share best practices both within our copany and with our partners internationally. Ecorys Netherlands has an active CSR policy and is ISO14001 certified (the international standard for environental anageent systes). Our sustainability goals translate into our copany policy and practical easures for people, planet and profit, such as using a 100% green electricity tariff, purchasing carbon offsets for all our flights, incentivising staff to use public transport and printing on FSC or PEFC certified paper. Our actions have reduced our carbon footprint by an estiated 80% since ECORYS Nederland B.V. Wateranweg GG Rotterda P.O. Box AD Rotterda The Netherlands T +31 (0) F +31 (0) E netherlands@ecorys.co Registration no W 2 FU98408

5 Table of contents Preface 5 1 Introduction General context Ai of this report Structure of the report 8 2 Survey overview Survey ipleentation Survey population Coverage and response rate Survey instruent and ethod Field report Field tie Length of interviews Data preparation and testing 10 3 Descriptive analysis Security threat categories Areas of econoic activity Broad segentation of security products and services Cyber security Cyber security products and services Cyber/IT business activities Other security product providers Other security products Other security products business activities Other security service providers Other security services Security arket by econoic sector (end-user) Overall all products and services Breakdown by ain broad category of security products and services Security arket by geographical region Geographical arkets all products and services Breakdown by ain broad category of security products and services Fir structure: eployent and turnover Eployent Growth perforance and prospects Past turnover growth perforance Future turnover growth prospects Future deand prospects by broad custoer group and geographical area Copetitors Geographical origin of ain copetitors all products and services Breakdown by ain broad category of security products and services Future copetition prospects by geographical origin of ain copetitors 43 Study on the developent of statistical data on the European security technological and industrial base 3

6 4 Aggregate estiates of the size of the security industry Overview of approach Method for the estiation of aggregate turnover and eployent for the survey saple Underlying assuptions Estiation of turnover for non-declaring respondents Estiation of eployent levels for eployent-size class 1000 or ore eployees Estiation of saple average values of eployent and turnover per fir Method for the initial estiation of aggregate turnover and eployent Underlying assuptions Calculation of the initial estiate of the population of security copanies Calculation of initial estiates of aggregate (national) turnover and eployent Variants and sub-groups Size of the security industry: survey estiates and aggregate (national) extrapolation Estiates of the population of security copanies Coparison of estiators 50 Annexes 61 A.1. Product and services segentation 63 A.2. Market Segentation 66 4 Study on the developent of statistical data on the European security technological and industrial base

7 Preface This Background Report has been produced as part of the study on Developent of statistical data on the European security technological and industrial base coissioned by the European Coission within the Fraework Contract on Security (ENTR/09/050) between the European Coission and a consortiu led by Ecorys Nederland B.V. in collaboration with TNO and DECISION. The Background Report provides an overview of initial findings fro a survey of copanies active in the (civil) security sector in Poland. It is one of a series of reports covering findings fro surveys conducted for: Estonia, France, Italy, Poland, Spain and the United Kingdo. The survey design and subsequent data analysis has been undertaken by Ecorys, while the actual surveying of copanies has been conducted by GfK, a specialist arket research copany. The individual country surveys of copanies have been conducted over the period October 2014 to February To obtain coparable data for Gerany, Ecorys has collaborated with the Brandenburg Institute for Society and Security (BIGS) who have conducted a siilar survey based on a coon survey questionnaire design. This survey has been ipleented as a follow-up round to previous surveys of copanies active in the (civil) security sector in Gerany undertaken by BIGS. The survey findings described in this Background Report and in the other accopanying country reports ai to contribute to a better understanding the structure, size and developent of the security sector in the EU. In this regard, coents and feedback on this report are welcoed. Siilarly, if you are interested in obtaining ore inforation on this report, on the overall study or, ore broadly, on our work on the security sector, please contact the study tea. Study Tea Roelof-Jan Moleaker (Director): Roelof-Jan.Moleaker@ecorys.co Paul Baker (Associate): baker.paul.s@gail.co Andreas Pauer (Consultant): Andreas.Pauer@be.ecorys.co Olga Abraczky (Consultant): Olga.Abraczyk@be.ecorys.co Rachel Beeran (Consultant): Rachel.Beeran@ecorys.co Study on the developent of statistical data on the European security technological and industrial base 5

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9 1 Introduction 1.1 General context In 2012, the European Coission set out for the first tie its vision for an industrial policy for the security sector 1,2. However, in presenting its proposals for action, the Coission acknowledged that developing a clear picture of the security sector in the EU is hapered by the absence of reliable data. To which, the Coission proposed to develop an epirical basis on which ore reliable figures on the security arkets can be obtained. Responding to the Counication, the European Econoic and Social Coittee (EESC) 3 also placed ephasis on the need for relevant, detailed statistics looking at security sectors copanies, not least, of their production, workforce and size. 4 In light of the above, as part of its Security Research Prograe for , the European Coission set out its intention to launch a study for Developent of statistical data on the European Security and Technological Industrial Base aied at developing statistical data that would allow to obtain a clearer picture of the technological and industrial base of the security industry in Europe. This would allow to obtain a better understanding of the strengths and weaknesses of the European security industry, as well as to better onitor the ipact of R&D activities on the European security industry. In Septeber 2013, under the Fraework Contract ENTR/09/050 the European Coission requested that Ecorys prepare a proposal for a study on the Developent of statistical Data on the European Security and Technological Base. The subsequent proposal was approved in Deceber 2013, with ipleentation of the study coencing in January The study has been divided into 2 ain phases: Phase I covers preparatory activities leading to an Ipleentation Plan for the developent of statistical data on the security industry; Phase II will cover the ipleentation of the tasks and activities elaborated in the Ipleentation Plan and as agreed with the Coission services. Phase I of the study was copleted and approved in Noveber Phase II of the study is planned to be copleted by the end of May (European Coission, 2012a). 2 (European Coission, 2012b). 3 (European Econoic and Social Coittee, 2013). 4 In general, the EESC also recoends setting priorities for action using a product-based, rather than sector-based, approach. 5 (European Coission, 2012c). Study on the developent of statistical data on the European security technological and industrial base 7

10 1.2 Ai of this report The ai of this report is to provide an overview of the ain patterns revealed by a survey of copanies active in the (civil) security sector in Poland. The Security Sector Survey for Poland hereafter Ecorys SSS (Poland) was coissioned by Ecorys and undertaken by GfK in January The analysis in this report focuses, firstly, on providing a description of the structure of the security industry in ters of: supply of products and services; segentation of the security arket by econoic sector (end users); segentation of the security arket by geographical region, including the share of exports; industry structure by fir size (eployent and turnover); growth perforance and prospects; geographical coposition of ain copetitors and prospects for future copetition. In addition, a second ai of the analysis is to support efforts to extrapolate survey findings to arrive at estiates of the overall size of the Polish security sector in ters of eployent and turnover. 1.3 Structure of the report The structure of the report is as follows: Chapter 2 provides an overview of the survey approach and outcoes; Chapter 3 provides a descriptive analysis of the survey results; Chapter 4 provides an assessent of the overall size of the Polish security sector based on an extrapolation of survey results. 8 Study on the developent of statistical data on the European security technological and industrial base

11 2 Survey overview Note: the following inforation is priarily taken fro the GfK Methods Report provided to Ecorys in January Survey ipleentation Ecorys, working on behalf of the European Coission, coissioned GfK to undertake a survey - carried out via Coputer Aided Telephone Interviews (CATI) - of copanies in the security industry. 2.2 Survey population Ecorys established a list of copanies that a priori are active in the security sector. The list of copanies (including business addresses and contact details) was priarily collected fro published lists of ebers of relevant business associations available fro the internet, together with suppleentary searches of the internet based on relevant search criteria. The address list consisted of 4,596 records, which can be considered as the target group for the study. 2.3 Coverage and response rate A total of n = 300 copleted interviews could be conducted by GfK. To achieve this net saple, GfK s field organisation tried to contact all 4,596 copanies. Details of the response rate are provided below. Table 2.1 Total % of total Total saple provided 4, % Survey achieved 300 7% Saple not yet dialed 156 3% Dialed saple still active 2,029 44% Screening failures 204 4% Refusals 1,298 28% Other non-response % Incorrect phone nubers 5 0% Saple conversion 9 Refusal rate 81% Response rate 7% Incidence 60% Explanation of calculations: Saple conversion: total saple provided (4,596) Dialed sapled still active (2,029)/surveys achieved (300) Refusal rate: Refusals (1,298)/[Refusals (1,298) + surveys achieved (300)] Response rate: surveys achieved (300)/total saple provided (4,596) Incidence: surveys achieved (300)/[surveys achieved (300) + Screening failures (204)] Source: GfK Study on the developent of statistical data on the European security technological and industrial base 9

12 2.4 Survey instruent and ethod All interviews were conducted via CATI (Coputer Assisted Telephone Interviews). By default GfK uses an Auto-Dialing-Syste in order to ensure an optial exploitation of the saple and a axiu of realised interviews. Especially in B2B surveys, this is of great iportance, as it allows to identify non-existent nubers technically and to anage appointents efficiently. Furtherore the CATI survey allows to ake autoated plausibility checks already during the interview, e.g. by identifying typos fro respondents entering unrealistic nuerical values. In addition, the correct sequence of the interview was ensured via prograed filter guides. This proceeding significantly reduced the cleanup effort after the survey and axiized the nuber of realized interviews. The questionnaire was developed and finally signed off by ECORYS and was prograed by GfK as CATI script. Before signing off the questionnaire it was subitted to the European Coission services for their approval. The used questionnaire was sub-divided into the following ain areas: Screening (Copany) Product portfolio Market breakdown Copany size (eployent and turnover) Growth perforance prospects Copetitors To increase the acceptance of the survey and the willingness to answer, a letter fro Ecorys and a letter of recoendation fro the European Coission was provided and sent to the copanies on deand. In these letters, the study and its objectives were explained and copanies were requested to participate in the survey. 2.5 Field report Field tie The fieldwork was conducted in the period fro January 09, January 23, In general, the interviews of this B2B-survey were done on working days only Length of interviews The average duration of the 300 interviews in Poland was 23.1 inutes. 2.6 Data preparation and testing The collected data was provided by GfK s field organization to the project anagers at GfK as a labelled SPSS data set. In the context of GfK s standard quality assurance procedure a coprehensive plausibility check was ade. Special attention was paid to the check whether all filter questions were ipleented correctly in the prograed questionnaire. The final data was sent to ECORYS as a labelled SPSS data set. 10 Study on the developent of statistical data on the European security technological and industrial base

13 3 Descriptive analysis 3.1 Security threat categories Respondents to the survey were requested to identify whether they offered products and/or service(s) for use in the following areas ( threat categories ): Protection against criinality, terroris or public disorder; Protection of critical infrastructure; Border protection and control; Preparation for or response to natural and/or an-ade disasters. Note: ultiple responses allowed. Figure 3.1 shows the nuber of respondents that indicated being active in each area of security ( threat categories ). More than a third (39%) of surveyed organisations supply products and services for protection against criinality, terroris and public disorder. Slightly saller nuber of organizations (36%) supply products and services for protection of critical infrastructure. By contrast, 5% of organisations are active in the supply of products and services to border protection and control. See Table for underlying data. Figure 3.1 Supply of products and services by 'threat category' (nuber of responses) Natural and an-ade disasters 102 Border protection and control 26 Protection against criinality, terroris and public disorder 202 Protection of critical infrastructure 189 Table Supply of products and services by 'threat category' Share of Affirative Share of affirative responses respondents responses Protection against criinality, terroris, public disorder % 67.3% Protection of critical infrastructure % 63.0% Border protection and control % 8.7% Natural and an-ade disasters % 34.0% Study on the developent of statistical data on the European security technological and industrial base 11

14 3.2 Areas of econoic activity Respondents to the survey were requested to provide inforation on: the proportion of their activities relating to the offer of security-related products and services; the proportion of their security-related activities relating to the civilian (as opposed to ilitary) sector. Note: Firs with security-related activities concerning purely the ilitary sector are excluded fro the survey. Figure 3.2 shows a cross tabulation of the proportion of respondents business activities that relate to the supply of security-related products and services and the relative orientation of this supply between civilian and ilitary arkets. One fifth of respondents (21% of the saple) are specialised exclusively in the supply of security products and services to the civil (non-ilitary) security area. Alost a third of respondents (35%) supply only security-related products and services, while a substantially larger proportion (60%) supply their security products and services only to the civil sector. See Table for underlying data. Figure 3.2 Coposition of survey saple by area of econoic activity (nuber of respondents) Civilian only (100%) 10 0 Security only (100%) Greater than 80% Between 60% and 79% Between 40% and 59% Between 20% and 39% Security less than 20% Greater than 80% Between 60% and 79% Between 40% and 59% Between 20% and 39% Civilian less than 20% Table Coposition of survey saple by area of econoic activity Share of security-related products and services Share of activities Security Greater Less related to the civilian 60% to 40% to 20% to Total only than than sector 79% 59% 39% (100%) 80% 20% Civilian only (100%) 20.7% 10.3% 7.0% 7.3% 4.7% 10.0% 60.0% Greater than 80% 8.7% 6.3% 3.3% 2.0% 0.7% 2.7% 23.7% 60% to 79% 3.7% 2.0% 0.7% 1.0% 1.0% 0.0% 8.3% 40% to 59% 1.3% 0.3% 1.3% 0.7% 0.0% 0.7% 4.3% 20% to 39% 0.3% 0.0% 0.0% 0.3% 0.7% 0.0% 1.3% Less than 20% 0.3% 1.0% 0.3% 0.0% 0.3% 0.3% 2.3% Total 35.0% 20.0% 12.7% 11.3% 7.3% 13.7% 100.0% 12 Study on the developent of statistical data on the European security technological and industrial base

15 Feedback fro national stakeholders The largest part of incoe in the Polish security industry (certainly ore than 50%, aybe even 70% of incoe) is generated through coputer security, which applies to coputing devices such as coputers and sartphones, as well as coputer networks such as private and public networks, including the whole Internet. The linkages between the civilian security sector and the defence sector in Poland depend on the product/service offered, so these sectors are not utually exclusive. Soe of the services and products used in industries relevant to civil security have been adapted fro the solutions used by the ilitary. For exaple, geographic location easureent, or solutions for health onitoring, initially were used for ilitary purposes. On the other hand, there are soe services and products, which are reserved only for the ilitary, by restricting their by concessions of the Ministry of Internal Affairs. In the case of security services, copanies operating in the security and defence sector are to a large extent the sae copany. In the case of copanies supplying products, the relation is weaker. It is unusual that the ilitary uses the sae products as for exaple the fire brigade. It depends on the specialization of individual copanies. 3.3 Broad segentation of security products and services Respondents were requested to indicate the types of security products and services they offered based on the following broad categories: Cyber-security products and services Other security products Other security services Note: ultiple responses allowed. Where ultiple categories were given, respondents were requested to indicate the ost iportant category. Figure 3.3 shows the nuber of respondents that indicate being active in each broad industry category. The ost coon category is other security products, with 46% of surveyed organisations indicating that they are active in this area, followed by other security services (30%). One quarter (25%) of respondents offers cyber security products and services. Allowing for the fact that respondents ay be active in ore than one broad industry category, Figure 3.4 shows the coposition of the saple according to the scope of broad industry categories where they are active and, where relevant, their ost iportant category. Alost threequarters (74%) of respondents are active only in one segent. Thereby, ore than a third (36%) of organisations are active exclusively in area of other security products, nearly one quarter (20%) of organisations are active only in the area of other security services, and a further 18% of respondents being active solely in cyber security. The reaining one quarter of respondents are active in ore than one industry category. See Table for underlying data. Study on the developent of statistical data on the European security technological and industrial base 13

16 Figure 3.3 Supply of products and services by 'broad industry category' (nuber of responses) Other security services 117 Cyber-security products and services 97 Other security products 181 Figure 3.4 Coposition of the saple by scope of 'broad industry categories' offered. Other security products only Other security services only Cyber security only Other security products and other security services Cyber security and other security products All categories Cyber security and other security services n= % 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Cyber-security products and services (ain) Other security products (ain) Other security services (ain) 14 Study on the developent of statistical data on the European security technological and industrial base

17 Table Coposition of survey saple by broad industry categories (% of respondents) Main broad industry category Cyber-security Other security Other security Total products and products services services Cyber security only 18.1% 18.1% Other security products only 36.1% 36.1% Other security services only 20.1% 20.1% Cyber security and other 2.3% 4.3% 6.7% security products Cyber security and other 0.3% 1.3% 1.7% security services Other security products and 2.3% 9.4% 11.7% other security services All categories 1.3% 2.3% 2.0% 5.7% Total 22.1% 45.2% 32.8% 100.0% 3.4 Cyber security Cyber security products and services Respondents that indicated that they offer IT/cyber security products and services were requested to indicate the types of products and services offered (see Annex A.1 for the segentation of security products and services). Note: ultiple responses allowed. Where ultiple categories were given, respondents were requested to indicate the three ost iportant categories (using a ranking of ost iportant category to 3rd ost iportant category). Figure 3.5 shows the nuber of respondents offering different categories of IT/cyber security products and services, while Figure 3.6 further breakdowns this inforation according to whether respondents identify the category aong the ost iportant products or services offered. The ost coon products and services offered by IT/cyber security copanies include hardware security solutions (82% of respondents), syste integration and ipleentation services (74% of respondents), anageent and operations services (71% of respondents) and identity and access anageent solutions (69% of respondents). Study on the developent of statistical data on the European security technological and industrial base 15

18 Figure 3.5 Cyber-security products and services (nuber of respondents) Applications security solutions, 30 Audit, planning and advisory services, 44 Other/not-specified services, 1 Hardware security solutions 80 Governance, vulnerability and cyber-security anageent systes, 49 Syste integration and ipleentation services 72 Data security solutions, 50 Infrastructure (network) security solutions, 54 Manageent and operations services 69 Security training services, 54 Identity and access anageent solutions 67 The respondents ranking of their ain (ost iportant) products and services, confirs the iportance of hardware security solutions, syste integration and ipleentation services and identity and access anageent solutions, which are ost often offered IT/cyber security products and services in Poland. By way of contrast, the anageent and operations services are the third biggest type of activities offered by the cyber security copanies, however only 5% of respondents ranked the as ost iportant. 16 Study on the developent of statistical data on the European security technological and industrial base

19 Figure 3.6 Cyber security products and services (% of repondents) Hardware security solutions Syste integration and ipleentation services Infrastructure (network) security solutions Identity and access anageent solutions Governance, vulnerability and cyber-security anageent systes Data security solutions Manageent and operations services Security training services Audit, planning and advisory services Applications security solutions Other/not-specified products Other/not-specified services n=97 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top Cyber/IT business activities Respondents that indicated that they offer IT/cyber security products and services were requested to indicate the types of business activities that they engage in. Note: ultiple responses allowed. Where ultiple activities were given, respondents were requested to indicate the three ost iportant activities (using a ranking of ost iportant activity to 3rd ost iportant activity). Figure 3.7 and Figure 3.8 show respectively the nuber of respondents indicating that they engage in different categories of cyber security business activities and the breakdown according to their ranking of the iportance of different activities. The ost frequently cited activities are aintenance and service (91% of respondents), installation and post-production integration (89% of respondents) and test and inspection (85% of respondents). Taking account of respondents ranking of their ain (ost iportant) cyber security activities, a slightly different picture eerges. For exaple, altrough only 62% indicate that they offer anufacturing and assebly, this category is the ost frequently cited by respondents as their ost iportant cyber security business activities. By way of contrast, test and inspection are offered by 83% of respondents but represent the ost iportant cyber security activities only for 4% of copanies offering IT business activities. Study on the developent of statistical data on the European security technological and industrial base 17

20 Figure 3.7 Cyber security business activities (nuber of respondents) Software developent and prograing, 23 Design and engineering, 46 Monitoring, anageent and outsourcing, 50 Research and developent, 12 Other / not-specified, 1 Maintenance and service 88 Installation and postproduction integration 86 Manufacturing and assebly, 61 Syste integration (subsystes), 67 Test and inspection 83 Distribution activities 77 Figure 3.8 Cyber security business activities (% of respondents) Manufacturing and assebly Distribution activities Installation and post-production integration Maintenance and service Syste integration (sub-systes) Monitoring, anageent and outsourcing Design and engineering Test and inspection Research and developent Software developent and prograing Other / not-specified n=97 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 18 Study on the developent of statistical data on the European security technological and industrial base

21 Feedback fro national stakeholders The presented structure of the cyber security sector results fro the lack of legal regulations on the national level, which would support SMEs in this sector. However, there exist regulations (especially on the EU level) that ipel certain activities related to cyber security, e.g.: The Act on the Protection of Personal Data; The Act on the Protection of Classified Inforation; Legal regulations on interoperability. The big share of products and services in the field of cyber security can be explained by the dynaic developent of this field in Poland in the last years, which was influenced by the increased risk of cyber-attacks. Cyber security in for of e.g. security of custoers' personal data plays nowadays an iportant role for any copanies. 3.5 Other security product providers Other security products Respondents that indicated that they offer other security products were requested to indicate the types of products offered (see Annex A.1 for the segentation of security products and services). Note: ultiple responses allowed. Where ultiple categories were given, respondents were requested to indicate the three ost iportant categories (using a ranking of ost iportant category to 3rd ost iportant category). Figure 3.9 shows the nuber of respondents offering different categories of other security products, while Figure 3.10 further breakdowns this inforation according to whether respondents identify the category aong the ost iportant products offered. The ost iportant product categories are fire detection, alar and suppression (66% of respondents), intruder detection and alar (64% of respondents), identification and authentication (including electronic access control) (54% of respondents), and echanical access control, barriers, enclosures etc. (48% of respondents). The ost frequently cited as the ain (ost iportant) product category is intruder detection and alar (25% of respondents). The next ost frequently cited ain (ost iportant) product categories are fire detection, alar and suppression (19% of respondents) and protected specialised clothing (accounting for 17% of respondents). By way of contrast, identification and authentication (including electronic access control was only indicated as the ain (ost iportant) product category by 4% of respondents. Study on the developent of statistical data on the European security technological and industrial base 19

22 Figure 3.9 Other security products (nuber of respondents) Intelligence and inforation gathering systes, 20 Wide area observation and surveillance, 21 Coand and control and decision support systes, 28 Tracking and tracing; positioning and localisation, 38 Protective and specialised clothing, 48 Detection and screening, 53 Vehicles and platfors, 17 Other, 2 Fire detection, alar and suppression 120 Intruder detection and alar 116 Counication equipent and systes, 60 Other equipent and supplies, 65 Identification and authentication (incl. electronic access control) 98 Local area observation (incl. video / CCTV surveillance), 80 Mechanical access control, barriers, enclosures etc. 87 Figure 3.10 Other security products (% of respondents) Intruder detection and alar Fire detection, alar and suppression Protective and specialised clothing Mechanical access control, barriers, enclosures etc. Local area observation (incl. video / CCTV surveillance) Other equipent and supplies Identification and authentication (incl. electronic access control) Tracking and tracing; positioning and localisation Counication equipent and systes Detection and screening Intelligence and inforation gathering systes Vehicles and platfors Coand and control and decision support systes Wide area observation and surveillance Other n=181 0% 10% 20% 30% 40% 50% 60% 70% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 20 Study on the developent of statistical data on the European security technological and industrial base

23 3.5.2 Other security products business activities Respondents that indicated that they offer other security products were requested to indicate the types of business activities that they engage in. Note: ultiple responses allowed. Where ultiple activities were given, respondents were requested to indicate the three ost iportant activities (using a ranking of ost iportant activity to 3rd ost iportant activity). Figure 3.11 shows that for respondents offering other security products the ost coon business activities are aintenance and servicing (77% of respondents), wholesale or retail distribution (77% of respondents), test and inspection (71% of respondents), and installation (64% of respondents). The ost iportant business activities include wholesale or retail distribution (35% of respondents), followed by installation (21% of respondents) and by anufacturing and assebly (16% of respondents). This is followed by onitoring services and aintenance and servicing with both 8% of respondents. Thereby, research and developent are the ost iportant business activities only for 1% of copanies. Figure 3.11 Other security products business activities (nuber of respondents) Monitoring services, 52 Design and engineering, 55 Research and developent, 15 Other, 1 Maintenance and servicing 138 Manufacturing and assebly, 77 Wholesale or retail distribution 138 Integration, 77 Installation 116 Test and inspection 128 Study on the developent of statistical data on the European security technological and industrial base 21

24 Figure 3.12 Other security products business activities (% of respondents) Wholesale or retail distribution Installation Manufacturing and assebly Monitoring services Maintenance and servicing Design and engineering Integration Test and inspection Research and developent Other n= % 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 Feedback fro national stakeholders The categories of other security products naed in the survey are in line with the ost iportant products offered on the Polish arket. The deand for other security products is due to the fact that legal regulations enforce the provision of fire protection. Deand for alars is also associated with insurance issues (ost insurance copanies offer big discounts or favourable insurance rates for apartents or houses with installed alar systes). 3.6 Other security service providers Other security services Respondents that indicated that they offer other security services were requested to indicate the types of services offered (see Annex A.1 for the segentation of security products and services. Note: ultiple responses allowed. Where ultiple categories were given, respondents were requested to indicate the three ost iportant categories (using a ranking of ost iportant category to 3rd ost iportant category). Figure 3.13 shows the nuber of respondents offering different categories of other security services while Figure 3.14 further breaks down this inforation according to whether respondents identify the category aong the ost iportant services offered. The ost coon service category is security consulting and advisory services and guarding and anning, both indicated by half of respondents as their ost iportant other service. These are followed by reote onitoring (46% of respondents), security training and services (44% of respondents) as well as security of persons (41% of respondents). The ost frequently cited as the ain (ost iportant) other security service is guarding and anning, with 38% of respondent rating it as a ost iportant category. 22 Study on the developent of statistical data on the European security technological and industrial base

25 Figure 3.13 Other security services (nuber of respondents) Detective and investigation, 15 Research (technological/technical), 15 Research (socioeconoic and other), 17 Other anpower-based services, 5 Security consulting and advisory services 59 Security of persons, 48 Guarding and anning 59 Security training services 52 Reote onitoring 54 Figure 3.14 Other security services (% of respondents) Guarding and anning Reote onitoring Security consulting and advisory services Security training services Security of persons Research (socio-econoic and other) Detective and investigation Research (technological/technical) Other anpower-based services Other services n= % 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 Study on the developent of statistical data on the European security technological and industrial base 23

26 Feedback fro national stakeholders The categories of other security services naed in the survey reflect the ost iportant services offered on the Polish arket. However, it has been suggested that the size of categories security of persons as well as guarding and anning ight be underestiated, as there are any one person copanies active in these fields. The presented structure is driven by the changes in the arket and the developent of odern technologies. Today, society is based on the exchange of inforation, which deterines the deand for security services. Moreover, the EU requires outsourcing, which includes services related to the security. 3.7 Security arket by econoic sector (end-user) Overall all products and services Respondents to the survey were requested to indicate fro which arket segents (sectors) their custoers coe fro (see Annex A.2) for the segentation of the security arket). Note: ultiple responses allowed. Where ultiple segents were given, respondents were requested to indicate the three ost iportant segents (using a ranking of ost iportant category to 3rd ost iportant category). Figure 3.15 shows the nuber of respondents indicating having custoers fro each of the arket segents. The ost frequently cited arket segent are private individuals and households and construction, which both were identified by 205 respondents, aounting to one-fifth of respondents that answered this question. The next ost frequently entioned arket segents are hotels, restaurants and leisure, public adinistration, health and education, wholesale and retail, and anufacturing, each entioned by about 68% of respondents. Figure 3.16 provides a further breakdown, taking into account respondents ranking of the iportance of different arket segents. The sector ost frequently cited by as being the ost iportant arket segent are private individuals and households (21% of respondents indicate it as the ost iportant custoer segent), followed by anufacturing (14% of respondents ost iportant custoer segent). 24 Study on the developent of statistical data on the European security technological and industrial base

27 Figure 3.15 Market segentation (nuber of respondents) Counications and inforation services, 70 Other security services, 71 Energy and water, 90 Real estate and property anageent, 90 Priary sectors, 92 Other arket services, 48 Cyber security industry, 65 Other security industry, 67 Other, 5 Private individuals and households 205 Construction 205 Hotels, restaurants and leisure 196 Defence, 94 Financial services, 97 Public adinistrations 195 Public security service providers, 115 Transport, 122 Manufacturing, 190 Wholesale and retail distribution, 191 Health and education, 193 Figure 3.16 Market segentation (% of respondents) Private individuals and households Manufacturing Public security service providers Construction Public adinistrations Defence Other security industry Cyber security industry Health and education Real estate and property anageent Other security services Financial services Transport Other arket services Wholesale and retail distribution Hotels, restaurants and leisure Counications and inforation services Priary sectors Energy and water Other n= % 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 Study on the developent of statistical data on the European security technological and industrial base 25

28 3.7.2 Breakdown by ain broad category of security products and services To exaine differences in custoer base for different broad categories of security products and services, respondents can be categorised according to their ain broad industry category (see Section 3.3). For respondents whose ain (ost iportant) security business relates to the offer of cyber-security products and services, Figure 3.17 shows the share of respondents with custoers in each arket segent (with the breakdown according to their ranking of the iportance of the segent); Figure 3.18 and Figure 3.19 show, respectively, the corresponding data for other security products and other security services. Cyber-security products and services As shown in Figure 3.17, ore than three-quarters of respondents whose ain security-related activities are in the area of cyber-security indicate having custoers in the private individuals and households sector and approxiately 26% indicate private individuals and households as their ost iportant arket segent. The second ost frequently identified arket segent is hotels, restaurants and leisure, which was indicated by 70% of respondents, however, only 6% of copanies have rated it as the ost iportant category for their business. Therefore, taking into account responses on the ost iportant custoer segent, cyber security industry and anufacturing are the second ost frequently cited ost iportant custoer segents (each accounting for 13% of respondents). Other security products As shown in Figure 3.18, the ost frequently entioned arket segents for suppliers of other security products are construction (71% of respondents) and private individuals and households (69% of respondents), followed by wholesale and retail distruibution (68% of respondents). In ters of the ost iportant arket segent, private individuals and households is ranked first with 24% of respondents having indicated it as the ost iportant custoer segent, followed by anufacturing, identified as the ost iportant arket segent by 15% of respondents. By contrast, while construction is the ost frequently entioned arket sector by providers of other security services, it is only considered the ain (ost iportant) custoer segent by 4% of respondents. Other security services As shown in Figure 3.19, the ost frequently entioned arket sectors for respondents whose ain security activities relate to the supply of other security services are anufacturing (74% of respondents), construction (73% of respondents), followed by public adinistrators (69% of respondents) and health and education (68% of respondents). As with cyber-security products and services, the ost frequently identified ain (ost iportant) custoer segent is private individuals and households, identified by 14% of respondents, followed by anufacturing (13% of respondents). Buy contrast, while hotels, restaurants and leisure as well as wholesale and retail distribution are one of the ost frequently entioned arket sectors by providers of other security services, they are only considered the ain (ost iportant) custoer segents by respectively 3% and 2% of respondents. 26 Study on the developent of statistical data on the European security technological and industrial base

29 Figure 3.17 Market segentation - cyber security (% of respondents) Private individuals and households Cyber security industry Manufacturing Public security service providers Construction Priary sectors Defence Transport Wholesale and retail distribution Hotels, restaurants and leisure Public adinistrations Health and education Energy and water Other arket services Counications and inforation services Real estate and property anageent Other security services Financial services Other security industry Other n=66 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 Figure 3.18 Market segentation - other security products (% of respondents) Private individuals and households Manufacturing Public security service providers Defence Public adinistrations Other security services Other security industry Construction Real estate and property anageent Health and education Financial services Wholesale and retail distribution Counications and inforation services Hotels, restaurants and leisure Other arket services Transport Energy and water Cyber security industry Priary sectors Other n= % 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top 3 Study on the developent of statistical data on the European security technological and industrial base 27

30 Figure 3.19 Market segentation - other security services (% of respondents) Private individuals and households Manufacturing Public security service providers Public adinistrations Construction Other security industry Health and education Financial services Transport Defence Other arket services Hotels, restaurants and leisure Real estate and property anageent Cyber security industry Counications and inforation services Wholesale and retail distribution Energy and water Other security services Priary sectors Other n=98 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Most iportant category 2nd ost iportant category 3rd ost iportant category Not in top Security arket by geographical region Respondents to the survey were requested to indicate the geographical arkets in which they sell their security products and services using the following classification: Local/regional arkets (i.e. sub-national level); EU Meber States Outside the EU. In addition, respondents were requested to indicate (approxiately) the share of each geographical arket in the total sales of security products and services Geographical arkets all products and services Overall, as show in Figure 3.20, 87% of respondents indicate that they supply products and services only on the doestic arket, of which 39% are active only at a regional level. Of the reaining 13% of respondents that also arket their products and services internationally, the ajority (11% of respondents) indicate that they export only to the EU. With regard to the iportance of international arkets, Figure 3.21 indicates that 10% of respondents arket their products and services internationally, but with exports representing less than 25 percent of sales. 28 Study on the developent of statistical data on the European security technological and industrial base

31 Figure 3.20 Geographical arket for security products and services (nuber and % of respondents) International: EU export only, 32, 11% International: EU and extra-eu export, 6, 2% International: extra-eu export only, 1, 0% Doestic: regional only, 119, 39% Doestic: national, 89, 30% Doestic: regional and national, 53, 18% Figure 3.21 Share of international arkets in total sales of security products and services (nuber and % of respondents) Export share: >0%, <25%, 28, 10% Export share: >=25%, <75%, 9, 3% Export share: unknown or not declared, 1, 0% Doestic only (no exports), 262, 87% Study on the developent of statistical data on the European security technological and industrial base 29

32 3.8.2 Breakdown by ain broad category of security products and services To exaine differences in geographical custoer base for different broad categories of security products and services, respondents can be categorised according to their ain broad industry category (see Section 3.3). Figure 3.22 cobines inforation on the geographical coverage (within country) and export share for respondents whose ain security-related activities are in the area of cyber-security products and services, and siilarly, Figure 3.23 and Figure 3.24 provide this breakdown for respondents whose ain security-related activities are in the area of other security products and other security services, respectively. Coparing across the three figures, the greatest outward orientation is observed aong suppliers of cyber security products and services copared to suppliers of other security products and other security services. Less than one-fifth of respondents whose ain activity relates to the supply of cyber security products and services are active in international arkets (18%) copared to 16% of respondents whose ain activity is in the supply of other security products, and only 4% of respondents whose ain activity is in the supply of other security services. On the other hand, only 2% of cyber security products and services suppliers indicate having export shares of ore than 50%, copared to 4% of other security products suppliers and 1% other services suppliers. Figure 3.22 Cyber security products and services: geographical arket and share of international arkets in total sales of security products (nuber and % of respondents) Export share: >0%, <25%, 10, 15% Export share: >=25%, <50%, 1, 1% Export share: >=50%, <75%, 1, 2% Doestic: regional only, 23, 35% Doestic: national, 21, 32% Doestic: regional and national, 10, 15% 30 Study on the developent of statistical data on the European security technological and industrial base

33 Figure 3.23 'Other' security products: geographical arket and share of international arkets in total sales of security products (nuber and % of respondents) Export share: >=75%, 1, 1% Export share: >=50%, <75%, 4, 3% Export share: unknown or not declared, 1, 1% Export share: >0%, <25%, 15, 11% Doestic: regional only, 49, 36% Doestic: national, 40, 30% Doestic: regional and national, 24, 18% Figure 3.24 'Other' security services: geographical arket and share of international arkets in total sales of security products (nuber and % of respondents) Export share: >0%, <25%, 2, 2% Export share: >=25%, <50%, 1, 1% Export share: >=75%, 1, 1% Doestic: national, 28, 29% Doestic: regional only, 47, 48% Doestic: regional and national, 19, 19% Study on the developent of statistical data on the European security technological and industrial base 31

34 Feedback fro national stakeholders The ain reasons for the rather low exports of cyber security products and services, other security products and services to foreign arkets are the lack of support fro the state and the sall size of copanies. Many security products and services in Poland are iported fro abroad (China, USA, Gerany, France and Israel). These countries are at the sae tie Poland s biggest copetitors. A particular threat to polish security arket is the increasing aount of products coing fro China. Still, Poland can copete with foreign products in ters of quality of offered security products and services. Exporting products and services abroad is probleatic for security copanies in Poland, because they do not have sufficient experience in exporting and face difficulties in building business networks with enterprises in the iporting country. 3.9 Fir structure: eployent and turnover Respondents to the survey were requested to indicate the nuber of eployees in their copany, with a distinction ade between: - Total nuber of eployees (in Poland and abroad); - Eployees in Poland; - Eployees in Poland working in the field of security. In addition, respondents were requested to indicate their copany s turnover fro the sale of security products and services Eployent Figure 3.25 shows the distribution of respondents according to their nuber of eployees. With respect to the nuber of eployees in Poland working in the field of security, the ost frequent eployee size category is 0 zero eployees, what suggest that 39% of respondents are selfeployed and do not eploy any other people. The ost frequent eployee size category for total nuber of eployees and eployees in Poland is 1 to 4 eployees, which is also the second ost frequently cited eployee size category for Poland-security eployees (26% of respondents). Analysis of differences in responses on total nuber of eployees and nuber of eployees in Poland indicates that the Polish security activities are taking place to a high extend in Poland and not abroad. Categorising respondents according to their ain broad industry category (see Section 3.3), Figure 3.26 shows the distribution of respondents by eployee size class. The data indicate that the proportion of respondents in the top eployent size classes (cf. 50 to 249, 250 to 999 eployees and 1000 or ore eployees ) is highest for those respondents whose ain (ost iportant) security business concerns the offer of other security services. By contrast, respondents whose ain security business concerns the offer of cyber security products and services as well as other security products providers have the highest proportion of copanies in the lower eployent size classes (cf. zero, 1 to 4 eployees ). 32 Study on the developent of statistical data on the European security technological and industrial base

35 Feedback fro national stakeholders The size of the eployent in security industry in Poland varies between and workplaces. Based on an interview, in ters of eployent, including all governent agencies, businesses and unifored services, security sector in Poland provides about to workplaces. However, according to another interviewee the security sector in Poland can be estiated at around workplaces, while the defence sector accounts for workplaces. Security sector in Poland consist ainly of SMEs. This is due to the specific nature of services they provide. Such services are short-ter activities with no continuity of projects. In Poland, copanies with ore than 10 eployees are classified as big copanies, copared with Gerany, where the sallest copanies have about 10 peranent staff. It has been suggested that big copanies (like WB Electronics) ight have not been taken into account in the survey, with the reasoning that copanies providing security products on the Polish arket ust have sufficient nuber of eployees and resources to win contracts for the supply of products/services. However, while analysing the areas of expertise of WB Electronics, it turned out that this big copany specialises rather on ilitary solutions than civil security products Figure 3.27 shows the distribution of respondents according to turnover fro the sale of security products and services. The ost frequently cited turnover was below 250 thousand, which was indicated by ore than half of respondents (61%) that provided inforation on the their turnover. The highest stated turnover was 10 illion to 25 illion, which however was stated only by 1% of respondents. Categorising respondents based on their ain broad industry category (see Section 3.3), siilarly to eployent, Figure 3.28 indicates that cyber-security copanies fro all industry categories are prevalent at the botto of the turnover scale (cf. below 250 thousands ), with 79% of the respondents whose ain security business relates to cyber security products and services, 73% of the copanies offering other security products, and 61% of copanies providing other security services. Figure 3.25 Fir size based on nuber of eployees (nuber of respondents) Total eployees Eployees in PL Eployees in PL working in security Study on the developent of statistical data on the European security technological and industrial base 33

36 Figure 3.26 Distribution of nuber of eployees in Poland working in security by ain broad industry category (% of respondents in broad industry category) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% All respondents Cyber security Other security products Other security services Figure 3.27 Fir size based on turnover fro sales of security products and services (nuber of respondents) Study on the developent of statistical data on the European security technological and industrial base

37 Figure 3.28 Distribution of turnover fro sales of security products and services by ain broad industry category (% of respondents in broad industry category, excluding no answer / don't know) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% All respondents Cyber security Other security products Other security services Feedback fro national stakeholders Manufacturers of fire systes (e.g. AAT copany), anufacturers of achine vision systes (e.g. CCTV caeras etc.), as well as copanies involved in the integration of various systes (both software and hardware systes) are in the forefront of the Polish security arket. It was pointed out that Polish security arket is spoilt by any copanies active in the field of security onitoring and private detectives, who are cheap, but do not fulfil the required standards. After soe deregulation of econoic activity taking place in 1988, there was an increase of private detective and property protection services. This developent was influenced by high crie rates in the 80s and rapid incoe increase of a part of the society Growth perforance and prospects Respondents to the survey were requested to indicate the growth in their turnover fro the supply of security products and services over the last 5 years and their expectations for growth in turnover for the next 5 years. In addition, respondents were requested to indicate their expectations for the developent of deand for security products and services in the foreseeable future for different broad custoer groups (cf. public sector, critical infrastructure sectors, business sector, and private individuals and households) and by geographical area (cf. national arket, Europe, outside Europe) Past turnover growth perforance Figure 3.29 and Figure 3.30 display data on the distribution of respondents according to their growth on turnover over the past 5 years. The data indicates that for alost half (44%) of the copanies their turnover has increased over the last 5 years (i.e. increased by between 3% and 10%, increased by between 11% and 25%, increased by ore than 25% ). Whereby, alost one fifth of the respondents (18%) stated a turnover decrease. Alost a quater of respondents (23%) stated that their turnover has reained ore or less the sae [+/- 2%]. Study on the developent of statistical data on the European security technological and industrial base 35

38 Moreover, growth in the cyber security area has been stronger than for other security products and other security services; for exaple, 29% of respondents whose ain security activities are in the area of cyber security report growth between 3% and 10% (i.e. increased by between 3% and 10% ), copared to only 21% and 14% of respondents whose ain business is in the area of other security products and other security services, respectively. 6 At the other end of the growth distribution, 7% of respondents whose ain area of business is in the supply of other security products and 8% of respondents who provide other security services reported negative growth by ore than 25% in the last 5 years Future turnover growth prospects Respondents offer a oderately positive outlook for turnover growth for the next 5 years, as shown in Figure 3.31 and Figure Overall, a total of 39% of respondents 7 indicate that they expect turnover to reain the sae (i.e. is reained ore or less the sae [+/- 2%] ) over the next 5 years and a further 54% expecting turnover to increase (i.e. increase by between 3% and 10%, increase by between 11% and 25%, increase by ore than 25% ). Only 7% of respondents expect their turnover fro the supply of security products and services to decline over the coing 5 years. At the sae tie, there appears to be a positive outlook for cyber security. In fact, a coparison of responses on past turnover perforance and future turnover expectations shows that aong respondents whose ain security business relates to cyber security, 63% of respondents expect future turnover growth to exceed that of the past 5 years and only 9% expect it to decrease. 8 The corresponding percentages for other security products are 52% and 6% respectively. Aong copanies providing other security services 50% of respondents expect future turnover growth to exceed that of the past 5 years and 7% expect it to decrease. Figure 3.29 growth over past 5 years (nuber of respondents) Excluding respondents that did not provide inforation on their turnover growth for the past 5 years. 7 Excluding respondents that did not provide inforation on their turnover growth expectations for the next 5 years. 8 These percentages are calculated on the saple of respondents that provided both inforation on their turnover growth for the past 5 years and on their expectations for turnover growth the next 5 years. The percentage reflects the proportion of respondents that indicate a higher future turnover growth class than they do for their turnover growth over the past 5 years. 36 Study on the developent of statistical data on the European security technological and industrial base

39 Figure 3.30 Distribution of turnover growth by ain broad industry category (% of respondents in broad industry category, excluding no answer / don't know) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% All respondents Cyber security Other security products Other security services Figure 3.31 growth expectation for next 5 years (nuber of respondents) Study on the developent of statistical data on the European security technological and industrial base 37

40 Figure 3.32 Distribution of turnover growth expectations for next 5 years by ain broad industry category (% of respondents in broad industry category, excluding no answer / don't know) 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% All respondents Cyber security Other security products Other security services Future deand prospects by broad custoer group and geographical area Respondents offer a positive outlook for future deand prospects for security products and services in ters of expected geographical distribution, with ore than 70% of respondents indicating that they expect positive growth in deand across all geographical regions; see Figure Overall, deand expectations appear to be strongest for arkets in Europe (i.e. Europe ) and weakest for the doestic arket (i.e. national arket as a whole ). At the sae tie, looking at the balance of expectations for different custoer groups, the strongest positive expectations are for the business sector (i.e. private industry and services) (64% of respondents overall) and weakest for private individuals and households (50% of respondents overall) expecting positive growth in deand aong this custoer group. Figure 3.34 and Figure 3.35 provide a breakdown based on respondents ain broad industry category (see Section 3.3). As with turnover growth expectations (overall, not taking account of future growth expectations relative to past growth perforance), respondents whose ain security activities are in the area of cyber-security have (on balance) the strongest positive expectations for future deand growth across all geographical areas and all broad custoer groups. Although it is necessary to be cautious in interpreting findings for respondents in the area of cyber-security due to the sall saple for this question, it nevertheless appears that cyber-security respondents have (on balance) a relatively positive outlook on future deand prospects. The patterns of deand growth expectations for other security products and other security services are very siilar across broad custoer groups, but there appear to be stronger expectations for future growth on the European and international arkets for respondents whose ain activities are in other security services. 9 Excludes respondents that did not provide an opinion on deand prospects. Non-response rates vary significantly for different custoer groups and geographical areas; for the saple as a whole, the percentage of respondents that did not offer an opinion on specific custoer groups and geographical areas are as follows: public sector 6%, critical infrastructure sectors 17%, business sector 3%, private individuals and households 11%, national arket as a whole 6%, Europe 46%, outside Europe 55%. 38 Study on the developent of statistical data on the European security technological and industrial base

41 Figure 3.33 Distribution of deand growth expectations by custoer groups and geographical area (% of respondents, excluding no answer / don't know) Public sector Critical infrastructure sectors Business sector Private individuals and households National arket as a whole Europe Outside Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase strongly Increase slightly Stay roughly the sae Decrease slightly Decrease strongly Figure 3.34 Distribution of deand growth expectations by custoer groups and by ain broad industry category (% of respondents, excluding no answer / don't know) Cyber security Cyber security Public sector Critical infrastructure sectors Business sector Private individuals and Other Other security security products products Public sector Critical infrastructure sectors Business sector Private individuals and Other Other security security services services Public sector Critical infrastructure sectors Business sector Private individuals and 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase strongly Increase slightly Stay roughly the sae Decrease slightly Decrease strongly Study on the developent of statistical data on the European security technological and industrial base 39

42 Figure 3.35 Distribution of deand growth expectations by geographical area and by ain broad industry category (% of respondents, excluding no answer / don't know) Cyber Cyber security security National arket as a whole Europe Outside Europe Other security products National arket as a whole Europe Outside Europe Other Other security services National arket as a whole Europe Outside Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase strongly Increase slightly Stay roughly the sae Decrease slightly Decrease strongly Feedback fro national stakeholders Key drivers to industry developent Copanies in security industry in Poland are characterized by a highly skilled and experienced staff and are an iportant factor for the developent of the security sector in Poland. Currently there are not any security associations and confederations in Poland, who would act on behalf of sall businesses and organize the, thus increasing the "visibility" of security firs on the arket. Increasing the nuber of security associations and confederations is iportant for the future developent of the security sector in Poland. In addition, association should be authorized to certify sall businesses. Certification of sall businesses would raise their copetitiveness - the copany would have necessary certificate to copete with other copanies and enter new arkets. This could be a second, in addition to low prices, factor representing the copetitiveness of SMEs in the Polish security sector. Key barriers to industry developent One of the key barriers for the developent of security industry in Poland is the current legislation, which does not provide sufficient support for SMEs in the security sector. Due to current regulations, it is difficult for SMEs to export abroad. In addition, Poland has a rather restrictive fiscal policy, which iposes high econoic obligations on businesses and akes it burdensoe to set up new copanies. Maintenance costs and custoer retention costs for a copany in the security sector are very high. In addition, SMEs do not have the resources for arketing activities. Vocational education is not a barrier for security sector in Poland anyore. However, difficult access to grants for activities related to the security arket is probleatic. In addition, the inefficient judiciary syste, bureaucracy and corruption in the adinistration (including the Police) are further barriers hindering developent of the security industry in Poland. 40 Study on the developent of statistical data on the European security technological and industrial base

43 3.11 Copetitors Respondents to the survey were requested to indicate the geographical region fro which their ain copetitors coe fro, using the following classification: Local/regional area (i.e. sub-national level); National area (i.e. fro within the country as a whole); European countries (EU and non-eu); Outside of Europe. In addition, where respondents indicated that they faced copetition fro copanies fro a particular geographical region they were requested to indicate their expectations for developent of copetition fro that geographical region in the future (i.e., over the next 5 years) Geographical origin of ain copetitors all products and services Overall, as show in Figure 3.36, approxiately 80% of respondents indicate that their ain copetitors coe fro within the doestic sector only, of which 38% indicate that their ain copetitors are only at a local (sub-national) level (i.e. Doestic: regional only ) and 31% state that their ain copetitors are at national level (i.e. Doestic: national ). Only 16% of respondents indicate that their ain copetitors coe fro both the doestic sector and fro abroad (i.e. Doestic and international sub-categories), while only 4% of copanies indicate that their ain copetitors coe exclusively fro abroad. Figure 3.36 Geographical origin of ain copetitors (nuber and % of respondents, excluding no answer / don't knows) International, 11, 4% Doestic & International, 49, 16% Doestic: regional only, 114, 38% Doestic: national, 93, 31% Doestic: regional and national, 33, 11% Breakdown by ain broad category of security products and services Figure 3.37, Figure 3.38 and Figure 3.39 provide a breakdown of ain copetitors for, respectively, respondents whose ain security-related activities are in the areas of cyber-security products and services, other security products and other security services. Coparing across the three groups, while 83% of respondents whose ain security-related activities are in the area of other security services indicate that their ain copetitors coe only fro the doestic arket (either at regional or national level, or both), the corresponding share for other security products is 78%, and 82% for cyber-security products and services. In ters of international copetition, only 4% of respondents whose ain security-related activities are either in the area of other security products or in the Study on the developent of statistical data on the European security technological and industrial base 41

44 area of other security products indicate that their ain copetitors coe fro abroad, copared to just 3% of respondents whose ain activity relates to the supply of cyber-security products and services. Figure 3.37 Cyber-security products and services: geographical origin of ain copetitors (nuber and % of respondents, excluding no answer / don't knows) Doestic & International (Europe and outside Europe), 2, 3% Doestic & International (Europe only), 8, 12% International: Europe only, 2, 3% Doestic: regional only, 20, 30% Doestic: national, 30, 46% Doestic: regional and national, 4, 6% Figure 3.38 'Other' security products: geographical origin of ain copetitors (nuber and % of respondents, excluding no answer / don't knows) Doestic & International (outside Europe only), 3, 2% International, 4, 3% Doestic & International (Europe and outside Europe), 7, 5% Doestic & International (Europe only), 16, 12% Doestic: regional only, 54, 40% Doestic: national, 33, 25% Doestic: regional and national, 18, 13% 42 Study on the developent of statistical data on the European security technological and industrial base

45 Figure 3.39 'Other' security services: geographical origin of ain copetitors (nuber and % of respondents, excluding no answer / don't knows) Doestic & International (outside Europe only), 2, 2% International only, 4, 4% Doestic & International (Europe and outside Europe), 2, 2% Doestic & International (Europe only), 9, 9% Doestic: regional only, 40, 41% Doestic: national, 30, 31% Doestic: regional and national, 11, 11% Future copetition prospects by geographical origin of ain copetitors Conditional on respondents identification of the geographical origin of their ain copetitors, Figure 3.40 and Figure 3.41 show the distribution of respondents expectation for the future developent of copetition based on the geographical origin of copetitors. Overall, the general pattern is that respondents expect (on balance) stronger increases in copetition fro foreign copanies particularly fro Europe than fro doestic rivals. This is especially the case for other security services (71%) and other security products (68%); however given the sall saple size of respondents, these finding should be interpreted cautiously. The sae is true for cyber security regarding expectations on copetition fro abroad. 10 Looking at expectations on doestic copetition, 60% of respondents whose ain security related activities are in other security services expect doestic copetition to increase in the future. The corresponding figure for other security products is 53% and 50% for cyber security. 10 Non-response rates for expectations on future copetition prospects for different geographical origins of ain copetitors vary significantly. The response rate across all three ain broad categories for expectations on future copetition fro international copetitors ( Europe and Outside Europe ) are consistently low, and therefore difficult to interpret. Study on the developent of statistical data on the European security technological and industrial base 43