Metal Detector Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Metal detectors manufactured by this industry are used for security, military, industrial and recreational purposes. A decline in manufacturing dragged down the industry over the past five years while the defense sector, whose funding increased, kept the damage to a minimum. The roles will reverse in the next five years as manufacturing picks up and funding for defense and homeland security declines, and industry revenue will improve. Through all this, increased automation of processes has minimized labor costs and widened profit margins. For these reasons, industry research firm IBISWorld has added a report on the Metal Detector Manufacturing industry to its growing industry report collection.

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Federal funding for security and defense will decline, keeping industry growth moderate

The Metal Detector Manufacturing industry produces metal detection devices used for security, military, industrial and recreational purposes. According to IBISWorld industry analyst Andrew Krabeepetcharat, “The industry's products are used in airports, government buildings, military operations, manufacturing facilities and other locations that require the detection of metal where it is not easily visible.” Due to the diverse nature of major markets in the industry, conflicting trends have contributed to a slow revenue decline and a moderate level of revenue volatility.

Industry revenue dropped over the past five years, slowly declining at an average annual rate of 1.5% to $800.3 million in 2012. “Conflicting forces have pushed the industry in both directions,” says Krabeepetcharat. Increased government spending on security and defense boosted demand for the industry over the past five years because metal detectors are used for transportation security as well as military operations. Weakened demand from manufacturing industries, however, reduced the need for metal detectors used for safety inspections and quality assurance. In addition, competition from imports increased over the past five years, with more foreign companies competing with domestic firms on price and quality. These conflicting trends have caused industry revenue to remain relatively stable, with revenue estimated to decline 0.5% in 2012.

IBISWorld estimates that the top four industry participants hold a combined share of about 14.6% of total 2012 revenue for the Metal Detector Manufacturing industry. This represents a low level of industry concentration, with no one firm dominating the industry. Census data indicates that more than 50.0% of industry establishments employ fewer than 20 people. Small operators are common and typically specialize in developing technology and products for niche markets, such as hobbyists. Metal Detector Manufacturing industry concentration varies between different product segments. Most of the larger players in the industry have strong portfolios in security screening and inspection metal detector devices. Meanwhile, the industry has consolidated, with industry operators exiting at an average annual rate of 2.1% over the five years to 2012.

In the five years to 2017, industry revenue is forecast to recover slowly and grow above its prerecession level. Conflicting trends during the next five years will also stabilize industry revenue. Federal funding for security and defense during the next five years is expected to decline, reducing demand for metal detectors used for security and military purposes. The trade-weighted index is also expected to increase over the next five years, hurting industry revenue. However, as the economy improves and businesses recover, more manufacturing industries will invest in metal detection equipment.

For more information, visit IBISWorld’s Metal Detector Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics

This industry manufactures devices that detect the presence of metal. Industry devices include hobbyist metal detectors, metal detectors for security purposes and industrial metal detectors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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