Rapid technological change and increased funding will boost industry revenue
New York, NY (PRWEB) May 16, 2014
The Forensic Technology Services industry, which provides a variety of forensic services used in criminal investigations, has grown during the five years to 2014 despite significant challenges posed by the recession. Because government agencies are traditionally the ultimate market for industry services, the contraction in budgets impeded spending on forensic services. According to IBISWorld Industry Analyst Dmitry Diment, “State, county and municipal governments, which represent 80.6% of industry revenue, reduced funding for forensic laboratories as declining tax revenue and requirements to balance budgets forced them to curtail spending.” However, the industry was sustained by increased funding from the federal government. Under the American Recovery and Reinvestment Act of 2009, the federal government provided support by increasing grant awards for laboratories at the state, county and local levels and raised funding levels for federal laboratories. Despite a decline in 2011, industry revenue is expected to grow at an average annual rate of 1.2% to $2.1 billion over the five years to 2014, including a 3.6% increase in 2014.
The industry's growth has been facilitated by the rapid technological change that has revolutionized every facet of forensic services, making forensic evidence an indispensable part of most criminal investigations. The introduction of high-tech biometrics technology, especially pertaining to forensic DNA analysis, has been essential to the growth of the industry, enabling scientists to extract larger quantities of value data from smaller DNA samples. Even well-established tools in forensic testing, such as fingerprint and ballistics analysis, have benefited from technological advances. As a result, the growing capabilities of forensic technology have made industry services critical to criminal investigations.
Over the next five years, industry growth is forecast to accelerate as spending at the federal, state, county and municipal levels increases on account of rising tax revenue due to improvements in the general economy. “Additionally, the need to reduce the backlog of forensic evidence, particularly DNA samples, will necessitate greater funding for forensic laboratories,” says Diment. Finally, as the 20-year decline in the crime rate begins to slow and incarceration rates rise once again, demand for forensic testing of evidence will increase, spurring industry growth. As a result, industry revenue is forecast to grow over the five years to 2019.
The Forensic Technology Services industry operates with a low level of market share concentration. The top four companies are anticipated to account for less than 20.0% of the total market. The majority of forensic laboratories are sponsored by government agencies and serve their local markets, which tends to keep the market share concentration in the industry muted.
For more information, visit IBISWorld’s Forensic Technology Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Forensic Technology Services industry provide database forensics and testing services such as biometrics, fingerprinting and DNA testing. Other testing services include forensic biology, forensic toxicology immunoassay (drug testing), testing for controlled substances and ballistics testing using analytical instruments.
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