What Decision-Makers Need to Know

Global passenger volumes are now structurally back above pre-pandemic levels, which mechanically raises screening throughput, staffing intensity, and checkpoint capex. Global passenger numbers reached 9.4 billion in 2024, up 8.4% vs 2023, and representing a 103% recovery vs 2019.

Forward demand is still compounding in the background, which keeps security modernization on the critical path for airport operators. ACI projects 2025 global passenger traffic at 9.8 billion, implying 3.7% YoY growth, with international traffic +5.3% (vs domestic +2.4%).

In the US, checkpoint risk remains a practical driver of investment rather than a theoretical one. TSA reported intercepting 6678 firearms in 2024 (US), with 277 airports recording firearm discoveries. The same TSA dataset shows the “Top 10” airports for firearm discoveries, underscoring how threat and workload concentrate at high-throughput nodes.

Public-sector budgets remain a primary market-maker for transportation security, because agencies are the anchor buyers of screening technology, digital identity, and operational services. In testimony on the President’s Budget, TSA stated the FY2025 request includes USD 11.8 billion for the Transportation Security Administration.

Transportation Security Market Landscape

According to Market Research Future, the transportation safety security market is projected to grow from USD 33.58 billion in 2025 to USD 47.93 billion by 2035. This reflects a compound annual growth rate (CAGR) of 3.62% during the forecast period.

 

 

As per StartUs Insights’ Discovery Platform, the transportation security ecosystem includes 470 startups and 1600 companies. The sector records a yearly company growth rate of 0.23%. This is an indication of steady market activity and gradual ecosystem development.

Moreover, the biometric vehicle access systems market is expanding to USD 3.58 billion by 2032, with a CAGR of 14.8% between 2026 and 2032. This growth is driven by rising vehicle theft concerns and the integration of fingerprint, facial, and iris recognition technologies.

Further, regulatory frameworks are accelerating adoption globally. The International Air Transport Association’s 2026 Dangerous Goods Regulations introduce mandatory compliance effective January 1, 2026, including stricter charge limits for lithium-ion batteries and new shipper compliance checklists.

 

 

Startup Spotlight: Selected Innovators

Smart Ride provides AI-based Mobility Infrastructure

South Korean startup SmartRide develops an AI-powered driver assistance and fleet operations platform that includes Smart Ride IMMS, Journalist’s Notebook, and PICK.

The platform collects real-time driving and operational data from mobile devices and onboard systems. It then processes this information to automate sales registration, record transportation income, manage dispatch schedules, and monitor driver and vehicle performance.

Journalist’s Notebook supports driver work automation with income tracking and dispatch notifications. Further, Smart Ride IMMS manages personnel data, KPIs, training workflows, and service operations.

Besides, PICK functions as a self-managed premium call platform with subscription-based access, integrated settlement, crew management, and driving record features.

Blockly Technologies creates a School Transport Ecosystem

Indian startup Blockly Technologies builds SchoolBus2.0, a school bus tracking and student safety platform.

It integrates GPS devices, CCTV cameras, and mobile applications with a centralized dashboard. It collects real-time location, attendance, and route data, then processes this information to track buses, notify parents, and manage daily transportation operations.

In addition, the platform supports live video monitoring, geofencing, ETA notifications, emergency alerts, route optimization, and automated student attendance. These features operate across school, parent, driver, and admin applications.

DYM-Sense makes Alcohol Detection Technology

Israeli startup DYM-Sense offers DYM sensor, a non-invasive alcohol detection and driver monitoring device.

The startup integrates a finger-based biometric sensor with the vehicle ignition system. It uses an LED array to transmit multiple wavelengths across the driver’s finger and applies algorithms to convert reflected signals into real-time blood alcohol measurements.

Besides, the sensor performs biometric identification and either enables or prevents engine ignition based on detected alcohol levels. It also supports continuous monitoring without requiring breath tests or active user input.

DYM-Sense works to prevent drunk driving, strengthen regulatory compliance, and improve road safety by embedding real-time alcohol detection directly into vehicle systems.

Autonomous Knight builds LEO Multispectral Sensor

Belgian startup Autonomous Knight develops a multispectral sensing and autonomous intelligence platform built around the LEO multispectral sensor and its integrated software development kit.

The sensor captures data across multiple wavelengths and processes this information with algorithms and AI models to support object detection, material analysis, and real-time situational awareness in complex environments.

The platform combines biometric-grade sensor hardware, customizable SDK tools, and a generative AI-based simulation and digital twin environment.

Autonomous Knight enables rapid prototyping, sensor configuration, and continuous system learning across applications in automotive, security, infrastructure, railway monitoring, and smart cities.

AKMSecure offers Quantum-Resilient Cybersecurity

US-based startup AKMSecure makes an autonomous key management and cybersecurity platform for critical infrastructure systems.

The platform uses a patent-backed, C-based security framework to generate, distribute, and rotate encryption keys entirely offline. It then applies implicit zero-trust authentication to every connection across embedded and air-gapped environments.

Moreover, the startup’s platform supports quantum-resilient security, automated key lifecycle management, and compliance with standards such as IEC 62443 and NIS2. It operates with a minimal footprint, which makes it suitable for resource-constrained systems.

AKMSecure ensures passenger safety, protects legacy transportation infrastructure, and delivers regulatory-compliant cybersecurity for rail, energy, and manufacturing sectors.

Technology Trends Shaping Transportation Security

The transportation security sector holds 1800 patents filed by 1300 applicants, indicating a broad base of organizations contributing to technology development. The yearly patent growth rate of 4.91% reflects steady innovation, particularly in sensor systems, AI-based threat detection, and access control platforms.

Transportation Security Administration’s (TSA) program reports that CAT-2 deployments are at ~350 airports nationwide.

Also, biometrics is scaling beyond aviation checkpoints into border operations at the national scale. It expands the total addressable market for verification, matching, and privacy-preserving identity stacks. CBP reports it biometrically processed more than 172 million travelers in FY2023 using facial comparison at entry, exit, and preclearance locations.

 

 

This nationwide scaling of biometric verification is reinforcing growth across advanced identity, analytics, and AI-driven sensing segments.

Multimodal Biometrics

The annual trend growth rate stands at 1.77%. With about 102 companies identified, 8100 employees work in this sector worldwide.

The multimodal biometrics segment includes companies using facial recognition, fingerprint scanning, and iris identification for identity verification in transportation security. The growth rate shows steady adoption across airports, border control systems, and public transport screening.

Travel Analytics

Our database identified about 99 companies in this segment, with more than 8100 employees working. The annual trend growth rate stands 4.85%.

The travel analytics segment covers companies offering data-driven platforms to monitor passenger flows, detect anomalies, and support risk assessment in aviation, rail, and urban mobility. The growth rate reflects rising reliance on analytics to improve operational visibility and strengthen security decision-making.

AI Sensors

The annual trend growth rate is 18.88%. Approximately 1400 companies use AI sensors, and more than 51 300 employees are employed worldwide in this segment.

The AI sensors segment includes companies developing sensor-based security technologies for real-time threat detection, object recognition, and automated monitoring across transport infrastructure. The growth rate indicates rapid adoption driven by demand for scalable and intelligent security systems.

Funding Overview: Investors, Round Sizes, and the Scale-Up Path

The transportation security sector saw an average investment value of USD 22.7 million per round. Deal sizes remain moderate across growth-stage and technology-focused companies. Investors primarily support solutions in surveillance systems, biometric identification, cybersecurity platforms, and smart infrastructure security.

The combined value invested by top investors exceeds USD 850 million, showing concentrated capital deployment across major transportation security innovators.

 

Capital is rotating into scale platforms and installed bases, which is visible in late-2025/2026 M&A. Smiths announced a proposed sale of Smiths Detection, valuing the business at an enterprise value of GBP 2 billion. Also, it is expected that the net cash proceeds will be ~GBP 1.85 billion after customary adjustments.

Mega-hub airport capex is another funding signal because it typically bundles security systems, biometrics, and command-and-control upgrades into terminal expansion programs. Dubai plans a USD 35 billion expansion of Al Maktoum International Airport as it shifts operations by 2032.

Scope and Market Definition

This transportation security industry outlook draws on the StartUs Insights Discovery Platform to map innovation and execution signals across 9M+ companies, 25K+ technologies & trends, and 190M+ patents, news articles, and market reports. It focuses on how security programs are actually operationalized across aviation, ports, rail, and transit – through screening capacity, identity assurance, perimeter and cargo integrity, and incident response workflows.

The analysis also follows how modernization is shifting from standalone hardware purchases to integrated security stacks, combining imaging and detection, biometric and digital ID layers, sensor/IoT telemetry, and command-and-control software.