Asqella - A world leader in dynamic screening for security

Liiketoiminta- & markkinatilanteemme

Asqella’s Technologies

Personnel screening solutions predominantly use various forms of portal technologies; walk through metal detectors, millimeter wave and X-ray portals. Asqella’s product was developed for rapid screening environments where portal-based throughput rates are inadequate. For example, mass transit hubs such as airports and train stations, public buildings and spaces, educational institutions, sports and music venues. Another application driving the development was where the screening should cause minimum inconvenience to people. Asqella’s proprietary technology will reliably identify larger threats such as firearms and explosives which can create significant public harm.

The concept of a Asqella’s product is simple – taking a picture of a person, but without using X-rays (like some other security devices). Further, the technology uses THz waves and is hence not dependent on visible light (e.g., digital cameras require visible light).  THz waves are able to identify possible security threats by “seeing” through clothes. The nature of the threat is identified by feeding the “picture” into a software that uses Machine Learning techniques.

Asqella’s products are protected by international patents and the technology has been evaluated and validated by independent evaluation agencies. 

Asqella is also developing this technology further – the emergence of Covid19 has increased the importance of health-related threats: In the post-COVID world, the prevention of rapid spread of subsequent pandemics likely necessitates the deployment of various risk assessment methods at border crossings. Since polymerase chain reaction (PCR) tests on every individual person are far beyond the capacity in the foreseeable future, a reliable pre-screening solution is urgently needed to feed the suspect cases for this secondary (PCR or similar) testing. The Company has started a pilot project with a leading Finnish hospital to validate the use THz technology’s ability to observe the phenomenological effects of infection over the whole human body. The Company expects to complete the pilot during the spring and to bring this capability into its products in 2022.

Asqella ARGON

ARGON is one of the few commercially available products using waves for security screening. The main features and capabilities are:

• Does not emit radiation.
• Detects concealed objects like liquids, gels, ceramics, currency, narcotics, explosives, and metallic items.
• Runs at true real-time frame rates: the camera can detect objects on moving subjects.
• Industry’s largest field of view can screen multiple people at the same time.
• High image definition and contrast facilitate reliable detection.
• Can be concealed behind a thin wall or curtain.
• Not necessarily a replacement but rather a supplement to enhance security.

Whole solution backed up by ML & tailored algorithms for optimal detection per market niche and industry knowhow how CONOPS (concept of operations) to ensure optimal installation in various venues.

 

Markets

Security screening markets are big and growing fast – the market is estimated to reach 9.5 Bn USD by 2026 representing CAGR ~5% (Mordor Intelligence 2020). These markets contain various established segments (industrial and technology), whereas the passive security screening technologies’ market has only recently evolved. Asqella enables a revolution of security screening in venues where systematic, cost efficient large volume screening has not been feasible (e.g., smart building, ferry travel, events).

Key Drivers

After 9/11, aircraft terrorism has dropped significantly – but attacks occur annually elsewhere (Manchester Arena, London Bridge, Boston marathon, Nice and Barcelona truck attacks, Orlando night club shooting…) claiming tens of deaths annually.  Attacks impact citizens’ willingness to attend large public events or visit public buildings – causing demand from citizens to providers carefully address security issues. Simultaneously, while attending events or visiting public buildings, customer expectations towards whole experience are constantly increasing, forcing service providers to constantly streamline security screening processes. This streamlining, and the avoidance of crowds and queues, (which pose soft targets themselves) is of even greater importance in the post-COVID world, where circumstances favorable for mass spreading are to be avoided.

Fast market growth for security screening technologies - CAGR 8%

The global explosive detector market is expected to grow at 8.2% CAGR from 2019 5.9 Bn USD to 11.1 Bn USD by 2027 (Allied Market Research 05/2020). Surge in terrorist activities across the globe and government regulations for effective and enhanced security drive the growth of the global explosive detector market. However, inability in detecting improvised explosives devices (IEDs) is anticipated to restrain the market growth. Furthermore, growing adoption of handheld explosive devices is expected to provide new growth opportunities during the forecast period.

The total market can be estimated being relatively equally split between industrial segments (military and defense, transportation and logistics, public safety and law enforcement, commercial, others).

Legislative efforts are also being prepared across the world, Martyn’s Law as an example, indicating that political climate is positive towards increasing security screening and improving visitor safety through regulative actions. The new improved level of security should however be both affordable and proportionate to be justifiable. Due to the very “analogue” nature of contemporary security measures (mostly centered on the deployment of personnel), new technologies are needed to digitalize these security measures to 21st century standards.

Due to better user experience, less distracted and socially distanced people flow and reduced operational costs, market for passive detection devices (like ARGON) is anticipated to exceed the relative market growth.

Implications to Asqella

High security threats, customer requirements towards event providers (in terms of CeX and security requirement) and general market growth validate the chosen strategy of the Company to further develop the passive and automated security screening offering.

Total addressable market sizes by 2025*

Segment	Total adressable market estimation logics	TAM
Venues	Around 150 indoor arenas in Europe with capacity above 10 000 Ten entries per arena means 1500 in total where security screening must be conducted  Assuming one passive device per entry at 150k€ per device would be realistic (only above 10k capacity assessed)	+200 MEUR
Ferry travel	+450M annual ferry passenger trips in Europe  Even though +10M passengers go through the busiest ports annually, security processes are far from advanced and highly monitored Assuming 50 largest European ferry ports with 5 passive devices per port at 150k€ per device would be realistic	+35 MEUR
Airports (landside security)	Around 3 500 airports in Europe from which 159 are classified as large and 867 as medium sized. If taking 20% of European airports into the scope and estimating five entries per airport, means it 3500 entry points to airports  Industry in need of solutions that provide both high accuracy and throughput  Assuming two passive devices per entry at 150k€ per device would be realistic	+1Bn MEUR
Smart buildings	There are about 25 billion m2 of floor space in Europe, 25% of which for non-residential use and from that portion 23% for office use - meaning 1.5 Bn m2  If using The Shard’s (London, 56k m2) size as a divider that would mean around 26k potential office venues Assuming 10% of the buildings being “smart enough” by 2025 for this kind of technology and assuming two passive devices per entry at 150k€ per device would be realistic	+770 MEUR
Loss prevention	Total number of full-time employees in the warehousing and storage industry is more than 400 000 (2016); globally theft costs companies over 15 billion USD annually, if assuming European market covers 10%, that accounts 1.5Bn EUR losses  With half a billion “margin”, companies could invest 1Bn for loss prevention. If assuming 500MEUR used in technical devices, that would create a demand for more than 3000 devices at 150k€ per device	+500 MEUR
Other public transit	There are more than 3700 metro stations in Europe  Assuming two passive devices per metro station at 150k€ per device be realistic	+1.1 Bn EUR
Public infrastructure	There are 150 cities with half a million inhabitants or more  If assuming each city has five buildings added and the most novel security solutions would be needed, that creates a potential installation base of 750 buildings  Assuming two passive devices per building at 150k€ per device would be realistic	+225 MEUR
Outside events	There are thousands of festivals across Europe throughout summer  Assuming that 100 biggest festivals would benefit the most from the added security technologies and each festival has five entries, that would create a demand for five passive devices per event at 150k€ per device	+75 MEUR
Customs and border	More than 2000 EU customs offices operate 24/7/365 and employ almost 90k personnel   Transit volumes include more than 16M transit movements, 370M export and over 400M imported items (2018) Assuming two passive devices per every second customs office at 150k€ per device would be realistic	+300 MEUR
TOTAL		+4.2 Bn EUR

*Company estimates 2019

Strategic focus areas & go to market

The key strategic goals for the Company are:

2021 – Ensure market acceptance and build enablers for scalability:

1. Ensure market acceptance and build enablers for scalability:
2. References collected and leveraged for maximum growth impact
3. Productized offering per industry / subsegment
4. Ensured production ramp up capability and executable plan
5. Strategic OEM (key component) collaboration (in China) continued for extended learning and secured cash flow
6. Development of thermography solutions for health screening

2022 – Aggressive growth and scale operations:

1. Aggressive growth and scale operations:
2. Invest in S&M and expand distributor/strategic partner footprint
3. Scalable OEM manufacturing, driven by OEM business (in China)
4. Software and data as strategic differentiators
5. Forerunning integrability and recognized strategic player in smart cities’ security domain 

Naturally, achieving above goals are subject to uncertainty and involve a multitude of risks. The Company believes that the largest risks include (but not limited to) (i) lack of sufficient financial resources to execute the strategy, and (ii) retention of key employees and successful recruitment of new professionals.

Development roadmaps

The system typically delivered to a customer comprises of ARGON hardware, Software components according to the customer needs, services provided by a third party or Asqella. The Company’s technologies have already been integrated by a major OEM making new sales channels available.  The operative plans for the customer value proposal can be split into following four roadmaps:

ARGON product

OEM roadmap

Software Roadmap

Services Roadmap

Lead Funnel across segments

Differentiation & competition

Technology alternatives:

Conventional (portal) versus novel (walk-by) installations, such as Asqella

• Walk-by solution has higher throughput
• Walk-by’s have more flexible installation requirements and smaller impact on people flow

Asqella’s ARGON represents the most novel and forward-looking security screening solution that suits various urban crowded places’ threat detection, loss prevention and contraband detection.

Leading Performance

Source: Company estimate 6/2020

 

Pilots and use cases

Pilot case – Dukla Jihlava

Pilot case – Domestic departures

Using Asqella’s platform for detecting health related threats

Covid-19 has accelerated the need to form a holistic view of possible threats. Customers are expecting solutions that will integrate information from different sensors and information sources. Detecting automatically health status of people flow by different sensors is gaining momentum. The existing solutions are often based on using infrared sensors but their performance is questionable due to high false alarm rates and therefore Asqella’s new terahertz-based concept could potentially offer several benefits over existing solution as described in the picture below.

Advanced thermography pilot in Finland

• Asqella has been actively discussing with medical professionals the requirements for large scale nonintrusive temperature measurements
• Currently ongoing pilot in a major Finnish hospital
• Asqella is developing Machine Learning based solutions to automatically detect temperature differences in the human body. The existing Asqella products can be equipped with this software to enable automatic temperature monitoring
• The pilot will end in this spring

Thermography next steps

• Asqella is in the process of filing further patents covering thermal imaging
• A new product concept is also being planned to facilitate the use of smaller dedicated devices for counter-pandemic fever detection.
• Authorities globally are on the look-out for solutions that build resiliency against future pandemics. Accurate, fast infectious persons detection is one of the focus areas.
• The first implementation is planned to be a feature update for the existing ARGON product