DHS's $1B Tech Overhaul Signals New Era for Airport Security

WILMINGTON, Mass. – November 26, 2025 – The U.S. Department of Homeland Security (DHS) is spearheading a roughly $1 billion initiative to modernize Transportation Security Administration (TSA) infrastructure, heralding the most significant technological pivot for airport security in over a decade. The plan aims to replace aging screening systems with a new generation of intelligent, high-throughput technologies, creating a seismic shift in a market poised for explosive growth and intense competition.

This modernization effort, which includes deploying advanced imaging technology (AIT) and upgraded X-ray equipment, is a direct response to the dual pressures of an evolving threat landscape and soaring passenger volumes. Companies specializing in next-generation security have taken note. Liberty Defense, a provider of AI-based detection solutions, publicly commended the initiative, viewing it as a critical validation of the need for advanced systems.

“The United States has reached a crucial moment where legacy screening systems simply cannot keep pace with today’s threat environment or the volume of domestic and international traveler traffic,” said Bill Frain, CEO of Liberty Defense, in a recent statement. His sentiment reflects a widespread industry consensus that the era of incremental updates is over, and a fundamental technological leap is now underway.

A Multi-Billion Dollar Market Awakens

The DHS announcement acts as a powerful catalyst for a market already on an aggressive growth trajectory. The global airport security market, estimated at USD 15.75 billion in 2024, is projected to surge to nearly USD 26 billion by 2030, expanding at a compound annual growth rate (CAGR) of 8.5%. North America currently dominates this market, but the push for modernization is a global phenomenon, with the Asia-Pacific region expected to see the fastest growth.

While the billion-dollar figure is substantial, it largely represents an acceleration and consolidation of ongoing, multi-year procurements rather than a single new fund. A key component is the TSA's Checkpoint Property Screening System (CPSS) program, which has been focused on rolling out advanced computed tomography (CT) scanners. These systems, supported by legislative measures like the Transportation Security Screening Modernization Act, allow travelers to leave electronics and approved liquids in their bags, streamlining the screening process. The TSA's FY2025 budget carves out specific allocations, including $90 million for these CT scanners, underscoring the government's sustained commitment.

This investment landscape creates a fertile ground for innovation, pushing the industry beyond traditional metal detectors and toward integrated, data-driven security ecosystems. The screening and scanning systems segment, which already commands over a third of the market, is at the heart of this transformation.

Beyond the Metal Detector: AI-Powered Screening

The core of the TSA's modernization push is the adoption of technologies that are faster, more accurate, and less intrusive. Artificial intelligence and machine learning are the linchpins of this new paradigm, enabling systems to detect a wider range of threats with fewer false alarms.

Liberty Defense's HEXWAVE system, developed from technology licensed exclusively from MIT, exemplifies this new breed of screening. It uses low-power radar and 3D imaging to create real-time, high-fidelity scans capable of detecting both metallic and non-metallic threats—including 3D-printed “ghost guns,” liquid explosives, and plastic-based improvised explosive devices (IEDs). The system's AI algorithms analyze the data to identify and locate prohibited items, presenting the information to an operator on a clear, depersonalized avatar to protect passenger privacy.

Having demonstrated “outstanding results” in U.S. military and government trials, the technology is gaining significant traction. HEXWAVE is slated for installation at aviation worker screening checkpoints at The New Terminal One at New York’s JFK International Airport, set to open in 2026. This deployment aligns with the TSA's national mandate to enhance screening for all airport employees, a critical vulnerability in aviation security. The system’s adoption at hubs like Palm Springs International Airport is seen as a replicable model for other airports facing similar compliance deadlines.

The Crowded Field of Security Innovators

While the opportunity is vast, the competitive field is formidable. Established giants like Leidos, Smiths Detection, and Rapiscan Systems currently hold an estimated 60% of the global market. These firms are deeply entrenched, offering integrated platforms that combine AI-powered threat detection, automated screening lanes, and biometric access control. Leidos leverages extensive data analysis for risk management, while Smiths Detection’s advanced CT scanners are already deployed in hundreds of airports worldwide.

However, the government’s focus on open architecture—a framework allowing for easier integration of technologies from different vendors—is creating openings for specialized innovators. Liberty Defense has capitalized on this by securing a TSA contract, now valued at up to $3.86 million, to develop a prototype High-Definition Advanced Imaging Technology (HD-AIT) upgrade kit. This project aims to enhance the detection capabilities and lower the false alarm rates of existing body scanners by retrofitting them with superior imaging and AI-driven software, offering a cost-effective path to modernization.

This strategy of both developing novel systems like HEXWAVE and providing upgrade solutions for existing infrastructure positions companies like Liberty Defense to capture market share by addressing different needs and budget levels across the aviation sector and beyond, including stadiums, transit hubs, and government buildings.

Navigating the Security-Privacy Tightrope

This technological revolution is not without its challenges, chief among them the delicate balance between enhancing security and protecting individual privacy. Advanced imaging technologies have faced public scrutiny since their inception, and the increasing integration of biometrics, particularly facial recognition, has amplified these concerns.

Civil liberties advocates and some lawmakers have raised alarms about the potential for mass surveillance, data misuse, and algorithmic bias as facial recognition is deployed more widely at checkpoints. In response to this growing debate, the TSA maintains that passenger photos are not stored and that the process is currently voluntary. However, the discourse highlights a fundamental tension in the future of public security.

Innovators are actively working to design privacy-preserving features into their systems. For example, by using generic avatars to display threat locations instead of detailed body outlines, new AIT systems aim to eliminate the need for controversial physical pat-downs, thereby enhancing both privacy and efficiency. Experts believe the role of the human screener will evolve from primary threat detection to verification and response, guided by more precise data from AI-driven systems. Ultimately, the successful implementation of this next-generation security infrastructure will depend not only on its technical efficacy but also on its ability to earn and maintain public trust.