WHAT'S THE MARKET & NUMBERS
According to local trade contacts, Brazil invests
approximately $20 billion per year in safety and security
equipment and services. Despite the ups and downs of Brazil?s
economic performance in the last few years, the safety and
security sector has constantly registered an average growth of
15-20% per year. Brazil is currently facing serious social
problems due to high unemployment rates and drug consumption.
These factors have contributed to the increase of crime in large
cities. According to ?Proteger,? a security industry
publication, someone is murdered every hour in the State of S?
Paulo, and kidnapped every few hours. Kidnappers usually carry
guns and drive the victim around to make withdrawals from ATM
cash machines. They do not hesitate to kill if the victims
In view of such a dramatic situation, federal, state and
municipal governments are implementing new security measures to
protect the population. Several cities have installed video
cameras on the streets to inhibit criminal activities. Others
have passed a law, or are in the process of approving a law,
making it mandatory to install cameras or other security devices
in residential and commercial buildings with more than four
floors. As the violence level grows, the market for safety and
equipment also grows. There are opportunities in almost all
segments, but it is in the electronic security segment that US
firms will find excellent opportunities. According to the
Brazilian Association of Electronic Security Companies (ABESE),
the market for electronic security equipment is estimated at
$900 million. Foreign products supply about 75% of the market
and US products retain about 50% of the import market share.
Major competitors are Israel and Japan, each responsible for
about 20% of market share.
Today, electronic security equipment is not limited only to
banks or commercial and industrial buildings. The increase of
security monitoring services and security devices in residences
is and will continue contributing to the fast expansion of the
According to ABESE, there are 4.5 million properties in the
State of S? Paulo with potential to be equipped with electronic
security equipment, but only 7% have a more sophisticated access
The market for electronic security equipment is heavily
concentrated in the States of S? Paulo, Rio de Janeiro,
Esp?ito Santo and Minas Gerais, which together are responsible
for 63% of the market.
Best prospects: The best prospects in this segment include
access control equipment, (especially ones that use biometric
technology), CCTVs, home security equipment, alarm systems and
vehicle monitoring systems.
In the law enforcement segment, there is a huge need for
bulletproof vests, ballistic shields and helmets, anti-trauma
equipment, non-lethal arms, batons, cuffs, shotguns, super
machine guns, night vision goggles, X-ray equipment to detect
narcotics and cellular call blockers. Most of these items are
manufactured domestically, but several police officials have
indicated recently that the quality is not up to the level of
those produced in the United States.
Outlook: US companies interested in this market segment will
find excellent opportunities if they establish themselves in
Brazil, or find a joint venture or technology transfer partner
in Brazil. The Brazilian legislation for government tenders
provides that the lowest bidder wins the contract. Since Brazil
has high import-related costs, it is difficult for foreign
suppliers to compete successfully in
the market unless they consider local production.
B. REFERENCE PRICES
IMPORTING & EXPORTING
Poultry & Meat
ASSOCIA?O BRASILEIRA DAS INDUSTRIAS DE EQUIPAMENTOS CONTRA
INCENDIO E CILINDROS DE ALTA PRESS?
ASSOCIA?O BRASILEIRA DAS INDUSTRIAS DE MATERIAIS DE DEFESA
F. TRADE SHOWS
Stops: Sao Paulo, Brazil
Date: March /2004