|A. 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 resist.
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 security
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 market.
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 control system.
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
|C. IMPORTING & EXPORTING2002
D. IMPORTANT PLAYERS
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 (ABIMDE)
F. TRADE SHOWS
Security Week 2004
Stops: Sao Paulo, Brazil
Date: March /2004