Brazil Country Market
Insights and Opportunities
Overview: Brazil has an extensive and well-developed security market that has consistently registered an average annual growth of 15-20% with annual sales of US$ 20 billion. Brazil’s preoccupation with personal security has increased the demand for security equipment and services. Brazil’s public safety and security market is expected to continue growing in 2008.
The market for electronic security equipment is estimated at US$ 1 billion. According to a study compiled by the Brazilian Association of Electronic Security Companies (http://www.abese.org.br/), the electronic security market has registered average annual growth rates of 11% for several years, and is expected to continue this pace.
Foreign products account for approximately 50% of total market share, with U.S. products representing approximately 50% of these imports. This equates to a market worth roughly US$ 250 million. Major foreign competitors include Israel, Korea, and Japan, each responsible for about 10-15% of the import market share.
Opportunities: Best prospects for U.S. companies include access control, CCTVs, alarm systems, surveillance technology, drug and explosive detectors, metal detectors, fire prevention and detection systems, cellular telephone blockers, biometrics, and home security equipment.
Financial institutions are the market’s main end-users, spending approximately US$ 1 billion per year in security equipment and services. This is the most sophisticated consumer niche, demanding quality, warranty and after-sales service.
Port and airport security is another high-quality segment which should continue to offer excellent opportunities for U.S. suppliers.
Vehicle surveillance is another market segment that has seen rapid growth over the last few years. According to the press, more than 300,000 cars are stolen in Brazil every year, and in large cities like São Paulo and Rio de Janeiro, car hijackings occur every few hours. Additionally, cargo robberies are a problem. To avoid such losses, transportation companies have invested approximately US$ 1.4 billion in security equipment and personnel.
Other promising niches are small businesses and private homes as high crime rates force individual citizens and business owners to increase their security expenditures. These end-users, however, usually buy less expensive and less sophisticated equipment. Specialists estimate that Brazil has around five million homes that should have some type of security device, but only seven percent are equipped with electronic security systems.
U.S. manufacturers of security equipment have been operating successfully in Brazil for many years and have approximately 50% of the total market share. The best prospects in the public security sector include: helicopters, radios, communication systems, surveillance cameras, protection equipment, bulletproof vests, night vision goggles, helmets, munitions, non-lethal weapons, and handcuffs among others. U.S. companies interested in the public security market in Brazil need to work closely with the federal government and with each state public security secretariat.