Overview of the market
The total market for Electronic Security Equipments (ESE) in Brazil was estimated to be worth R$ 613.7 million in 2009 and it is forecast that this amount will grow to a figure of R$ 1,882.4 million by 2016. This represents an annual rate of growth of 17.36% for the period between 2009 and 2016. Brazil’s population is feeling insecure in relation to the country’s increasing crime rate, which has led to a growth in the demand for ESE systems. The World Cup in 2014 and the Olympic Games in 2016 are seen as catalysts for the growth of this market, coupled with the growth of this market, coupled with the growth of the various civil construction sectors, such as housing, hotel management, urban infrastructure and transportation, along with other sectors that share the same synergy.
The new technologies that are available in the market allow for a better integration between the various security systems, resulting in a cross selling phenomenon that drives the sale of ESE products. However, complex technological systems require qualified labor and solid technical knowledge in order to execute projects and perform installations.
Product prices are closely linked to exchange rate variation, with this being explained by the limited scope of the domestic industry, with the result that huge amounts of ESE products are imported. The fact that the import process is both complex as well as full of red tape places restrictions on the operations of distributors.
Analysis of Demand
The Brazilian ESE market (surveillance video systems, physical access control systems, intruder alarm systems, detection and repression systems and anti-theft protection systems for products) ended 2009 with total sales of R$ 613.7 million.
Although there is a growing utilization by the residential sector of ESE systems, particularly video surveillance systems and intruder alarms, the non-residential sector is likely to continue to be the main source of growth for this market over the next few years, and to retain its position as the holder of the largest slice of this market. The expectation is that is up until 2016 it will account for 80% of the total market. At present the percentage shares of the market are as follows; 13% for "residential consumers" and 87% for "non-residential consumers".
Competitive overview
Total sales of surveillance products are increasing at a faster pace than any other ESEs. For this reason, this segment is the only one which is increasing its percentage share in terms of the total ESE market. However, the other products such as physical access control systems, intruder, detection and repression alarms, and anti-theft protection systems are also likely to experience very high rates of growth.
We also observe growth in the domestic production of these goods. However, as has already been pointed out, the great majority of ESE products continue to be imported, particularly those that require high levels of technology.