Latin America, one of the largest emerging markets, is brimmed with opportunities. a&s explores the key market drivers and verticals on this new land of opportunity for security.
Latin America, one of the largest emerging markets, is brimmed with opportunities. a&s explores the key market drivers and verticals on this new land of opportunity for security.
Unlike other regions that are experiencing slowdown, Latin America, both the public and private sectors, is investing in security systems and services to protect people and properties. The video surveillance market is expecting a CAGR of approximately 20 percent over the next five years, according to IMS Research. The main driver for this boom is the continual price reduction of network surveillance equipment. Brazil is the largest contributor to this sector's growth, followed by Mexico, Argentina and Colombia. Chile and Peru also enjoyed consistent growth. As a result, several video surveillance companies are planning to expand their businesses into the region.
Brazil
Of all the countries in Latin America, Brazil alone is forecasted to make an enormous impact. The host country for the upcoming 2014 FIFA World Cup and 2016 Summer Olympics, Brazil is flourishing with countless opportunities. According to the US Security Industry Association, Brazil's current security market stands at US$592 million and is expected to triple to $1.8 million by 2017.
One project of particular note and budgeted at $31.8 million is the renovated Pituasu Stadium, which became the country's first 100-percent digital stadium (from zero surveillance equipment before). Many bus terminals also opted for IP cameras, strategically installed at points of revenue generation and passenger movement. While Brazil is currently dominated by analog cameras, at approximately 60 percent of the market share in 2011, the market for IP-based systems is expected to surpass that of analog in the coming years.
The number of ATMs is declining due to excessive fraud, according to a report by Frost & Sullivan. To combat theft and fraud, Bank Itautec, Latin America's largest private bank, deployed multispectral fingerprint readers in 12,000 of its ATMs. The bank plans to expand this biometric solution to 33,000 ATMs, to replace the traditional card and PIN.
Mexico
According to Mexico's 2012 National Survey on Victimization and Perception of Public Security, there are more than 20 million cases of crime annually, most of which are not reported to the police. On a brighter note, the Mexican government is eager to mitigate these threats. There are many other driving forces: close ties to other Latin American countries, free trade with its neighbors, and vibrant government and business activities.
As Mexico follows the U.S. in security deployment, there are always new rules and regulation, meaning demand for new technologies and applications. According to industry sources, it will take a few more years before sales of IP-based systems exceed those of analog systems. As customer needs vary frequently, distributors and resellers need to adapt quickly to become “one-stop shops” for their customers. To support the growing network-based market, Mexican security professionals need to train themselves and their customers, in addition to providing quicker and better service and support.
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In response to recent violent crime and prison breaks, the Mexican government announced that it will earmark $2.57 billion for building eight new correctional facilities. One of these penitentiary sites features 1,200 security cameras and biometric readers for access control. According to Fernando Loret de Mola, Sales Director of Sistemas Integrales de Automatización (SIASA), new criminal investigation centers will soon follow suit.
With regards to the coming year, Enrique Pena Nieto, Mexico's President-elect, stated on numerous occasions that he will continue to fight organized crime in Mexico, but with certain changes in strategy compared to his predecessor.
Retail
Managing security issues in retail stores is no easy task. As theft and robbery are common in Mexico, retail stores are beginning to use the cloud for video hosting so they can keep track of and access recorded footage in case onsite equipment is destroyed. For instance, Farmacias de Similares opted for Iveda Solutions' cloud video-hosting services for security, operational and sales purposes. Through an online portal, each store has secure and remote access to live and recorded video.
Transportation
In an effort to cut pollution and congestion, a new line of subway was built in Mexico City. Opened in October 2012, the underground line cost nearly $2 billion and is considered one of the largest national projects. The security systems in place protect an expected 460,000 passengers on a daily basis.