Electronic Security Equipment
Market Overview
The electronic security sector of the market in Argentina grew by more than 15 percent in 2011, with a value of over approximately US$ 488 million, making it a relatively large, expanding sector for U.S. firms. Argentina is a fast-growing market for electronic security-related products, equipment, and services and is still heavily reliant on imported products.
Local trade vendors further estimate an annual growth rate of 20 to 30 percent in 2012. This expansion has occurred in all sub-sectors of products and services of security, especially on Monitoring Services, CCTV over IP, access control, and law enforcement equipment that together totaled more than 70 percent of Argentine security imports.
There are currently 1,500 companies in the Argentine electronic security industry, including importers, manufacturers, and software developers who combined employ over 14,000 people, 60 percent of whom are engineers and technical personnel.
U.S. manufacturers compete successfully in Argentina, holding an approximate 40 percent share of the import market for security equipment. Nevertheless, Brazil, China, and other Southeast Asian countries are entering the market aggressively, offering similar products at lower prices.
Seventy percent of the current electronic security market is comprised of imports while 30 percent is manufactured locally. Furthermore in 2011, Argentine companies exported $75 million in security equipment to regional markets that contained both imported and Argentine content.
Sub- Sector Best Prospects
Hi-tech imports play a significant role in the overall security market, as domestic manufacturing consists primarily of basic security equipment and safety supplies. Therefore, the hi-tech security equipment market presents more opportunities for U.S. companies with major opportunities in niche areas such as CCTV, access control equipment on IP networks, and safety and security design consulting services for large buildings and other real estate developments. Best sales prospects for U.S. electronic security firms include:
- Access Control: biometrics on IP networks
- Intelligent Surveillance Systems; smart cameras and intelligent software for identification of pedestrians; CCTV on IP networks-industry specific security systems; equipment parts and software for automotive, banking, airports, ports, warehouses, mines, highways, utilities, hospitals, and construction sites
- High-tech security equipment for Police and other law enforcement agencies.
- Safety and security design consulting services.
Opportunities
Market growth in recent years reflects the rising crime rate in Argentina. Acts of violence, including street crime, bank robberies, and private property theft have been on the rise. While Argentina’s crime rate is lower than in the U.S., Brazil, Mexico, or Venezuela, crime is an issue which has been emphasized in the press.
The widespread perception of growing insecurity, along with the increasing priority of improving workplace security, has contributed to the growth of the electronic security sector in Argentina, which grew at least 15 percent in 2011.
In addition to these changes, there has also been a growing trend to import parts for fire and safety equipment. Although there has been an increase of local assembly of alarms, detectors, and electronic fire systems to offer significantly lower prices and to take advantage of the “Buy Argentina” law and tax benefits, high-tech imports will continue to play a significant role in the overall security market, since domestic manufacturers tend to satisfy the demand for less sophisticated equipment.
Key Figures
(In US$ millions) |
2009 |
2010 |
2011 |
2012est |
Total Market Size |
410 |
460 |
488 |
645 |
Total Local Production |
70 |
80 |
85 |
180 |
Total Exports |
50 |
65 |
75 |
85 |
Total Imports |
390 |
445 |
478 |
550 |
Imports from the U.S. |
156 |
178 |
192 |
220 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: The above statistics are official figures based on Argentine Customs data while Total Market Size and Local Production are estimates based on industry sources.
Trade Events
Event: |
|
Dates: |
November 5-9, 2013 |
Site: |
La Rural Trade Center, Buenos Aires |
Organizer: |
Indexport Messe Frankfurt S.A. |
Description: |
South American Integral Security Fair featuring: Intrusion and Monitoring; CCTV; Fire; Access Control; Industrial Security; IT Security; Surveillance; Measures and counter measures equipment and supplies. |
In the United States
Event: |
|
Dates: |
September 24-27, 2013 |
Site: |
Philadelphia, PA |
Organizer: |
ASIS International |
Description: |
If you're looking for qualified decision-makers searching for the latest security information and innovative products, you'll want to exhibit at ASIS International—the world's largest event dedicated to security. This leading security event attracts more than 23,000 professionals from across the globe, all in one place. When you exhibit at ASIS, you will gain access to this powerful group of end-users who are searching for the technologies, products, and services you have to offer. |
Event: |
|
Dates: |
April 2014 (TBD) |
Site: |
Las Vegas, NV |
Organizer: |
Security Industry Association (SIA) |
Description:
|
ISC West has everything you need whether you are a dealer/installer, Integrator, Corporate security professional, government professional, or responsible for commercial facility protection. Whatever your concentration in security, ISC East provides information and access to the latest innovations all to help you be more successful. More than 400 exhibitors will be showcasing their state-of-the-art security solutions in Access Control, Biometrics, CCTV, Systems Integration, Home Systems, and much more. ISC East is sponsored by Security Industry Association (SIA) and endorsed by the National Burglar and Fire Alarm Association (NBFAA). |
Useful Links
- Ministry of Interior (Spanish)
- Ministry of Defense (Spanish)
Contact Information
Please feel free to contact the U.S. Commercial Service Argentina Specialist mentioned below for additional information or assistance.
Marina Millet
Security and Safety Equipment Sector Specialist
U.S. Commercial Service Argentina
Embassy of the United States of America
Av. Colombia 4300
C1425GMN Buenos Aires, Argentina
Phone: (54-11) 5777-4851
Fax: (54-11) 5777-4203
Email: Marina.Millet@trade.gov
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