BrazilSMR Exec Summary

7/27/2019 BrazilSMR Exec Summary

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0

200,000

400,000

600,000

800,000

1,000,000

Chart 1.1 Brazilian GDP, 2003-2005

588.645

681.289

880.810

2003 2004 2005

Source: IMF and Frost & Sullivan

Produced by the Security Industry Association

BRAZILSECURITYMARKETTHE SECURITY INDUSTRY ASSOCIATION

REPORT


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The Security Industry Association (SIA)

Mission:To proactively represent SIA members in the global security and life safety markets inorder to ensure a safer world.

Founded in 1969,SIA is an international trade association whose membership has grown to almost400 companies from every segment of the electronic security industry,including access control;biometrics;surveillance cameras and systems;fire detection and suppression;home automation;intrusion;remote and wireless monitoring;personal security products and response systems;mobilesecurity;and many other specialized services. SIAs programming,products,and services fall into fourcore areas:education & training,government relations,research & technology,and technical standards.

SIAs Research & Technology Department provides high quality,actionable data and analysis on avariety of issues in the global security industry by collaborating with the best international research

organizations available.This report was researched and prepared by

Frost & Sullivan - Latin America

"Partnering with clients to create innovative growth strategies"

Researchers:Alejandra Etcharran,Gabriela Fiquera,

Milena Matone,Fernando SerraVictor Martelli

All rights reserved. Reproduction in whole or part without prior written permission is prohibited.

The Security Industry Association,2007

The Security Industry A ssociation Brazil Security M arket Report

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BRAZIL

SECURITYMARKET

THE SECURITY INDUSTRY ASSOCIATION REPORT


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ForwardDear Colleague,

Brazil, along with Russia, India, and China, has become one of the worlds most attractive destinations for

foreign direct investment (FDI). According to World Bank statistics, Brazil enjoyed a 24 percent increase in

FDI in 2006, receiving almost US$ 20 billion.

Unlike India and China, which in the past decade have experienced rapidly-growing economies, annual GDP

growth in Brazil has averaged only three to four percent. This slower pace of growth reflects Brazils

increased economic stability. This has resulted in job growth and higher wages for Brazils population of

more than 180 million. In 2006, Brazils government ended taxation on many forms of FDI and liberalized

business ownership. In summary, Brazils liberal policies have created a favorable business climate for

investment and positive growth has created an increased market for electronic security products.

SIAs Brazil Security Market Reportis an instruction manual for security companies who want to enter this

liberal, growth market. The report includes an overview of the general economic, social and business

environment in Brazil today. An in-depth analysis of the electronic security market in Brazil, its drivers,

restraints, laws and regulations, follows. Detailed supplier profiles and analyses of vertical markets wrap

up the report.

In the past year, SIA has developed a close working relationship with the Brazilian Electronics and Electrical

Industry Association, ABINEE, resulting in a signed Memorandum of Understanding (MOU). ABINEE played a

key role in ensuring the accuracy of SIAs Brazil Security Market Reportand has endorsed it as the definitive

report on the Brazilian electronic security market. This report is an essential strategic planning document for

any electronic security company that plans to enter Brazil.

I would like to acknowledge Mark Visbals laudable effort to ensure the high quality of SIAs Brazil Security

Market Report. The report would not have been possible without the oversight of SIAs Manager of Research,

Linda Yelton and Frost & Sullivan researchers in Brazil, Alejandra Etcharran, Gabriela Fiquera, Milena Matone,

Fernando Serra and Victor Martelli, who all worked to produce an accurate, first-rate report. This report is a

testament to their collective knowledge, experience and commitment to excellence.

Richard ChaceCEO and Executive Director

The Security Industry Association


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Dear Colleague,

ABINEE is the largest Association in Brazil for the Electrical and Electronics Industry and has established a

dedicated group to work on the improvement of the Security Industry and Security market.

Being recognized internationally as the leading Association of Brazil by its efforts for Standards, Electrical and

Electronics Brazilian Market Statistics and Government relations, ABINEE has started its activities on the

Security Industry (Electronic Security Equipment) and has supported SIA to realize the first market research for

the Brazilian Security Market. ABINEE considers this first edition of the market research an important step to

understand better the market situation and its needs.

The Brazilian Security Market is at its initial organizing status with promises of growth for the next 10 years

and the establishment of standards, ethic guidelines and representation within the Government authorities is

mandatory to support its goals and the healthy foundations for a mature market in the forthcoming years.

Abinee is applying all its expertise acquired along the last 45 years organizing important market segments of

the Brazilian Economy such as energy, IT, consumer appliances, electrical equipment, industrial automation,

safety, fire and other important industries.

For that reason we would like to thank SIA for its initiative on this important research with solid qualitative and

quantitative results. We believe that this Growth Consulting study is an asset to all companies that are looking

for an initial reference of the Brazilian Security market (Electronic Security Equipment).

Sincerely,

Paulo Augusto Viana de Alvarenga

Director

Electronic Security Equipment

ABINEE

Eduardo Vinocur

Vice Director

Electronic Security Equipment

ABINEE


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IntroductionSIAs Brazil Security Market Reportis the fourth in a series of international reports that define and quantify the

electronic security market in emerging markets that are attractive for foreign investment. These reports serve

as an instruction book for any company, especially electronic security companies, who want to enter these

markets.

When considering market expansion to foreign countries, executives have the daunting responsibility of

identifying and selecting countries with favorable business environments, regardless of their industry. The

current Brazilian governments policy is to encourage FDI by ending or reducing taxation on most forms of

foreign investment and encouraging liberal policies for business ownership. In addition, Brazils attraction for

investors includes its vast natural resources, large market size and growth potential, a democratic government

and a stable economy.

Brazils deliberate emergence as a stable economy has been guided by the World Bank and International

Monetary Fund, with the commitment of both former President Cardosa and current President Lula da Silva.

The three pillars of the countrys economic programa floating exchange rate, an inflation-targeting regime,

and tight fiscal policyhave yielded increases in employment and real wages for Brazils large population

of more than 180 million. With increased consumer spending power, Brazil has become one of the most

attractive consumer markets for investment. Brazil enjoyed a 24 percent increase in Foreign Direct Investment

in 2006, and became the fourth ranked recipient of FDI, receiving almost US$20 billion. In addition, Brazil has

a positive trade balance with a 2006 surplus of US$46 billion. Its major trading partners are the European

Union, the United States and Argentina. Its positive balance of trade with the U.S. is US$7.1 billion.

SIAs Brazil Security Market Reportexamines these policies and explains how they impact the electronic

security industry. SIAs Brazil Security Market Reportis an essential element of any international business

strategy, especially for electronic security businesses.

Executive SummaryTOTAL MARKET OVERVIEW

Impressive market growth prospects, with expected CAGR of 16.2% through 2012

Revenues of $214.8 million in 2006

Highly fragmented market, with a huge number of playersPresence of multinational and national companies, with stronger presence of the first

Commercial end-users are the most representative, being responsible for 88% of total EPS market revenues

Strong penetration of black market, especially in low-end segments

CCTV and Access Control are the market segments with higher growth perspectives

TOTAL MARKET DRIVERS

Increasing Insecurity Rates Strengthens the EPS Market

Insufficient public investments in security impacts positively on EPS market

Investments in Civil Construction Drives Increased Adoption of Electronic Security Systems

Increase of number of banks and buildings assaults further higher investments on security systems

Rising prices of human surveillance make room for adoption of Electronic Security Products

Growth Acceleration Program (PAC - Programa de Acelerao do Crescimento) incentives semiconductors

factories in BrazilInternational Security Standards followed by Multinational Companies drive security market

Brazil, a key place for regional and global conventions and events demands high investments on Electronic

Security Systems

International Ship and Port Facility Security Code (ISPS Code) drives investments in port security

TOTAL MARKET RESTRAINTS

Competition from Asian products pressures prices downward

Lack of standards and regulations hold down investments on EPS technologies

Lack of interoperability between EPS systems restrains adoption

High initial investments for electronic security product favors usage of alternative solutions


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Table of ContentsI. BRAZILIAN ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Economic Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Legal Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Labor Legislation and Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Foreign Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Requirements for Opening a Business in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Tax System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

International Organizations and Commercial Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Violence in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

2. TOTAL EPS MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Research and Analysis Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Market Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Market Challenges and Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Market Size and Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Total Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Total Demand Analysis and Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . 47

3. ALARMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

4. FIRE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71



Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

5. CCTV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84


Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87




Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93


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6. ELECTRONIC ARTICLE SURVEILLANCE . . . . . . . . . . . . . . . . . 98Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98


Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102


Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105


7. ACCESS CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115


Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122


8. CONCLUSIONS AND STRATEGIC RECOMMENDATIONS . . . . . 129Market Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Market Strategies and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129


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Table of Charts1. BRAZILIAN ECONOMYChart 1.1 - Gross Domestic Product Evolution (Brazil), 2003-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Chart 1.2 - National Consumer Price Index (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Chart 1.3 - Basic Interest Rate (SELIC) evolution (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Chart 1.4 - Exchange Rate (US$ versus Real$) evolution (Brazil), 2003-2006 and Forecast

Exchange Rate (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Chart 1.5 - Percent of Subscribers by Type of Telecommunication Service (Brazil), 2006 . . . . . . . . . . . . . . . . . .17Chart 1.6 - Transaction Percentage by Credit, Debit and Proprietary Cards, Brazil 2000-2006 . . . . . . . . . . . . . . 19Chart 1.7 - Foreign Direct Investments (FDI), Brazil 2003-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Chart 1.8 - Tax Percentage per State (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Chart 1.9 - Security Professionals at Public Organizations (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Chart 1.10 - Ratio between Population and Total Number of Officers by State (Brazil), 2004 . . . . . . . . . . . . . . 28Chart 1.11 - Share per Type of Crime(Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Chart 1.12 - Patrimonial Crimes (Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Chart 1.13 - Criminal Occurrences against the Patrimony per 100,000 Inhabitants

per State (Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

2. TOTAL EPS MARKETChart 2.1 - Total EPS Market: Compound Annual Growth Rates per Market Segment (Brazil), 2006-2012 . . . . 34Chart 2.2 - Total Expenses in Public Security(Brazil), 2001-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chart 2.3 - Human Surveillance Cost Index(Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Chart 2.4 - Total EPS Market: Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Chart 2.5- Total EPS Market: Percent of Revenues by Market Segment (Brazil), 2006-2012 . . . . . . . . . . . . . . . . 44Chart 2.6 - Total EPS Market: Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . 45Chart 2.7 - Total EPS Market: Import Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Chart 2.8 - Total EPS Market: Local Production Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Chart 2.9 - Total EPS Market: Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . 48Chart 2.10 - Total EPS Market: Commercial End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . .49Chart 2.11 - Total EPS Market: Residential End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . 50

3. ALARMSChart 3.1 - Bank Branches (Brazil), 2001-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53Chart 3.2 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Chart 3.3 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Chart 3.4 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Chart 3.5 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

4. FIREChart 4.1 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Chart 4.2 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Chart 4.3 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Chart 4.4 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

5. CCTVChart 5.1 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Chart 5.2 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Chart 5.3 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Chart 5.4 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

6. ELECTRONIC ARTICLE SURVEILLANCEChart 6.1 - Main causes for retail losses (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98Chart 6.2 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Chart 6.3 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Chart 6.4 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

7. ACCESS CONTROLChart 7.1 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118Chart 7.2 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Chart 7.3 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Chart 7.4 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123


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Table of Figures

1. BRAZILIAN ECONOMYFigure 1-1 - Basic Interest Rate (SELIC) evolution (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 1-2 - Key Countries Associated with Import and Export (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Figure 1-3 - GDP Share, Population Share and Key Industries per Region (Brazil), 2004 . . . . . . . . . . . . . . . . . . 14

Figure 1-4 - Current Situation per Type of Infrastructure (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Figure 1-5 - Ranking of Top Ten Banks (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Figure 1-6 - Transaction Volume Share by Credit, Debit and Proprietary Cards, Brazil 2000-2006 . . . . . . . . . . 18

Figure 1-7 - Ranking of States in Order of Ease for Starting Business (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . 22

Figure 1-8 - Key Government Entities for Doing Business (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Figure 1-9 - Security Professionals at Public Organizations (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

2. THE TOTAL MARKETFigure 2-1 - Market Engineering Measurements (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Figure 2-2 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Figure 2-3 - Market Segments Affected by Market Drivers (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Figure 2-4 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Figure 2-5 - Impact of Top Two Industry Challenges (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Figure 2-6 - Market Trends Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Figure 2-7 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Figure 2-8 - Percent of Revenues by Market Segment (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Figure 2-9 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Figure 2-10 - Import Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Figure 2-11 - Local Production Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Figure 2-12 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Figure 2-13 - Commercial End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Figure 2-14 - Residential End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

3. ALARMSFigure 3-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52


Figure 3-3 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Figure 3-4 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Figure 3-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Figure 3-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Figure 3-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Figure 3-8 - SWOT analysis for Paradox Security Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Figure 3-9 - SWOT analysis for Digital Security Controls (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Figure 3-10 - SWOT analysis for Ademco Siproel (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Figure 3-11 - SWOT analysis for Rokonet (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Figure 3-12 - SWOT analysis for J FL (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

4. FIREFigure 4-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67




Figure 4-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Figure 4-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75


Figure 4-8 - SWOT analysis for Ascael Comercial Ltda (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Figure 4-9 - SWOT analysis for Edwards Systems Technology (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Figure 4-10 - SWOT analysis for Notifier (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Figure 4-11 - SWOT analysis for Siemens Building Technologies (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . 82

Figure 4-12 - SWOT analysis for SimplexGrinnell LP (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83


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5. CCTVFigure 5-1 - Overview of Market Segments (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Figure 5-2 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Figure 5-3 - Examples of CCTV Adoption by Brazilian Cities (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85




Figure 5-7 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Figure 5-8 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91


Figure 5-10 - SWOT analysis for Bosch Security Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Figure 5-11 - SWOT analysis for Pelco (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Figure 5-12 - SWOT analysis for Samsung (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Figure 5-13 - SWOT analysis for LG Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Figure 5-14 - SWOT analysis for Honeywell (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

6. ELECTRONIC ARTICLE SURVEILLANCEFigure 6-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Figure 6-2 - Retail Activities: Sales Volume Growth Rate of (Brazil), 2006-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Figure 6-3 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Figure 6-4 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Figure 6-5 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Figure 6-6 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Figure 6-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

Figure 6-8 - SWOT analysis for Plastrom Sensormatic (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Figure 6-9 - SWOT analysis for Gateway Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Figure 6-10 - SWOT analysis for Checkpoint Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

Figure 6-11 - SWOT analysis for Nautec (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

Figure 6-12 - SWOT analysis for Mauser Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

7. ACCESS CONTROLFigure 7-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

Figure 7-2 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 114

Figure 7-3 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Figure 7-4 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Figure 7-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

Figure 7-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Figure 7-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Figure 7-8 - SWOT Analysis for Dimep (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

Figure 7-9 - SWOT Analysis for HID GLOBAL (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Figure 7-10 - SWOT Analysis for Siemens Building Technologies (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . 126

Figure 7-11 - SWOT Analysis for Western Controls (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

Figure 7-12 - SWOT Analysis for ANSETT TECHNOLOGIA (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

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