CHINA
The Security Industry Association’s (SIA) Shanghai 2010 World Expo Report provides a comprehensive analysis of the business opportunities for electronic physical security (EPS) presented by the 2010 World Expo in Shanghai, China, including:
* Total investment in the World Expo is expected to be $5.2 billion, which includes investment in Expo-related urban infrastructure and public security.
* The 1.5-year event expects to welcome more than 70 million visitors at a rate of 400,000 to 800,000 per day. Managing security for this crowd is a focal point of event planning.
* Shanghai has already begun the construction of “intelligent communities,” which require the installation of Electronic Physical Security (EPS) systems in each community. Shanghai is currently the largest construction site in the world and will continue to be so until at least 2010.
* Planned investment for security is nearly 10 times greater ($1.6 billion) than investment on security for the last two World Expos: $19 million for the 2000 Universal Exposition in Hanover, Germany; and $13.2 million for the 2005 International Exhibition in Aichi, Japan.
* While the Shanghai Municipal Government remains the chief investor in the expo, two groups have been named with primary responsibility for managing the construction and security: the Shanghai World Expo Group (construction of permanent pavilion EPS systems) and Shanghai World Expo Land Holding Co. Ltd. (construction of non-permanent pavilion EPS systems).
* Each visitor will be issued a laptop/handheld computing device equipped with RFID electronic labeling. This device not only will aid visitors in navigating the huge expo site, but also will allow security systems to track the whereabouts of each visitor. The investment on this system is expected to be $88.9 million.
* The next highest investment ($20 million) will be on Electronic Article Surveillance (EAS) to equip each of the 550 ticket entrances with an EAS device.
* Investment in the cameras and supporting monitoring systems is expected to be $16.4 million.
Other EPS investment includes:
• $9.9 million on intelligent transportation
• $3.4 million on intrusion alarms
• $1.4 million on facial recognition at entrances
• $1.3 million on electronic ticketing
• $461,000 on intelligent parking
• $368,000 on access control
• $39,000 on electronic rail
BRAZIL
After several years of fiscal struggle and infrastructure development, Brazil has emerged as one of the most rapidly growing and attractive business environments in the world. The economy is growing at a steady pace, interest rates are declining, and infrastructure is being upgraded to meet the demand of industrial growth.
Here are highlights from the SIA Brazil Security Market Report:
* Foreign direct investment (FDI) in Brazil has increased to $15.5 billion in 2005 and $20.0 billion in 2006. FDI is expected to continue to increase by 10 percent in 2007, and by 9.5 percent per year through 2009.
* Multi-national companies have a greater presence than local ones, as electronic security equipment requires technologically advanced components typically not manufactured in Brazil.
* Cumulative average growth rate estimated at 16.2 percent through 2012, the demand for electronic physical security products is growing at more than twice the rate of GDP.
* Vast opportunities for security businesses in the banking sector, which spent $3 billion on automation and new technologies in 2005, an increase of 10 percent over 2004.
* The market volume of the Brazilian electronic security market reached $214.8 million in 2006 and is expected to reach $530.0 million by 2012. The market for electronic security is forecast to grow at a compound annual growth rate (CAGR) of 16.2 percent through 2012.
* By 2012, the residential market is expected to account for 16.4 percent of the total market. By 2012, the proportions of the market held by various technologies are expected to be:
• alarms: 15.7 percent;
• fire detection and monitoring systems: 5.8 percent;
• video surveillance systems: 41.9 percent;
• electronic article surveillance (EAS): 9.7 percent; and
• physical access control systems: 26.9 percent.
Linda Yelton is manager of research for the Security Industry Association. For details on these reports contact her at [email protected] or call 703-647-8481.
