08 Sep Light at the end of the tunnel for Brazil security market
The Brazilian economy has been going through one of the worst recessions ever. Once considered one of the most promising emerging economies in the world, the Latin American country has, in the recent years, plunged deeper and deeper into economic crisis. From a growth of 7.5 percent in 2010, the economy contracted last year, marking a downward swing of over 11 percentage points.
The dip in international oil prices, local economic policies and a highly unstable political situation were all seen as reasons for the financial downturn.
But according to some economic data released this month, things may finally be beginning to pick up. The Brazilian central bank’s economic activity index rose 0.03 percent in April from the previous month, for the first time in over a year. The increase, although razor-thin and weaker than expectations, is seen as light at the end of the tunnel for the economy.
This pick up is inevitable, according to most industry experts, as Brazil is fundamentally a strong developing market. The political crisis is expected to come to an end soon and the country looks steady as it goes into one of the biggest events it has ever hosted, the 2016 Olympics.
Opportunities for the Security Industry
According to a report from Research and Markets, the Brazilian video surveillance market is set to reach US$1.5 billion 2021. This is from a $362.29 million that the market is expected to generate in 2016 according to 6Wresearch.
As with most industries, the security market too had come under pressure when the economy slowed. But most companies expect this situation to change soon and the market to pick up to its earlier growth levels.
“Dahua has been in the Brazil market since 2007, we faced the good situation and also bad situation in like 2015,” said Bruce Wu, GM of Dahua Brasil at Dahua Technology. “As the worst period already passed, we believe in the second half year the market will recover and 2017 will be a good opportunity for the security players.”
Others agree. “The expectation is that with the departure of the current president and leadership, the private sector and the government will start investing again in security-related products and services. The majority of analysts believe that we will see signs of recovery starting in the fourth quarter of 2016,” said Victor Merino, Vice President for LASA at Pelco by Schneider Electric.
But despite this optimism, the main focus of opportunities remains on the private sector, which is expected to take steps to fulfill its security needs as the economy recovers.