In a recently published market study entitled ‘The Latin American Market for CCTV and Video Surveillance Equipment’, IMS Research has concluded that the Brazilian video surveillance equipment market was worth more than $100 million in 2010, with a significant portion of revenues coming from domestic vendors.
Brazil has an established eco-system of home grown suppliers, ranging from camera manufacturers to video management software providers.
Born out of necessity, they exist because Brazil is a rapidly growing market for video surveillance and also because high import taxes push the price of international brands to the point where they aren’t always suitable for small and mid-sized projects, thus creating an opportunity for lower priced domestic brands.
The question remains, though: ‘Can Brazilian vendors such as Digifort, Comtex, TecVoz or Kodo compete on the international stage?’
Venturing outside of the Americas
Some have already branched out into other Latin American countries, and a few are even venturing outside of the Americas.
However, competition is fierce in most countries, and the rapidly changing pace of technology means companies must invest significantly in R&D just to keep up.
That said, there’s precedence enough to suggest that manufacturers located in the so-called ’emerging markets’ can leverage domestic growth for international expansion.
The phenomenal consumption of video surveillance products in China has seen Chinese manufacturers – such as Hikvision – grow both substantially and quickly.
With a sizeable R&D division and a huge $800 million project in the pipeline, sustained global expansion seems likely.
Furthermore, AxxonSoft (ITV in Russia), a Russian video management software company, has capitalised on its domestic dominance by expanding operations overseas.
Strong and sustained domestic performance “essential”
To be successful overseas, strong and sustained domestic performance will be essential for the Brazilian manufacturers.
Alastair Hayfield, research manager at IMS, told SMT Online: “Core to this success will be brand development and positioning. Can the Brazilian vendors compete effectively for major and high volume projects when faced by the larger international brands?”
Domestic Brazilian vendors have been successful in major installations and continue to grow quickly. For the ambitious, managing this growth with technology development and innovation is essential if they aspire to play on the international stage.
Fortunately, Brazil is a rapidly growing market with a pool of talented security industry professionals and engineers.
The opportunity exists, then, but who will take it?
For further details of IMS Research reports access the website (a dedicated link is provided on the right hand panel of this page)
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