BRAZIL

T H E S E C U R I T Y I N D U S T RY A S S O C I AT I O N

SECURITY MARKET
REPORT

Chart 1.1 Brazilian GDP, 2003-2005

1,000,000 880.810

800,000 588.645 600,000

681.289

400,000

200,000

0 2003 2004 2005

Source: IMF and Frost & Sullivan

Color Palette for Charts (try to use more yellow and green)

Produced by the Security Industry Association

BRAZIL

T H E S E C U R I T Y I N D U S T RY A S S O C I AT I O N

SECURITY MARKET
REPORT

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

The Security Industry Association (SIA)

Founded in 1969, SIA is an international trade association whose membership has grown to almost 400 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; mobile security; and many other specialized services. SIAs programming, products, and services fall into four core areas: education & training, government relations, research & technology, and technical standards. SIAs Research & Technology Department provides high quality, actionable data and analysis on a variety 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 Researchers: Alejandra Etcharran, Gabriela Fiquera, Milena Matone, Fernando Serra Victor Martelli

"Partnering with clients to create innovative growth strategies"

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

The Security Industry Association, 2007

2 The Security Industry Association Brazil Security Market Report

Forward
Dear 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 Report is 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 Report and 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 Chace CEO and Executive Director The Security Industry Association

3 The Security Industry Association Brazil Security Market Report

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

4 The Security Industry Association Brazil Security Market Report

Introduction
SIAs Brazil Security Market Report is 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 Report examines these policies and explains how they impact the electronic security industry. SIAs Brazil Security Market Report is an essential element of any international business strategy, especially for electronic security businesses.

Executive Summary

T O TA L M A R K E T O V E RV I E W
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 players Presence 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

T O TA L M A R K E T D R I V E R S
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 Brazil International 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

T O TA L M A R K E T R E S T R A I N T S
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

5 The Security Industry Association Brazil Security Market Report

Table of Contents
I. BRAZILIAN ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
11 19 20 20 21 24 26 27 Economic Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Legal Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Labor Legislation and Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements for Opening a Business in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International Organizations and Commercial Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Violence in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . T O TA L E P S M A R K E T

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Research 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Major 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

5. CCTV

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

6 The Security Industry Association Brazil Security Market Report

6 . E L E C T R O N I C A RT I C L E S U RV E I L L A N C E

. . . . . . . . . . . . . . . . . 98

Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

7. ACCESS CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Major Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Drivers and Restraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Size and Forecasts (2006-2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revenue Forecasts by Origin (Imports versus Local Production) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revenue Forecasts by End User (Residential versus Commercial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Competitive Landscape and Market Share Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SWOT analysis of Top Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 113 115 116 119 120 122 124

8 . C O N C L U S I O N S A N D S T R AT E G I C R E C O M M E N D AT I O N S . . . . . 1 2 9
Market Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Market Strategies and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

7 The Security Industry Association Brazil Security Market Report

Table of Charts
1. BRAZILIAN ECONOMY
Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1.1 1.2 1.3 1.4 Gross Domestic Product Evolution (Brazil), 2003-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 National Consumer Price Index (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Basic Interest Rate (SELIC) evolution (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Exchange Rate (US$ versus Real$) evolution (Brazil), 2003-2006 and Forecast Exchange Rate (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.5 - Percent of Subscribers by Type of Telecommunication Service (Brazil), 2006 . . . . . . . . . . . . . . . . . .17 1.6 - Transaction Percentage by Credit, Debit and Proprietary Cards, Brazil 2000-2006 . . . . . . . . . . . . . . 19 1.7 - Foreign Direct Investments (FDI), Brazil 2003-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 1.8 - Tax Percentage per State (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 1.9 - Security Professionals at Public Organizations (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 1.10 - Ratio between Population and Total Number of Officers by State (Brazil), 2004 . . . . . . . . . . . . . . 28 1.11 - Share per Type of Crime(Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1.12 - Patrimonial Crimes (Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1.13 - Criminal Occurrences against the Patrimony per 100,000 Inhabitants per State (Brazil), 2004-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 -

2 . T O TA L E P S M A R K E T
Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 2.1 - Total EPS Market: Compound Annual Growth Rates per Market Segment (Brazil), 2006-2012 . . . . 34 2.2 - Total Expenses in Public Security(Brazil), 2001-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.3 - Human Surveillance Cost Index(Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 2.4 - Total EPS Market: Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 2.5- Total EPS Market: Percent of Revenues by Market Segment (Brazil), 2006-2012 . . . . . . . . . . . . . . . . 44 2.6 - Total EPS Market: Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . 45 2.7 - Total EPS Market: Import Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 2.8 - Total EPS Market: Local Production Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 2.9 - Total EPS Market: Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . 48 2.10 - Total EPS Market: Commercial End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . .49 2.11 - Total EPS Market: Residential End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . 50

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

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

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

6 . E L E C T R O N I C A RT I C L E S U RV E I L L A N C E
Chart Chart Chart Chart 6.1 6.2 6.3 6.4 Main causes for retail losses (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

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

8 The Security Industry Association Brazil Security Market Report

Table of Figures
1. BRAZILIAN ECONOMY
Figure Figure Figure Figure Figure Figure Figure Figure Figure 1-1 1-2 1-3 1-4 1-5 1-6 1-7 1-8 1-9 Basic Interest Rate (SELIC) evolution (Brazil), 2003-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Key Countries Associated with Import and Export (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . GDP Share, Population Share and Key Industries per Region (Brazil), 2004 . . . . . . . . . . . . . . . . . . Current Situation per Type of Infrastructure (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ranking of Top Ten Banks (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transaction Volume Share by Credit, Debit and Proprietary Cards, Brazil 2000-2006 . . . . . . . . . . Ranking of States in Order of Ease for Starting Business (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . Key Government Entities for Doing Business (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Security Professionals at Public Organizations (Brazil), 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 14 14 16 18 18 22 24 27

2 . T H E T O TA L M A R K E T
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 2-1 - Market Engineering Measurements (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 2-2 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 2-3 - Market Segments Affected by Market Drivers (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2-4 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 2-5 - Impact of Top Two Industry Challenges (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2-6 - Market Trends Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2-7 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2-8 - Percent of Revenues by Market Segment (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 2-9 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 2-10 - Import Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 2-11 - Local Production Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2-12 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 2-13 - Commercial End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 2-14 - Residential End User Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

3. ALARMS
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 3-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 3-2 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 3-3 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 3-4 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 3-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 3-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 3-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 3-8 - SWOT analysis for Paradox Security Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 3-9 - SWOT analysis for Digital Security Controls (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 3-10 - SWOT analysis for Ademco Siproel (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 3-11 - SWOT analysis for Rokonet (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 3-12 - SWOT analysis for JFL (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

4. FIRE
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 4-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 4-2 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 4-3 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 4-4 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 4-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 4-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 4-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 4-8 - SWOT analysis for Ascael Comercial Ltda (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 4-9 - SWOT analysis for Edwards Systems Technology (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 4-10 - SWOT analysis for Notifier (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 4-11 - SWOT analysis for Siemens Building Technologies (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . 82 4-12 - SWOT analysis for SimplexGrinnell LP (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

9 The Security Industry Association Brazil Security Market Report

5. CCTV
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 5-1 - Overview of Market Segments (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3 - Examples of CCTV Adoption by Brazilian Cities (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-5 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-7 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-10 - SWOT analysis for Bosch Security Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-11 - SWOT analysis for Pelco (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-12 - SWOT analysis for Samsung (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-13 - SWOT analysis for LG Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-14 - SWOT analysis for Honeywell (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 85 85 86 87 88 90 91 92 94 95 96 96 97

6 . E L E C T R O N I C A RT I C L E S U RV E I L L A N C E
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 6-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 6-2 - Retail Activities: Sales Volume Growth Rate of (Brazil), 2006-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . 99 6-3 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 101 6-4 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 6-5 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 6-6 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 6-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 6-8 - SWOT analysis for Plastrom Sensormatic (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 6-9 - SWOT analysis for Gateway Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 6-10 - SWOT analysis for Checkpoint Systems (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 6-11 - SWOT analysis for Nautec (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 6-12 - SWOT analysis for Mauser Security (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

7. ACCESS CONTROL
Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure Figure 7-1 - Market Drivers Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 7-2 - Market Restraints Ranked in Order of Impact (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . 114 7-3 - Market Trends (Brazil), 2007-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 7-4 - Revenue Forecasts (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 7-5 - Percent of Production by Origin (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 7-6 - Percent of Demand by End User (Brazil), 2006-2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 7-7 - Company Market Share by Revenues (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 7-8 - SWOT Analysis for Dimep (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 7-9 - SWOT Analysis for HID GLOBAL (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 7-10 - SWOT Analysis for Siemens Building Technologies (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . 126 7-11 - SWOT Analysis for Western Controls (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 7-12 - SWOT Analysis for ANSETT TECHNOLOGIA (Brazil), 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

10 The Security Industry Association Brazil Security Market Report