The electronic security sector market in Argentina grew by more than 10 percent in 2010, with a value of approximately $1.3 billion, making it a relatively large and growing sector for U.S. firms. Argentina is a fast-growing market for electronic security-related products, equipment, and services and is heavily reliant on imported products.
Local trade contacts further estimate an annual growth rate of 12 percent in 2011. This expansion has occurred in all sub-sectors of products and services of security, especially on CCTV over IP access control and law enforcement equipment that together totaled more than 60 percent of Argentine security imports.
There are currently 1,400 companies in the Argentine electronic security industry, including importers, manufacturers and software developers that together employ over 9,500 people, 60 percent of whom are engineers and technical personnel.
U.S. manufacturers compete successfully in Argentina, holding an approximate 40 percent share of the import market for security equipment. Nevertheless, Brazil, China, and Southeast Asian countries are entering the market aggressively, offering similar products at lower prices.
Seventy percent of the current electronic security market is comprised of imports while 30 percent is manufactured locally. Furthermore in 2010, Argentine companies exported $250 million in security equipment to regional markets that contained both imported and Argentine content.
Sub-Sector Best Prospects
Hi-tech imports play a significant role in the overall security market, as domestic manufacturing consists primarily of basic security equipment and safety supplies. Therefore, the hi-tech security equipment market presents more opportunities for U.S. companies with major opportunities in niche areas such as CCTV, access control equipment on IP networks and safety and security design consulting services for large buildings and other real estate developments. Best sales prospects for U.S. electronic security firms include:
• Access Control: biometrics on IP networks
• Intelligent Surveillance Systems; smart cameras and intelligent software for identification of pedestrians; CCTV on IP networks-industry specific security systems; equipment parts and software for automotive, banking, airports, ports, warehouses, mines, highways, utilities, hospitals, and construction sites
• High-tech security equipment for Police and other law enforcement agencies.
• Safety and security design consulting services.