Hong Kong is one of the safest regions in the world, with a low crime rate and good social order. Being a regional transportation and logistics hub, Hong Kong spends heavily on security systems in its airport and freight-cargo facilities. Other areas of major security equipment outlays include the commercial and financial sectors. Home security systems are becoming increasingly popular as well.
Hong Kong is a growing market for safety and security equipment and services. In general, the Hong Kong market leans towards more sophisticated, high-tech products, an area in which U.S. firms are strong. After Japan, the United States was Hong Kong’s second-largest supplier of high-tech security products in 2009, with the European Union in third place. China and Taiwan are market leaders in the low-end technology security market.
In neighboring Macau, major security companies are supplying sizeable integrated security systems for international hotels with casino facilities. For example, Hong Kong and international security companies have supplied advanced biometric identification systems for casinos. U.S. sophisticated security system suppliers may consider partnering with Hong Kong security companies to explore the market in Macau.
China’s safety and security market demand is growing rapidly. The market has expanded from its traditional base in the financial, insurance, customs, and airport sectors to the construction, transportation, and tourism fields.
U.S. exporters should be aware that security products may be subject to U.S. Export Control Regulations and should pursue Hong Kong, Macau and China projects after determining compliance requirements.
Alarms and access controls
Chemical detection systems
Radio frequency wireless technologies
Wireless surveillance equipment
Hong Kong is home to numerous sourcing agents for China-bound security equipment. Hong Kong re-exported about one-third of its total security equipment to China, which has shown a tremendous growth in this area.
Although a number of new projects have been postponed due to an economic slowdown, Macau is an outstanding long-term niche market. U.S. companies wishing to enter the Macau market may consider partnering with related Hong Kong companies that are actively pursuing opportunities in Macau.