Despite earlier forecasts, the market for electronic physical access control equipment in Mexico and Brazil will see slower growth than previously expected, according to IHS. IHS had previously forecast a compound annual growth rate of nearly 11 percent for Mexican market through 2018. However, the research firm said this prediction was “a bit bullish” and has revised that figure down to 7.6 percent. “This adjustment is a reflection of a lowered GDP as well as delayed infrastructure projects. Additionally, city surveillance projects were found to receive a larger share of funding which led to the purchase of other security equipment such as CCTV cameras.
Mexico’s slowdown is expected to be short-term, with access control sales predicted to pick-up from late 2015 as projects start once again to come online,” Blake Kozak, senior analyst for security and building technologies at IHS, wrote in a statement.
Similarly, the five year forecast for Brazil changed from 11.4 percent to 6.3 percent.
“While the same factors of a weak economy and drop in infrastructure investment are to blame, so is the national election and low sales before the World Cup. Brazil’s national election starts in October 2014 and this is likely to delay most major government projects for a year or longer. Billions of dollars were invested in the World Cup; however sales of access control were tame compared to what was expected. This situation is predicted to be short, and high growth return as the remainder of the Growth Acceleration Program is implemented,” said Kozak.Source: ihs.com