Slower growth than originally forecast is expected for the electronic access control market in Mexico and Brazil, according to a recent regional report published by IHS.
Earlier in 2014, IHS forecast a CAGR of nearly 11% for the Mexican market through 2018; however, this growth was found to be a bit bullish and has been revised down to 7.6%. A similar revision was made for Brazil, with its five-year (2014 to 2018) forecast changed from 11.4% to 6.3%.
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.
For Brazil, 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.