Overview

Safety & Security Market in Hong Kong

Year	2005	2006	2007 (estimated)
Total Market Size	124	151	200
Total Local Production	300	350	350
Total Exports	977	1125	1150
Total Imports	801	926	1000
Imports from the U.S.	47	55	65

Source: Hong Kong Census & Statistics Department
All figures are in USD millions.  These are unofficial estimates.
US$1=HK$7.8

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 enjoy a prominent market share.  In 2006, imports for security and safety equipment totaled approximately USD926 million.  After Japan, the United States was the second largest supplier of high-tech security products.  The European Union was the third major competitor in this area.  China and Taiwan are market leaders in the low-end technology security market. 

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 outlay occur in commercial and financial sectors.  Home security systems are becoming increasingly popular.

In neighboring Macau Special Administrative Region, major security companies are supplying sizeable integrated security systems for international hotels with casino facilities.  Hong Kong and international security companies have won projects there, including the provision of advanced biometric identification systems for casinos.  As the gaming industry booms, there are many deluxe hotels / casino development projects in the pipeline, which will require sophisticated security systems.

China’s safety and security market demand is growing rapidly.  The market has expanded from its traditional base in the financial, insurance, custom, police, and airport sectors to the construction, transportation, and tourism fields.  U.S. manufacturers, contractors and vendors should actively market their products using Hong Kong as a springboard.

U.S. exporters should be aware that certain security products may be subject to U.S. Export Control Regulations, and should pursue China projects after determining compliance requirements.

Best Products/Services

Alarms and access controls
Identification devices
Biometrics
Radio frequency wireless technologies
X-ray scanners
Chemical detection systems
Rescue equipment
Surveillance equipment
Detention equipment

Opportunities

Hong Kong has been a sourcing agent for China in terms of security equipment.  It re-exported about 31% (or US$ 291 million) of its total security equipment imports to China in 2006.  Re-exports of security equipment to China has shown tremendous growth (20% average annual growth rate for the period beginning 2004 to end of 2006).  U.S. companies should use Hong Kong as a base for outreaching final customers in China.

The Macau market offers outstanding opportunities.  U.S. companies wishing to enter the Macau market may wish to partner with related Hong Kong companies, who are actively pursuing opportunities in Macau.

Resources

Trade Show: 

Asian Securitex 2008 - Asian International Security, Safety & Fire Protection Show and Conference
Date: June 4-6, 2008
Venue: Hong Kong Convention & Exhibition Center
Website: www.asiansecuritex.com

Trade Associations:

International Professional Security Association (Hong Kong) Ltd.
Website: www.ipsa.com.hk 

Asian Professional Security Association
Website: www.apsahk.org

For more information about this industry sector, please contact U.S. Commercial Service:

Ms. Olevia Yim, Senior Commercial Specialist
Email: olevia.yim@N0SPAM.mail.doc.gov  
Tel: (852) 2521-1467; Fax: (852) 2845-9800