Overview

Safety & Security Market in Hong Kong

Year	2006	2007	2008 (estimated)
Total Market Size	212	217	250
Total Local Production	350	350	350
Total Exports	993	1,205	1,200
Total Imports	855	1,072	1,100
Imports from the U.S.	59	56	60

All figures are in US$ millions.  The above statistics are unofficial estimates, extracted from Hong Kong Census and Statistics Department and other sources.

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.  In 2007, imports for security and safety equipment totaled almost US$1.1 billion.  After Japan, the United States was the second-largest supplier of high-tech security products.  The European Union was third.  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 outlays include the commercial and financial sectors.  Home security systems are becoming increasingly popular as well.

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.

Best Products/Services

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

Opportunities

Hong Kong is home to numerous sourcing agents for China-bound security equipment.  Hong Kong re-exported about 33% (or US$360 million) of its total security equipment imports to China in 2007.  Re-exports of security equipment to China have shown tremendous growth (more than 23% annual growth rate for the period 2005 to 2007).

Although a number of new projects have been postponed due to current economic conditions, 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.

Resources

Trade Shows:

Asian Securitex 2010 - Asian International Security, Safety & Fire Protection Show and Conference
Date: June 2010
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, Sr. Commercial Specialist
Email: olevia.yim@N0SPAM.mail.doc.gov
Tel: (852) 2521-1467; Fax: (852) 2845-9800