Chile - Safety and SecurityChile - Safety and Security
Overview
The safety and security sector grew by approximately 3% in 2018 and is expected to maintain the same growth level in 2019. The market share for 2018, by country of origin, was China (28%), United States (22%), Germany (8%), and Brazil (3%).
The number of security related-incidents in Chile continues to be an issue of national concern. Home break-ins and street crime are reported on a regular basis. Additionally, violent incidents in farms and forestry plantations related to land claims of indigenous people in the VIII and IX Regions (Southern Chile) continue to be an unresolved security matter. As such, there is a growing market for security monitoring and detection systems, services, equipment, and technologies in this market.
In addition, as natural disasters such as earthquakes and wildfire are common in Chile, products and services are needed to address these threats. The wildfire season, November through April, is an ongoing concern, particularly over the last decade due to climate change and an ongoing 10-year drought. Preparedness for the upcoming fire season has prompted official Chilean visits to the United States to meet with key U.S. company players and view the latest fire-fighting techniques. In addition, Chile is a very seismically active country, and equipment and technologies to monitor and respond to earthquakes and tsunamis are in constant demand.
Prison overpopulation is another important aspect in this sector. The national penitentiary system includes 84 prisons for approximately 40,000 inmates, with an average occupation of 106.6%. One step to alleviate overcrowding has been the adoption of electronic bracelets for offenders.
One of the highest growth areas within the security sector is cybersecurity. The Chilean government is currently analyzing its national cybersecurity policy after a serious hack and a theft of millions of dollars from one of Chile’s largest banks in June 2018.
(total market size = (total local production + imports) - exports)
Units: Millions of USD
Source: Chilean Customs Data
Leading Sub-Sectors
Leading sub-sectors within the safety and security sector include: outdoor perimeter protection, vehicle theft prevention equipment/devices, access control, biometric technology, parking systems, extrication equipment, firefighting gear, general safety gear for industrial use, and safety outfit and devices for police use.
Cybersecurity
Chile has one of the highest levels of internet penetration in South America. However, cybersecurity is an increasingly important issue following the June 2018 hack on one of Chile’s largest banks that resulted in losses of $10 million, followed by several credit card hacks and cyber-attacks in the country. Advancing cybersecurity protection measures has become a top priority for the Piñera Administration and the Chilean private sector. An agreement was signed between U.S. Defense Secretary Mattis and his Chilean counterpart for closer cooperation in combating cyber threats in August 2018. The local banking association (SBIF) issued its first regulation on cybersecurity, requiring that banks maintain a database of security breaches and carry out penetration tests to evaluate the resilience of their security systems. Cybersecurity undoubtedly represents an opportunity for U.S. business offering cyberspace security solutions.
Opportunities
Firefighters in Chile are grouped under the National Council of Firefighters (Junta Nacional de Bomberos), which coordinates annual purchases of firefighting equipment and gear. In order to participate in the Council’s tenders, foreign companies need to be represented in the local market and be registered as a foreign supplier. Standards followed are those of the U.S. National Fire Protection Association (NFPA).
Security devices used in construction, industrial facilities, mining, healthcare facilities, airports, and portsare also in demand. Specifically, there are opportunities for companies in access control, perimeter control, CCTV, and worker safety gear. Security devices used by the police and armed forces are also in demand.
Chilean government and private sector leaders alike are analyzing cybersecurity needs and significant opportunities for U.S. companies are expected in this sector in the near term.
Web Resources
Chilean Ministry of Interior
Chilean Council of Firefighters
Carabineros de Chile (national police)
Investigative Police (PDI)
For additional information, please contact CS Santiago Commercial Specialist Isabel Valenzuela, isabel.valenzuela@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The safety and security sector grew by approximately 3% in 2018 and is expected to maintain the same growth level in 2019. The market share for 2018, by country of origin, was China (28%), United States (22%), Germany (8%), and Brazil (3%).
The number of security related-incidents in Chile continues to be an issue of national concern. Home break-ins and street crime are reported on a regular basis. Additionally, violent incidents in farms and forestry plantations related to land claims of indigenous people in the VIII and IX Regions (Southern Chile) continue to be an unresolved security matter. As such, there is a growing market for security monitoring and detection systems, services, equipment, and technologies in this market.
In addition, as natural disasters such as earthquakes and wildfire are common in Chile, products and services are needed to address these threats. The wildfire season, November through April, is an ongoing concern, particularly over the last decade due to climate change and an ongoing 10-year drought. Preparedness for the upcoming fire season has prompted official Chilean visits to the United States to meet with key U.S. company players and view the latest fire-fighting techniques. In addition, Chile is a very seismically active country, and equipment and technologies to monitor and respond to earthquakes and tsunamis are in constant demand.
Prison overpopulation is another important aspect in this sector. The national penitentiary system includes 84 prisons for approximately 40,000 inmates, with an average occupation of 106.6%. One step to alleviate overcrowding has been the adoption of electronic bracelets for offenders.
One of the highest growth areas within the security sector is cybersecurity. The Chilean government is currently analyzing its national cybersecurity policy after a serious hack and a theft of millions of dollars from one of Chile’s largest banks in June 2018.
| 2016 | 2017 | 2018 | 2019 estimated | |
| Total Local Production | 11 | 12 | 12 | 12 |
| Total Exports | 17 | 18 | 18 | 18 |
| Total Imports | 377 | 384 | 395 | 395 |
| Imports from the US | 83 | 85 | 88 | 88 |
| Total Market Size | 371 | 378 | 389 | 389 |
| Exchange Rates: 1 USD | 680 | 649 | 641 | 676 |
Units: Millions of USD
Source: Chilean Customs Data
Leading Sub-Sectors
Leading sub-sectors within the safety and security sector include: outdoor perimeter protection, vehicle theft prevention equipment/devices, access control, biometric technology, parking systems, extrication equipment, firefighting gear, general safety gear for industrial use, and safety outfit and devices for police use.
Cybersecurity
Chile has one of the highest levels of internet penetration in South America. However, cybersecurity is an increasingly important issue following the June 2018 hack on one of Chile’s largest banks that resulted in losses of $10 million, followed by several credit card hacks and cyber-attacks in the country. Advancing cybersecurity protection measures has become a top priority for the Piñera Administration and the Chilean private sector. An agreement was signed between U.S. Defense Secretary Mattis and his Chilean counterpart for closer cooperation in combating cyber threats in August 2018. The local banking association (SBIF) issued its first regulation on cybersecurity, requiring that banks maintain a database of security breaches and carry out penetration tests to evaluate the resilience of their security systems. Cybersecurity undoubtedly represents an opportunity for U.S. business offering cyberspace security solutions.
Opportunities
Firefighters in Chile are grouped under the National Council of Firefighters (Junta Nacional de Bomberos), which coordinates annual purchases of firefighting equipment and gear. In order to participate in the Council’s tenders, foreign companies need to be represented in the local market and be registered as a foreign supplier. Standards followed are those of the U.S. National Fire Protection Association (NFPA).
Security devices used in construction, industrial facilities, mining, healthcare facilities, airports, and portsare also in demand. Specifically, there are opportunities for companies in access control, perimeter control, CCTV, and worker safety gear. Security devices used by the police and armed forces are also in demand.
Chilean government and private sector leaders alike are analyzing cybersecurity needs and significant opportunities for U.S. companies are expected in this sector in the near term.
Web Resources
Chilean Ministry of Interior
Chilean Council of Firefighters
Carabineros de Chile (national police)
Investigative Police (PDI)
For additional information, please contact CS Santiago Commercial Specialist Isabel Valenzuela, isabel.valenzuela@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.