Latin America Trace Detection - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Latin America Trace Detection Market size is estimated at USD 0.09 billion in 2024, and is expected to reach USD 0.12 billion by 2029, growing at a CAGR of 6.31% during the forecast period (2024-2029).
Key Highlights
The identifiable situations in which a threat has been responded to tend to create a complicated passenger experience. Regarding security processes, the need for more secure transportation is growing, and this has transformed railway and other transport in recent decades, driving the trace detection market in Latin America.
Security concerns have been a significant issue in Latin America. Owing to growing terrorist activity in the region, governments and private enterprises have invested massive amounts of money in security checks and surveillance. These concerns have been raised in infrastructure, transportation, and other security-critical places with a potential risk of terrorist attacks.
The region experienced an increase in the trafficking of substances, such as cocaine and heroin, which is expected to impact the growth of the trace detection market positively, as devices/systems may be implemented to offer protection from the illegal movement of drugs. For instance, at the beginning of 2023, police in Brazil intercepted 125 kilos of cocaine in Santos Port. These trends are expected to heavily impact the growth of the adoption of technologies, such as terahertz technologies in the region, over the forecast period.
Many regional city governments focus on adopting security screening products for high-security applications, namely secure city programs and critical infrastructure protection. Moreover, the emphasis is increasing on developing innovative cities in emerging economies.
In February 2024, Autoclear announced the commercial launch of AI Threat Assist, an AI-powered threat detection tool that helps to identify concealed guns, knives, and other concealed objects such as backpacks, handbags, and other items being inspected using Autoclear's X-ray security scanners.
Even before the onset of the COVID-19 pandemic, a rapid increase in the demand for semiconductors was putting strain on the manufacturing capacity and logistics of the semiconductor industry. The conflict between Russia and Ukraine also impacted the electronics industry significantly by exacerbating supply chain issues and chip shortages that have affected the industry for some time. The disruption in supply chains has been causing volatility pricing for critical raw materials such as nickel, palladium, copper, titanium, aluminum, and iron ore, resulting in material shortages. Such instances are likely to restrain the growth of the market studied.
Latin America Trace Detection Market Trends
Upsurge in Terrorist Activities Across the Region
In 2023, the Mexican Government responded to mounting anxieties regarding security and violence by deploying military forces across the nation. The government has appointed prominent military personnel to a variety of positions, including those in the aviation industry. As a result, the Mexican Navy will be responsible for the management of Mexico City International Airport and five additional airports throughout the country. Furthermore, the Management of Airport Projects, such as the Estadio Felipe Aguila and the Estadio Tulum International Airport, is the responsibility of the Minister of National Defense, Eduardo Sedena.
Smart city initiatives are gaining new traction across Latin America. Also, urban development through the use of technology by the Latin American government is expected to fuel the demand for trace detection during the forecast period.
Furthermore, the United Nations Office on Drugs and Crime (UNODC) has reported that Latin America is producing more cocaine than ever before, with a ripple effect across the Americas. Recent record levels of cocaine production have been observed in Colombia, Bolivia, and Peru, with a 35% rise in recent years. Colombia, still the world's largest producer, experienced a 43% rise in coca leaf production in 2023 due to the expansion of plantations and the implementation of advanced technologies to enhance yields. The rapid growth of the coca supply is directly correlated with the subsequent expansion, which is expected to propel the demand for the trace detection market.
The United Nations has identified an increase in the production and trafficking of drugs as a contributing factor to the rise in fatal violence in Latin America. In addition to the increase in homicides, other criminal activities, such as the trafficking of migrants and firearms and the destruction of the environment, referred to as "narco deforestation," have also contributed to the rise in homicide and interpersonal violence. This increase in violence is accompanied by an increased perception of personal vulnerability at the hands of increasingly organized criminals. As the perception of insecurity increases, so does a decrease in public confidence in institutions and democratic governance.
For instance, in April 2023, the International Organization for the Prohibition of Firearms (Interpol) reported that 14,260 arrests were made in Central and South America, resulting in the seizure of approximately 8,263 illegal firearms and 305,000 rounds of ammunition. The use of illegal firearms for armed robbery and homicide is closely linked to the proliferation of various other criminal activities utilizing identical trafficking networks.
According to National Public Security System, a total of over 234.474 crimes were reported in Mexico City in 2023. The western and southern regions were the areas that registered the largest number of reported crimes. Thus, the growing focus on improving security and rising procurement of advanced explosive trace detectors from security agencies are propelling the growth of the market studied across Latin America.
Commercial Segment is Projected to Show Significant Growth During the Forecast Period
The commercial segment of the market is expected to show significant growth during the forecast period. The growth is attributed to the increasing security concerns and stringent government rules for the aviation sector. Rising terrorism and illegal arms transfer lead to rising demand for advanced security systems, which drive the market's growth. The ETDs can detect drugs, narcotic substances, and deadly explosive chemicals such as ammonium nitrate, nitro-glycerine, and RDX in less time.
For instance, the Mexican Army has reported an increase in the use of roadside bombs and IEDs by drug cartels. In 2023, 42 soldiers, police, and suspects were injured by IEDs, an increase from 16 wounded in 2022. In total, 556 IEDs of all types were detected in 2023, including 2,186 in the current administration since December 2018. This increase in terrorist activity in the region would likely lead to an increased demand for trace detection in the coming years in Latin America.
Increasing air traffic, growing investments in airport security, and stringent government rules for enhanced security at airports drive the growth of the market. ETD technology is used at checkpoints and boarding areas, where the airport authority conducts screenings. The increasing incidents of terrorist activities require airports to use trace detectors.
For instance, according to the latest International Airport Review, Mexico (12.2%), Colombia (11.5%), and Dominican Republic (16.6%) showed year-on-year growth in passenger flow in June of 2023, as well as in the first six months of 2023 (18.8%), 16.3%, (16.3%), and (12.2%) respectively. Brazil, Latin America's second-largest air market (1.2%), saw an increase of 1.4% in passenger numbers at airports during June 2023.
According to INEGI, in 2023, most of the construction work in Mexico was put in place by the private sector. Public construction was valued at MXN 292 billion, while the work of the private sector amounted to MXN 378 billion.
Latin America Trace Detection Industry Overview
Latin America’s trace detection market is semi-consolidated, with several global and local players holding significant shares. Some prominent market players are Teledyne FLIR LLC, OSI Systems Inc., Leidos, Smiths Detection Group Ltd, and Analogic Corporation. Several players are involved in designing and developing advanced explosive trace detectors capable of detecting minute explosive particles.
August 2023: OSI Systems Inc. announced that its Rapiscan Itemiser 5X Explosive Trace Detection (ETD) device had met the qualification standards set by the TSA for inclusion on the Air Cargo Screening Technology List (ACSTL). The ACSTL provides a list of approved technologies for use by the air cargo industry, including carriers, freight forwarders, and shippers, to meet regulatory requirements and enhance cargo security.
April 2023: Smiths Detection’s HCVM XT Cargo Inspection System was deployed in Itapoб Port, Brazil. It is the first to be deployed in the Latin American market. The HCVM XT is designed to meet the most recent Brazilian image quality requirements mandated by COANA regulations. The system will screen export cargo for the presence of threats and undeclared goods while helping to ensure the uninterrupted flow of trade.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The identifiable situations in which a threat has been responded to tend to create a complicated passenger experience. Regarding security processes, the need for more secure transportation is growing, and this has transformed railway and other transport in recent decades, driving the trace detection market in Latin America.
Security concerns have been a significant issue in Latin America. Owing to growing terrorist activity in the region, governments and private enterprises have invested massive amounts of money in security checks and surveillance. These concerns have been raised in infrastructure, transportation, and other security-critical places with a potential risk of terrorist attacks.
The region experienced an increase in the trafficking of substances, such as cocaine and heroin, which is expected to impact the growth of the trace detection market positively, as devices/systems may be implemented to offer protection from the illegal movement of drugs. For instance, at the beginning of 2023, police in Brazil intercepted 125 kilos of cocaine in Santos Port. These trends are expected to heavily impact the growth of the adoption of technologies, such as terahertz technologies in the region, over the forecast period.
Many regional city governments focus on adopting security screening products for high-security applications, namely secure city programs and critical infrastructure protection. Moreover, the emphasis is increasing on developing innovative cities in emerging economies.
In February 2024, Autoclear announced the commercial launch of AI Threat Assist, an AI-powered threat detection tool that helps to identify concealed guns, knives, and other concealed objects such as backpacks, handbags, and other items being inspected using Autoclear's X-ray security scanners.
Even before the onset of the COVID-19 pandemic, a rapid increase in the demand for semiconductors was putting strain on the manufacturing capacity and logistics of the semiconductor industry. The conflict between Russia and Ukraine also impacted the electronics industry significantly by exacerbating supply chain issues and chip shortages that have affected the industry for some time. The disruption in supply chains has been causing volatility pricing for critical raw materials such as nickel, palladium, copper, titanium, aluminum, and iron ore, resulting in material shortages. Such instances are likely to restrain the growth of the market studied.
Latin America Trace Detection Market Trends
Upsurge in Terrorist Activities Across the Region
In 2023, the Mexican Government responded to mounting anxieties regarding security and violence by deploying military forces across the nation. The government has appointed prominent military personnel to a variety of positions, including those in the aviation industry. As a result, the Mexican Navy will be responsible for the management of Mexico City International Airport and five additional airports throughout the country. Furthermore, the Management of Airport Projects, such as the Estadio Felipe Aguila and the Estadio Tulum International Airport, is the responsibility of the Minister of National Defense, Eduardo Sedena.
Smart city initiatives are gaining new traction across Latin America. Also, urban development through the use of technology by the Latin American government is expected to fuel the demand for trace detection during the forecast period.
Furthermore, the United Nations Office on Drugs and Crime (UNODC) has reported that Latin America is producing more cocaine than ever before, with a ripple effect across the Americas. Recent record levels of cocaine production have been observed in Colombia, Bolivia, and Peru, with a 35% rise in recent years. Colombia, still the world's largest producer, experienced a 43% rise in coca leaf production in 2023 due to the expansion of plantations and the implementation of advanced technologies to enhance yields. The rapid growth of the coca supply is directly correlated with the subsequent expansion, which is expected to propel the demand for the trace detection market.
The United Nations has identified an increase in the production and trafficking of drugs as a contributing factor to the rise in fatal violence in Latin America. In addition to the increase in homicides, other criminal activities, such as the trafficking of migrants and firearms and the destruction of the environment, referred to as "narco deforestation," have also contributed to the rise in homicide and interpersonal violence. This increase in violence is accompanied by an increased perception of personal vulnerability at the hands of increasingly organized criminals. As the perception of insecurity increases, so does a decrease in public confidence in institutions and democratic governance.
For instance, in April 2023, the International Organization for the Prohibition of Firearms (Interpol) reported that 14,260 arrests were made in Central and South America, resulting in the seizure of approximately 8,263 illegal firearms and 305,000 rounds of ammunition. The use of illegal firearms for armed robbery and homicide is closely linked to the proliferation of various other criminal activities utilizing identical trafficking networks.
According to National Public Security System, a total of over 234.474 crimes were reported in Mexico City in 2023. The western and southern regions were the areas that registered the largest number of reported crimes. Thus, the growing focus on improving security and rising procurement of advanced explosive trace detectors from security agencies are propelling the growth of the market studied across Latin America.
Commercial Segment is Projected to Show Significant Growth During the Forecast Period
The commercial segment of the market is expected to show significant growth during the forecast period. The growth is attributed to the increasing security concerns and stringent government rules for the aviation sector. Rising terrorism and illegal arms transfer lead to rising demand for advanced security systems, which drive the market's growth. The ETDs can detect drugs, narcotic substances, and deadly explosive chemicals such as ammonium nitrate, nitro-glycerine, and RDX in less time.
For instance, the Mexican Army has reported an increase in the use of roadside bombs and IEDs by drug cartels. In 2023, 42 soldiers, police, and suspects were injured by IEDs, an increase from 16 wounded in 2022. In total, 556 IEDs of all types were detected in 2023, including 2,186 in the current administration since December 2018. This increase in terrorist activity in the region would likely lead to an increased demand for trace detection in the coming years in Latin America.
Increasing air traffic, growing investments in airport security, and stringent government rules for enhanced security at airports drive the growth of the market. ETD technology is used at checkpoints and boarding areas, where the airport authority conducts screenings. The increasing incidents of terrorist activities require airports to use trace detectors.
For instance, according to the latest International Airport Review, Mexico (12.2%), Colombia (11.5%), and Dominican Republic (16.6%) showed year-on-year growth in passenger flow in June of 2023, as well as in the first six months of 2023 (18.8%), 16.3%, (16.3%), and (12.2%) respectively. Brazil, Latin America's second-largest air market (1.2%), saw an increase of 1.4% in passenger numbers at airports during June 2023.
According to INEGI, in 2023, most of the construction work in Mexico was put in place by the private sector. Public construction was valued at MXN 292 billion, while the work of the private sector amounted to MXN 378 billion.
Latin America Trace Detection Industry Overview
Latin America’s trace detection market is semi-consolidated, with several global and local players holding significant shares. Some prominent market players are Teledyne FLIR LLC, OSI Systems Inc., Leidos, Smiths Detection Group Ltd, and Analogic Corporation. Several players are involved in designing and developing advanced explosive trace detectors capable of detecting minute explosive particles.
August 2023: OSI Systems Inc. announced that its Rapiscan Itemiser 5X Explosive Trace Detection (ETD) device had met the qualification standards set by the TSA for inclusion on the Air Cargo Screening Technology List (ACSTL). The ACSTL provides a list of approved technologies for use by the air cargo industry, including carriers, freight forwarders, and shippers, to meet regulatory requirements and enhance cargo security.
April 2023: Smiths Detection’s HCVM XT Cargo Inspection System was deployed in Itapoб Port, Brazil. It is the first to be deployed in the Latin American market. The HCVM XT is designed to meet the most recent Brazilian image quality requirements mandated by COANA regulations. The system will screen export cargo for the presence of threats and undeclared goods while helping to ensure the uninterrupted flow of trade.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Technology Snapshot
4.3 Industry Value Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Upsurge in Terrorist Activities Across the Region
5.1.2 Growing Government Investments in Security Infrastructure
5.1.3 Increasing Government Guidelines for Aviation Security Screening
5.2 Market Restraints
5.2.1 High Initial Cost of Installation and Subsequent Maintenance Costs
5.2.2 Technological Limitations and the Lack of Trained Personnel
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Explosive
6.1.2 Narcotics
6.2 By Product
6.2.1 Handheld
6.2.2 Portable/Movable
6.2.3 Fixed
6.3 End-user Industry
6.3.1 Commercial
6.3.2 Military and Defense
6.3.3 Law Enforcement
6.3.4 Ports and Borders
6.3.5 Public Safety
6.3.6 Other End-user Industries
6.4 By Country***
6.4.1 Mexico
6.4.2 Brazil
6.4.3 Argentina
6.4.4 Colombia
6.4.5 Chile
7 COMPETITIVE LANSDCAPE
7.1 Company Profiles*
7.1.1 Smiths Detection Group Ltd
7.1.2 Leidos Holdings Inc.
7.1.3 Teledyne Flir LLC
7.1.4 OSI Systems Inc.
7.1.5 Analogic Corporation
7.1.6 Bruker Corporation
7.1.7 Autoclear LLC
7.1.8 DetectaChem
7.1.9 Mass Spec Analytical Ltd
7.1.10 High Tech Detection Systems (HTDS)
7.1.11 DSA Detection LLC
7.1.12 Vehant Technologies Pvt. Ltd
7.1.13 Rapiscan Systems Inc.
7.1.14 Westminster Group PLC
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Technology Snapshot
4.3 Industry Value Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Upsurge in Terrorist Activities Across the Region
5.1.2 Growing Government Investments in Security Infrastructure
5.1.3 Increasing Government Guidelines for Aviation Security Screening
5.2 Market Restraints
5.2.1 High Initial Cost of Installation and Subsequent Maintenance Costs
5.2.2 Technological Limitations and the Lack of Trained Personnel
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Explosive
6.1.2 Narcotics
6.2 By Product
6.2.1 Handheld
6.2.2 Portable/Movable
6.2.3 Fixed
6.3 End-user Industry
6.3.1 Commercial
6.3.2 Military and Defense
6.3.3 Law Enforcement
6.3.4 Ports and Borders
6.3.5 Public Safety
6.3.6 Other End-user Industries
6.4 By Country***
6.4.1 Mexico
6.4.2 Brazil
6.4.3 Argentina
6.4.4 Colombia
6.4.5 Chile
7 COMPETITIVE LANSDCAPE
7.1 Company Profiles*
7.1.1 Smiths Detection Group Ltd
7.1.2 Leidos Holdings Inc.
7.1.3 Teledyne Flir LLC
7.1.4 OSI Systems Inc.
7.1.5 Analogic Corporation
7.1.6 Bruker Corporation
7.1.7 Autoclear LLC
7.1.8 DetectaChem
7.1.9 Mass Spec Analytical Ltd
7.1.10 High Tech Detection Systems (HTDS)
7.1.11 DSA Detection LLC
7.1.12 Vehant Technologies Pvt. Ltd
7.1.13 Rapiscan Systems Inc.
7.1.14 Westminster Group PLC
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
