Market Trends of Latin America Trace Detection Industry
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.
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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.
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