The security industry in China is about 20 years behind its international counterparts. But where exactly are we now, and how much growth potential is there? With the rise of intelligent systems, the future of smart buildings, communities, and cities will demand more advanced security solutions. This raises an important question: what will the overall demand for the security industry look like in the coming years?
From a popularity standpoint, the evolution has been from analog cameras to digital SD, then HD, and now it's moving toward higher-definition solutions. In terms of development stages, the industry is progressing through industrialization, intelligence, and big data operations. Currently, most efforts are focused on government applications, while intelligent systems and service platforms are still in early stages.
A key indicator comparing China with countries like the UK and the US is the number of video cameras per person. In China, people are exposed to around 5 videos daily, while in the UK and US, that number exceeds 80. This suggests that the Chinese market could still have three to five times the growth potential. In 2010, the total size of the Chinese security industry was approximately 227 billion yuan. Experts predict that by the future, the market could surpass 1 trillion yuan, indicating significant room for expansion.
Looking at the industry structure, the upstream segment includes hardware manufacturers like Texas Instruments and Huawei, focusing on audio-visual equipment and IC chips. The middle layer consists of camera manufacturers such as Hikvision and Dahua, along with software and platform providers like Orientnet. The downstream includes engineering firms and system integrators, often involved in construction and integration projects.
In 2013, the industry continued to grow, driven by urbanization and technological innovation. High-definition monitoring remained a key trend, with wireless, intelligent, and converged solutions gaining traction. Government projects were expected to remain a major driver, while commercial and residential markets would depend on economic recovery and real estate policies.
Security equipment saw new trends, including multi-form network monitoring and high-definition front-end systems. IT vendors began entering the back-end market, challenging traditional DVR providers. The front-end camera market also showed signs of growth, with high-definition cameras becoming more accessible and prices gradually decreasing.
Other sectors like access control, anti-theft alarms, and fire safety also showed promising prospects. Meanwhile, overseas markets were expected to face challenges due to economic uncertainty, making domestic growth even more critical.
Between 2013 and 2017, the security industry in China continued to expand, especially with the “Safe City†initiative spreading to second- and third-tier cities. The industry became more geographically concentrated, with clusters in the Pearl River Delta, Yangtze River Delta, and the Bohai Bay area. The market grew rapidly, with a compound annual growth rate of nearly 25% between 2006 and 2011.
With strong policy support and growing investment in smart infrastructure, the security industry remains a key sector with substantial long-term potential. As competition intensifies, both large and small companies must focus on quality, brand building, and service excellence to stand out in a crowded market.
Changzhou Yingda New Material Co., Ltd , https://www.yingdaspc.com