The security industry in China is approximately 20 years behind its international counterparts. What stage are we currently at, and how much growth potential remains? With the rise of intelligent systems, the demand for security in smart buildings, communities, and cities is expected to increase significantly. So, what will the future market demand look like?
From a popularity standpoint, the journey began with analog cameras, moved through SD and HD stages, and now is shifting toward high-definition. From an industrial perspective, the development has gone through three key phases: industrialization, intelligence, and big data operations. Currently, China focuses mainly on government applications, while intelligent systems and operation services are still in early stages.
Comparing China with the UK and the US, one key indicator is the number of cameras per person. In China, people encounter about five video cameras daily, while in the UK and US, it's over 80 and 50 respectively. This suggests that China’s security market could potentially grow by 3 to 5 times in the future. In 2010, the total value of the Chinese security industry was around 227 billion yuan, and experts predict it may surpass 1 trillion yuan in the coming years.
The industry is divided into three main segments: upstream (audio/video equipment, IC chips), midstream (security cameras, software platforms), and downstream (engineering companies, system integrators). Major players include Texas Instruments, Huawei, Hikvision, Dahua, and others.
Looking at trends in 2013, urbanization and technological innovation remained key drivers. High-definition monitoring continued to gain traction, with wireless, intelligent, and converged systems leading the way. 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 a shift from traditional DVRs to network-based storage solutions. IT vendors like Huawei’s subsidiary Hua Sai entered the backend market, forcing traditional manufacturers to adapt. The front-end camera market also grew rapidly, with high-definition cameras becoming more accessible and prices gradually decreasing.
Access control, anti-theft alarms, and fire safety showed strong potential. Overseas markets, however, faced uncertainty due to economic instability, making significant growth unlikely in the near term.
From 2013 to 2017, the security industry experienced sustainable growth as “Safe City†initiatives expanded to second- and third-tier cities. The Pearl River Delta, Yangtze River Delta, and Bohai Bay regions became major hubs for production, technology, and services. The industry saw rapid expansion, with over 25,000 companies operating in 2010.
China’s security market grew from 120 billion to 250 billion yuan between 2006 and 2011, with a compound annual growth rate of nearly 25%. Experts forecasted it would reach 500 billion yuan by 2016. As competition intensified, large companies focused on brand, technology, and service to lead the market, while smaller firms needed to improve quality and avoid price wars.
Overall, the security industry holds immense potential, supported by national policies and growing demand for smart technologies. With continuous innovation and investment, the sector is set for long-term development.
Changzhou Yingda New Material Co., Ltd , https://www.yingdaspc.com