Security industry may have 5 times growth

The security industry in our country is 20 years behind the development of foreign countries. Compared with them, what kind of development stage are we probably at and how big are they? Now, with intelligence, the future of smart buildings, smart communities, and smart cities will become increasingly demanding for security. If so, what will be the demand for the entire industry in the future?

The first point of view from the point of view of the popularity of security, from the initial popularity of cameras, the popularity of simulation, to the stage of SD to HD, such a process is now turning to HD. Secondly, from the three development stages of industrialization, intelligence, and big data operation service platform, that is, from an application point of view, we are currently focusing on the government field, and the intelligentization and operation service are still far from This is the approximate stage of development.

In general, comparing China with the United Kingdom and the United States, there is an indicator called the number of cameras and the number of cameras owned by each day. Currently, there are about 5 video cameras used by people in China every day, but in the United Kingdom and the United States, there are now more than 80 video cameras, and one is more than 50. In other words, at present, China’s security industry may think that there may still be three to five times the number of video cameras. Market space. Looking at the entire number of the Chinese security industry in 2010, the overall figure is probably 227 billion, which means that in the future we believe that the scale of the market that exceeds 1 trillion is also more likely. China's security industry still has 3 to 5 times the market space.

China's security industry still has 3 to 5 times the market space?

The industry believes that China's entire security industry may still have a space of 3x to 5x. The entire security industry has made several related divisions from the top, middle, and bottom applications and end customers according to the industry chain. Upstream mainly provides audio and video, as well as IC chips, such a subdivision area. The main representative manufacturers are Texas Instruments, Huawei, etc. This is the first piece, mainly hardware.

The second block is the middle reaches, which is the security camera, hardware and software providers, mainly represented companies like Hikvision [34.484.71% Funds Research Report], Dahua Shares [57.703.87% Funds Research Report] Suppliers of such cameras, as well as providers of security software and platforms such as Orientnet, and providers of storage products.

The downstream focuses on the engineering companies and system integrators. The project providers mainly refer to the fields related to construction and wiring. The other is system integration. After obtaining the security business, the project will implement corresponding integrated services. There is also a category of operational services, such areas. The main representative companies are mainly focused on the two major industries of intelligent transportation and public security, such as representatives from companies such as Yihualu, Digital Zhengtong, Dashi Smart, and Han Ding.

Looking at the security industry trends in 2013, the industry growth momentum remains: Urbanization and technological innovation will remain the core drivers. Security is the key beneficiary of urbanization, and the demand increase is still in progress. In addition, the trend of high-definition monitoring is still in place. Innovative products such as wireless, intelligent, converged monitoring and alarm have taken the lead. It is expected that technological innovation will still be an important pulling factor for replacement.

Government projects: The effect of spending money before the Spring Festival is not obvious, and it will enter the peak period of the year. It is expected that the focus of demand in 2013 will still be government and industry applications. The commercial and civil markets are really good depends on the strength of economic recovery and when the real estate regulation will be liberalized.

Security equipment: multi-form network monitoring back-end emerged; high-definition front-end monitoring into the heavy-duty back-end DVR-based pattern is being broken, and IT vendors that specialize in network storage such as Huawei's subsidiary Hua Sai began to enter the back-end market. For traditional DVR vendors, it is very important to have a product line ready on the network storage, including back-end platform products and corresponding fabric solutions that can connect different numbers and forms.

Thanks to the deployment of government and energy industries, it is expected that the front-end camera market will continue to grow rapidly in 2013. High-definition cameras have changed from the new products that have been dominated by big manufacturers in the past two years to devices that small and large manufacturers can do. The threshold has been lowered, and the high-end front-end has entered a period of price reduction/increase. However, we do not believe that there will be a serious price war in the front-end market next year.

The entrance and exit control, anti-theft alarm, and fire and security market have good prospects. Access control, smart home and other sub-sectors have a recovery basis, but the probability of being monitored and integrated is high.

Overseas Security Markets: Unpredictability of the economy, and the probability of a big improvement is unlikely. The probability of a rapid economic recovery in the United States and Europe is small. Therefore, overseas security should not have the possibility of significant growth next year. Taking into account that overseas markets can be expected to be difficult, follow-up we may be based on the strength of economic recovery in Europe and the United States to adjust the security of the export market dynamics.

2013-2017: Sustainable development of the security industry market With the continuous deepening of China's “Safe City” to second- and third-tier cities, the demand for safe city construction in other countries has accelerated, and the use of public safety protection technologies and equipment and the lives of residents have increased. The closer it comes, the popularity of security products is becoming a reality. After a long-term development, the security industry in China has formed a geographically distributed “Pearl River Delta” region with the main features of the production of electronic security product manufacturers, a “Yangtze River Delta” region with high-tech and foreign-funded enterprises gathering as its main features, and an integrated The three major industrial clusters in the “Ring Bohai” region where applications, software, and service companies gather as the main features account for more than two-thirds of China’s security industry. The backbone enterprises have grown rapidly and the industrial concentration has increased significantly.

From 2006 to 2011, China's security industry market scale grew from RMB 120 billion to RMB 250 billion, and its compound annual growth rate was close to 25%. China Research Puhua expects that the scale of China's security industry will reach 500 billion yuan in 2016, with an average compound annual growth rate of approximately 20.24%. From the perspective of the number of enterprises, according to survey data, about 25,000 security companies in China are engaged in 2010. The industry is in complete competition and the market is fierce. Among them, security service companies include about 14,130 system integration enterprises, 1,579 engineering enterprises with engineering qualifications, and 12,551 enterprises with local engineering qualifications.

Research by China Research Institute of Cape Vernal Research predicts that the total investment for China's urban road intelligent transportation system will reach 127.758 billion yuan, of which the investment for video surveillance systems will exceed 70 billion yuan, and the average annual investment will exceed 10 billion yuan. As the dealers and agents of the original main sales channels of security, in the context of new industry development, they are gradually changing their development ideas. At present, sales channels of security distributors and agents mostly use sales methods that cooperate with the project providers, accounting for 67% share, this can reduce the intermediate links, improve the product turnover of dealers and agents; cooperation between dealers also occupies a large proportion, 45% share; due to real estate developers directly with security agents Cooperation with dealers, real estate companies are also important customers, followed by the public security system, other industry users and other manufacturers. In the fierce competition of brands, large security companies should take the lead in combat, rely on their own brands, services, and other advantages to set a good example for small and medium-sized brands, supplemented by some preferential prices to enhance their competitive strength, so as to guide the formation of the entire market. Brand, technology, and service than the formal competitive environment.

The small and medium-sized brands must also improve the quality of their own products, strengthen sales services, and strive to do a good job of building their own brands and get out of the vicious competition of price wars. According to the Sino-Science Research Institute, the potential of the security industry is huge, and national policies support it. The security industry has great investment value. The extended service industry has a similar market and the entire security industry industry chain will develop rapidly.