China's security industry development concept

I. Security Industry Background

There is no doubt that China has been deeply involved in the process of global economic integration. In the context of the financial crisis, the Chinese market is thriving. After the financial crisis, major changes have taken place in the international and domestic security markets. In the past, multinational companies positioned China as a market center, and in recent years, they have been R&D centers. From now on, China has been regarded as a strategic center. Under this background, it is necessary to reconsider the role and status of Chinese security companies in the global security market, consider the strategy and layout of the global security market, and seize the opportunity to seek development.

First, China has the fastest growing security market in the world. Since the launch of the safe city construction in 2004 and the hosting of the Beijing Olympic Games in 2008, China’s security market has grown at a rate of 30% for five consecutive years. Many security companies have already seen good prospects for the development of China's security industry and have also noticed a series of contradictions and risks in the current development of the security industry and market demand. The Central Economic Conference stressed that this year's proactive fiscal policy and moderately loose monetary policy will continue. Guided by key industry planning, promote industrial growth and adjust industrial structure. We will continue to accelerate the construction of key projects for railways, highways, and airports to strengthen the long-term economic foundation and achieve a leap-forward economic layout. At the same time, it will also increase support for the Bohai Rim region, infrastructure construction in the central and western regions, and second-tier cities.

Second, China is the world's most important production base for security products. China is a global leader in security manufacturing. The Pearl River Delta is the country's most important production base for security products. Sixty percent of the country's security products are produced in this region, and there are a number of security products ranked first in the world. The variety of security products is continuously enriched, and more than a dozen major categories and more than 10,000 varieties have been developed. The three major security industrial clusters centered on the Pearl River Delta, the Yangtze River Delta, and the Beijing-Tianjin region have formed. China's security manufacturing industry is shifting from low-end manufacturing to high-end manufacturing, from OEM and counterfeiting to design innovation, and from processing and manufacturing to modern manufacturing services.

The third is to seize the golden age of the security industry to enhance technological innovation capabilities. Security products have evolved from the previous analog era, single-product and small-scale system applications to the current large-scale city-level systems. Overall, the development of the security industry’s product technology has been digitized, networked, high-definition, integrated, and specialized. Trends such as intelligence, standardization, and mobility. At the same time, at the stage of major changes in such technologies, products, and applications, it also poses new challenges to the management of security companies' own markets, products, and technologies. Through scientific and technological innovation, it is necessary to gradually grasp the production capacity of key components with high technological content, large added-value, and decisive significance for industrial development.

Fourth, only by going to the international market can we practice security companies. Entering the international market is the beginning of the internationalization of Chinese security companies. European and American security companies are the protagonists in the market. Most of them use multinational business models and have established extensive strategic partners around the world. Products related to anti-terrorism technology have been rapidly developed. Security products such as security inspection technology products, surveillance alarm products, metal detection equipment, biometric identification products, perimeter alarm systems, and sensors have been widely used.

Second, the status quo of China's security industry

The Asian and Middle Eastern markets are also the embarrassment for Chinese security companies to go global. With the gradual improvement of people's security awareness, the security industry is rapidly developing in the Asian market, but the Asian security market is not mature, and it can be quite inclusive of security products, including high, medium and low security products, both The world's top products have the worst security products. In recent years, due to the turmoil in the Middle East market, the security issue has been placed in an extremely important position. The demand for security products has grown rapidly, and this is the reason for our security companies to enter the country. The market offers historic opportunities.

Everyone has become more and more aware that the extensive development of the security industry in our country and the problem of overcapacity have become increasingly prominent. The fundamental solution to these problems lies in transforming the way the security industry develops. China's security industry must maintain sustainable development and improve the quality of industry development. Only through market-based adjustments to the industrial structure, the survival of the fittest, eliminating backward production capacity, transforming traditional enterprises, and innovating key technologies can make the development of China's security industry a higher level. On the level.

The first is the rapid development of the security industry and the unstable foundation. The main driving force for the rapid growth of China's security industry is the demand for OEMs and domestic safe city construction. OEM's security products are low value-added and two-out-of-the-box OEM products. Most of the high-end products in Pingan’s construction market are occupied by foreign companies, while most domestic companies are labor-intensive primary products, occupying both low and medium End market.

The second is the inability of technological innovation. Technological progress is an important force in promoting economic growth. China's security companies introduced equipment and shared technologies through the OEM route, but they did not fully digest and absorb these technologies. Instead, they obtained short-term competitive advantages through the imported equipment. But as long as foreign technology is updated, the advantages of Chinese companies will be lost. Such examples are common in other industries. The Chinese security industry is no exception and repeats itself.

Although it is by no means easy to change the development mode of the security industry in a piecemeal fashion, it is believed that there will be hope for change and a dead end if it does not change. Millions of high-definition, intelligent surveillance, and Internet of things technologies, these new technological revolutions, can bring new security concepts, but also can stimulate new production supply and consumer demand. The key point is to achieve the upgrading of over-security products and technology leapfrogging. The high-tech with independent intellectual property rights has opened up a new path for the traditional security industry's technological transformation and leapfrogging.

Third, China's security industry development concept

1. Technological development: digital, network, intelligent, high-definition

The tide of digitalization invades every corner of the security industry with its unstoppable force. Digital equipment represented by hard disk recorders quickly occupied the majority of the surveillance market, and the monitoring system also entered the era of digital storage. With the continuous expansion of the application scale, IP-SAN storage, graphics workstations, and server digital devices have become the protagonists of the surveillance system.

In recent years, based on a mature network platform, excellent algorithm development, intelligent, high-definition has become another trend of the monitoring industry. According to the application of Tiandi Weiye in different types of industries, when D1 becomes a universal application standard, 720P HD network cameras have also begun to enter specific project applications, and as in intelligent transportation systems, large-scale applications have also begun to support front-end identification of high-definition 300. Million, more than 5 million pixels network cameras, and face recognition, behavior analysis and other technologies developed in the network video products and back-end software platform have been applied in high-end applications such as finance, airports. At present, many manufacturers have begun to pay attention to the accumulation of technology in this area. In 2010, it will be the driving force for major manufacturers to compete again in technology and market reshuffle based on high-definition and intelligentization.

2. Market Application: Integration and Industrialization

The inherent development of integration is due to the constant pursuit of product convenience in the market. Such as network dome, network matrix, optical matrix, wireless 3G network video server, portable interrogation professional system and other products will be integrated in the trend reflected most vividly, is no longer a single device, is no longer a separate device, presented to the user It will be the professional and applicable equipment with higher and higher levels of integration. The benefits of doing so are clearly visible. Customers have access to convenient and available equipment, and manufacturers have increased their own product competitiveness. The development of industrialization stems from the intensification of market competition and the inevitable result of product segmentation. With the gradual enrichment of the product lines in the surveillance market and the homogeneity of competition, how to provide customers with more convenient and efficient solutions has become the focus of all major manufacturers.

3. Enterprise Development: Branding, Cooperation

The security industry experienced a wave of digitalization in early 2000. It experienced the construction of a 3111 urban alarm monitoring system pilot city. It experienced the market operation of operators and the financial crisis that swept the world in 2009. The security industry is in technology, talent, ideas and business models. With full exploration, competition, integration and innovation, we seem to be able to perceive some new changes as we stand at the replacement of the old and new years. These changes are the result of market development and market selection. These changes will promote China's security industry to a higher stage of development. In the context of the financial crisis in 2009, the government’s strong investment and infrastructure construction led to the development of the security industry. In particular, the construction scale of Ping An cities was far greater than in previous years. Under the stimulation of such rigid demand, many non-processing export-oriented Security companies did not feel the harsh winter, but ushered in the best development opportunities in history.