Strong demand for security in domestic key industries

As China's “Safe City” continues to deepen into second- and third-tier cities, the demand for safe city construction in other countries around the world has accelerated, and the use of public safety protection technologies and equipment has grown closer to residents’ lives, and the popularity of security products is becoming a reality. According to the "2012-2016 Market Analysis of Supply and Demand in the Security Industry and Investment Direction Research Report", the total investment of China's urban road intelligent transportation system will reach RMB127.77 billion in 2012-2016, of which the investment in video surveillance systems will exceed 70 billion yuan, with an annual investment exceeding 10 billion yuan. Obviously, the demand for security in key domestic industries remains strong.

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%.

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.

China Research Puhua believes that 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 of the preferential prices to enhance competitive strength. Guide the entire market to form a formal competitive environment that is better than branding, technology, and service. 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. Research Institute of China Polytech Industries believes that the potential of the security industry in 2012-2016 is huge. The national policy supports it strongly. The security industry has great investment value. The extended service industry also has a vast market, and the entire industrial chain of the security industry will develop rapidly.

China's Security Industry Market Scale Market Research China's security industry market scale from RMB 120 billion to RMB 250 billion in 2006-2012, and the compound annual growth rate is close to 30%. By 2011, the market has reached 249 billion yuan, with an average annual growth rate of more than 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%.

At present, China's security industry is mainly composed of the following types of enterprises: first, engineering companies based on design, installation, and service; second, distributors that mainly deal with distribution and agency security products; and third, production and supply of security products. The main product suppliers; four is based on mediation, consulting and various types of service providers; five is based on alarm operation services operators.

From the perspective of the number of enterprises, according to relevant market survey data, about 25,000 security companies in China are engaged in 2010. The industry is in complete competition and the market is fiercely competitive. 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.

The total output value of the industry has reached more than 250 billion yuan, of which the output value of security products is about 120 billion yuan, the security engineering and service market is about 130 billion yuan; the entire industry has achieved an added value of more than 80 billion yuan, an increase of 1.8 times over 2005. Both increased by more than 23%. In the next five years, China’s security industry will achieve its overall goal of doubling its output. In 2016, the total output value will reach 500 billion yuan and the added value will be 160 billion yuan. Although the recent financial crisis in Europe and the United States, as well as domestic SME financing difficulties and other factors. However, the security industry still maintains an annual growth rate of about 15%. This strong market prospect has attracted more and more domestic and foreign companies to come to "gold rush."

As China's “Safe City” continues to deepen into second- and third-tier cities, the demand for safe city construction in other countries around the world has accelerated, and the use of public safety protection technologies and equipment has grown closer to residents’ lives, and the popularity of security products is becoming a reality. For example: home intercom equipment in urban buildings is the most basic security products. This kind of equipment is almost everywhere in the city's buildings. With the acceleration of urbanization, the demand for building intercom equipment will be even greater.