China is one of the world’s largest security markets, with the output value of its security industry surpassing the trillion-yuan mark. According to the Special Research Report on Security System Industry Planning for 2024 by the China Research Institute, the annual output value of China’s intelligent security industry reached approximately 1.01 trillion yuan in 2023, growing at a rate of 6.8%. It is projected to reach 1.0621 trillion yuan in 2024. The security monitoring market also shows significant growth potential, with an expected size of 80.9 to 82.3 billion yuan in 2024, marking substantial year-on-year growth.
The security system industry plays a vital role in ensuring social stability, focusing on the research, production, installation, and maintenance of various security equipment and solutions. Its industry chain spans from upstream manufacturing of core components (such as chips, sensors, and cameras) to midstream research and development, production, and integration of security equipment (e.g., surveillance cameras, access control systems, and alarms), and downstream sales, installation, operation, maintenance, and consulting services.
Market Development Status of the Security System Industry
Global Market
According to data from leading organizations such as the Zhongyan Puhua Industrial Research Institute, the global security market reached $324 billion in 2020 and continues to expand. Although the overall growth rate of the global security market is slowing, the smart security segment is growing faster. It is predicted that the global smart security market will reach $45 billion in 2023 and maintain steady growth.
Chinese Market
China remains one of the world’s largest security markets, with the output value of its security industry exceeding one trillion yuan. In 2023, the output value of China’s intelligent security industry reached 1.01 trillion yuan, reflecting a growth rate of 6.8%. This figure is forecast to grow to 1.0621 trillion yuan in 2024. Similarly, the security monitoring market is expected to grow significantly, reaching between 80.9 billion and 82.3 billion yuan in 2024.
Competitive Landscape
The competition within the security system market is diverse. Leading companies, such as Hikvision and Dahua Technology, dominate the market due to their robust technical capabilities, extensive product portfolios, and comprehensive sales channels. These companies are not only leaders in video surveillance but also actively expand into other fields, such as intelligent access control and smart transportation, creating an integrated product and service ecosystem. Simultaneously, numerous small and medium-sized enterprises have carved out niches in the market with flexible operations, quick responses, and differentiated competitive strategies.
Security System Industry Trends
1. Intelligent Upgrades
Advancements in technologies such as photoelectric information, microelectronics, microcomputers, and video image processing are propelling traditional security systems towards digitization, networking, and intelligence. Intelligent security enhances the efficiency and accuracy of security measures, driving industry growth. Technologies like AI, big data, and IoT are expected to accelerate the intelligent transformation of the security sector. AI applications, including facial recognition, behavior analysis, and object detection, have notably improved the precision and effectiveness of security systems.
2. Integration and Platformization
Future security systems will increasingly emphasize integration and platform development. With the ongoing advancement of video technology, ultra-high-definition (UHD) video surveillance is becoming the market standard. UHD surveillance provides clearer, more detailed images, aiding in target identification, behavior tracking, and enhanced security outcomes. Additionally, UHD technology is facilitating the use of security systems in fields such as intelligent transportation and smart healthcare. Furthermore, security systems are becoming seamlessly connected with other smart systems to create integrated security platforms.
3. 5G Technology Integration
The unique advantages of 5G technology—high speed, low latency, and large bandwidth—offer new opportunities for smart security. 5G enables better interconnectivity and efficient data transmission among security devices, allowing for faster responses to incidents. It also fosters the deeper integration of security systems with other technologies, such as autonomous driving and telemedicine.
4. Growing Market Demand
Urbanization and rising public safety needs continue to fuel demand for security systems. The advancement of projects like smart cities and safe cities provides ample growth opportunities for the security market. Concurrently, the increasing adoption of smart home systems and heightened awareness of social security are driving further demand for security products and services. This dual push—policy support combined with market demand—ensures the sustainable and healthy development of the security system industry.
Conclusion
The security system industry is poised for sustained growth, propelled by technological advancements, robust market demand, and favorable policies. In the future, innovations and expanding application scenarios will further drive the industry, leading to an even larger market scale.
Post time: Dec-27-2024