China’s Security Market Expands by 7.5 Percent in 2009
Residential systems boost market prospects.
China’s security and surveillance equipment market is expected to resist the economic downturn and expand in 2009 and beyond as the government invests in security and consumers embrace residential systems, according to iSuppli Corp.
iSuppli forecasts that China’s security industry will reach $18.9 billion in 2009, up 7.5 percent from $17.5 billion in 2008. Market revenue is set to expand to $26.5 billion in 2013, rising at a Compound Annual Growth Rate (CAGR) of 8.6 percent from 2008. In contrast, global security market revenue is set to contract by 2 percent in 2008.
The prospects for China’s security and surveillance market had been in some doubt in 2009 due to the recession. Furthermore, the market in 2009 saw the end of the major stimulus generated by the Beijing Summer Olympic Games. However, Chinese consumers and businesses appear to have accepted the need for electronic security and surveillance systems, keeping sales growth on track.
Demand for security products is diverse and covers numerous sectors, including manufacturing, government, financial, transportation, education, health care, residential and commercial real estate. In most developed countries, security products are mainly consumed by governments, industrial enterprises and individual households. In China, manufacturing and residential and commercial real estate represent the top three market segments in terms of revenue, with a combined share exceeding 55 percent.
Surveillance systems in 2009 will remain the largest single segment of China’s market, accounting for 27.2 percent of revenue. This segment is underpinned by large-scale investments for special government projects and important national events.
For example, China’s Ministry of Public Security has implemented The Peace City project and policing/ intelligence technology improvement projects. These efforts are driving consumption of video surveillance equipment.
The intelligent management system concept has become more and more attractive with large market potential due to the development of new technologies. This technology generally is described as an optimized combination of data resource management and information services with automatic monitoring supported by a system integrating computing, communications and IT components.
Another growth area in 2009 and beyond will be traffic control.
During the last three years, public Intelligent Transport Systems (ITS), including Global Positioning System (GPS) bus dispatch systems, in-vehicle surveillance systems and electronic bus stop bulletin-board systems ,have been introduced in many Chinese cities. ITS is regarded as one of the most promising security electronics applications during the next five years. In 2009, revenue generated by intelligent management systems sold in China is expected to reach $1.7 billion, increasing 9.2 percent from 2008.
Resident Safety
The residential segment is set to rise to account for 23.3 percent of China’s total security and surveillance revenue in 2013, up from 18.8 percent in 2008. This will make it the largest single segment of the security and surveillance market, surpassing manufacturing.
As Chinese consumers increase their incomes, their desire for security products is rising as well.
China’s security and surveillance equipment market is expected to resist the economic downturn and expand in 2009 and beyond as the government invests in security and consumers embrace residential systems, according to iSuppli Corp.
iSuppli forecasts that China’s security industry will reach $18.9 billion in 2009, up 7.5 percent from $17.5 billion in 2008. Market revenue is set to expand to $26.5 billion in 2013, rising at a Compound Annual Growth Rate (CAGR) of 8.6 percent from 2008. In contrast, global security market revenue is set to contract by 2 percent in 2008.
The prospects for China’s security and surveillance market had been in some doubt in 2009 due to the recession. Furthermore, the market in 2009 saw the end of the major stimulus generated by the Beijing Summer Olympic Games. However, Chinese consumers and businesses appear to have accepted the need for electronic security and surveillance systems, keeping sales growth on track.
Demand for security products is diverse and covers numerous sectors, including manufacturing, government, financial, transportation, education, health care, residential and commercial real estate. In most developed countries, security products are mainly consumed by governments, industrial enterprises and individual households. In China, manufacturing and residential and commercial real estate represent the top three market segments in terms of revenue, with a combined share exceeding 55 percent.
Surveillance systems in 2009 will remain the largest single segment of China’s market, accounting for 27.2 percent of revenue. This segment is underpinned by large-scale investments for special government projects and important national events.
For example, China’s Ministry of Public Security has implemented The Peace City project and policing/ intelligence technology improvement projects. These efforts are driving consumption of video surveillance equipment.
The intelligent management system concept has become more and more attractive with large market potential due to the development of new technologies. This technology generally is described as an optimized combination of data resource management and information services with automatic monitoring supported by a system integrating computing, communications and IT components.
Another growth area in 2009 and beyond will be traffic control.
During the last three years, public Intelligent Transport Systems (ITS), including Global Positioning System (GPS) bus dispatch systems, in-vehicle surveillance systems and electronic bus stop bulletin-board systems ,have been introduced in many Chinese cities. ITS is regarded as one of the most promising security electronics applications during the next five years. In 2009, revenue generated by intelligent management systems sold in China is expected to reach $1.7 billion, increasing 9.2 percent from 2008.
Resident Safety
The residential segment is set to rise to account for 23.3 percent of China’s total security and surveillance revenue in 2013, up from 18.8 percent in 2008. This will make it the largest single segment of the security and surveillance market, surpassing manufacturing.
As Chinese consumers increase their incomes, their desire for security products is rising as well.
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