Analysis of Future Development Trend of Security Industry

As the Internet continues to merge with various industries, internet-based products in the security sector are now gaining increasing institutional attention. Analysts believe that "Internet + Security" is opening up new possibilities for industry valuation, especially as traditional market growth remains strong.

Looking at the growth trends of the security industry, it has maintained a positive trajectory in the first quarter of this year. According to CICC analysts, visibility within the sector has been on the rise, driven mainly by strong international demand, while the domestic market shows stability. Four key trends have emerged from recent data: First, high-definition technology is advancing rapidly; second, falling prices for digital cameras are boosting consumer demand; third, the industry is becoming more concentrated due to fierce competition; and fourth, the focus of competition is shifting toward platform software, highlighting the growing importance of integrated solutions.

As concerns about industry growth gradually fade, internet-based products from security companies are drawing more attention from institutions. According to research from Ping An Securities, IP-based networking has become mainstream, and security systems are expanding in both construction and application. The shift towards IT-driven security is becoming a major trend. For security firms, building a comprehensive industrial chain—from cloud storage and computing to terminal devices—is essential to meet the evolving challenges of IT security and seize new opportunities. With the rise of 4G networks, video surveillance can now be transmitted through mobile devices, enabling growth in the consumer market. Big data analytics are also paving the way for smarter monitoring and security operations, with features like public safety alerts, facial recognition, and data analysis becoming increasingly important to users. In this new technological era, the security industry is poised to adopt innovative business models.

In a recent survey, several organizations highlighted Hikvision’s internet-focused products. A company representative stated that Hikvision has always prioritized innovation, and its current strategy is a long-term move to build an internet-based security ecosystem. This support is ongoing, as the company believes that without internet capabilities, there is no future. Similarly, companies without a strong platform will struggle to compete. The business model is continuously being refined and tested, and it won’t be perfected overnight. The company emphasizes starting with the core platform and apps to build a user base. Once a large user base is established, the product model will naturally evolve.

According to industry experts, the government is placing greater emphasis on the development of smart cities and safe cities. As China continues to urbanize, the security market is expected to grow significantly. In 2015, the total value of the security industry was projected to reach 500 billion yuan. Alarm and monitoring systems are central to the “safe city” initiative, playing a vital role in public security and crime prevention. The entire industrial chain is set to benefit, and the future of the security industry looks promising.