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The rise of security monitoring platform has broad prospects
The article discusses the rapid development of the security industry, particularly in relation to smart city initiatives. According to data from the China Security Industry Association, the sector has maintained a steady growth rate of around 20% in recent years, with expectations for continued expansion during the 12th Five-Year Plan period. By 2015, the total output value of the industry was projected to reach 500 billion yuan, with an added value of 160 billion yuan. Smart cities have become a key driver of this growth, as local governments begin to restart projects and increase investments.
The launch of the national smart city pilot program in 2013 marked a significant turning point. By mid-2013, the pilot applications were completed, paving the way for large-scale bidding on "Safe City" projects in the second half of the year. This trend aligns with the broader "new urbanization" strategy, which emphasizes the role of smart cities in modern development. Officials from the National Development and Reform Commission have highlighted that smart cities will play a crucial role in this transformation.
In terms of market trends, the front-end high-definition industry saw accelerated growth in the first half of the year, supported by government investment in security infrastructure. As provincial security procurement begins to ramp up, the industry is expected to continue its upward trajectory. Market analysts predict that front-end camera growth will remain above 50% in 2013, although increased competition may lead to a slight decline in gross profit margins. Meanwhile, the DVR market is expected to grow at over 10%, benefiting from stable pricing and consistent profitability.
Looking ahead, the industry's growth momentum remains strong. The demand for smart city management continues to rise, with "Safe City" projects expanding in both scale and scope. The development of smart cities provides a solid foundation for long-term company growth. Additionally, the ongoing shift toward high-definition and intelligent video surveillance systems is reshaping the market. As these technologies mature and become more affordable, they are driving broader adoption across various sectors, from security and traffic management to big data storage and interactive applications.
Industry leaders are also focusing on new directions. First, there is a growing emphasis on integrating government and industrial applications, with companies leveraging their strengths in "monitoring platforms + solutions." Future development is likely to involve end-to-end solutions, offering greater value through channel and brand synergy.
Second, civilian security is gaining traction. As economic living standards improve and video technology becomes more accessible, video surveillance is moving beyond traditional industry use into small businesses and households. Although business models are still evolving, the potential for future growth is promising.
Third, international expansion is becoming a priority. Companies are investing more in overseas markets, where integrated delivery and service support are now more important than just cost-effectiveness. Domestic players like Hikvision have started to compete in global markets, and with initial branding and distribution efforts in place, future growth is anticipated.
Finally, building platform-based companies is essential for long-term competitiveness. Leading firms have already developed cross-industry video surveillance solutions, giving them a clear advantage over competitors. Many have also expanded into civilian and international markets, with noticeable growth in regions such as Europe, the U.S., and India.