"12th Five-Year" Security Industry's High-growth Video Surveillance Output Breaks 100 Billion Billion

In recent years, China's security industry has maintained rapid growth, with the compound annual growth rate exceeding 23% during the "Eleventh Five-Year Plan" period. According to the “Twelfth Five-Year Development Plan” of China's security industry, the total industrial output value in 2015 will reach 500 billion yuan. According to the compound annual growth rate of 20% in the whole industry, the output value of the video surveillance system will exceed 100 billion yuan, accounting for more than 50% of the security electronic system, and become the largest segment with the most growth potential.

Currently, listed companies such as Hikvision and Dahua are leading players in the video surveillance industry and occupy half of the back-end DVR market. Starting from the second quarter of this year, an unexpected "price war" disrupted the existing industry structure of video surveillance, and the industry's enterprises have become very divided and their concentration has further increased. At the same time, the entire product line of leading enterprises is becoming more and more mature. From the back-end DVR market that holds more than 60%, it is advancing into the front-end camera field.

In the industry restructuring and the transformation of leading enterprises, the reporter conducted a field survey of several video surveillance companies including Hikvision, Shanghai Weiqian and Xianshi Electronics.

Security companies busy expanding production In April of this year, Hikvision, the leader of video surveillance, moved to a new site in Hangzhou's Binjiang District. In less than four months, the production line that can accommodate more than 1,200 workers has been able to operate normally.

The reporter interviewed the agency and came to investigate. Not too big a conference room was crowded with more than 50 people, but there were still people coming. The staff only kept moving the stools in. It is said that such a situation has occurred almost once a week in recent months, and it has reached more than 100 people in many cases.

In the 60,000-square-meter production building in the company's campus, the production line for the front-end camera is located on the third floor, while the production line for the rear-end product DVR (Digital Video Recorder) is on the fourth floor, and the first and second floors are warehouses.

Today, the factory's camera output can reach 5,000 a day, including analog and high-definition cameras; and DVR's daily output is around 2,500. A staff member told the reporter, “When the number of orders is large, the workers on the production line will also work overtime during the weekend.” And the entire company, it is almost unwritten that 5 o'clock does not get off work. “The company will open at 8 o'clock in the evening. The 3 shuttles will send employees to the urban area,” said a Hai Kang employee. “R&D personnel are often even later.”

The same rush also appeared in the cameras and DVR workshops of Shanghai Weigan Video Technology Co., Ltd. (hereinafter referred to as “Shanghai Weiqian”). The reporter saw in his factory in Shanghai's Xiasha Town that facing the security industry's “golden nine silver ten”, the workers were working in two shifts. Yang Yang, director of Shanghai Weigao Market, told reporters that the company is considering moving manufacturing to a lower-cost Shenzhen in South China and expanding its production scale.

In another Shanghai display company, Jinqiao Export Processing Zone, Shanghai Xiansi Electronics Co., Ltd., the reporter Qiaoyu Company was in the process of “packaging and moving”. Li Shun, general manager of the video surveillance division of the company, told reporters that it was located in Zhejiang. Jiashan Yaozhuang's new factory production scale is now five times. It is expected that the sales volume of video surveillance displays will double to 200 million this year.

The output value of the video surveillance system will exceed 100 billion. According to the “12th Five-Year Plan for Development of China's Security Industry” (hereinafter referred to as “Planning”), the scale of China's security industry has expanded rapidly during the “11th Five-Year Plan” period. As of 2010, the total industrial output value More than 2,300 billion yuan, an average annual increase of 23% or more; of which the output value of security products is about 100 billion yuan, especially the rapid development of security electronic products, an average annual increase of about 25%, while the video surveillance system accounts for the proportion of security electronic products The 55% is much higher than the entrance control system, burglar alarm system and other categories.

The construction of "Safe City" is the industry's most recognized driving force. In 2004, the Ministry of Public Security and the Ministry of Science and Technology initiated the creation of the first batch of science and technology strong police demonstration cities in 21 cities including Beijing, Shanghai, Langfang, Dalian and Nanjing. In August 2005, the Ministry of Public Security further proposed the construction of a “3111 pilot project” and selected 22 provinces to carry out pilot projects for the construction of alarm and monitoring systems at the provincial, city, and county levels. Strongly promoted the pace of the construction of "Safe City". With the successful acceptance of the “3111 Pilot Project” in 2008, various localities have launched or expanded the “Safe City” construction project, effectively opening up the demand space for video surveillance systems.

Taking Chongqing as an example, according to the planning of the municipal government, the system integration access capacity for newly-built and expanded video surveillance points shall be constructed at not less than 500,000 video surveillance points. It is estimated that the total project construction investment will be approximately RMB 5 billion.

In addition, the market for industrial applications is rapidly opening up. "Planning" proposes that with the progress of "safety construction", some traditional fields such as finance, culture, transportation, government and other security applications will be more in-depth; a group of new applications such as education, health, sports, energy, communications, The demand for factories, mines, and other enterprises has increased rapidly; the application of security for communities and residents has begun to heat up, and social application processes have accelerated. Market applications are gradually extended from central cities, big cities to second- and third-tier cities and rural areas, extending from the coastal areas to the central and western regions and border ports, and have formed a certain amount of market demand.

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