1. global and China security industry market situation

2022 global security market size reached3240Billion US dollars, year-on-year growth11.7%, mainly benefiting from the easing of the impact of the epidemic and the promotion of economic recovery. Among them, the scale of the intelligent security market has reached450Billion US dollars, year-on-year growth30.26%, accounting for the global security market13.9%It shows that intelligence is the main development direction of the security industry. In the smart security market, video surveillance is the most important segment,2022The global intelligent video surveillance market reached318Billion US dollars, year-on-year growth7.1%, accounting for the smart security market70.7%. In video surveillance products, the camera is the core component,2022The global surveillance camera market reached1142Billion US dollars, year-on-year growth12.28%。

China is the world's largest security market,2022The size of China's security market reached8510Billion yuan, year-on-year growth4.9%, accounting for the global security market26.3%. Among them, the scale of the intelligent security market has reached513Billion yuan, year-on-year growth26%, accounting for China's security market6%. In the smart security market, video surveillance still dominates,2022China's intelligent video surveillance market reached543Billion yuan, year-on-year growth10%, accounting for the smart security market105.8%(over100%It is because some products belong to multiple segments at the same time). In video surveillance products, the camera is also the most important component,2022The size of China's surveillance camera market reached360Billion yuan, year-on-year growth8%, accounting for China's video surveillance market66.3%。

In addition to video surveillance, China's security market also covers many fields such as entrance control, anti-theft alarm, explosion-proof security check, platform software, building intercom, etc. Among them, entrance control and anti-theft alarm are areas with high degree of intelligence,2022The annual market size reached85Billions of dollars and75Billion yuan, year-on-year growth15%and12%, accounting for the smart security market16.6%and14.6%. In addition, with the popularity of smart homes, home cameras have become a fast-growing market segment,2022China's home camera market size reached149Billion yuan, year-on-year growth10.9%, accounting for China's video surveillance market27.4%。

2. global and China security industry trends

As a security industry, the development of security industry is affected by many factors, such as policy, technology, demand and so on. From a global perspective, the development trend of the security industry mainly has the following aspects:

Intelligence is the core driving force of the security industry. With the continuous progress of artificial intelligence, Internet of things, cloud computing and other technologies, the security industry has changed from traditional passive monitoring to active identification, prediction and prevention, realizing the improvement of security perception and cognitive ability. Intelligent security products and solutions can improve security efficiency and effectiveness, reduce labor costs and false positives, and meet users' needs for safety, convenience and efficiency. In the future, intelligence will be widely used in more subdivided fields and application scenarios, such as face recognition, video analysis, behavior recognition, anomaly detection, etc.

Cloud is an important trend in the security industry. With the maturity and popularization of cloud computing technology, the security industry has gradually shifted from traditional local storage and processing to cloud storage and processing, realizing centralized management and analysis of data. Clouding can provide more storage space and computing power, support more concurrent access and remote control, reduce equipment costs and maintenance difficulties, and improve data security and reliability. In the future, clouding will be widely used in more segments and application scenarios, such as cloud video surveillance, cloud access control, cloud platform software, etc.

Servitization is a new opportunity for the security industry. With the diversification and personalization of user needs, the security industry has gradually shifted from the provision of single or multiple products to the provision of overall solutions and services, realizing the positioning adjustment from product content providers to solution service providers. Servitization can provide a more flexible and customized combination of products and services to meet the needs of users for different scenarios and functions. In the future, servitization will be widely used in more segments and application scenarios, such as smart homes, smart cities, and smart transportation.

From the perspective of China, the development trend of the security industry mainly has the following aspects:

Policy is an important support for the security industry. The rapid development of China's security industry began2005The release of the safe city policy, the follow-up smart city, snow project and other policies in turn, become the main driving force for the development of the industry. Government departments are the largest customers in the security industry, and their needs and inputs directly affect the scale and direction of the industry. In the future, with the country's attention and investment in social security, public security, national defense and military fields, the policy will continue to provide stable demand and financial support for the security industry.

Technology is the core competitiveness of the security industry. China's security industry continues to increase investment in scientific and technological innovation and research and development capabilities, forming a market from upstream chips, key components R & D and manufacturing, to midstream.AISecurity hardware and software product design and manufacturing, and then to the downstream system integration, operation and maintenance services of the complete industrial chain. Chinese security manufacturers have strong independent innovation capabilities and market competitive advantages in technology, especially in the international leading level in the fields of video surveillance, face recognition, and video analysis. In the future, with the continuous advancement of technology and the continuous expansion of applications, technology will continue to provide higher efficiency and effectiveness for the security industry.

Demand is an important driving force for the security industry. The demand for China's security industry not only comes from government departments, but also from the civilian sector. With the development of economy and society and the improvement of people's living standards, the demand for safety, convenience and efficiency in the civilian field is increasing, which promotes the wide application of security products and services in finance, public security, energy, transportation, education, environment, real estate and other fields. In the future, with the rise of smart home, smart community, smart medical and other emerging fields, the civilian field will become an important growth point of the security industry.

3. the global and China security industry competition pattern

Global and China security industry competition pattern is as follows:

Global scope: the global security market competition pattern is more scattered, there is no absolute monopoly or oligopoly. According2022Annual Global Security50Strong list, top ranking10The companies are Hikvision (China), Dahua (China), ASSA Alai (Sweden), AXIS (Sweden), Motorola Solutions (U. S.), Univision (China), Tiandi Weiye (China), Anlangjie (France), Hanwha.Techwin(South Korea), Aifeng (United States). Among them, Hikvision takes101The revenue of US $100 million ranks first, accounting for the global security market.3.1%, followed by Dahua shares51The revenue of US $billion ranked second, accounting for the global security market.1.6%. In terms of geographical distribution, China, the United States, Europe and South Korea are the main competitors in the global security market, with the largest number of Chinese companies reaching21Home, accounting for global security50strong42%It shows China's strong strength and influence in the security industry.

China scope: China's security market competition pattern is relatively concentrated, forming a certain oligarchy. According2022Year of China Security50Strong list, top ranking10The enterprises are Hikvision, Dahua shares, Yuvision Technology, Tiandi Weiye, Zhongwei Century, the same shares, Liding Optoelectronics, Yutong Optics, Central Control Wisdom, ZTE. Among them, Hikvision takes651Revenue of 100 million yuan ranked first, accounting for China's security market.7.6%, followed by Dahua shares328Revenue of 100 million yuan ranked second, accounting for China's security market.3.9%. In terms of segmentation, video surveillance is the main area of China's security market, accounting66.3%Among them, Hikvision and Dahua are leaders in the field of video surveillance, accounting for the video surveillance market.22.8%and9.1%。

Analysis and advantage comparison of 4. main competitors

This paper selects the top two companies in the global and Chinese security industry, Hikvision and Dahua, to analyze their competitors and compare their advantages, as follows:

Hikvision: Hikvision is the world's largest supplier of video surveillance products and solution service providers, mainly engaged in video surveillance products and solutions, intelligent transportation systems and solutions, intelligent building systems and solutions and other fields of research and development, production and sales. Hikvision has more40000employees, of which more16000name, accounting for the total number of employees40%Above. Hikvision has more100Branches and offices, products and services worldwide150Multiple countries and regions. Hikvision is in2022year realized.101Billion US dollars in revenue, year-on-year growth16.9%, the net profit is15Billion US dollars, year-on-year growth11.4%。

Hikvision's advantages: Hikvision's advantages are mainly reflected in the following aspects:

Strong technological innovation ability. Hikvision continues to increase R & D investment and innovation. It has a number of core technologies and patents in the fields of video surveillance, face recognition, video analysis, etc., and has established cooperative relations with many universities and scientific research institutions at home and abroad to maintain technology Leading edge.

The product line is rich and diverse. Hikvision has complete video surveillance products and solutions from front-end cameras to back-end storage devices, from transmission devices to display devices, from software platforms to intelligent applications, which can meet the needs of different scenes and functions and form a strong product Competitiveness.

Market channels are extensive and in-depth. Hikvision has more100Branches and offices, established a stable partnership, covering the world.150Many countries and regions have formed a strong market competitiveness.

Brand influence is high. With its high-quality products and services, Hikvision has won wide recognition and trust from customers and the society, won many honors and awards at home and abroad, and established a good brand image.

Hikvision's disadvantages: Hikvision's disadvantages are mainly reflected in the following aspects:

High dependence on government projects. Hikvision's main customers are government departments, which account for approximately70%It comes from government projects, which makes its performance greatly affected by policy changes and budget adjustments, and there are certain uncertainties and risks.

Facing sanctions and boycotts from foreign markets. Due to sensitive issues such as national security and human rights, Hikvision has been sanctioned and boycotted by the United States and other countries, and some of its products and services have been banned or restricted from entering foreign markets, affecting the development of its overseas business.

Facing fierce peer competition. Hikvision is facing many competitors from home and abroad in the security industry, such as Dahua shares, Motorola solutions, anxins, etc., these enterprises have certain advantages and influence in technology, products, market and other aspects, which constitute a greater competitive pressure on Hikvision.

Dahua shares: Dahua shares is the world's leading provider of video intelligent Internet of things solutions and operation services, mainly engaged in the research and development, production and sales of video surveillance products and solutions, intelligent transportation systems and solutions, intelligent building systems and solutions. Dahua shares have more30000employees, of which more8000name, accounting for the total number of employees26.7%. Dahua shares have more80Branches and offices, products and services worldwide180Multiple countries and regions. Dahua shares in2022year realized.51Billion US dollars in revenue, year-on-year growth15.9%, the net profit is6.5Billion US dollars, year-on-year growth18.2%。

Advantages of Dahua: The advantages of Dahua are mainly reflected in the following aspects:

Strong technological innovation ability. Dahua continues to increase R & D investment and innovation. It has a number of core technologies and patents in the fields of video surveillance, face recognition, video analysis, etc., and has established cooperative relations with many universities and scientific research institutions at home and abroad to maintain technology Leading edge.

The product line is rich and diverse. Dahua has a complete range of video surveillance products and solutions from front-end cameras to back-end storage devices, from transmission devices to display devices, from software platforms to intelligent applications, which can meet the needs of different scenarios and functions. formed a strong product competitiveness.

Market channels are extensive and in-depth. Dahua shares have more80Branches and offices, established a stable partnership, covering the world.180Many countries and regions have formed a strong market competitiveness.

Brand influence is high. With its high-quality products and services, Dahua has won wide recognition and trust from customers and society, won many honors and awards at home and abroad, and established a good brand image.

Disadvantages of Dahua shares: The disadvantages of Dahua shares are mainly reflected in the following aspects:

High dependence on government projects. UOB's main customers are also government departments, with approximately60%It comes from government projects, which makes its performance greatly affected by policy changes and budget adjustments, and there are certain uncertainties and risks.

Facing sanctions and boycotts from foreign markets. Due to sensitive issues such as national security and human rights, Dahua has been sanctioned and boycotted by the United States and other countries, and some of its products and services have been banned or restricted from entering foreign markets, affecting the development of its overseas business.

Facing fierce peer competition. Dahua shares are facing many competitors from home and abroad in the security industry, such as Hikvision, Motorola Solutions, AXUS, etc. These companies have certain advantages and influence in technology, products, and markets. Dahua shares constitute greater competitive pressure.

5. conclusions and recommendations

Through the analysis and comparison of the market status, development trend, competitive landscape and major competitors of the global and Chinese security industry, we can draw the following conclusions and suggestions:

Security industry is an industry with broad development prospects and huge market potential, intelligent, cloud, service is its main development direction. Investors should pay attention to the technological innovation and market changes in the security industry and grasp the development opportunities of the industry.

Hikvision and Dahua are leaders in the global and Chinese security industry, with strong technological innovation capabilities, rich and diverse product lines, extensive and in-depth market channels, and high brand influence. Investors should focus on the performance and strategic layout of these two companies, and grasp the development trend of the industry.

Hikvision and Dahua also have certain disadvantages, such as high dependence on government projects, facing sanctions and boycotts from foreign markets, and facing fierce peer competition. Investors should be alert to the risks and challenges that these disadvantages may bring, and do a good job of risk prevention and response measures.

Shangpu Consulting believes that if Hikvision and Dahua want to maintain a leading position in the security industry, they need to do the following:

Increase the development and layout of the civilian field, reduce the dependence on government projects, and improve the stability and sustainability of performance.

Strengthen cooperation and communication with foreign markets, actively respond to sanctions and boycotts in foreign markets, and seek new market opportunities and growth points.

Continue to increase R & D investment and innovation, maintain technological leadership, improve product quality and performance, and meet user needs.

Strengthen brand building and promotion, improve brand awareness and reputation, and enhance brand influence.