Chinese Surveillance Market Grows by 30% In 2011


The video surveillance market is growing by over 30% a year in China, according to latest figures.

IMS Research estimate the market was worth $2.6 billion in 2011, a 30% increase on the previous year.

Phenomenal growth and large infrastructure projects in the country have been driving investment in surveillance but this has slowed in 2011 with high-seed railway projects being delayed or stopped and investment in city surveillance declining.

IMS research analyst, Chery Li, said: "Due to the increasing demand for high resolution images, network security products, especially network cameras, gained market share in 2011. In fact, network camera revenue increased 130 percent in 2011. In addition, the growth also benefited from the increasing number of participants in the market. It should be noted that competition also reduced pricing, which is an important element in the market.

High definition is a definite trend for the video surveillance market in China over the next few years. Besides network security products, HD-SDI products also gained greater attention. However, HD-SDI products are still expensive, and lack of a complete HD solution in the market. As a result, we estimated that it only had limited shipments in 2011.

The market is forecast to continue growing at a rate of 20% for the next five years, reinforcing some of the findings of Memoori last month, including that China would be the largest physical security market by 2020.

With GDP growth in 2012 forecast to drop below 8% for the first time in eight years in China, and amidst the backdrop of the new Chinese Communist Party leadership being announced earlier this month the future for the China video surveillance market is not perhaps as certain as these figures may suggest.

However, that doesn’t mean that this market will undoubtedly remain one of the largest growth areas for surveillance distributors with more and more end users requiring systems each year.


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