Analysis of the Market Status and Future Development Trends of the Security Industry in 2024

The security industry has developed over the years into a relatively complete industrial chain. This chain includes several key components: upstream involves video and algorithm providers, as well as chip manufacturers; the midstream consists of software and hardware manufacturers, system integrators, and operational service providers; and downstream applications cover government, industrial uses, and civilian applications.

In this security industry chain, hardware manufacturing, system integration, and operational services form the core. Meanwhile, channel promotion acts as the backbone of the industry. In China, the security manufacturing sector has always viewed intelligence as a key area for development. Significant progress has been made in applying technologies such as front-end video perception, video data structuring, back-end big data mining, deep learning, analytical judgment, and predictive analysis. Many technological applications are at the forefront of the industry, demonstrating the sector's commitment to innovation and advanced solutions.

Current State of the Security Industry Market

How big is the global security market? Industry experts estimate that approximately 100 million home security cameras are shipped overseas annually, with prices ranging from $20 to $60, making the total market size worth hundreds of billions of RMB each year.

According to a report by The Brainy Insights, the global network camera market is expected to grow from $10.21 billion in 2022 to $39.63 billion by 2032, with a compound annual growth rate of 14.52% between 2023 and 2032.

North America will dominate the network camera market, as The Brainy Insights data shows that North America accounted for 39.15% of the market's revenue in 2022. The U.S. market is currently led by domestic and emerging overseas brands.

In terms of application, network cameras are mainly used for security and monitoring in both commercial and residential sectors.

In China, the security market has seen changes over the past few years, as technologies like "Internet+", cloud computing, and big data have become more prevalent. Currently, safe cities, smart transportation, and traffic control have become three important application markets. The construction of safe cities has always been a guiding factor for the development of the surveillance market, and smart transportation and traffic control, although seemingly unrelated to security, are actually closely connected.

According to the "2024-2029 Security Industry Status and Future Development Trends Analysis Report" by the China Academy of Industry Research:

The continuous innovation in security technology also drives advancements in security chip technology. High-performance, reliable chip solutions are essential for the evolution from digital surveillance to intelligent security, and now AI-based visual technologies.

As security remains a fragmented and diverse market, small and medium-sized enterprises have more opportunities for innovation and growth. In niche sectors, some SMEs have even surpassed large enterprises in technical strength and market share.

The security market is vast, valued in the trillions, and has become one of the most successful applications of AI integration with the real economy. As AI continues to shape the future of security, the industry will experience further intense competition, particularly in segmented markets where large companies seek new profit growth points.

The report suggests that the security industry, driven by AI, will see increasing demand for operational services and segmented market competition, positioning itself as a prime example of AI’s potential in real-world applications.

Future Development Trends in the Security Industry

With the rise of artificial intelligence in China, AI has increasingly penetrated various fields within the security industry, driving significant transformations. Compared to traditional methods, today’s security systems are becoming more intelligent and digital. This shift is attributed to rapid technological advancements, changing industry needs, and continuous policy support.

In the coming years, as high-definition and intelligent trends become more prominent, security companies will face fiercer competition. Technologies like digital image compression, AI, and smart alarms are widely applied, meeting the growing security demands fueled by societal development.

Smart security, backed by big data, provides greater advantages in monitoring, image quality, and data usage. During the 14th Five-Year Plan period, the construction of smart cities will accelerate, leading to a projected market size exceeding 250 billion RMB by 2026.

The report offers detailed analysis and forecasts on China’s security industry, helping businesses gain insight into opportunities in the market and adjust strategies accordingly.