Chinese CCTV report
n its fifth edition report on the Chinese video surveillance market, a market research firm estimated that the market was worth $2.6 billion in 2011, a rise of more than 30 percent over 2010. A driver of this growth was the network security camera market.
City surveillance and transport are the largest end-user industries in China. However, as economic growth slowed in 2011, investment in city CCTV also declined. In the second half of 2011, a number of high-speed railway construction projects were stopped or delayed due to financing difficulties caused by the global financial crisis. As a result, growth in the analogue video surveillance equipment market started to slacken.
Cheryl Li, report author and research analyst at IMS Research says: “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.”
Li adds: “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.”
China’s GDP growth is targeted at 7.5 percent for 2012, marking the first time the figure has dropped below 8 percent in the past eight years. However, the government is continuing its investment in the western area, which may create new opportunities in end-user industries, such as city surveillance, airports and railways. In this latest China video surveillance market research, IMS Research forecasts that the market will grow at a relatively high compound annual growth rate (CAGR) of 20 percent over the next five years.
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