Video Surveillance in the Security Market

With the increase of personal and social wealth, the demand for security has also gradually increased. Together with the need for domestic stability, it has led to an increase in the investment budget for security monitoring. The in-depth application of traditional industries such as finance, government, transportation, and new fields such as education, health, sports, factories and mines should promote the growth of the market for security video surveillance. IDC data predicts that the growth rate of the domestic video surveillance market in the next two years will be more than 20%.

The gradual improvement of the macro economy will lead to an increase in the investment budget for corporate security. As the demand for video surveillance systems from the market increases, the cost of key components such as CMOS chips decreases, and the cost of research and development gradually declines, prices of front-end products such as high-definition cameras have dropped significantly. The reduction in cost will accelerate the promotion of the market for high-definition camera equipment. It will also accelerate the upgrade of the video surveillance model to a fully-digitalized model, which will lead to the rapid growth of front-end acquisition equipment. Back-end storage products significantly reduce costs through mass production of standardized products, accelerate the adoption of commercial users, and the back-end storage products are expected to achieve a steady growth of around 20%.

The reduction in cost will accelerate the promotion of the market for high-definition camera equipment. It will also accelerate the upgrade of the video surveillance model to a fully-digitalized model, which will lead to the rapid growth of front-end acquisition equipment. Back-end storage products significantly reduce costs through mass production of standardized products, accelerate the adoption of commercial users, and the back-end storage products are expected to achieve a steady growth of around 20%.

Upgrade investment rating of security video surveillance industry to "recommended"

With the increasing demand for projects in the field of video surveillance applications, the market has put forward more and more requirements for those planners that only used wiring and installation debugging. At the same time, some users based on the specific needs of the individual design requirements for the engineering system has also been continuously improved, which involves the application of software system development and program integration, this requirement is no longer a simple installation will be wiring projects The technical standards that the business can achieve.

At this time, the professional features of the solution providers are displayed. According to the customer's needs, integrating close-fitting product systems is a must-have professional capability for industry solution providers; according to the actual needs of users, rational planning and product system configuration are performed, and the construction and quality of the project are ensured. This is The network monitoring system solution provider's role is reflected.

Industry Risk Tips If China's macroeconomic growth slows significantly, it will lead to the failure of the company's security system investment to meet expectations; and the risk that the company’s product replacement will not lead to a decline in its competitive advantage.

Optimistic about the industry's trending opportunities brought about by the upgrading of the surveillance model, giving the video surveillance industry a “recommended” investment rating.

The gradual improvement of the macro economy will lead to an increase in corporate security investment budget. The explosive growth of front-end equipment and the steady growth of back-end products will ensure strong market demand. We give the industry a “recommended” rating.