Analysis of current situation, downstream market demand and trend of precision structural parts manufacturing industry in China

2) China security video surveillance market

In recent years, in August 2005, the Ministry of Public Security proposed the construction of "3111 pilot project", which promoted the construction of "safe city". And in the "smart city", "intelligent transportation" and "2008 Beijing Olympic Games", "2010 Shanghai World Expo", "2010 Guangzhou Asian Games", "2011 Shenzhen Universiade" and other major projects and projects to promote, China's security industry set off the first wave of rapid development. Data show that the market size of China's security industry increased from 540 billion yuan in 2016 to 756.2 billion yuan in 2019, with an annual compound growth rate of 11.9%, and the market size is expected to reach 904.9 billion yuan in 2021.

At the same time, with the gradual maturity of the global security market, the Asia-Pacific security product manufacturers represented by China are rich in technical talents and have low labor costs. In this context, the European and American security giants have shifted their manufacturing centers to the Asia-Pacific region, and China has become one of the preferred regions for major enterprises. According to the "a&s Top 50 Global Security" released by a&s in 2020, Hikvision ranked first in the video surveillance industry in the world for nine consecutive years, and Chinese enterprises have occupied four seats in the top ten.

3) Security video surveillance industry development trend

① Rigid demand to promote the development of the global market, the future growth potential is huge

Since 2016, under the framework of deep learning, core algorithms such as portrait recognition and video structuring have been major breakthroughs, at the same time, Internet technologies such as cloud computing and big data have been gradually introduced into the security industry, and are currently in the rapid development stage of intelligent monitoring and security. According to IHSMarkit, the global professional video surveillance equipment market will experience strong growth driven by strong demand in public safety and business intelligence.

At the same time, in terms of specific application areas, according to BIS data, the infrastructure sector occupies the largest share of the global video surveillance market, followed by the commercial sector, with a share of 37.3% and 6.1%, respectively. According to the forecast, in 2018-2023, the two application areas are expected to develop at an annual growth rate of 15.6% and 16.6%, respectively, and the growth of these rigid demands will promote the rapid development of the video surveillance industry.

The domestic security market demand is strong, intelligent development has brought new opportunities, and the civilian market has become a new growth point

At present, China's security monitoring market is mainly concentrated in government departments and finance, public security, transportation, electricity and other special departments and industries, but with the improvement of people's living conditions and the strengthening of security awareness, residents will pay more attention to security issues.

In addition, the combination of the Internet and the security industry continues to help traditional security enterprises open the civil security market at the technical level, so that the home security system can form a security monitoring network with intelligent locks, intelligent cameras, infrared intrusion detectors, sound and light alarms and other equipment. According to the data of the Pacific security network, domestic civil security accounts for about 11% of the overall security market at this stage, compared with 50% of the civilian security penetration rate in the United States, China's civilian security penetration rate is still low, and the future security industry market has a lot of room for growth in the civilian field.

③ The domestic security industry has entered a period of integration, and leading enterprises have benefited

With the advancement of the intelligent process, the influence of software platforms and video algorithms in hardware products will gradually increase, and the integration of software and hardware will become more and more obvious. Software competition is more favorable to companies with large scale and strong comprehensive layout ability, such as Hikvision and Dahua Shares. On the one hand, the above situation is conducive to leading enterprises to carry out market integration and upstream and downstream integration of the industrial chain, and on the other hand, leading enterprises can give full play to their scale advantages and obtain more industry discourse and pricing power.

According to the Ultra-high-definition Video Industry Development Action Plan (2019-2022) released by the Ministry of Industry and Information Technology, China will accelerate the development and mass production of ultra-high-definition surveillance cameras and promote the upgrading of security monitoring systems. With the continuous improvement of the concentration of the security industry, the upgrading rate of security products, the upstream and downstream of the industrial chain will also be highly integrated, and the companies of the whole industrial chain layout will occupy a huge advantage in the competition, and local leading enterprises will benefit from it.