The Chinese IBC(s) systems market experienced buoyant growth between 2006-2008. Overall, the market for Security Systems was valued at RMB 21.8 billion in 2008, of which the total product market was worth RMB 14.4 billion.
CCTV/Video Surveillance was the largest segment, accounting for 72 per cent of the IBC(s) market; followed by Access Controls market with 15 per cent and the Intruder Alarms market holding 14 per cent. Excellent growth was reported in IBC(s) systems during the period of 2006-2008. Double-digit growth was recorded in the Chinese economy over the last few years and the impressive growth in the new construction sector has contributed greatly to the development of the security market.
In 2008, the value of the CCTV/Video Surveillance market, at hardware ex-factory prices, was estimated at RMB 10,213 million. The Surveillance market has out-performed the Access Controls and Intruder Alarms market in terms of both value and growth.
Combating crime is one of the main drivers of the demand of IBC(s) and the authorities have been introducing a range of measures, most notably the "Safe Cities" scheme. This is because China's extremely dense and increasing population has resulted in the increase of crime during the past decade.
A strong move towards comprehensive networked systems that require more sophisticated supervisory controls has been noted. Demand for Security Management systems has been steady, especially where access control and CCTV are integrated, therefore increasing the value added systems business.
Despite very favourable trading conditions, imported IBC(s) products struggle to compete on price with local manufactured products at the medium to low end of the market. However, imported products are being used on more sophisticated and high quality projects, particularly on foreign financed projects. During 2009-2010 the growth of the Chinese market is expected to slowdown, feeling the impact of the economic crisis, but it is expected to return to its fast paced growth from 2011.
The Beijing region accounts for the largest market share, accounting for 29 per cent of the total business. Government, public and industrial sectors are the main sections in the Beijing region whereas the Guangdong region is more geared towards the commercial sector. The Shanghai region has witnessed significant growth during the past few years and now takes 22 per cent of the total Chinese market. Currently the West region (Sichuan, Shaanxi and Chongqing area) takes nine per cent of the total market, but it is likely to experience further growth in five years time.
BSRIA Proplan is a specialist consultancy that focuses on analysing the market for intelligent controls in buildings. This study is part of a series of multi-client reports on the world's market for intelligent controls in non-domestic buildings. "The Chinese Market 2008 to 2013" is our third edition of Intelligent Buildings Controls - Security Systems (IBC(s)) and is based on data received from the IBC(s) manufacturers operating in China.
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