Overview: In 2008 China fell victim to several natural and man-made disasters that will tend to strengthen already robust opportunities in the Safety and Security Market. The winter blizzards that blanketed a large swath of China in January, and the Sichuan earthquake on May 12, 2008 all underscored China’s lack of adequate preparation for large-scale emergencies.
In 2008 the Chinese market for safety and security products grew by nearly 20 percent to reach over USD10 billion. This growth is mainly in government, financial services, traffic control, and residential security. Industry experts estimate that by 2020 China’s safety and security market will reach over USD 30 billion.
China is undertaking numerous large-scale projects nationwide including airports, sports stadiums, and metro systems which will entail the installation of extensive security systems. A growing affluent class is demanding high quality residential security equipment and services, and municipalities are installing emergency response systems to improve security and bolster response times.
Opportunities: Much of the safety and security demand in China will focus on high-tech equipment, such as digital technology, entrance guard communication systems, network technology for inspection control systems, and warning systems. Recovery from the multiple large-scale disasters and preparation and prevention of future similar disasters will play an important part of this sector. Potential exporters to China in this market niche should be aware of these priorities.
The communication systems market is dominated by foreign producers. There is major demand for intelligent airport systems with foreign companies dominating the market for high-grade products, leading the trend towards integrated safety and security systems. As China’s domestic manufacturers lack capacity to produce enough equipment, foreign produced detection equipment is in high demand.