In recent years, the security markets in developed regions such as the Yangtze River Delta, the Pearl River Delta, and the Bohai Rim have become more stable, with fierce competition among security brands. Due to uneven economic development, the central and western regions are currently experiencing rapid growth, making their security markets highly promising. Many companies are shifting their focus westward to tap into emerging opportunities in these areas, including Northeast China. Recently, the new central government has emphasized urbanization as a key driver for China’s economic upgrade. This initiative is expected to bring significant investment and consumer demand to the central and western regions, further boosting the development of their security markets.
Despite its vast potential, the security market in the central and western regions is still in its early stages due to factors like economy, geography, and culture. To successfully enter this market, companies must align their strategies with local conditions and proceed step by step.
During this interview, we had the opportunity to speak with three industry leaders: Mao Zhongyu, General Manager of Shenzhen Boge Technology Co., Ltd.; Xie Kun, Deputy General Manager of Guangdong Xuntong Technology Co., Ltd.; and Huang Yunwei, Planning Manager of Jin Sanli Video Technology (Shenzhen) Co., Ltd. Additionally, frontline marketing personnel from Wave Grain Technology, Suncom Technology, and Jin Sanli shared their insights on how security companies are finding success in the Midwest under the influence of urbanization.
The Central and Western Security Market Holds Great Potential
Mao Zhongyu highlighted that business opportunities in the Midwest security market can be seen from two perspectives. First, the domestic security market remains unbalanced, with intense competition in the eastern primary markets dominated by major players, while the secondary and tertiary markets in the central and western regions are still growing. Second, the eastern regions have well-developed security systems with a stable market, whereas the central and western regions lag behind but show great potential, especially with the push toward high-definition and networked solutions.
Xie Kun pointed out that the central and western security market offers multiple opportunities. These include the gradual development of safe cities and smart city projects, increased attention on regional economic development in the "Twelfth Five-Year Plan," the promotion of the National Internet of Things strategy, and rising public awareness of security.
Huang Yunwei added that with continued government investment in technical defense, the Midwest security market has made significant progress. Opportunities include market expansion, networking requirements, traffic monitoring construction, and the growing civilian security market. The central and western regions are not only focusing on urban areas but also expanding into county and township projects, which is driving overall market growth.
Video Network Sharing Drives Security Development in the Midwest
Mao Zhongyu noted that with the advancement of digital networking technology, the "Safe City" initiative is gaining momentum in the central and western regions. Combined with the benefits of the "Twelfth Five-Year Plan" and the National Internet of Things strategy, the demand in these secondary and tertiary markets is becoming more prominent, offering a new growth area for security companies.
Xie Kun emphasized that the need for network sharing and high-definition systems is creating significant business opportunities. As the scale of security systems in the central and western regions is still small, many companies face compatibility and networking issues during upgrades. This presents an opportunity for security firms to offer comprehensive "one-stop" services, helping customers build advanced and integrated systems.
Huang Yunwei explained that "networking" and "high-definition" are crucial for safe city construction. With the Ministry of Public Security's push for video integration and sharing, the central and western regions are expected to complete large-scale platforms for video information interconnection, leading to a more standardized and robust surveillance industry.
Characteristics and Challenges of the Midwest Security Market
Mao Zhongyu outlined three main characteristics of the Midwest security market: vast geographical coverage, uneven distribution, and untapped resources; low cost, fast dissemination, and strong management capabilities that help overcome bottlenecks in the primary markets; and significant potential demand in emerging industrial bases, parks, and rural areas.
However, these characteristics also pose challenges, such as competition for market share and the need to improve application awareness, especially among rural users who may lack security awareness.
Xie Kun pointed out that the central and western regions have large areas with uneven economic development, lower levels of urbanization, and limited infrastructure and security investment. Some regions, like Xinjiang, may have higher technical demands and greater security investments.
Huang Yunwei noted that the security market in the central and western regions is becoming increasingly similar to those in the east. This is due to faster adoption of new technologies, reduced price sensitivity, and a shift in competition from product quality to solution-based approaches, with users demanding more sophisticated applications.
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