In recent years, the security markets in developed regions like the Yangtze River Delta, Pearl River Delta, and Bohai Rim have become more stable, with fierce competition among security brands. However, due to uneven economic development, the central and western regions are experiencing rapid growth, presenting significant potential for the security market. Many companies are shifting their focus westward to explore emerging opportunities in these areas, including Northeast China. Recently, the new central government has actively promoted urbanization as a key driver of China’s economic upgrade. This initiative is expected to bring substantial investment and consumer demand to the central and western regions, further boosting the regional security market.
Despite its potential, the security market in the central and western regions is still in its early stages of growth, influenced by factors such as economy, geography, and culture. To effectively enter these markets, companies must align their strategies with local conditions and proceed steadily.
During this interview, we spoke with 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. Frontline marketing representatives from Wave Grain Technology, Suncom Technology, and Jin Sanli also shared insights on how security companies are finding success in the Midwest market amid the "urbanization" trend.
The Central and Western Security Market Holds Great Potential
Mao Zhongyu pointed out that business opportunities in the security market of the Midwest mainly stem from two aspects: first, the current imbalance in the domestic security market, where the eastern regions face intense competition, while the central and western regions are still in an expansion phase. Second, the eastern regions have well-developed security systems, whereas the central and western regions lag behind but are poised for growth due to advancements in high-definition and networking technologies.
Xie Kun highlighted four main opportunities: the gradual development of smart cities and safe city projects in the central and western regions; increased attention to economic development in these areas under the “Twelfth Five-Year Planâ€; the promotion of the National Internet of Things strategy; and the rising awareness of security among the public.
Huang Yunwei noted that government investments in technical defense have led to progress in the Midwest security market, attracting many companies. Opportunities include market expansion, especially as government funding increases, with projects not only in urban areas but also in counties and towns. Networking requirements are also growing, driven by regulations like GB/T28281, which requires cities to connect monitoring points with provincial or county centers. Additionally, traffic monitoring needs are increasing due to rising vehicle numbers, and the civilian market is expanding as residents become more security-conscious.
Video Network Sharing Drives Security Growth in the Midwest
Mao Zhongyu emphasized that digital networking technology and policies like the “Twelfth Five-Year Plan†and the National Internet of Things strategy are creating new opportunities in the central and western regions. These markets are becoming a promising area for future exploration.
Xie Kun added that network sharing and high-definition requirements are driving demand, offering significant business opportunities. As systems in these regions are upgraded, compatibility and integration challenges arise, providing security companies with the chance to offer comprehensive solutions.
Huang Yunwei explained that “networking†and “high-definition†are key trends in safe city construction. The Ministry of Public Security has set targets for video sharing platforms, aiming for full coverage across the country by 2015. This will lead to a large-scale interconnected video surveillance network, enhancing industry standards and promoting the development of safe cities in the central and western regions.
Challenges and Characteristics of the Midwest Security Market
Mao Zhongyu outlined three main characteristics: vast geographical coverage, uneven distribution, and untapped resources. He also noted low costs, strong management capabilities, and significant market demand in emerging industrial bases and rural areas.
However, challenges remain. Competition is fierce in the eastern regions, making market expansion in the Midwest difficult. Additionally, many rural users have limited awareness of security needs.
Xie Kun highlighted that the central and western regions have large areas, uneven economic development, and lower levels of urbanization and infrastructure investment. Challenges include limited security budgets, high technical requirements in certain regions, and local barriers.
Huang Yunwei observed that the security market in the central and western regions is becoming more similar to that of the east. More users are adopting new technologies, price sensitivity is decreasing, and there is a growing demand for advanced solutions and services.
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