Zhejiang Dahua's surveillance camera is displayed during the China International Semiconductor Expo in Shanghai in December 2018. Photo: VCG

The video surveillance industry in China is gaining an increased foothold in the world market thanks to cost-effective products and strong supply capacity, industry insiders said on Tuesday.

The global video surveillance business has grown significantly in recent years because of countries' increasing need to enhance safety and security, a Beijing-based industry insider told the Global Times on condition of anonymity.

China-made surveillance cameras are favored, with some domestic producers taking a leading world role. Hangzhou Hikvision Digital Technology Co is the largest supplier in the world, with Zhejiang Dahua Technology Co standing in the second place.

Together, the companies hold more than 40 percent of the world market, industry data showed. China is estimated to have accounted for more than 46 percent of global video surveillance equipment revenue in 2018, said a report by IHS Markit, a London-based global information provider.

Fu Liang, a Beijing-based independent industry analyst, attributed the increased popularity of Chinese products to their "high quality, relatively lower prices and stable supply in large quantities," driven by the stable advance of China's manufacturing industry.

Security cameras do not have any exclusive competitive advantages in the global market because much of the technology is transparent to all participants in the industry, and it's rare to see that some producers master core technology, Fu told the Global Times.

Apart from Hikvision and Dahua, top players in the global video surveillance market include Sweden-based Axis Communications, Germany-based Bosch Security Systems, US-based Flir, Canadian Avigilon and South Korean security camera manufacturer Hanwha Techwin, according to a report by marketwatch.com in April.

Fu also noted that Chinese producers adopt unified and qualified standards to ensure their products are secure.

By 2021, China will account for 38 percent of the global market and will be larger than the North American and West European markets combined, according to a forecast by IHS Markit.

Bloomberg said in a recent report that the US is trying to remove Chinese-made surveillance cameras to reduce the threat of spying from Beijing.

Industry insiders said that it is "groundless" for countries like the US to claim Chinese security camera makers cause so-called "national security" issues merely because they hold a bigger market share.

As the US lacks a complete industry chain, it seems hard for American companies to do without Chinese products, the Beijing-based insider said.

The rapid growth of technology such as cloud computing, artificial intelligence and video surveillance software are also driving factors for the growth of Chinese security camera makers, insiders said.

Security cameras in China are mainly used in sectors like transportation, manufacturing, retail, banking and financial services, education and healthcare.

For instance, the Chinese government has made large investments in safe cities projects, focusing on traffic monitoring and city surveillance.

It was projected that by 2023, the video surveillance industry in China would amount to around 198 billion yuan ($28.8 billion).

Hikvision and Dahua account for 56.12 percent of the domestic market, followed by Zhejiang-based Uniview with 5.4 percent and others with a total share of 38.48 percent, industry research site qianzhan.com said.


Newspaper headline: Video monitor businesses expanding