Safety and Security Market
China
Overview
China’s safety and security market demand is growing rapidly. The market has expanded from its traditional base in the financial, insurance, custom, police, airport and IT sectors to the construction, transportation, and education fields. In 2003, the Chinese safety and security equipment market was USD7 billion. Industry experts estimate that by 2020 China’s safety and security market will reach USD30 billion. From September 11, 2001 through 2004, the Chinese government has invested USD130 million to cope with anti-terrorism security issues, many involving air travel.
With 108 new airports to be constructed in the next five years, airport security has become a critical safety issue for the Chinese government. Increasing tourism and a rise in air cargo volume will also necessitate an upgrade of security technology at existing major airports to improve safety and efficiency.
Best Prospects/Services
Much of the safety and security demand will focus on high-tech equipment, such as digital technology, entrance guard communication systems, network technology for inspection control systems, and warning systems.
· Inspection control systems: This has been a high-growth area in recent years and remains very competitive. Panasonic, Samsung, Sony, JVC, and Sanyo occupy a majority of the market share in China’s high-grade inspection control market.
· Entrance guard communication systems: China’s domestic enterprises occupy the majority share in the entrance guard systems sector, and foreign enterprises, such as US companies BII and HID, UK company TDSI, and Israeli company DDS, occupy the majority share of the communication systems market.
· Warning systems: There is major demand for intelligent airport systems. Foreign companies dominate the market for high-grade products, leading the trend towards integrated safety and security systems.
· Detection Equipment: As China’s domestic manufacturers lack capacity to produce enough equipment, foreign products in this field are in high demand.
· Fire Protection Equipment: Domestic competition in this sector is strong. All imported equipment must first obtain safety certification from the China Fire Bureau.
Opportunities
In the next five years, China will invest USD150 million in security infrastructure for new and existing airports.
Beijing’s new airport is currently under construction, with investment of USD30 million for security equipment alone. Fire protection equipment, X-ray scanners, metal detectors, portable detectors, and other equipment are needed. Most bids for this security equipment will open this year.
Resources
1. Major Trade Shows
3rd Beijing International Public Security Products and Technical Equipment Exhibition
Date: March 22-24, 2005
Venue: China Agricuture Center, Beijing
10th Shenzhen China Public Security Exhibition (CPSE 2005)
Date: November 1-4, 2005
Venue: Shenzhen Exhibition Center
2. U.S. Commercial Service Contact Information in China
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Zhao Peining
Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin Chambers
Lynn Jiao
Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Cathy Wang