ZHITONG PIPE VALVE TECHNOLOGY CO.,LTD , https://www.ztongvalve.com
Analysis of the Cause of Video Surveillance Market Expansion
The video surveillance market has evolved significantly and is now widely accepted by the industry. It has developed a complete industrial value chain, with regulatory frameworks gradually becoming more structured and standardized. As a result, the video surveillance market has matured and is no longer isolated but is increasingly integrated into China’s broader information industry, expanding from a narrow, closed market to a more open and dynamic one.
The growth of this market is driven not only by technological advancements but also by the expansion of user groups and evolving demand. The video surveillance industry has established a stable user base and a well-developed supply chain. However, for continued development, new and practical drivers are needed to push the market forward. These drivers are now clearly visible.
First, the expansion of the user base has shifted from traditional medium-sized users—such as those in finance and power sectors—to broader segments. With growing social awareness around safety and increasing global security threats, public recognition of video surveillance has risen. This has led to two clear directions: first, large-scale users like city-level systems under initiatives such as the "3111" project; second, small and medium-sized enterprises (SMEs), which make up 99% of all Chinese companies and contribute significantly to GDP and employment. Additionally, individual users are showing strong interest in online video applications.
Second, the evolution of application types is another key driver. Traditionally, video surveillance was used for security purposes, addressing risks like accidents, natural disasters, and human injuries. However, as the information industry grows, video surveillance is branching out into two main directions: one focused on large-scale, intelligent, and professional security systems, such as smart city projects and industry-specific monitoring; the other on consumer and visual management applications, like tourism platforms and chain store monitoring.
Third, the demand side is also shifting. The industry is focusing on core users, aiming to improve existing products and services while also exploring innovative solutions to attract new markets. As the user base expands, potential demand becomes real market opportunities. This requires not just technical preparation, but also better access to and understanding of the user market through an expanded value chain.
Fourth, traditional security-focused applications often prioritize protection of existing interests, offering deterrence rather than creating new value. In contrast, emerging consumer and visual management applications aim to help users generate new value, such as improving production efficiency, enhancing management, or supporting e-commerce. These applications transform online video into a productive tool, significantly broadening the user base.
Currently, the primary user group in the upstream industry is the security-focused segment. From a business perspective, most services still target existing users, but there is a lack of capability to identify, collect, and manage new user groups effectively. To sustain growth, companies must adapt and develop strategies that address both current and future market needs.