China syndromeChina replacing U.S. as the world's largest homeland security, public safety market
By 2014, China will become the world’s largest national homeland security and public safety market; China’s homeland security and public safety market reached $40 billion market in 2011, and it is set to grow to $45 billion in 2012; the trend will continue, increasing market value to $58 billion by 2015 and $105 billion by 2020
Homeland Security Research Corp., a homeland security technology and market research group, has just issued two market research reports — China Homeland Security & Public Safety Market —2012-2020 and U.S. Homeland Security & Public Safety Market – 2013-2020 – which forecast that by 2014 China will become the world’s largest national homeland security and public safety market.
The China report reveals that:
- Two out of every three new airports built in the world are in China
- According to China’s “Twelfth 5-Year Plan (2011-2015),” China spends more on “HLS & Public Security” than it does on defense
- China’s government 650 “Safe City” cumulative 2013-2020 market will surpass $180 billion
- The country’s public transportation system, which is the world’s largest, is poised to undergo a $20 billion security upgrade
- The U.S. Department of Commerce assists and encourages the export of American homeland security and public safety products to China
- Companies such as FLIR, GE, Honeywell, Panasonic, Samsung, Siemens, Bosch, and EADS are already active in this market
Homeland Security Research says that while Chinese manufacturers supply low and mid-end security products, the high end-premium security related technologies are provided by foreign manufacturers, contributing to $24.3 billion in sales in 2011. For example, China’s smart video surveillance market, the world’s largest and the cornerstone of the Safe City and perimeter security markets, is dominated by foreign-based corporations, which supply artificial intelligence-based video content analysis systems.
According to Dan Inbar, the report’s lead analyst: “Three decades of dramatic economic growth have bred social tensions, ethnic frictions and domestic terror which led the central government to invest “whatever it takes” to defend the economical-social-political fabric of China. This has resulted in the massive $40 billion market in 2011 and $45 billion in 2012, a trend which will reach $58 billion by 2015 and $105 billion by 2020. As I speak, China is transforming itself into the global leading source for business opportunities to suppliers of homeland security & public safety products.”