China syndromeChina replacing U.S. as the world's largest homeland security, public safety market

Published 10 September 2012

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.”