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Integrated Systems - News

IMS Research reports local security integration companies will continue to dominate Chinese market for next few years
 China Security Systems Integration market is predicted to be worth over $13 billion in 2014
It will be hard for overseas security integration companies to step into the Chinese market in the next few years

Despite the big market share held by overseas security equipment brands in the China market, local companies dominate the Chinese security systems integration market and this situation is not forecast to change in the next few years. This is reflected by the lastest research from IMS Research, "The China Market for Security Systems Integration - 2011 Edition."

According to the report, there was only one overseas company present in the top 15 service providers. The major problem for overseas systems integrators is that they only have opportunities in a limited number of end-user industries, such as commercial and manufacturing. It's hard for them to win projects that have government investment, such as railways or utilities which are forecast to have the highest growth potential over the next five years. This situation is further compounded by the fact that some qualifications necessary for bidding in certain industries are only open to local companies.

That said, the China Security Systems Integration market is forecast to be worth over $13 billion in 2014 and overseas systems integrators should not be discouraged. Senior research analyst, Bo Zhang, describes the commonalities of successful overseas systems integrators in the report: "They are normally focussed on high-end commercial buildings and manufacturing facilities. Typically they have global accounts who want to extend their business operations into China. These projects are not ones that local systems integrators can win. Furthermore, some overseas systems integrators also cooperate with local systems integrators on projects that are funded by local capital investment. Cooperation with overseas design companies and project management companies in China is very important."

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