The security industry is undergoing a significant transformation, with competition intensifying and market dynamics shifting rapidly. Industry insiders suggest that companies not in the top tier must either collaborate with leading firms to offer supporting services or focus on niche segments to build their core competencies. As a result, traditional security giants like Hikvision and Dahua have solidified their leadership positions, while new players such as Hanwang Technology, Kanzhi (Contempt), and Shangtang have emerged by leveraging artificial intelligence as a key differentiator.
With the rise of smart cities, smart parks, and intelligent transportation systems, security technologies are becoming more integrated into these infrastructures, playing a crucial role in urban development. According to Tonglian Data, major listed security companies in China saw substantial revenue growth between 2012 and 2016, driven by advancements in biometric identification and AI.
Hanwang Technology has developed a range of intelligent security solutions used across government, education, finance, and public safety sectors. Companies like Kanzhi and Shangtang have also entered the market with AI-driven face recognition systems, demonstrating the growing influence of technology in security. As the industry evolves, the demand for comprehensive solutions is increasing, moving beyond individual products or services toward holistic approaches.
Hikvision and Dahua have both expanded their offerings to include end-to-end solutions in areas such as public safety, transportation, and smart buildings. GTS Technology, for example, combines smart camera hardware with cloud-based services to provide applications like facial recognition access control and real-time monitoring. These solutions are now being deployed in critical national agencies.
Collaboration with industry leaders or focusing on specialized segments has become a common strategy among smaller players. With the integration of AI, big data, and IoT, the security sector is transitioning toward greater intelligence and efficiency. However, small and medium-sized enterprises still face challenges in competing directly with giants like Hikvision and Dahua.
A major issue in China’s security industry is the ease of entering the market, which has led to many low-quality players focusing on short-term gains rather than long-term innovation. As the industry moves toward integration, networking, and intelligence, new entrants must adapt quickly, focusing on niche markets or supporting larger companies to build sustainable competitiveness.
Artificial intelligence is now a central driver of growth in the security field. The future will be shaped by intelligent hardware and the ability to integrate software and devices seamlessly. While AI startups are gaining attention from investors, they still need time to refine their applications and business models.
Security remains one of the most promising areas for AI deployment, but success requires a deep understanding of real-world scenarios. Companies must position themselves as solution providers, focusing on practical needs rather than just technological capabilities. This shift will determine who can truly lead the next phase of the security industry's evolution.
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