City surveillance and transportation are the largest end-user industries in China. However, as economic growth slowed in 2011, investment in city surveillance also declined. In the second half of 2011, a number of high-speed railway construction projects were stopped or delayed due to financing difficulties caused by the global financial crisis. As a result, growth in the analogue video surveillance equipment market started to slacken.
 “Due to the increasing demand for high resolution images, network security products, especially network cameras, gained market share in 2011,” says Cheryl Li, report author and research analyst at IMS Research. 
“In fact, network camera revenue increased 130 per cent in 2011. In addition, the growth also benefited from the increasing number of participants in the market. It should be noted that competition also reduced pricing, which is an important element in the market.”
“High definition is a definite trend for the video surveillance market in China over the next few years,” says Li. “Besides network security products, HD-SDI products also gained greater attention. However, HD-SDI products are still expensive, and lack of a complete HD solution in the market. As a result, we estimated that it only had limited shipments in 2011.”
China’s GDP growth is targeted at 7.5 per cent for 2012, marking the first time the figure has dropped below 8 per cent in the past 8 years. However, the government is continuing its investment in the western area, which may create new opportunities in end-user industries, such as city surveillance, airports and railways. 
In this latest China video surveillance market research, IMS Research forecasts that the market will grow at a relatively high compound annual growth rate (CAGR) of 20 percent over the next 5 years.