SVAC Accelerates Security Industry Development with New National Standard

Have you ever noticed that at the corner of most major cities, there will almost always be cameras watching your every move? These convenient monitoring probes represent a new industry. This industry has developed rapidly and received more and more attention.

"The development of the security industry in China was only a few years, but with the support of government policies, it has made remarkable development and has great future potential." In an interview with the "Global Times", Beijing Zhongxingwei President of Electronics Co., Ltd. Jin Zhaojun told reporters. Headquartered in Beijing, China Star Microelectronics is a multimedia chip and IP surveillance solution provider.

Today, the general public is very familiar with camera-based surveillance systems. The technologies that support these systems are also constantly innovating.

The Twelfth Five-Year Plan has established a blueprint for the development of China's security surveillance industry: By 2015, the industry's total output value is expected to reach 500 billion yuan (US$78 billion) with an average annual growth rate of approximately 20%; the entire industry, especially the operator service sector It will experience industrial adjustment, which will accelerate the development of the industry.

Market research company Frost & Sullivan (English name is Frost & Sullivan, hereinafter referred to as F & S consulting company) provides information: "The surveillance camera in the entire industry's total output value accounted for a larger proportion. In 2010, the domestic surveillance cameras The output value is 22 billion yuan. This figure is expected to more than double in 2014."

The new national standard in the country, the government issued a new national standard for the security industry. The implementation of this standard will further promote the development of the domestic security industry.

Globally, there is no uniform technical standard in the field of security monitoring. China has launched the first national standard "Security Monitoring Digital Video and Audio Coding Technology Requirements" (SVAC for short). This standard was implemented in May this year.

Unlike ITU's IP-based H. 264, SVAC is a digital-based standard. In addition, H. 264 is mainly targeted at the application needs of broadcasting and television, and there is a greater degree of inadaptability in the security industry.

In order to promote the promotion of the new national standard, the SVAC Alliance was established at the end of August this year. At the same time, five ministries, including the Ministry of Public Security, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology, and the National Standardization Administration Committee, have also jointly promoted the industrialization and application of this standard.

Zhongxingwei jointly established a new national standard with more than 40 research institutes, universities, and companies in the security industry, and joined the SVAC Alliance in the first batch.

"The establishment of the SVAC Alliance to promote the new national standard is absolutely a good thing for the domestic security monitoring industry," Li Zheng, market analyst at F&S Consulting, told the Global Times reporter.

"The new SVC standard is not a mandatory standard. But in many government projects and commercial projects, compliance with the SVAC standard is likely to be used as a hard requirement," said Jin Zhaojun, president of Vimicro. He revealed that the second batch of members of the SVAC Alliance will be announced in October.

Jin Zhaojun also said that due to the importance of China in the global security market, SVAC, if successfully promoted in China, will most likely become an international standard.

Industry restructuring will not come soon Some analysts believe that the promotion of SVAC will raise the technical threshold for small businesses and cause industry reshuffle.

According to data from the China Security Industry Association, as of last year, there were approximately 25,000 enterprises of different sizes in China's security monitoring field. The number of employees in the industry was 1.2 million, and the total output value exceeded RMB 230 billion (US$ 36 billion).

However, Jin Zhaojun believes that due to the development of the domestic security industry is still in its infancy, the aforementioned industry reshuffle will not happen in the near future.

Mr. Li, an F&S market analyst, told Global Times that imported brands such as South Korea’s Samsung and Japan’s Sony accounted for the high-end market of domestic surveillance cameras and had an approximately 80% market share. Compared to these foreign brands, domestic manufacturers are mainly lacking in the technical and service expertise.

Mr. Li also pointed out that the number of domestic enterprises in the security market is also numerous, but none have achieved outstanding results.

According to data provided by F&S Consulting, the two largest domestic companies in the field of security are Hikvision and Dahua Technologies in Hangzhou, Zhejiang. The two companies have a total market share of about 5% in the domestic market.

As a NASDAQ-listed company, Vimicro continues its development of security surveillance while maintaining its existing multimedia chip business. Due to its advantages in chip R&D, Vimicro will likely become a star in the field of security surveillance.