In a recent development, Ingersoll Rand completed the divestment of its security business, which had been in the works for over a year. An Fengjie, Senior Vice President of Global and President of the Asia-Pacific Region, highlighted that the security division contributed 15% to the company’s total revenue of $14 billion in 2023, amounting to $2.1 billion. The newly formed entity is expected to generate around $2 billion in annual sales. It will operate across three main segments: architectural hardware such as locks, door closers, and steel doors; electronic access control systems, biometric solutions, and labor management tools; and video surveillance and integrated security systems. On the civilian side, the focus will include smart locks, access control, parking systems, and home-based video surveillance.
As the concept of smart homes gains traction, the civilian security market is gradually expanding. With the integration of IoT and triple-play technologies, security products are evolving to meet the needs of individual consumers, offering solutions like remote monitoring via mobile devices and smart home systems. The rapid growth of mobile internet is expected to significantly reshape the civil security landscape.
The establishment of two key institutions during the Third Plenary Session of the 18th CPC Central Committee—the National Security Council and the Central Leading Group for Deepening Reform—signals an increased focus on security and environmental protection. This shift presents substantial opportunities in both security and green investment sectors.
Currently, China's civil security market accounts for only 6% of the total security industry output, while in the U.S., the civilian segment makes up over 50%, with a global average of about 10%. This indicates that the Chinese mainland's civilian security market is still in its early stages. However, growing awareness of security needs is driving more manufacturers to enter this space, and as demand increases, the civilian market is poised for rapid development.
According to overseas security giants, revenue from security operations is expected to surpass that from equipment sales. For example, ADT, one of North America’s largest security companies, reported $3.228 billion in total revenue in 2012, with recurring customer revenue reaching $2.903 billion, or 89.93% of total sales. Similarly, Japan’s SECOM generated 765.63 billion yen in total revenue in fiscal year 2013, with 441.18 billion yen coming from security services, accounting for 57.62% of total revenue. These examples highlight the potential and profitability of the security services sector, especially in the civilian market.
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