Video Communication Industry Overview China's video industry has been developing for 10 years. The video conferencing system at the beginning of development was only aimed at high-end markets such as government, finance, and group companies. It was mainly run on private networks and was expensive. The budget was often as high as millions and ten million yuan. Affected by the SARS in 2003, China's video conferencing system market has broken through the previous smooth development in the past two years and has entered a steady and rapid development stage. The mixed-network and corporate public network market has replaced the video conferencing system based on the dedicated line network and has occupied the mainstream position. . In 2004, products based on mixed networks and corporate public networks accounted for 68.8% of the total. In 2005, this proportion would be as high as 87.5%, becoming the mainstream of the market. According to a survey conducted by CCID Consulting at the end of last year, the proportion of users of videoconferencing equipment in China's key industries such as government, finance, energy, communications, transportation, medical care, and education reached 66.3%, and the videoconferencing system has become the industry information of China. An important means of communication and transmission; according to the forecast of CCS, in the next three years, China's video conference system will grow at a compound annual average growth rate of 26.1%.

The status quo of domestic private network video communication market Video communications industry as a branch of the information technology industry (commonly known as the IT industry), including private network video communications and public network video communications two major sub-sectors. Among them, private network video communication is an important part of the industry informatization construction. It refers to the use of computer communication, video and audio encoding and decoding, network transmission and control, video communication middleware, information security, automatic control and other information and communication technologies. The special communication network (usually abbreviated as "special network") for customers in specific industries such as government, public security, national defense, transportation, and energy, etc., can meet the requirements of video communication applications that meet the industry's differentiated requirements. The private network video communication system can usually realize multiple functions including real-time video and audio interaction, multi-mode image transmission, emergency command and dispatch, massive video information storage and retrieval, and intelligent image networking analysis. It is a user-specific business implementation, command scheduling, and organization management in specific industries. The important support and management platform.

Currently, private network video communication is another hot spot for private network users following voice and data communication. It has begun to be widely accepted by users of the government, public security, defense, transportation, energy, and finance networks. The requirements for personalization and refinement of video communication services of such users are much higher than those of public network video communication users. The requirements on the security, reliability, confidentiality, and stability of video communication systems are also more stringent. This requires that private network video communication system providers must combine individual network users' own operations management, command and dispatch and operation control features to provide personalized integrated video communication solutions, and through routine maintenance, technical support, system upgrades, etc. Continuous service to ensure the safe and stable operation of the system.

1. Characteristics of Domestic Private Network Video Communication Industry The major suppliers in China's private network video communication industry can be divided into two categories: general product providers and integrated solution providers2. The status of domestic private network video communication market In recent years, China's private network video communication industry has maintained a rapid growth trend. The statistical data of CCS statistics show that since 2004, the annual average compound growth rate of the private network video communication has reached 21.72%, and in 2008 it has reached 3.857 billion yuan. From the perspective of market segments, the government and public security are the two largest ones. In the segment market, the proportion of the total market size in the overall market scale has increased year by year, and has increased from 38.1% in 2004 to 45.3% in 2008. The market concentration (CR5) of the government, public security, national defense, energy, and transportation applications reached 78.3%. This shows that the private network video communication industry has a high degree of industry application concentration and the development trend of the domestic private network video communication market. Outlook 1. The development of private network video communications and national strategies are highly compatible with public safety as the cornerstone of national security and social stability. Although China's public safety information industry has undergone rapid development since its reform and opening up, it has begun to take shape. However, compared with the country’s huge and ever-increasing demand for public safety, China’s public security information industry’s technology research and development and product development are still significant. Lagged behind, a relatively complete national public safety information technology support system has not yet been formed, which is far from meeting the country’s huge demand for public safety information technology and equipment.

Based on the importance of public safety for national security and social stability, the Party Central Committee and the State Council attach great importance to the independent innovation of public safety information technology and rank it as one of the important measures for fully implementing the scientific development concept and building a harmonious society. Public safety was first included as an independent field in the Outline of the National Medium and Long-Term Scientific and Technological Development Plan, the National Economic and Social Development Plan for the Eleventh Five-Year Plan and the National Science and Technology Development Plan for the Eleventh Five-Year Plan, etc. National major planning. National public safety emergency information platform (integrated emergency decision-making command platform for early monitoring of national public security, rapid warning and efficient disposal), prevention and rapid handling of public events, and monitoring and defense of major natural disasters have become the current public safety information construction. Priority theme. As an important part of public security informationization, private network video communications will develop rapidly over a long period of time. This will undoubtedly bring immense potential for development in related fields and related industries.

2. Further rapid development of e-government In recent years, local governments have adopted technological innovations to promote institutional innovation, which has led to rapid development in the e-government informatization construction, which has increasingly promoted government management and service functions and promoted the construction of a harmonious society. At the same time, video communication has gradually evolved from simple audio-video interactions to include comprehensive applications such as emergency command, administrative meetings, institutional management, public services, business training, performance assessment, job debriefing, digital storage, and mass retrieval. An important part of the government construction project.

The report of the “17th National Congress of the Communist Party of China” clearly states “implementing e-government, strengthening social management and public services”; Premier Wen Jiabao of the State Council highlighted the need to accelerate the construction of e-government and promote the administrative system at the national e-government work conference convened in June 2006. Reforms to improve government work efficiency and public service levels, and create conditions for the public to participate in economic and social activities. In 2009, to further promote government e-government construction projects, the National Development and Reform Commission and the Ministry of Finance jointly issued the “About accelerating the development of the national e-government external network. In the notice of work, the notice emphasized the need to speed up the construction of the national e-government network so as to promote the use of national government affairs extranets to carry out various types of administrative applications. With the deepening of government e-government construction, the video communication system as an important part of it will be more widely used in the government industry.

3. The application field and market scale continue to expand With the rapid development of video communication applications, the reserves of various video and audio information within private network users such as national defense, transportation, and energy resources have increased dramatically. Applications based on text and graphics can no longer meet the needs of users. . The unified management and integration of content resources such as text, pictures, video, audio, etc., and the construction and improvement of comprehensive video communication systems have become an inevitable choice for the above-mentioned industry informatization construction, and promote the private network video communication system. The application areas and market size continue to expand.

In the field of national defense, special network video communication applications have become the frontier areas for the development of national defense informatization. A series of sophisticated video communication technologies have been born and applied in the field of national defense. For example, the U.S. Department of Defense has deployed a new type of video communication system for drones deployed in the world to enable it to have real-time video communication capabilities. China is also developing and developing similar video communication technologies and products. Therefore, only private network video communication companies with independent innovation capabilities and at the forefront of technology have the ability to provide specialized network video communication systems and solutions in the field of defense.

In the transportation industry, public security and traffic video networking systems are gradually integrated. With the rapid growth of the population and high-density flows, as well as the establishment and improvement of a three-dimensional transport system for water, land and air, various emergencies are bound to emerge in the transportation sector. Therefore, emergency safety management is extremely important. With the gradual maturation of the application of video communications in the public security industry, the portability of intelligent image networking systems in the transportation industry has become increasingly apparent. The increasing frequency of interactions between public security and traffic management also makes the Intelligent Image Networking System currently provided by DeeVideo The promotion prospects of the transportation industry are increasingly clear.

In the energy industry, especially the power industry, the private network video communication and the power industry business operation management system are further closely integrated. The demand for the power network video communication application is gradually extending from simple audio and video conference interaction to collaborative office, power grid monitoring, and remote video. Comprehensive video communication applications integrating monitoring, emergency communications and many other complex applications. The continuous enhancement of the convergence of video applications and business operations has brought good development opportunities to manufacturers that can meet the demands of complex video communication applications for private network customers, including DVN.

4. Special network customers are increasingly inclined to purchase domestic brands. In recent years, domestic companies have gradually achieved a number of technological breakthroughs in the main basic technology fields of video communications, and all kinds of products with independent intellectual property rights have been innovative. Domestic video communication systems and foreign similar products are The cost-effective advantages have become increasingly prominent. This has objectively laid a good technical foundation and product foundation for the group's breakthrough in the domestic private video communications industry.

At the same time, the country has successively introduced a series of supportive policies to support domestic private network video communications companies with independent innovation capabilities and outstanding market positions to become bigger and stronger. With the continuous accumulation of practical experience of domestic manufacturers, continuous improvement of technology, and continuous improvement in service quality and quality, the dominant position of domestic leading companies in this field will continue to be consolidated and improved.

On the whole, according to CCS forecast, in the next five years, the domestic private network video communication market will continue to grow at an average annual rate of 25%, and by 2013 it will reach an overall market scale of nearly RMB 12 billion. The private network video communication industry is The industry with first-mover advantage is obvious, and a large number of industry experiences and mature industry solutions are one of the decisive factors for integrated solution providers to obtain customer trust. Customers in the government, public security and other fields have high requirements for integrated solution providers. Successful application cases, achievement accumulation, and brand awareness of the industry are important reference indicators for users when bidding, and new solution providers are lack of mature solutions. Industry application cases and brand accumulation make it difficult to qualify for bids. On the other hand, private network video communication application customers also tend to choose long-term partnerships based on considerations of system reliability, information confidentiality, and service timeliness. Product quality is stable and the service network responds promptly to suppliers.

With the increasingly obvious competitive advantages of private network video communication solution providers and the specialization, refinement and individualization of the application of video communications in the public security and government departments in the future, a small number of leading integrated network video communication solutions providers rely on a wealth of With industry application experience, strong custom development capabilities, and market-first-mover advantages, its market share will gradually expand, which will have an adverse impact on the profit margins and profit levels of the industry.

Conclusion In summary, whether it is considering the policy background or the development trend of industry and technology, the domestic private video communication industry will usher in a period of great development in the coming period.