In the security industry, product development varies significantly across different R&D levels. Each level has its own characteristics, advantages, and challenges.
At the chip-level, companies develop core components that support product modules and systems. This stage requires significant investment, long development cycles, and high technical expertise. However, it also offers control over critical technologies. Unfortunately, in the domestic security industry, chip-level R&D is still weak. Most of the advanced chip technology is concentrated in a few foreign firms. Domestic companies often lack both core technological capabilities and skilled R&D personnel, which limits their ability to innovate at this level. For many system integration companies with limited R&D resources, developing chips from scratch is nearly impossible.
Moving up to module-level R&D, this involves creating standardized components that can be used across various products. These modules are designed for general use and help speed up product development. For embedded systems, combining hardware modules with software platforms increases efficiency and accelerates time-to-market. However, module-level R&D demands strong R&D capabilities and financial resources. In China’s security industry, very few companies have the capacity to conduct such R&D independently. As a result, most rely on foreign suppliers from Japan, South Korea, Europe, and the U.S. for key hardware components. Due to this gap in core technology, many domestic manufacturers remain dependent on external sources, leaving a significant void in critical areas of development.
At the product level, R&D can take two forms: independent product development or solution-based product development. Independent products are standalone solutions that users can operate on their own. On the other hand, combined products integrate multiple functions into a comprehensive system. Currently, most security product development focuses on portfolio products and system-level solutions. In the early days of the industry, due to low entry barriers and limited R&D capabilities, most companies focused on individual products rather than building full product lines. However, some leading manufacturers have since expanded, developing multiple core products. In recent years, as security companies have grown stronger and the demand for integrated solutions has increased, more manufacturers have started to build modular product lines, offering a wide range of security solutions.
Finally, at the system level, R&D centers around providing comprehensive system solutions. The core of this approach is the development of a flexible software platform that supports various industry applications. For domestic system integrators, the software platform is a key area of focus and a major competitive advantage. Many companies have developed their own platforms and can tailor them to meet specific industry needs. With the growth of large-scale network monitoring systems and the increasing demand for integrated solutions, more manufacturing and system integration companies are shifting toward becoming solution providers. The security software platform has become a central element in project competitions, highlighting its strategic importance in today's market.
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