Edited by CICC Securities: "AI+ Security: AI helps the Security Industry widen the Boundary"
CICC Securities pointed out that security is the fastest landing industry of artificial intelligence. In the past year, with the gradual deepening of AI, the boundary of the security industry has been constantly broadened. at the same time, in addition to the traditional security company Haikangwei, the business soup and deep lessons in the field of AI, BABA and Huawei in the field of cloud computing have made use of their respective advantages to cut into the security industry chain.
According to data from Zhongan, China's video surveillance market was about 196 billion yuan in 2017. From the perspective of application scenarios, video surveillance accounts for more than 50%. From the perspective of customer structure, it mainly comes from government, transportation, finance, energy and other large enterprises, small and medium-sized enterprises, and home security market. Among them, the government's safe city and smart transportation account for the largest proportion, with a total of more than 30%.
CICC Securities believes that since 2016, with the breakthrough of artificial intelligence technology in the field of video analysis, the video surveillance industry is in the development of high definition and network. With the gradual deepening of AI, what is presented to people is no longer the original video data, but the result of video analysis by AI according to the perceived video data. The traditional security industry is evolving to a broad video surveillance industry, there are the following changes: 1, downstream customers are expanding from the government to large enterprises, small and medium-sized enterprises and individuals; 2, the business model from product sales to solution sales and then to integrated video services; 3, the ability to deal with video from simple video perception to decision-making after video content processing and analysis.
With the improvement of the definition of the front-end camera and the increase of the shooting distance, the amount of data returned is also getting larger and larger. The cloud analysis of all the data back will encounter problems such as network transmission pressure, real-time requirements can not be met, accuracy reduction and so on. The edge computing solution of "cloud + edge" injects AI computing power into the edge, improves the response speed of AI servers, and greatly reduces network operating costs. Under the trend of cloud edge combination, the front-end smart chip ushered in a greater opportunity. By adding artificial intelligence chip to the webcam, the front-end camera can process the video data structurally in real time.
During the landing of AI in the security industry, there have been two types of participants: one is the traditional security industry giants such as Haikang, Dahua and Yushi, who have a deep understanding of the industry and customers for many years; the other is AI computer vision algorithm companies such as Shang Tang and Xia Shang, AI chip startups such as Yantian Lifei, Deep Learning Technology and Cambrian, and cloud computing companies such as BABA and Huawei. They make use of their respective advantages to cut into the subdivision of the security industry chain and use their leading software and hardware technology to empower the security intelligence. We believe that the two types of companies have their own advantages, and cooperation must outweigh competition in the future, giving full play to their respective advantages in the industrial chain.
According to the profit forecast and valuation, China International Capital Corporation is optimistic about Haikang Weiwei, Dahua shares benefit from security intelligence.
For more wonderful content, please mark: the past period of the rich way research election.