On July 22, on the first anniversary of the launch of the Science and Technology Innovation Board, Qi Anxin Technology Group Co., Ltd. (hereinafter referred to as “Qianxin”), a leading enterprise in the domestic network security industry, was officially listed for trading.
At present, there are 9 network security companies that have been accepted, inquired, registered and listed on the Science and Technology Innovation Board. Behind the listing of Qi Anxin, which leads the industry with an operating income of 3.154 billion yuan, what opportunities are revealed in the rapidly expanding Chinese network security market?
Network security is related to national security and has become a basic project
“A network attack in the Internet of Things era is equivalent to an attack on the physical world.” With the rapid development of information technology, when Electronic chips can be implanted in the human brain, vehicles, water, electricity and heat can be controlled through the network. Chairman Qi Xiangdong’s judgment on network security is not alarmist.
In recent years, many countries have experienced paralysis of government departments or enterprises due to cyberattacks, and cyberattacks have also occurred frequently.
According to a report released by the National Internet Emergency Response Center, in 2019, the number of phishing email attacks on government agencies in my country reached more than 500,000, with an average of 46,000 per month; the FBI received 460,000 attacks from enterprises and individuals in 2019. Cyber attack report.
At the same time, new infrastructure in 2020 was written into the government report. Qi Xiangdong said: “With the development of new infrastructure such as 5G networks, Internet of Things, big data, artificial intelligence, industrial Internet, and smart cities, network security has changed from an auxiliary project to a basic project.” Once attacked by a network, it may affect production, life, social operation, and even social stability.
Cybersecurity is related to national security, and the cybersecurity challenges faced by the country are unprecedented. Network attackers have changed from scattered, unfixed, and unorganized criminals’ pure profit-making behavior to organized, national-level comprehensive interests with specific goals, and the demand for network security has exploded.
Faced with this situation, cybersecurity companies have strengthened their R&D efforts, and R&D capabilities have become an important competitiveness of cybersecurity vendors. According to a research report by Essence Securities on 9 cybersecurity companies on the Science and Technology Innovation Board, the median ratio of R&D expenditures to operating income of 9 companies in 2019 was 21.67%, of which Qi Anxin accounted for the highest proportion, reaching 33.20%.
New scenarios bring new demands and call for new security
Song Yu, vice president of CCID Consulting, believes that the digital economy has brought about changes in production, life, and social relations, brought global security issues, and spawned new security application scenarios.
Smart medical care, online education, telecommuting, live delivery of goods… The rapid growth of new digital formats has shown new momentum for China’s economic growth. The “2019 Digital Economy Report” released by the United Nations Conference on Trade and Development pointed out that the digital economy represented by the Internet is leading the trend of economic development.
The occurrence of the new crown pneumonia has accelerated the digital development of these industries, and has also deepened the digital application scenarios. Qi Xiangdong said that the outbreak of the epidemic has caused many people to work from home, which has opened up the internal network that was originally isolated in the office building to the Internet and mobile Internet.
“This leads to huge security risks.” Qi Xiangdong said that the traditional fence-type security protection idea cannot cope with more open and diverse scenarios. Once a network attack occurs, it will cause huge losses.
There is no doubt that when new scenarios call for new security, the development opportunities for cybersecurity companies become greater.
The research report “Top Ten Directions with the Most Valuable Growth Potential for Cybersecurity in 2019” released by CCID Consulting shows that the number of Chinese cybersecurity enterprises has shown a double-digit growth every year in the past five years, and the market aggregation degree has begun to rise. It is worth noting that in addition to the government, telecommunications and financial institutions, the investment in cybersecurity in manufacturing, energy, education, transportation, logistics and other industries is growing rapidly, and overseas markets are also rising.
In ten years, it has expanded to nine times, and the industry is coming
In July, the “2020 Legislative Work Plan of the State Council” included the “Regulations on the Security Protection of Critical Information Infrastructure” into the legislative plan, and the “Data Security Law of the People’s Republic of China (Draft)” also launched public comments. With the introduction of a series of laws, regulations and policies for the security protection of critical information infrastructure, a huge incremental market for network security has emerged in the fields of energy, finance, transportation, and water conservancy.
While the country is constantly improving the top-level design of network security, government departments and large and medium-sized enterprises are increasingly aware of the importance of ensuring their own network security. For these enterprises, the quick solution to the highly professional problem of network security is to purchase services from professional security service providers.
“We can see from the market that the importance of actual combat and people has been gradually recognized by government enterprises and other institutions.” Qi Xiangdong said, “Almost all users, the software and hardware purchased for informatization construction are from IT suppliers, whether there are loopholes It is difficult to control it yourself. Therefore, professional security service providers like us are needed to help users solve security problems. When there is a network attack, it must be able to alert, block, repair, and trace the source.”
IDC, CCID, Institute of Information and Communications Technology and other institutions predict that the average growth rate of my country’s network security market in the next ten years will be at least 25%. If the growth rate develops for five years, the size of my country’s network security market in 2025 will be 3.7 times that of 2019, exceeding 200 billion yuan. According to this growth rate for ten years, the market size in 2029 will be 9 times that of 2019. more than 500 billion yuan.
“Expanding to 9 times in 10 years is undoubtedly a huge outlet.” Qi Xiangdong said. (Finish)
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