China’s cybersecurity industry: a market analysis (Part 3).4. November 2022
China’s cybersecurity industry: a market analysis (Part 3).
The composition of the market
The Chinese cybersecurity market can be divided by the type of products offered, the type of deployment (cloud and on-premise), and the end users – banking, financial services, insurance, healthcare, manufacturing, government and defense, and IT and telecommunications.
While large enterprises do not play a major role in this market, that could soon change. It is mainly the modernization of network information technology that is overwhelming small and medium-sized enterprises, in research and also in financial resources. The trend in cybersecurity worldwide is toward an increasingly complex network environment.
Although the Chinese market is very fragmented, several major players have gradually emerged. In November 2021, Palo Alto Networks unveiled its next-generation Cloud Access Security Broker (CASB), which uses machine learning (ML) to enhance the security of collaboration and SaaS applications. The company claims that its next-generation CASB platform leverages ML and AI to provide features such as automatic application detection and enhanced data leakage protection for sensitive data.
Chaitin Future Technology Co Ltd, an Aliyun-affiliated network security solutions provider, released a new generation network security analysis and management platform in July 2021 to combat network threats in today’s world. The platform examines enterprises’ security posture and helps them unify data analysis, data processing, and standardize and automate secure operations.
ThreatBook, a Beijing-based security threat intelligence provider, announced in March 2022 that it successfully closed a funding round of over RMB 300 million (US$41.39 million). Another shareholder, Star Road Ventures, assisted CDH Investment in closing a transaction of over RMB 800 million (US$110 million). Following this round of funding, ThreatBook plans to further increase its investment in product research and development, market expansion, and helping enterprise customers modernize their security operations in China.
Innovative players and products
The following are some of the most well-known and innovative cybersecurity companies headquartered in China:
Antiy Labs: Beijing-based Antiy Labs is the inventor of the next-generation antivirus engine. A top provider offering the best antivirus engine and cutting-edge antivirus services to fight PC malware and mobile malware, with six research centers.
– Bangcle: Leading provider of security services and solutions for IoT and mobile applications.
– Beijing Zhizhangyi Science & Technology Co, Ltd: market leader in enterprise mobile security solutions. Its customer portfolio includes thousands of top companies in finance, manufacturing, government, military, aviation, education, healthcare and other high-tech sectors. The company is now expanding its security situational awareness platform to visualize Big Data and display product benefits.
– Bluedon: a major player in China’s information security market, providing one-stop information security solutions to customers across a wide range of industries, thanks to its four-in-one linkage development business model, which includes security products, security solutions, security services and security operations.
– BUGBANK: is a champion of open security and a network security brand owned by Shanghai Muler Network Technology Co, Ltd. Vulnerabilities To collect, investigate, address and track the latest Internet vulnerabilities (including zero-day exploits), BUGBANK works with international network security specialists.
– DBAPP Security, Ltd: A pioneer in cloud computing, Big Data, smart cities, mobile internet, web application security and database security.
– H3C: A market-leading digital solutions provider that aims to be its customers’ most trusted partner for business innovation and industrial modernization.
– i-Sprint: Leading provider of identity and transaction security in the digital domain, enabling people, businesses and communities to develop identity security and trust to increase productivity through digital identification and identity of things (IDoT).
– QIANXIN: An integrated company providing new generation security goods and services to the public sector and enterprises.
– Threatbook: Leading threat intelligence provider in China. Since its establishment in 2015, Threatbook has protected millions of Chinese computers with its information and services. Its customers include Fortune 500 companies and Chinese unicorns.
The rapid development of the Internet has led to changes in the global economy and technology. At the same time, cyber threats are gradually emerging, and cyber viruses pose a serious threat to national security and the cyber security of enterprises, institutions and individuals. Countries around the world attach great importance to cybersecurity as it is essential to the development of the Internet ecosystem and digital economy.
China’s IT industry is on the rise, and more and more Chinese companies are entering the international market. As a result, China’s cybersecurity industry, which is a key pillar of China’s national security strategy, is also entering a critical phase of introducing innovative products, technologies and talents.
Where China barely matters
In terms of key aspects of the market landscape for foreign players, China is relatively weak in terms of upstream chip, operating system, database, middleware and other technical foundations. In addition, investment in information security does not bring direct economic benefits to enterprises, so customers are currently mainly government agencies and telecommunications, finance, energy and other highly information-based and -sensitive industries.
At present, the chain of China’s network security industry has gradually improved, and there are enterprises providing both products and services. In addition, cybersecurity in China is gradually being prioritized in emerging application scenarios such as cloud computing, industrial Internet and the Internet of Things (IoT).
Foreign companies looking to invest in this sector can benefit from these considerations and offer services and products, especially in areas where Chinese capabilities are lagging behind.