Viewpoint

1. The products of the network security market in China have been activated in 2000, reaching a total sales volume of 710 million Yuan.

2. The mainstream merchandise in the network security market are still the firewall and anti-virus software, while other products, such as those of security certification, information ciphering, and invasion detection are still at a trial marketing stage.

3. The competition on products, technology and service has been made an important strategy for long-term development by the manufacturers of network security products.

4. The management of the computer networks and information security in China is getting increasingly standardized and systemized.

5. The prospects with the market of products for firewall, virus  clearance, information ciphering, invasion detection and security certification are estimated to be quite substantial in 2001.

6. The enterprises of network security aimed at a long-term    development are required to take on a direction of specialization on a huge scale through the consolidation of capital and technological advantages.

I. Overview of the market environment for network security software in China – 2000

1. Economical environment

a. Global economic environment

b. Domestic economic environment

2. Industrial environment

a. International industry environment

b. Domestic industry environment

3. Technology condition

4. Policy

5. Financial environment

II. Total volume and structure network security software market in China – 2000

1. Total volume and augmentation.

2. Structure of the product market

3. Structure of the regional market

4. Structure of the business application market

5. Structure of the personal consumption market

Chapter Highlights

The network security product market in China has reached a total sales volume of 710 million Yuan, increasing 58% over that of 1999, as the domestic market of network security products in China has been activated. This chapter also analyses the product market, regional market and business application market of network security software.

III. Analysis of supply and demand in the network security software market in China – 2000

1. Analysis of supply and demand

a. Total volume of demand

b. Chief factors deciding the total volume of demand

c. Structure of demand

2. Analysis of supply

a. Total volume of supply

b. Chief factors deciding the total volume of supply

c. Structure of supply

3. Peculiarities of supply and demand

a. Peculiarities of demand

b. Peculiarities of supply

Chapter Highlights

Networks have become important in state infrastructure as the Internet grows rapidly in China. Simultaneously, the problem of network security is deemed a matter of great concern. From a perspective of domestic market, the mainstream technology for the network security is still focused on firewalls, virus clearance, information ciphering, invasion detection and security certification, etc., and the demand for these products is also on an active upward slope. Meanwhile, more providers of the products other than the anti-virus software for single computer sets are getting into this market, making a relatively mature product line for the network security.

IV. Outlook on the competition in the network security software market in China – 2000

1. Competition in products

2. Competition in technology

3. Competition in pricing

4. Competition in channels

5. Competition in service

Chapter Highlights

The expansion of product line, and the provision of integral solutions of network security as well as entailed service, have now become important strategies for the long-term development of network security providers. No longer limited to after service, the service in network security is consistently provided right from the pre-advising, assessment of security risks and direct service in the security projects to training, follow-up technology support and upgrading or updating of the products. The customers choose to purchase products in security principally based on the judgment of product quality, service gratification, brand credibility and company credit. Competition in the technology power will play a vital role in determining the fortune of an enterprise in the future. The providers also take the competition in brand and pricing as major strategies.

V. Peculiarities of the network security software market in China – 2000

1. Macro-management

2. Products

3. Changes in price

4. Promotions

Chapter Highlights

The management of the computer networks and information security in China got increasingly standardized and systemized in 2000. The mainstream merchandise in the network security market are still the firewall and anti-virus software, while other products such as those of security certification, information ciphering, and invasion detection are still at a trial stage marketing. Generally speaking, the price of the firewall and anti-virus software is lowering steadily, but the software products of invasion detection and security certification, which are at their infancy in the market, are still priced at quite a high level. The providers are working towards the expansion of domestic market shares through promotions and alliance.

VI. Analysis of the chief factors that influence the network security software market in China during the period of 2001 through 2003

1. Influence of the structure of users’ demand on the development of market

2. Influence of the technological development of products on the market

3. Influence of the trend of channel development on the market growth

4. Influence of the macro-economical trend on the development of market

Chapter Highlights

The demand for network security software would be greatly increased by the growth of Internet and e-business, projects that put governments online, and the proceeding of business informatization as well as the possession of more family computers. However, changes in the structure of users also will be necessary. Judged from the influence of channel growth on the market of network security software, anti-virus software and firewall would the products more vulnerable to the condition of sales channels, and comparatively, other products, such as information ciphering, invasion detection and security certification would be aloof from that condition.

VII. Basic growing trends in the network security software market in China during the period of 2001 through 2003

Chapter Highlights

Reviewing the demands in products of network security brought upon by the Internet economy, it could be said that the prospects with the market of products for firewall, virus clearance, information ciphering, invasion detection and security certification are quite good. The software of firewall and hi-end virus killing would cover a chief portion of the market, and shares of other products would also increase.

VIII. Quantitative prediction on the network security software market in China during the period of 2001 through 2003

IX. Research on the expansion strategies for the network security software market in China during the period of 2001 through 2003

1. Suppliers

2. Users

3. Governments

Chapter Highlights

The providers of network security products are encouraged to get onboard by the welcome trend of macro-economy, free policy environment of governments, fashion of online business, projects for putting governments and enterprises online, and the construction of information infrastructure. Under such a background, the businesses should take on a direction of specialization on a huge scale through the consolidation of capital and technology advantage achieved by cooperation, public offering and many other means, in order to accomplish a sustainable growth.

Data

Figure 1   growth of the sales volume of network security software

Data Source: CCID

Figure 2   statistics of the products by 45 network security software providers

Data Source: CCID