How can the electronic fence break through the "28 odd circle"?

In the realm of security technology, one topic remains unavoidable when discussing Shanghai: its electronic fence industry leads the nation. This sector has not only taken root in the city but has also become a symbol of China's advancements in perimeter protection. However, despite its success in Shanghai, the question remains—why is it challenging to expand this technology nationwide? Through discussions with various e-fence companies, many have pointed out that electronic fences are often seen as low-tech solutions with limited market potential. While they work well in specific environments like high-security areas or residential complexes, their universal application across the country faces significant barriers. Perimeter defense has long been the first line of security, and although infrared systems still dominate the market, their popularity has declined in recent years. The challenge for Shanghai’s electronic fence industry lies in transforming its local success into a national breakthrough. This issue is not just about technology—it’s about innovation, standardization, and market adaptability. During an investigation in 2012, it was common to see electronic fences and warning signs throughout Shanghai. According to industry insiders, nearly 80% of China’s electronic fence companies are based in Shanghai, and the city holds around 85% of the national market share. This concentration has created what some call the “Shanghai phenomenon”—a situation where the industry thrives locally but struggles to expand beyond. The story of electronic fences in China began in 1999 when the French LACME Group introduced the technology to Shanghai. Since then, the city has become the birthplace of China’s electronic fence industry. From importing foreign products to developing its own, Shanghai has built a robust and competitive market. Today, more than 80 companies operate in the sector, with over 30 engaged in R&D, and 70% of them located in Shanghai. Despite this success, the industry faces challenges. While electronic fences have proven effective in high-end applications, their widespread adoption outside Shanghai remains limited. In 2007, the Shanghai Public Security Bureau issued a notice mandating the use of electronic fences in new residential communities, marking a turning point. As a result, many newer communities adopted the technology, and even older ones were retrofitted with it. According to data from 86 community samples, 18 were built after 2007 and all had electronic fences. Around 60% of pre-2007 communities also had them, while those before 2000 mostly did not. This indicates that electronic fences have become a standard in Shanghai’s residential areas. Nationally, the growth rate of electronic fence installations is around 20% annually, but most of this growth is concentrated in Shanghai, Jiangsu, and Zhejiang provinces. According to Hong Tianyu, CEO of Laikemi Qiantong Electronic Technology Co., Ltd., these three regions account for almost the entire national market. While Shanghai’s electronic fence industry has grown rapidly due to administrative support and local demand, it has struggled to break out of its regional bubble. Companies are now looking for ways to expand beyond the "28 odd circle" (a term referring to the localized nature of the market). They believe the key lies in improving self-regulation, enhancing standards, and increasing public awareness. As the industry moves forward, the challenge remains: how to turn Shanghai’s success into a national model. With continued innovation and strategic planning, the future of electronic fences in China looks promising.

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