Houlong Security Industry Research Institute Releases 2026 China Cybersecurity Industry Map

The Houlong Security Industry Research Institute has published its comprehensive 2026 Network Security Industry Map following months of research that collected over 400 valid responses from leading Chinese cybersecurity firms. The report documents a structural market shift driven by AI-enabled attacks moving from theory to real-world operations, including automated phishing, deepfake fraud, and dual ransomware-extortion models targeting APIs and supply chains. On the defense side, it highlights the rapid adoption of AI for real-time threat detection, large-scale zero-trust deployments, privacy-preserving computation, and preparations for quantum-safe migration. The study notes that vendors integrating AI capabilities are outperforming peers in customer retention and pricing power while the industry moves away from broad product suites toward specialized, scenario-focused solutions. Overall, the map identifies three irreversible trends: AI becoming mandatory in security products, competition favoring depth over breadth, and sustained growth fueled by digital transformation and geopolitical factors.

嘶吼Translated from Chinese

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The Houlong Security Industry Research Institute has officially released the 2026 Network Security Industry Map, providing a detailed overview of China’s cybersecurity landscape based on extensive industry surveying.

In March 2026 the institute launched the research project to map the full spectrum of the Chinese cybersecurity market, offering guidance for enterprise procurement decisions and vendor expansion strategies. Over several months the team gathered more than 400 valid questionnaires from representative companies that form the core of the domestic industry.

The report observes that AI-driven industrialized cyberattacks have transitioned from theoretical concepts to operational reality. Large-model-powered tools now enable scalable, automated, and low-cost threat campaigns. Attackers are combining data encryption with information theft in evolving multi-extortion schemes, while APIs have emerged as a primary vector for large-scale data breaches. Supply-chain attacks continue to grow in complexity and stealth, allowing risks to propagate rapidly beyond single organizational boundaries.

On the defensive front, AI-enhanced detection and response capabilities are shifting security operations from post-incident remediation to real-time blocking. Zero-trust architectures are moving from pilot projects to widespread deployment, privacy-enhancing computation technologies are enabling secure data circulation, and preparations for quantum-resistant cryptography are accelerating.

The survey identifies a clear competitive advantage for vendors that have deeply integrated AI into their product portfolios. These companies demonstrate stronger customer retention, revenue resilience, and pricing flexibility. At the same time, the traditional “large customer, large project” model is giving way to a “small yet refined, fast and precise” paradigm in which specialized vendors focused on vertical scenarios gain increasing influence.

Three definitive trends are highlighted: AI integration into security products is now an industry consensus and irreversible; the market is moving from scale-based competition to value-based specialization; and China’s cybersecurity sector remains in a sustained growth phase driven by digital transformation, AI proliferation, and international dynamics.

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