Abstract On the basis of a measurement of the cost efficiency of twenty security firms of our country with SFA method,the authors used the panel data of 2006-2009 to test the traditional SCP hypothesis,relative market power hypothesis and efficiency structure hypothesis. The study found that the security market of our country supports traditional SCP hypothesis:market concentration is significantly positively related to security firms' performance, the relationship between market share,efficiency and security firms' performance is not significant, and efficiency and market share are irrelevant.