China’s Gamble on Industrial IoT

SHENZHEN — China is betting big on the Industrial Internet of Things (IIoT).

The Chinese government projects the country’s Industrial Internet of Things to grow to 450 billion RMB (about $65 billion) by 2020 – occupying roughly one quarter of China’s whole IoT market. The IIoT segment in China has maintained a growth rate of more than 25%. 

(Source: China's Ministry of Industry and Information Technology)
Click here for larger image

(Source: China's Ministry of Industry and Information Technology) 

At present, Chinese enterprises whose status can be described as Industrial 3.0 know they need a lot of improvements, especially in cost control, production efficiency and process management.

Nevertherless, the Chinese government is pushing hard the development of IIoT in China.

In the context of encouraging energy conservation and green environmental protection, China has fostered a process of manufacturing upgrades in recent years. Based on the IoT “Sensing China” proposition in 2009, China’s Ministry of Industry and Information issued in 2012 the “Internet of things 12th Five-Year Development Plan.” China’s Premier Li Keqiang signed the China version of “Industry 4.0” in 2015, with a goal to extend it to “Made in China 2025.”

The proposal of “Made in China 2025” integrates the digitization of information technology and manufacturing technology into the process and combines them with intelligent manufacturing, laying groundwork for future development. In the next 10 years, the goal is to transform China from “a manufacturing big house” to “a manufacturing super house.”

China's IIoT industrial chain consists mainly of component suppliers (such as sensors, RFID, chips, etc.), system integrators, internet operators (data transmission) and service platform providers.

Efforts to lay out China's IIoT are still embryonic. Still, thanks to the IIoT application environment and a concentrated demand for apps, China’s IIoT sector is growing faster than that of consumer IoT applications. For the moment, the big winners from this trend are component manufacturers and system integrators. As the industry grows, demand for services will increase and network operators and service platform providers will look for bigger profits, potentially turning them into a major power behind the IIoT market.

One of the clear indicators of IIoT in China can be illustrated in the growth of manufacturing equipment for numerical controls (NC). Such equipment is more widely used by large-scale enterprises. The NC market for manufacturing equipment is expected to increase 3.3% annually during China’s “13th Five-Years.”

(Source:China Industrial Information Network)
Click here for larger image

(Source:China Industrial Information Network) 

IIoT comes in various forms in China, including intelligent production processes, massive customization, cloud manufacturing platforms, collaborative manufacturing and collaborative innovation platforms, B2B industry e-commerce and intelligent product development tools.

To read the rest of this article, visit EBN sister site EETimes

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