At the 8th China Internet of Things Industry and Smart City Development Conference held on December 20, Li Wei, Deputy Director of the High Technology Division at the Ministry of Industry and Information Technology, highlighted that the government is actively working to establish key technical standards in the IoT sector and promoting industrial applications. He mentioned that the "IoT Comprehensive Standardization Guide" is expected to be released soon, marking a significant step forward in the country's IoT development strategy.
The early stages of the IoT industry have shown promising growth. Experts believe that IoT has the potential to revolutionize future technologies. According to McKinsey, by 2020, the adoption of IoT could generate up to $1.9 trillion in productivity gains and reduce production costs by $177 billion, impacting the global economy by nearly 6%.
Li Wei also noted that China’s IoT industry has now formed a complete system, encompassing chips, components, equipment, software, system integration, operations, and application services. The industry has achieved a scale exceeding 930 billion yuan, with an average annual compound growth rate of 25%. The number of M2M connections has surpassed 100 million, signaling strong momentum in the sector.
Currently, China has developed a clustered pattern across four key regions: the Bohai Sea, Yangtze River Delta, Pearl River Delta, and central and western areas. The construction of IoT demonstration bases in Wuxi, Chongqing, Hangzhou, and Fuzhou has seen initial success, with plans for additional bases in the future.
Wu Hejun, an academician of the Chinese Academy of Engineering, emphasized that while the overall IoT platform in China is still in its early stages, the industrial IoT is considered the most critical area for application. He pointed out that although McKinsey predicts industrial IoT will account for about 70% of IoT applications globally, China’s industrial IoT is still in its infancy.
According to the Ministry of Industry and Information Technology’s “13th Five-Year Plan†goals, by 2020, China aims to build an IoT industry system with international competitiveness. The total industry scale, including perception manufacturing, network communication, and intelligent information services, is expected to exceed 1.5 trillion yuan, with over 1.7 billion M2M connections.
Despite the progress, challenges remain. Li Wei pointed out that core capabilities such as chips, sensors, and operating systems are still weak in China. For example, the import ratio of mid-to-high-end sensors reaches 80%, and the percentage of imported sensor chips is as high as 90%. Multinational companies hold a significant share of the MEMS sensor market in China, around 60%. Additionally, there is a lack of synergy between different parts of the industry chain.
Security remains a major concern. Qi Hexuan, an academician of the Chinese Academy of Engineering, warned that industrial networks are often connected online, and even if not directly linked to external networks, they can still be infected due to poor management. He cited the 2017 ransomware attack that affected many internal networks as a case in point. He stressed that stronger security measures are essential to prevent potential disasters in the industrial IoT space.
Standardization issues also hinder progress. Li Wei pointed out that there is a lack of interoperability standards for IoT devices, such as sensor interfaces, communication protocols, and management agreements. He noted that many organizations currently lack sufficient authority to set these standards.
Looking ahead, Li Wei said that the government will focus on expanding IoT applications by integrating them with manufacturing and deepening their role in smart cities. This includes using IoT in urban management, energy conservation, transportation, and other sectors.
Yin Hao, an academician of the Chinese Academy of Sciences, described IoT as the nerve endings of a smart city. He explained that IoT, big data, cloud computing, and artificial intelligence form the four key technological pillars supporting smart cities. Through IoT, large amounts of data can be collected, enabling precise urban operations and enhancing city management.
Fibre Optic Cable Joint Box,Outdoor Fiber Splice Box,Optical Fiber Cable Joint Box,Fusion Splice Box
Ningbo Fengwei Communication Technology Co., Ltd , https://www.fengweicommunication.com