Study on the Digitalization of China’s Metallurgical Industry

Eurasia Development Group: China’s industrial internet market in the metallurgical sector reached USD 11.2 billion in 2023, while 80% of leading companies are adopting 5G and Big Data to improve operational efficiency.

Digitalization is becoming increasingly critical for the metallurgical sector amid intensifying competition, the need to reduce costs, and the accelerated adoption of innovation. Industrial internet, Big Data and artificial intelligence technologies are helping optimize production processes, improve product quality and reduce environmental impact.

The study provides a comprehensive assessment of the digital maturity of Chinese metallurgical enterprises, examines cases involving key technologies — from 5G to digital twins — and evaluates their impact and potential relevance for Russian companies.

Key Findings

• China’s industrial internet market in the metallurgical sector was estimated at USD 11.2 billion in 2023.
• 79.6% of enterprises have implemented Big Data pilot projects, 78.7% use IT systems, and 57.1% use IIoT in operational management.
• More than 80% of leading enterprises have 5G coverage, while digital twin and AI projects remain largely at the experimental stage among small and medium-sized enterprises.

Market Drivers
Rising raw material and energy costs, together with increasingly stringent requirements for sustainable production, are accelerating the adoption of digital technologies in metallurgy. Government support for IoT projects and smart factory initiatives is further speeding up the industry’s transformation.

What This Means for Russian Players

• Opportunities to cooperate with Chinese IoT vendors and integrate proven digitalization practices at Russian metallurgical plants.
• Development of joint Big Data and AI projects for quality forecasting and energy consumption optimization.

Expert Comment
“China’s progress in digital metallurgy demonstrates both the integration of advanced technologies and a readiness to scale them, creating unique opportunities for Russian companies to adopt this experience and apply it at their own production sites,” says Andrey Prokhorovich, Founder of Eurasia Development Group.