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EURASIA DEVELOPMENT LTD.
Industrial Internet of Things (IIoT) in China
January 6, 2019
According to the latest research and forecasts, by 2025 there will be almost 14 billion Industrial Internet of Things (IIoT) connections worldwide, with one-third of them located in China.

The study is based on analytical data from the Ministry of Industry and Information Technology of China, China Securities, CITIC Bank and other authoritative sources, including major mobile operators in the Far Eastern region such as China Mobile, China Telecom, China Unicom, Asia Pacific Telecom Group and Taiwan Mobile.

The findings provide detailed information on how artificial intelligence (AI), data analytics and ultra-high-speed internet connectivity will revolutionize the industrial sector in the Far Eastern region.

New and emerging technologies in this field will fundamentally change the way we live by intelligently connecting virtually all electronic devices, making the cities we live in smarter and our lives easier.

China places particular emphasis on the ability of IIoT to improve efficiency and increase productivity through the introduction of internet-connected automated processes into manufacturing. The fact that this plan is fully supported by the Chinese government and its substantial resources is a major reason to expect China to dominate this sector in the near future.
StrategyChina’s intention to actively invest in IIoT was outlined in the Made in China 2025 strategic document, which is designed to stimulate innovation in manufacturing and transform the country into a major industrial powerhouse over the following decade.

The strategy was launched alongside an internet infrastructure vision called the Internet Plus Action Plan, which proposed significantly expanding the integration of Big Data, cloud computing, mobile internet and IoT into the existing manufacturing network.

Role of Mobile OperatorsMobile operators in China will play a key role in the country’s technological transformation, as they will be required to provide reliable, intelligent and secure connectivity to enterprises across the country.
They will also be actively involved in the development of IIoT technologies in this sector, providing vital support to industry, government and municipal organizations.

Conclusions
Eurasia Development Ltd. conducted its own research into China’s IIoT market and prepared an infographic.

China’s Industrial Internet of Things market is developing rapidly. Over the next couple of years, it will account for almost one-quarter of the country’s entire IoT market.

By the end of 2019, the size of China’s IIoT market will reach RMB 380 billion (USD 56 billion), with an average annual growth rate of 14%.

IIoT technology solutions are being adopted most actively in aerospace manufacturing, electrical equipment, oil and gas, automotive and heavy industries, healthcare and other sectors.

GE, Amazon, Microsoft, Intel and Siemens offer a wide range of services in the Chinese market, while local companies such as Alibaba, Tencent, Haier and others are developing their own solutions and increasing their business volumes.

We consider China’s IIoT market to be one of the most promising in the world and believe that it offers major opportunities for Russian companies and developers to enter and operate in this market.

China is currently experiencing a serious shortage of talent and technology solutions that can be integrated from abroad. The current situation is favorable for Russian players, but local specifics must be taken into account and risks should be minimized when operating in the market.

If you need more information or have any questions, please contact us.
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