36氪：中国物联网产业报告（英文版）_36页__14mb

Kr8 Quarterly Report Summary - 2019 Q1: The Internet of Things in the China Market

Core Content

Kr8, a boutique consulting team under 36Kr, provides insights into the technological developments and trends of the Internet of Things (IoT) in China. The report outlines the evolution of IoT, its mechanisms, applications, and the role of government and industry players in shaping its growth.

Main Points

• IoT Overview:

  • The IoT connects devices, humans, and computers, enabling data collection and analysis to drive AIoT and machine learning.
  • It has evolved through three generations: consumer-focused (IoT 1.0), enterprise-focused (IoT 2.0), and a network of interconnected stakeholders (IoT 3.0).
  • The IoT is expected to be a key driver of the Fourth Industrial Revolution.

• IoT Mechanisms:

  • IoT relies on components like microcontrollers, sensors, chips, and memory.
  • Key technologies include M2M connectivity, WSN, and cloud platforms for real-time data processing.
  • IoT SoC integrates essential computing units and is crucial for IoT applications.

• IoT in China:

  • China is a leading market for IoT chips and components, with a high number of connected devices and significant investment in the sector.
  • By 2025, China's connected devices are expected to exceed 5.38 billion, with the IoT market size projected to surpass 1.8 trillion RMB.

• Government Initiatives:

  • "Sensing China" (2009): Launched the IoT movement in China.
  • Z-Park Internet of Things Industry Alliance (2015): Aims to build IoT ecosystems.
  • NB-IoT and 5G: The government has supported NB-IoT for infrastructure development and is driving 5G deployment for future IoT applications.
  • Semiconductor Sovereignty: China seeks to reduce reliance on imported chips, aiming for 40% domestic production by 2020 and 70% by 2025.

• IoT Startups:

  • IoT startups in China are concentrated in Guangdong, Beijing, Shanghai, Jiangsu, and Zhejiang.
  • In 2018, IoT startups raised 21.2 billion RMB, with significant investment in B2B and hardware sectors.
  • Notable investment: G7 Networks raised $320 million in 2018.

• IoT Impact on China's GDP:

  • The manufacturing sector is expected to contribute $196 billion to China's GDP over the next 15 years through IoT integration.
  • The overall impact of IIoT is estimated to exceed $736 billion.

• Challenges in the IoT Sector:

  • China still imports over 90% of its semiconductors, leading to a trade deficit.
  • There is a shortage of talent and expertise in semiconductor manufacturing.
  • While NB-IoT is cost-effective, 5G deployment is slow due to high infrastructure costs.

• Connectivity Technologies:

  • Cellular Connectivity: High cost and power consumption, suitable for high-speed applications.
  • Unlicensed Connectivity: Includes Wi-Fi, Bluetooth, Zigbee, and ZWave. Low cost but limited range and interference-prone.
  • LPWAN Technology: Includes NB-IoT and LTE-M. Offers low cost, long battery life, and wide coverage, ideal for smart city, agriculture, and metering applications.

• 5G and Edge Computing:

  • 5G is expected to revolutionize IoT by enabling low latency, high bandwidth, and massive connectivity.
  • Edge computing complements 5G by processing data closer to the source, improving efficiency and reducing latency.
  • 5G will not replace existing technologies like Wi-Fi, but will shift business models in the telecom industry.

Key Information

• Global IoT Growth: By 2020, global connected devices are expected to exceed 30 billion, generating $1.46 trillion in value.
• China's IoT Leadership: China is projected to have over 5.38 billion connected devices by 2025.
• Semiconductor Strategy: China aims to increase domestic chip production to 40% by 2020 and 70% by 2025.
• IoT Startups: 2018 saw 156 IoT deals in China, with 751 startups in Guangdong being the most concentrated.
• 5G Deployment: Expected to begin gradually from 2020, with NB-IoT already providing cost-effective solutions for IoT applications.

Conclusion

The IoT is poised to become a cornerstone of China's technological and economic growth. With strong government support, rapid development of NB-IoT, and strategic focus on semiconductor sovereignty, China is well-positioned to lead the global IoT market. However, challenges such as reliance on imported semiconductors and talent shortages remain. The integration of 5G and edge computing will further enhance IoT capabilities and create new business opportunities across industries.