Skip to main content

Why the Internet of Things is Growing in China

The rapidly evolving global machine-to-machine (M2M) device market is largely characterized by cellular module shipments and connections. Moreover, some regions are clearly growing much faster than others.

The cellular connection revenue in China -- which constitutes more than one-third of the Asia-Pacific (APAC) M2M market -- is expected to grow from $642 million in 2011 to $2.76 billion in 2016.

"China’s latest economic five-year-plan has placed the Internet of Things as a key, strategic national industry initiative for the country," said Jake Saunders, vice president of forecasting at ABI Research.

Mobile network service providers have made significant progress through 2011 in terms of developing technologies, unified platforms, applications, and strategic cooperation.

China Mobile started M2M development early, positioning it as its third wave of its long-term business offerings. It has also moved into developing M2M standards and promoting economies of scale, positioning itself as an integrator with no real focus on an end-to-end solution approach.

China Unicom has launched sector-specific M2M applications such as Bank New Horizon, Ocean New Horizon, and Logistics New Horizon. In addition, China Unicom has also made inroads into the high-growth market as a telematics service provider (TSP).

China Telecom is a late-comer in the domestic M2M market and seeks to gain fast market entry by offering value-added services through their strong relationships with enterprise clients.

The cellular module market, a key measure of the M2M market currently, is facing growing commodity price pressures from China-based module vendors. Lower operating costs have played a significant part in this ongoing commoditization trend and have forced western module vendors to up their game by moving up the value chain.

In addition, the three largest Chinese module vendors are able to leverage the scale of adjacent product offerings. China's cellular module shipment is forecast to grow from 3.76 million in 2011 to an estimated 13.61 million connections in 2016 -- that's 32 percent of APAC’s forecast in 2011 and growing to 37 percent by 2016.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent