According to experts, the IoT market share in China varies from 22% to 64% in the global IoT market. The market size of IoT in China is estimated to range from $56.4 billion in 2017 to $1.7 trillion in 2020 with a projected annual growth rate of 12% to 30% until 2025.
China is the largest IoT market in the world due to its huge population, fast digitalization, strong government support, and leading position in the manufacturing and telecom industries. China also invested heavily in developing new technologies such as 5G, AI, and big data with an essential IoT ecosystem.
The important IoT market overview in China are:-
- The IoT market in China is considerably growing faster than GDP with a projected annual growth until 2020 between 20% to 30%.
- The rapid growth of 5G telecom technology and data analytics is marking China’s dominance in the global IoT market.
- IoT is the largest industry in China in 2023 is expected to be discrete manufacturing ($18 billion), hybrid manufacturing ($9 billion), and automotive ($6 billion).
- The adopted IoT use cases in China are condition-based maintenance of equipment, quality control using traditional machine vision, and industrial automation based on process control.
- China with several national vertical plans is promoting IoT development in sectors such as energy, manufacturing, smart city, agriculture, healthcare, and transportation.
- A vibrant IoT ecosystem in China with many vendors providing various products and services such as China Mobile, Quectel, and Huawei Technologies.
However, the China market is not without its IoT challenges. The market is flourishing and highly demanding in the world but it is not without its limitations.
The challenges in the IoT market are:-
- A reliable factory in the IoT devices manufacturing unit is finding its many low-quality or fraudulent suppliers.
- The language barrier between Chinese and foreign IoT companies is as much as only 10 million people in China that can speak fluently English.
- IoT devices from China are costly and time-consuming to ship to other countries, affecting delivery time and customer satisfaction.
- Cybersecurity risks from malicious attacks, data breaches, or espionage, as the IoT devices and networks that are vulnerable to hacking or interference.
- Regulatory uncertainty and lack of interoperability standards, are different in countries with many different rules and requirements for IoT devices and services.
- Geopolitical tensions and trade disputes in some countries may restrict or ban the use of Chinese IoT products or services due to security or political concerns.
Examples of IoT devices in China are:-
- Xiaomi smart devices such as smartphones, smart watches, smart speakers, smart cameras, smart air purifiers, smart routers, and smart home kits.
- IoT products and solutions from Huawei such as NB-IoT modules, 5G CPEs, OceanConnect IoT platform, eLTE-IoT network, and IoT applications for various industries.
- Quectel IoT modules and solutions, such as cellular modules, GNSS modules, LPWA modules, 5G modules, and IoT platforms for various verticals.
- Mokosmart IoT devices and solutions, such as trackers, smart sensors, smart plugs, smart locks, smart bracelets, and OEM/ODM services.
- Eelink IoT devices and solutions such as GPS trackers, NB-IoT trackers, 4G trackers, OBD trackers, and fleet management systems.
- Some of the innovative IoT application examples in China are such as the lights-out factory by Foxconn uses machines, robots, and AVGs connected to a private 4G wireless network.
IoT startups examples in China are working on various aspects of IoT technology such as devices, platforms, solutions, and applications:-
- Ayla Networks:- An IoT cloud platform for manufacturers offering end-to-end IoT solutions, device management, data analytics, and a mobile IoT design kit for developers.
- Mokosmart:- An IoT device and solution provider specializing in trackers, smart sensors, smart plugs, smart locks, smart bracelets, and OEM/ODM services.
- Eelink:- An IoT device and solution provider focusing on GPS trackers, NB-IoT trackers, 4G trackers, OBD trackers, and fleet management systems.
- WM Motor:- A developer of AI-enabled electric cars. The company is involved in developing various models of electric cars with features such as intelligent voice control, facial recognition, and remote diagnosis.
- SenseTime:- An AI company providing computer vision and deep learning solutions for various industries such as security, education, healthcare, and entertainment.