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[reprint the CEIS]

According to the analysis of Annual Report, since 2016, the global IoT technology and application have been unprecedentedly active, and tides of innovation, application and integration has sprung up. The Chinese IoT has initially established systematic competitive advantages and is entering into the new stage of “key breakthroughs, systemic innovation, cross-border integration and coordinated development”.

The Annual Report believed that, the development of IoT presents some new features and trends:

Firstly, the global IoT technology and application have been unprecedentedly active and they are accelerating entering into an Internet era of everything. America, Europe, Japan, Korea and other developed countries continue to strengthen IoT strategy deployment with constantly rich application scenarios. Multinational companies separately accelerate constructing of ecological layout, and their industry scale continues to expand. In 2016, Chinese market size of IoT exceeded 900 billion yuan, whose year-on-year growth exceeded 20% for consecutive years. It is expected that in 2020, the industry scale of Chinese IoT will exceed 1.5 trillion yuan.

Secondly, “The 13th Five-Year plan” of Chinese IoT has been formed and NB-IOT construction becomes a national strategy. The IoT Fascicule of the Development Plan of Information Communication Industry (in 2016-2020 year), issued at the beginning of this year, becomes the guidance document of Chinese IoT development in the next five years. China will accelerate the deployment of mobile IoT and construct NB-IoT network infrastructure. By the end of 2017, china will cover NB-IoT network over main cities like municipalities directly under the Central Government, provincial cities and so on. The amount of base station will reach 0.4 million.

Thirdly, the accelerated integration of IoT and new technologies will separately promote iterative upgrading of technologies and overall optimization of industrial ecology. Since 2016, the Chinese IoT accelerated the integration with cloud computing, big data, artificial intelligence, 5G, communication network of low power consumption and wide area, and other new technologies, featured by integrated innovation, and iterative upgrading. The industrial ecology of Chinese IoT has been comprehensively optimized. The heat of platform and application field’s subdivision has been enhanced. The application value of IoT is accepted, thus, all kinds of applications are being pushed forward “continuously”.

Fourthly, the open-sourcing and creative ecosphere of IoT is gradually being formed, and key listed enterprises have a steady growth of profits and revenues. The Chinese IoT enterprises see platform, alliance, and open-sourcing community as the carrier to carry out cross-border and international cooperation around R&D, application, and promotion. The open-sourcing and creative ecosphere of IoT is gradually being formed.

In 2016, 36 key IOT companies involving intelligent medicine, smart home and intelligent transportation three segments listed the Chinese Shanghai and Shenzhen plate with the total revenue of 277.54 billion yuan, whose year-on-rear growth is 22.3%; and their net profits reach 16.79 billion yuan, whose year-on-rear growth is 15.1%.

Fifth, the concentration degree of Wuxi IoT further enhances, and Wuxi becomes the Chinese first prefecture-level city which is completely covered by IoT. Wuxi continues to strengthen innovative “cohesion”, improves collaborative innovation system; accelerates industrial concentration efficiency, introduces leading enterprises; focuses on people’s livelihood applications, and builds a new intelligent city. It takes the lead in building a domestic city with free WIFI, big data center and four platforms, realizing the complete coverage of NB-IoT narrowband IoT, and becoming the Chinese first prefecture level city completely covered by IoT.

The Annual Report pointed out that, at present, Chinese IOT technology application and industrial system are maturing, but there are still some problems. The basic core technologies still require breakthrough, and platform development faces great challenges. The scaled applications have many restrictions and many sections in the industry chain lack standards. Besides, security problems are becoming increasingly severe.

The Annual Report suggested that Chinese IoT industry shall focus on the basic core sections to construct creative system giving priority to enterprises; strengthen the construction of open IoT platform; support commercial use of NB-IOT; push the scaled commercial use of IoT from many dimensions; accelerate introducing standards for operating system, transport layer and other fields; and stimulate market forces to deal with safety risks in IoT era.