By Kareyst Lin
Sept. 8, 2016
China's manufacturing enterprises' spending on the Internet of Things (IoT) is expected to reach US$127.5 billion by 2020, with a compound average growth rate of 14.7 percent during from 2016 to 2020.
In the process, software and services will lead the way for the fast growth of IoT spending in the manufacturing industry, with a combined market share of over 60 percent. This is according to IDC China's China Manufacturing IoT Market Forecast, 2016-2020.
IoT, which has been enshrined in China's 13th Five-Year Development Plan, has become a strategic emerging industry in the country.
Made in China 2025 is the first 10-year action plan for the Chinese government to implement its strategy of building China into a manufacturing powerhouse. The main development direction is the development of smart manufacturing, raising the level of networked collaborative manufacturing and speeding up the manufacturing industry's transformation into services.
IoT applications in China are continuously expanding in both breadth and depth. IDC forecasts that IoT in China's manufacturing industry will show three major development trends in the next two years:
IoT platform competition will intensify
As more enterprises deploy IoT applications, manufacturing IoT platforms will be one of the main directions for the change and development of smart manufacturing.
In the hardware management field, IoT platforms are mainly used for production equipment connection management. In the software field, they mainly include enterprise application management platforms, and enterprise information display and reporting platforms.
IoT applications will accelerate innovation in the manufacturing industry
Manufacturing IoT applications enable low-cost sensing, high-efficiency data collection, real-time data recording, distributed computing and advanced data analysis. This will speed up the in-depth integration between IT and the manufacturing industry.
In addition, continuous breakthroughs in machine learning technology will promote faster and more accurate data analysis in the manufacturing industry.
Edge computing will become the next hotspot
With the large-scale deployment of IoT solutions, IoT-generated data will grow exponentially. Thus, data filtering and processing through scattered devices and IoT gateways will be an important direction for IoT applications in the manufacturing industry. Data is also an important asset for enterprises.
Edge intelligence will ensure data security and help enterprises to avoid risks when there are network or data center malfunction.