Review on China’s Internet of Things industry in 2011

BEIJING, CHINA: As one of China’s key emerging industries of strategic importance, the Internet of things industry consists of the support layer, the perception layer, the transfer layer, the platform layer and the application layer, mainly applied in fields like intelligent industry, intelligent logistics, and intelligent transportation.

In 2011, the output value of China's IoT industry exceeded RMB260 billion, wherein the support layer, the perception layer, the transfer layer, the platform layer and the application layer respectively contributed 2.7 percent, 22 percent, 33.1 percent, 37.5 percent and 4.7 percent. The perception layer and transport layer, involving the largest number of vendors, boasted the most intensive competition in the IoT industry.

In 2011, the major application fields of IoT were intelligent industry, intelligent logistics, intelligent transportation, smart grid, intelligent medical treatment, intelligent agriculture and intelligent environmental protection.

Currently, China's IoT industry has formed four clusters in the Bohai Rim Area, the Yangtze River Delta, the Pearl River Delta and the Midwest Region.

Recently, the following new trends have emerged in China's IoT industry:

First, resources will continue to gather in well-developed areas: the strong will get stronger. The existing clusters in the Yangtze River Delta, Bohai Rim Area and the Pearl River Delta will continue to boast intensively-located enterprises, multiple research and development institutions and a sound industrial atmosphere.

Second, hotspot areas are emerging constantly: the landscape of China’s IoT industry will see an expansion. With a wide coverage and its close combination with applications, China’s IoT industry will enjoy further development in a broader area. Besides key provinces and cities mentioned above, cities like Tianjin, Kunming and Ningbo will also focus on the development of the IoT industry.

Third, regional division of labor will become clearer: vertical and horizontal cooperation will take shape in China’s IoT industry. On the whole, regions with solid industrial foundations will focus on their advantaged areas including the support layer, the perception layer, the transfer layer and platform layer, while tier-2 and tier-3 cities are more likely to focus on the development of the application layer in different areas.