IoT in China: Key market research findings
- Adoption of IoT in the manufacturing sector drives market growth
- Growth of semiconductor industry to trigger increased demand for wearable IoT devices
- Key vendors – Huawei, Datang, ZTE, Putian, Lenovo, Founder, Haier, Tsinghua Tongfang, Foxconn, Tech-Com, and Xiaomi
Technavio’s market research analysts predict the IoT market in China to grow at a CAGR of almost 18% between 2016 and 2020. The market growth is driven by the increased adoption of the Internet of things (IoT) in the manufacturing sector. The integration of IoT in the manufacturing industry enables optimization of the production process, improved effectiveness and customer experience, and offers new sources of revenue. The vital role played the manufacturing sector in China’s economy is encouraging many organizations to adopt smart manufacturing techniques, subsequently boosting the IoT market in the country. Factors such as the strong support from the government in the adoption of IoT, growing role of Chinese mobile operators in IoT, and the significant growth of the RFID market supporting IoT are some of the factors that are likely to propel growth in the market during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the IoT segments based on end-user.
“The expansion of the semiconductor industry is an ongoing trend in the market. The development of the IoT in the automotive and industrial markets is triggering an upsurge in the demand for semiconductors. The growth of the semiconductor industry is on rise that is in line with the increasing demand for wearable IoT devices. The revenue of the semiconductor industry will increase by wearable categories such as healthcare monitoring and human-computer interfaces,” Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
Currently, the manufacturing sector occupies almost 35% of the overall market space to dominate the IoT market in China. IoT technologies help ensure the safety and improve workers’ health in production units. Several manufacturing units are now providing workers with a wearable device that alerts the worker on entering a hazardous area. However, this segment of the market is expected to undergo a decline due to the establishment of manufacturing units outside China by domestic and international firms because of rising labor costs in the country.
The key vendors in the market include Huawei, Datang, ZTE, Putian, Lenovo, Founder, Haier, Tsinghua Tongfang, Foxconn, Tech-Com, and Xiaomi. The IOT market in China is characterized by the presence of several multinational and small regional IoT companies providing various products and services, which makes this market appear highly fragmented. The market will witness the entry of many new vendors in the coming years which will further intensify the level of competition.
A more detailed analysis is available in the Technavio report, IoT Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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