By 2019, the number of connected devices across the world is expected to reach around 20 billion. As the number of devices increases, it becomes increasingly difficult to manage, monitor, and maintain them.
Thus, the demand for M2M and M2H communication increases as it helps end-users simplify the management and maintenance of connected devices. This need is expected to lead to the increased adoption of the Internet of Things (IoT) in China.
The IoT Market in China was valued at US$26.00 billion in 2014 and is expected to grow at a CAGR of 32.15 percent through to 2019.
Internet in China is in Huge Demand
China is the fastest growing market for the IoT in the APAC region. The IoT market in China is expected to witness rapid growth because of improved internet penetration. As more organizations use web-based technologies, it creates new markets for products and services. The Internet market in China is consumer-driven rather than enterprise-driven.
IPv6 Helping Advance China’s Internet Availability
Until the introduction of IPv6, IPv4 was used to provide unique identity numbers to interconnected devices in the IoT networks. The IPv4 system limited network connectivity to 4.3 billion devices, which was not sufficient for the growing number of IoT-connected devices.
IPv6 has the capacity to handle 3.4 x 10^38 unique IP addresses, and also helps machines that do not need LAN access to directly connect to the internet. This facilitates better management of devices, and hence encourages end-users to adopt the IoT.
12th Five Year Plan for IoT in China
In 2012, the Ministry of Industry and IT in China released the 12th Five Year Plan with the aim of expanding the value of the IoT industry in China to US$163 billion (technologies and solutions) by 2020.
Government Regulations to Promote IoT in China
- February 2012: MIIT and UHF issues 12th Five Year Plan giving due importance to the IoT
- March 2012: SAC and NDRC form National IoT standards promotion group
- May 2012: Central government approves the 12th Five Year Plan for national strategic emerging industries where the IoT is considered as an important task
- May 2012: NDRC announces its plans to organize and implement the IoT
- August 2012: MIIT issues the development plan for the Wuxi sensor network to increase financial support to the IoT industry
- February 2013: The central government mandates the state council to promote development of the IoT
