China is global leader in deployment of the Internet of Things, finds new GSMA report

July 14, 2015

Report

GSMA

Rapid Market Growth, Government Investment, Operator Industry Partnerships and Adoption of Common Specifications Helping to Drive Internet of Things (IoT) to Scale

Shanghai: At Mobile World Congress Shanghai, the GSMA today issued a new report highlighting China’s leadership in the worldwide machine-to-machine (M2M) market. According to the report, “How China Is Scaling the IoT, China is the world’s largest M2M market with 74 million M2M connections and has now become the global leader in the deployment of the Internet of Things (IoT).* The in-depth report includes insights from the country’s major mobile operators China Mobile, China Telecom and China Unicom, as well as leading industry experts, and cites the combination of a strong economy, far-sighted government investment and international cross-sector partnerships as key factors in enabling the IoT to quickly reach scale.

“Clearly, China’s size offers economies of scale unavailable to other countries, but it’s been the government’s focused strategy, emphasis on common specifications and cross-sector collaboration that has allowed the Internet of Things to scale, delivering positive benefits to businesses and consumer alike,” commented Alex Sinclair, Chief Technology Officer, GSMA. “Connectivity is boosting major industries such as logistics, manufacturing and energy in terms of increased efficiency, but it has also created a new consumer market in areas such as connected vehicles, home appliances and wearables, putting China at the forefront of IoT deployment.”

Connected Consumers
Backed by government support, sectors such as transportation, energy, logistics, utilities and manufacturing have all benefited from the real-time information provided by mobile connectivity to increase efficiency, lower costs and manage infrastructure. However, the consumer market has also experienced incredible growth, with millions of Chinese consumers now owning multiple connected devices and experiencing the IoT in their daily lives. The wearables market in particular is a hotbed of innovation, with thousands of products available at accessible prices, including smartwatches, tracking devices and fitness bands with built-in connectivity. The connected car market is also growing apace, driven by the increasing availability of 4G network coverage which is providing a range of in-car services such as entertainment, navigation, safety and vehicle diagnostics. Machina Research forecasts that the number of connected devices, such as vehicle platforms, providing services within the connected car sector will increase from 16 million in 2015 to 67.9 million in 2020 and to 130 million by 2024, giving China the largest growth in the connected car market after Russia in the BRIC countries.

Positive Government Support
China has benefited from proactive government support in the development of the IoT with funding allocated as part of the country’s 12th Five-Year Development Plans and additional funding made available for research and development. China has also led in the development of standards, establishing an IoT standards association and promoting Chinese-developed standards internationally. Adoption of essential industry specifications and guidelines, such as the GSMA Embedded SIM Specification and the IoT Device Connection Efficiency Guidelines, will enable further growth and scale.** The central government has also selected 202 cities, including Beijing, Guangzhou, Hangzhou and Shanghai, to pilot smart city projects to collect, store and analyse information related to transportation, electricity, public safety and environmental factors.

Operator Partnerships
The report highlights that China’s leading mobile operators, China Mobile, China Telecom and China Unicom, are at the vanguard in the development of the IoT and are moving from a business-to-business focus to offering more sophisticated consumer-oriented propositions via partnerships with other companies such as automotive makers and wearables companies. They are also forging both domestic and international partnerships with vendors and manufacturers to bring the benefits of connectivity to a wide range of machines, vehicles and devices. Beyond the supply of ubiquitous, high-performance connectivity, operators are working to standardise platforms, simplify business processes and provide value-added services such as security, authentication and billing.

The GSMA Innovation City at Mobile World Congress Shanghai
The GSMA Innovation City at Mobile World Congress Shanghai offers visitors the opportunity to explore a real-life city environment packed with intelligent mobile-connected products and services that demonstrate how mobile technology is positively impacting the personal and professional lives of citizens around the globe. The GSMA Innovation City features interactive demonstrations from partners including Huawei, KT Corporation, Peel, Pittasoft, Oral-B, Qualcomm Incorporated, Thinfilm and Visa, as well as from the GSMA’s key industry programmes including Connected Living, Digital Commerce, Personal Data and Network 2020. The GSMA Innovation City is located in Hall 4 (West 4 B130 and E130) and will be open during Mobile World Congress Shanghai exhibition hours from 15-17July.  For more information, visit www.mwcshanghai.com/innovation-city-experience-centre/.

Download ‘How China Is Scaling the IoT’

中国物联网规模化发展之路

Back

LPWA: Enabling Extreme Wildlife Tracking To protect threatened species, conservationists need to fully understand their behaviour and which habitats are key to their survival. To that end, Vodafone is working with the ...

Read more | See all Resources

The importance of Embedded SIM certification to scale the Internet of Things As a provider of connected devices why should you care about test and certification of Embedded SIM? Because it enables your devices to reach market faster since they do not need...

Read more | See all Resources

Mobile Privacy and Big Data Analytics Big data analytics can have a significant impact on societal aims such as the UN Sustainable Development Goals and has the potential to deliver more effective health outcomes, be...

Read more | See all Resources

Securing the Port of the Future Led by the University of Seville, the Port Authority of Seville, and Telefónica, the Tecnoport 2025 project uses Internet of Things (IoT) solutions to improve the efficiency of ...

Read more | See all Resources

Webinar: Experts Discuss Telco IoT Big Data Initiatives The Internet of Things is generating a huge amount of data that is currently retained in vertical silos. However, a true IoT is dependent on the availability and confluence of ri...

Read more | See all Resources

Video: Importance of Interoperability in Digital Health Revealed in Industry Web Digital health solutions can increase quality, reduce cost, and extend reach of healthcare. They can empower individuals to manage their own health more proactively and effective...

Read more | See all Resources

‘Mobile IoT: A Network which has been made for Battery, Speed and Cost’ – This year, the Internet of Things will make one of its biggest advances. As the Mobile IoT (licensed LPWA solutions) launches in Korea, Spain, the UK, the US and countless other ...

Read more | See all Industry News

Towards the Autonomous City: All you Need to know About Smart Cities During MWC The simple and easy retrofitting of IoT solutions is enabling cities to develop according to their needs and concealing the rapid pace of change that is happening before us What...

Read more | See all Industry News

‘Internet of the Seas’ marks new wave of eco-friendly IoT solutions on show Such is the rapid development of the Internet of Things that new milestones seem to be as quickly reached as they are surpassed. However, with the standardisation and commercial ...

Read more | See all Industry News

GSMA Announces Winners of Mobile IoT Innovators Showcase Awards The GSMA’s Connected Living programme today announced the winners of ‘The Mobile IoT Innovators Showcase’ competition at the GSMA Global Mobile IoT Summit, held at the Hesp...

Read more | See all Industry News

Mobile IoT Takes Off with Multiple Global Launches Planned in 2017 The availability of commercial Low Power, Wide Area (LPWA) solutions is set to dominate the agenda at the GSMA Global Mobile IoT Summit, held today at the Hesperia Tower Hotel in...

Read more | See all Industry News

Smart Traffic: a Key Step Towards Smart Cities Cities are getting smarter every day, but generally in incremental fashion, such that the pace of change is barely perceived. With rapid uptake of connected vehicles now plainly ...

Read more | See all Industry News

Mobile World Congress Shanghai June 28, 2017 The Internet of Things will be central to Mobile World Congress Shanghai  – Asia’s biggest mobile event. Bringing together the global mobile industry’s ...

Read more | See all Connected Living Events

Contact GSMA Legal Email Preference Centre Copyright © 2017 GSMA. GSM and the GSM Logo are registered and owned by the GSMA.