What We Can Learn From China About IoT

A Hive Of IoT Activity

I saw first-hand how the growth of IoT permeates almost every business segment and public system, not only manufacturing and industrial sectors but also transportation, city services (including pollution reduction), healthcare, retail, agriculture and more.

Bike-sharing services, such as Ofo or Mobile, which allow consumers to find and pay for bike rentals with mobile phone apps, have taken off like wildfire. I saw these multicolored, IoT-enabled bikes everywhere, parked wherever the last user left them.

In Beijing, I used Didi Chuxing, a ride-hailing company that acquired Uber China in 2016. When I clicked Didi’s app, it automatically translated questions and answers back and forth between myself and the nearest driver, who found me in his electric vehicle (EV) within 30 seconds.

Didi exemplifies many new companies that are rapidly expanding and diversifying their IoT services. In addition to smart ride-sharing, Didi operates one of the world’s largest EV fleets and is emerging as an “autonomous superpower.” It’s just one of many businesses here venturing into EV and autonomous vehicles and infrastructure. Maybe I’ll hail a driverless vehicle during my next visit.

Whether at my hotel or public places, wireless communications networks linked to city services seemed ubiquitous in Beijing. ABI Research reports other major cities (Dalian, Hangzhou, Nanjing, Tianjin) are also leveraging these networks to accelerate smart city services, including energy, transportation, public safety, lighting, sustainability and more.

Drivers Of China’s IoT Ambition

Of course, the Chinese government has promulgated IoTsince 2010 when it set an ambitious market target of 163 billion U.S. dollars by 2020. However, with 20% annual growth the past few years, the China Economic Information Service now thinks the Chinese IoT market could reach more than 230 billion US dollars by 2020.

Today, government policies provide preferred tax breaks to IoT manufacturers, and the Special Fund requires public entities to have an IoT initiative. To lead autonomous transportation and other IoT solutions, China is proactively recruiting experts in artificial intelligence (AI), data science and other cutting-edge domains from major tech companies in the United States and elsewhere.

Many think of Chinese companies in the context of how they compete with Western technology providers. However, the China market itself is extremely dynamic and highly competitive, and not just among the major players; packs of aggressive startups are pushing hard to unseat current leaders, especially around IoT and AI. Today, IoT startup hubs are popping up country-wide, and Chinese entrepreneurs are taking more risks. They no longer feel stigmatized if their venture fails. In fact, rock star technologists who launched their careers in Silicon Valley are moving back to China to pursue new opportunities. Now, when you visit Shenzhen — their “hardware Silicon Valley,” you see a multitude of thriving IoT companies with global aspirations.