Major companies in the industry: Dafu Technology (300134), Montnets Group (002123), *** Jinjin Holdings (603118), Shenghong Technology (300476), Runhe Software (300339), Leon Technology (300603)
The core data of this article: China’s Internet of Things market size, China’s Internet of Things regional competition
Industry Overview
1. Definition
The so-called "Internet of
Things, IOT", also known as the sensor network, refers to the integration of various information sensing devices, such as radio frequency identification (RFID) devices, infrared sensors , global positioning systems, laser scanners and other devices are connected to the Internet and form a network that can achieve intelligent identification and management.
The early Internet of Things refers to the logistics network relying on radio frequency identification technology. With the development of technology and applications, the connotation of the Internet of Things has undergone major changes. At this stage, the Internet of Things refers to the deployment of various information sensing devices with certain sensing capabilities, computing capabilities and execution capabilities in entities in the physical world, and realizes information transmission, collaboration and processing through network facilities, thereby achieving wide-area or large-scale The interconnection of information exchange needs between people and things, and things and things. The Internet of Things relies on a variety of information acquisition technologies, including sensors, radio frequency identification (RFID), QR codes, multimedia collection technologies, etc. Several key links of the Internet of Things can be summarized as "sensing, transmission, and processing".
2. Industry chain analysis: ***There are four major levels
The so-called industry chain is a value chain formed by the industry in which companies that produce the same or similar products gather together. It is an interconnected industry that undertakes different value creation functions. Focusing on the core industry, through the control of information flow, logistics, and capital flow, it purchases raw materials, makes intermediate products and final products, and delivers products to consumers through sales networks. A functional chain structure model composed of suppliers, manufacturers, distributors, retailers, and end users is formed during the process in hand.
From the perspective of the industrial chain, the industrial chain of the Internet of Things can be divided into four levels from top to bottom: perception layer, transmission layer, platform layer and application layer.
Since the Sino-U.S. trade friction in 2018, the United States has increased restrictions on China’s high-tech exports and continuously expanded its entity list, which has affected the development of some technology-led enterprises in China. This has warned China from the side. Vulnerability of position in global supply chains. The Internet of Things connects the physical world with the digital world through sensors, realizes ubiquitous connections between things and things, and things and people, and realizes intelligent perception, identification and management of objects and processes. Sensors, as the source of data collection, have become the source of data required for various application capabilities. At present, some key sensor chip manufacturers have emerged in China, such as AutoNavi Infrared, Xirenma, Silan Microelectronics, Minxin Microelectronics, Broadcom, Quanzhi Technology, Datang Microelectronics, Fudan Microelectronics, etc.
Industry development history: in the market verification period
The Internet of Things is based on information sensing equipment such as radio frequency identification (RFID), infrared sensors, global positioning systems, and laser scanners. An agreed-upon protocol connects any object to the Internet for information exchange
and communication to achieve intelligent identification, positioning, tracking, monitoring and management. The development of the Internet of Things has a long history and can be divided into three stages:
Industry policy background: vigorous policy promotion
Since the "13th Five-Year Plan", the country has attached great importance to the construction of the Internet of Things industry and the Internet of Things The results have been applied and multiple policies and opinions have been issued to promote the development of the Internet of Things industry. Among the industry policies released since the "Thirteenth Five-Year Plan", the main focus is to promote the application of IoT results, use IoT technology to strengthen information exchange, and improve supervision and management levels.
According to the newly released "The Fourteenth Five-Year Plan for the National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035", during the "14th Five-Year Plan" period, it is clear that new infrastructure , but also to increase the 5G user penetration rate to 56.
Moreover, the planning and development of the Internet of Things was mentioned five times. In addition to delineating the seven key industries of the digital economy, the other four mentioned occasions all reflected the focus on the development of the Internet of Things.
The 14th Five-Year Plan has designated 7 key industries of the digital economy, including cloud computing, big data, Internet of Things, industrial Internet, blockchain, artificial intelligence, virtual reality and augmented reality. These 7 Large industries will also assume the important task of having the added value of the core industries of the digital economy account for more than 10% of GDP.
Development status
1. The number of IoT connections in China is growing rapidly
The global IoT still maintains rapid growth. The field of Internet of Things still has huge room for development. According to the "The mobile economy
2020 (2020 Mobile Economy)" report released by the GSMA, the total number of global Internet of Things connections reached 12 billion in 2019, and it is expected to In 2025, the total number of global IoT connections will reach 24.6 billion, with a compound annual growth rate of 13. The number of IoT connections in my country accounts for as high as 30% in the world. In 2019, the number of IoT connections in my country was 3.63 billion. According to data from the World Internet of Things Conference in September 2021, by the end of 2020, the number of Internet of Things in my country has reached 4.53 billion, and it is expected to exceed 8 billion in 2025.
2. The application layer and platform layer have the highest value
From the value distribution of the industry chain, the application layer and platform layer contribute the largest added value, accounting for about 35% respectively, and the transmission connection layer Although important, the output value is small; the underlying sensing layer components have a large industrial value due to their wide variety, accounting for about 20%.
3. The transmission layer accounts for the highest proportion in the transmission layer industrial structure
According to the "2019-2021 China Internet of Things Market Forecast and Outlook Data" released by CCID, the transmission layer of the Internet of Things The layer still occupies the largest share; as the implementation of large-scale local IoT policies is gradually completed, the growth rate of the support layer slows down; and with the release of market demand in various fields, the market growth rate of the platform layer and application layer will continue to rise. trend.
4. China’s Internet of Things market size exceeds 2.5 trillion
At present, the Internet of Things has been relatively maturely used in security monitoring, smart transportation, smart grids, smart logistics, etc. In recent years, with the vigorous promotion and support of local governments, the Internet of Things industry has gradually grown. Coupled with the popularization of the concept of the Internet of Things by manufacturers in recent years, the public's awareness of the Internet of Things continues to increase, making the overall size of my country's Internet of Things market show a rapid upward trend. In 2019, the size of my country's IoT market was about 1.76 trillion yuan. In 2020, according to data released by CCID, the size of my country's IoT market will reach about 2.14 trillion yuan. It is expected that in the next three years, the size of China's IoT market will remain Growth rate above 18. China's Internet of Things market has huge investment prospects and is developing rapidly. Its application in various industries continues to deepen, which will give rise to a large number of new technologies, new products, new applications, and new models.
Industry competition pattern
1. Regional competition: Beijing has the most Internet of Things related projects
As of the end of May 2021, the Ministry of Industry and Information Technology has announced 2 batches of "Things of Things" "Public List of Internet Key Technology and Platform Innovation, Integrated Innovation and Integrated Application Projects", a forward-looking analysis of the two batches of project lists shows that currently China's Internet of Things key technology and platform innovation, integrated innovation and integrated application projects are mainly concentrated in Beijing , Zhejiang, Guangdong and Shandong, the number of projects are 39, 24, 22 and 20 respectively.
2. Enterprise competition: focusing on competition among leading enterprises
The "2021 China Internet of Things Enterprise Development Index Report" was released on October 29, 2021. The report is based on dynamics Assess the development status of companies in the IoT industry chain from a different perspective, analyze multi-dimensional capabilities such as corporate influence, financial support, R&D technical capabilities, and development results, analyze the achievements and challenges of Chinese IoT companies, and summarize Chinese IoT companies development situation and the competitive strength of market participants, trying to discover outstanding enterprise groups with strong business strength, good growth potential and high competition barriers in the Internet of Things industry.
According to the "2021 China Internet of Things Enterprise Development Index Report", the list of my country's most leading Internet of Things companies in 2021 is as follows:
Analysis of Development Prospects and Trends of the Internet of Things Industry
1. The proportion of the Industrial Internet of Things is gradually increasing
According to the "2020 China Internet of Things White Paper" released by the Academy of Information and Communications Technology in December 2020, the Industrial Internet of Things and the consumer market each accounted for half of the number of Internet of Things connections in China in 2019 , it is estimated that by 2025, most of the growth in the number of IoT connections will come from the industrial market, and the number of industrial IoT connections will account for 61% of the total. From this point of view, the future market development potential of the industrial Internet of Things is greater than that of the consumer Internet of Things.
2. The market scale continues to increase
At present, the Internet of Things is showing a rapid development trend around the world. Europe, the United States, Japan, South Korea and other countries have regarded the Internet of Things as an important strategic emerging industry. However, behind the prosperity there are still many factors hindering development. Among them, the lack of core standards, especially the basic standards such as the IoT reference architecture as a top-level design, are still blank. Based on the competition for dominance in the IoT industry, competition among countries in international standards is becoming increasingly fierce.
The COVID-19 epidemic is like the Sword of Damocles to the Internet of Things industry. On the one hand, the epidemic has caused a certain period of stagnation in the global technology supply chain. On the other hand, the epidemic has boosted the penetration of China's Internet of Things. The outbreak of "contactless economy" such as unmanned factories, unmanned distribution, unmanned retail, remote teaching, and telemedicine in 2020 are all inseparable from the support of IoT technology. Based on comprehensive analysis of various aspects, Qianzhan believes that the development of China's Internet of Things will maintain rapid growth in the next five years, and the market size will exceed 6 trillion yuan by 2026.
The above data refers to the "China Internet of Things Industry Market Segment Demand and Investment Opportunities Analysis Report" by the Qianzhan Industry Research Institute.