China manufacturing IoT market set to hit $127.5bn by 2020, says IDC
A recently released report titled “China Manufacturing IoT Market Forecast, 2016-2020” by IDC forecasts the Chinese manufacturing enterprises’ IoT expenditure to reach $127.5 billion (approximately RMB848.3 billion) at a compound average growth rate (CAGR) of 14.7% by 2020.
The report expects software and services to push fast growth on IoT spending in manufacturing industry in the next three to five years, with a combined market share of over 60%. Thanks to the policy and financial backing from the Chinese government, the development of smart manufacturing, raising the level of networks, collaborative manufacturing and speeding up the manufacturing industry’s transformation into services, have become the main development direction for the manufacturing industry.
Moreover, the country’s government has also adopted IoT in its 13th five year development plan.
According to IDC forecasts, IoT in China’s manufacturing industry will show the following three major development trends in the next two years:
- Strong competition: IDC believes that there will be a strong competition with the rise of IoT in manufacturing platforms, as it will change and develop smart manufacturing as more and more enterprises are deploying IoT applications. The future platforms is said to come from the hardware and software fields.
- Accelerate innovation in manufacturing: IoT applications are said to expedite the in-depth integration between IT and the manufacturing industry and innovate enterprises’ R&D, production, operation, marketing and management. Additionally, continuous breakthroughs in machine learning technology are also expected to promote faster and more accurate data analysis in the manufacturing industry.
- Rise in edge Intelligence: IoT-generated data is said to see an exponential growth with the large-scale deployment of IoT devices. This will result into data filtering and processing through scattered devices and IoT gateways will become an important direction for IoT applications in the manufacturing industry. Data will gradually become an important asset for enterprises in the meantime. Edge intelligence is said to safeguard data security and help enterprises to avoid risks when there are network or data centre malfunction.
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