This is an overview of the report "Growing From Big to Strong: A Pragmatic Assessment of Industry 4.0 Challenges and Opportunities in China", collaboratively published by IoT ONE and STM Stieler.
The total market for industrial IoT solutions in China grew by 82 percent between 2010 and 2015. This equates to an average compound annual growth of 12.7 percent, which compared favorability to the compound annual growth of 10.7 percent of China’s GDP.
Industrial Automation in China
China is the world’s largest Machine-to-Machine (M2M) market by number of cellular connections with almost a third of the global base. GSMA forecasts that connections will grow by 29% annually to 336 million in 2020.
Adoption of industrial automation technologies forms an essential parts of the government’s “Made in China 2025” and “Internet Plus” strategies. China is at an automation level from which other Asian countries automatized rapidly. Japan automated rapidly in the 1980s, followed by South Korea and Taiwan in the 1990s.
China has now become the largest market in key industrial automation categories. The question is however, where exactly China is currently in terms of industrial progression? Is it a strategic move for IoT vendors to prioritise their Industry 4.0 technologies for this industrial giant?
Figure: Industrial Progression in China, by Use Case and Enabling Technologies
Major Challenges for Industrial IoT in China
After understanding the industrial progress in China, what else could be the potential roadblock for industrial stakeholders to promote the adoption of industrial IoT technologies?
Some of the major issues identified for China's Industrial IoT market includes:
• Shortage of qualified system integrators
• Customers demand substantial knowledge transfer and relationship development
• Intense competition from home and abroad
• Manufacturers are adjusting to slower growth
This report explains how these challenges are slowing down the industrial IoT adoption in China and provides strategic solutions to address above-mentioned issues.
The full report includes:
• Impact of Industrial IoT on China's economic outlook
• Analysis of Industrial Automation market growth 2010-16
• Industrial progress & readiness framework
• Identification of Chinese industry clusters by market share
• Key challenges & strategies for Industrial IoT in China Market
• Predictions for the Chinese Industrial Automation market in the next 3 years