There is no real IoT enterprise industry in China

There is no real IoT enterprise industry in China

Perhaps the Internet has not been lively for a long time. The concept of "Internet of Things" came out, which caused excitement in the industry, and the capital market also caused hundreds of waves.

Wang Jianzhou, chairman of China Mobile, Wang Xiaochu, chairman of China Telecom, and Chang Xiaobing, chairman of China Unicom, have successively advocated the concept of the Internet of Things on multiple occasions, calling the "Internet of Things" the most significant technological innovation after the Internet. What's more, it will have a disruptive impact on the existing industrial structure.

Of course, these high-level executives have echoed this concept more because of the explicit policy: from the idea of ​​"perceive China" in August to the recent clear inclusion of sensor networks and the Internet of Things in the scope of emerging strategic industries, in just a few During the month, Premier Wen Jiabao of the State Council made instructions three times on the development of the Internet of Things.

Local groups responded. Wuxi, Beijing, Shanghai, Shenzhen, Chongqing, Hangzhou, Nanjing, Guangzhou and other places have begun to plan their own blueprints for the Internet of Things cities, striving to use the Internet of Things as a "tag" for cities around the world.

A disruptive industrial revolution seems to happen tomorrow, but in fact, the Internet of Things industry is still in its infancy, and standards, technologies, business models, and supporting policies are far from mature. "China's Internet of Things will emerge from 2015 to 2020." Zhao Zhuang, deputy director of the Ubiquitous and Sensor Network Research Center of the Chinese Academy of Sciences, is calm.

China grabs layout

"In the development of the sensor network, we must plan the future earlier and break through the core technology earlier", "accelerate the development of the sensor network in major national science and technology projects", "establish the Chinese sensor information center as soon as possible," "China Center of Perception", on August 7, 2009, Premier Wen Jiabao of the State Council put forward the idea of ​​setting up the sensor network center in Wuxi and radiating the whole country during a survey in Wuxi, Jiangsu. Subsequently, at the end of November, just over three months later, Wuxi National Sensor Network Innovation Demonstration Area (China Sensor Information Center) has officially received national approval.

The reason for this speed is that China did not take the lead in the two previous information revolutions of computers and the Internet. Now, the Internet of Things seems to give China the opportunity to lead in the third information wave. "Unlike computers and the Internet, in the development of IoT-related industries, China is almost in sync with the world. Some issues in the broadband wireless communication network, sensor network, and coding covered by the IoT have been included in the national" Eleventh Five-Year Plan ". There are related deployments, and some issues are also expected to be included in the "Twelfth Five-Year Plan." Shu Yinghua, a professor at the School of Economics and Management of Beijing University of Posts and Telecommunications, told reporters.

But in fact, not only China, but the world is rushing to grab the head of the third wave of information. Corresponding to "Perceived China", the United States IBM Corporation proposed the "Smart Earth", while Japan and South Korea proposed the "U-japan" and "U-Korea" strategies.

Liu Haitao, the leader of the China Sensor Network Standards Working Group, therefore believes that sensor networks will become an important factor in the overall national strength of countries, a sign of measuring a country ’s level of technological development, and trigger opportunities for the international information industry to reshuffle.

The Internet of Things, for China, is like an electric car in the automotive industry, which keeps countries around the world on the starting line. Therefore, China's determination to gain the right to speak in the field of Internet of Things has been repeatedly emphasized in future events.

On November 3, Wen Jiabao made it clear for the first time that the information network will be included in the scope of emerging industries, pointing out that the information network industry will become an "engine" to promote industrial upgrading and move towards the information society.

In early December, the preparatory working group of the Sensing (Internet of Things) Network Technology Industry Alliance held a meeting in Beijing, and plans to formally establish the Sensing (Internet of Things) Network Technology Industry Alliance early next year. The Sensing (Internet of Things) Network Technology Industry Alliance will provide technical services for the industrialization of the Internet of Things, achieve overall breakthroughs in standard setting, rapid technological advancement, and industrial leapfrogging development, and form a globally influential Internet of Things industrial chain cluster.

When will the industry break out

The olfactory market is pursuing waves of IoT concepts one after another.

Affected by the current hot concept of the "Internet of Things", Haihong Holdings, Gao Hong, New World, Xiamen Cinda, Eastcom and Equality have active stock prices, and the "Internet of Things" concept has become a new exciting point in the A-share market many times. .

On December 2, Analysys International released the "White Paper on the Chinese Internet of Things", analysis pointed out that "wireless sensor networks have become the primary focus of government advancement," the relevant data of this white paper shows that the scale of the wireless sensor network industry will grow in the next two years 15 times, reaching 4 billion yuan, and will grow at an annual compound annual growth rate of more than 200% in the next period, reaching a market size of 20 billion yuan in 2015.

A relevant person who participated in the preparation of the white paper told this reporter that the next two years will be the outbreak period of the development of the Internet of Things industry, and will tend to be flat afterwards. "The government policy guidance is the main factor. Policy investment in the Internet of Things will be in Focus on launching in the next two years. "

Guolian Securities also released a report, optimistically that the future of the Internet of Things market is promising. The domestic PC usage is on the order of 100 million, and the demand for Internet of Things terminals is much greater than this: the demand for information equipment in the order of 1 billion, intelligent electronic equipment in the order of 3 billion, microprocessors in the order of 500 billion, and sensors above trillions . It can be seen only from the perspective of the terminal's potential demand that the Internet of Things market space is much larger than the Internet.

Capital markets or analysts are more inclined to pursue the obscure beauty of the future, but corporate people in the field of Internet of Things are relatively more pragmatic.

In an interview with a reporter, an engineer of the China Mobile Technology Department believed that the future scale of the Internet of Things is undoubtedly huge, but the industry is still in the growth stage at this stage, and there will be no substantial growth in corporate performance.

An engineer from IBM told reporters that the current Internet of Things technology is the same as the 3G technology 10 years ago. It is the demonstration stage. The next step is to propose standards, then product development, and the fourth step is to market and invest widely. application.

Peter Friess, director of the Internet of Things and RFID Division of the European Union, predicts that the Internet of Things will begin to land between 2015 and 2020, but it is difficult to see the stimulus effect on the economy in the short term.

The domestic Internet of Things has just started

At the Internet of Things Summit held recently, an expert at the meeting pointed out that the development of the Internet of Things can be divided into three stages. The first stage is information aggregation, and the second stage is information processing. In the future, the Internet of Things will adopt a variety of communication methods. Sensory technology aggregates and processes information. The final stage is the ubiquitous aggregation stage, which is also the ultimate goal of the Internet of Things.

At present, the Chinese Internet of Things industry chain is in its infancy, and domestic manufacturers have only implemented a small range of applications, such as the Pudong Airport's anti-intrusion system, parking fee collection system, and some applications related to the World Expo.

In fact, many companies currently listed on the domestic A-share market are mostly engaged in electronic code reading technology, but the capital market is chasing a concept. Anything that is related to decoding-such as subway transportation cards, TV remote controls, etc. are included IoT category.

Wang Zhonghong, the Ministry of Technology Industry of the Development Center of the State Council, also made it clear that "the Internet of Things business model is currently unable to be commercialized on a large scale."

He believes that, first of all, the Internet of Things is separated from each other in the system and lacks resource sharing; secondly, more than 70% of the sensor, chip, key equipment manufacturing, and domestic intelligent transportation high-end markets are technically seized by foreign companies; third, the lack of Internet of Things technology standards Unification; fourth, the business model is still in its infancy, and the cost is relatively high, so it cannot be used on a large scale; fifth, security and privacy cannot be guaranteed; sixth, there is a serious lack of address resources.

Regarding the position of China's technology in the field of Internet of Things compared with other countries, a telecommunications expert who asked not to be named told reporters that although everyone's vision is very good, in fact, China's technology and technology in the Internet of Things The standard is already one beat behind. In terms of RFID (radio frequency) technology, the United States is the only one. Its patent applications exceed the total of patent applications in the EU, the World Intellectual Property Organization, Japan, and mainland China, up to 53%. Japan and Europe have huge advantages in sensor technology. However, China's independent RFID standard has been delayed. There is a hidden concern. Even if China's local standards are introduced and a complete "Internet of Things" industrial chain is formed, it will not be able to surpass the West in this field and reverse the situation of being constrained by people.

The above-mentioned telecommunications expert said, "The Internet of Things is a 'gold mine' of unproven reserves. The country should have a unified strategic plan, and clarify the industry's development goals, timetable and road map, so that every 'team member' can find Only by knowing your own position and your own route can you run this 'relay race'. "

Wang Zhonghong suggested that industrial strategic alliances including governments, upstream and downstream enterprises in the industrial chain, scientific research institutes, finance, industry associations, etc. should be formed to carry out in-depth cooperation in areas of commonality and key technologies to form more and better Products, technologies and brands with independent intellectual property rights.

City Game: Wuxi is in Beijing despite its potential

Wuxi, which occupies a leading position in the new energy field, undoubtedly seized the opportunity again in the Internet of Things game.

By the end of November 2009, the State Council had formally approved and agreed to support Wuxi in building a national sensor network innovation demonstration area (National Sensor Information Center). Previously, more than 20 scientific research institutes such as the Chinese Academy of Sciences, Tsinghua University, Beijing University of Posts and Telecommunications and Southeast University have set up institutions in Wuxi; China Mobile, China Unicom and China Telecom have successively "logged in" and signed contracts with the Wuxi Municipal Government Carrying out research cooperation on sensor network application technology, various resource elements of sensor network have gathered in Wuxi.

On December 1, 2009, Wuxi City issued the "Decision to Accelerate the Construction of an Innovative Economic Leader City". The "Decision" stipulates that by 2012 Wuxi will complete the construction of a sensor network industry demonstration base with an annual industrial scale of 100 billion yuan; The China Sensor Network Research and Development Center, which will lead the three advantages of Chinese sensor network technology innovation, standard formulation and demonstration application, will be built. This is China's first "National Sensor Network Innovation Demonstration Zone".

In fact, similar to the legendary experience of Suntech Power's settlement in Wuxi and the ultimate creation of the capital market myth, there are many stories behind the settlement of Wuxi in the High-Tech Micro-Nano Sensor Network Engineering Technology R & D Center of the Chinese Academy of Sciences.

Liu Haitao, who is currently the director of the High-tech Micro-Nano Sensor Network Engineering Technology R & D Center of the Chinese Academy of Sciences, also has a title. He is the deputy director of the Shanghai Institute of Microsystems and Information Technology, the Chinese Academy of Sciences. After getting the phone number of Liu Haitao's office, Ma Xiaodong made a continuous call for half a month to find Liu Haitao who rarely returned to the office. Liu was greatly moved by Ma Xiaodong's dedication and service consciousness of Wuxi City Government.

"Wuxi can once again become a leading city in an emerging industry and it is worth pondering," said Li Huafang, a researcher at the Shanghai Institute of Finance and Law. "Wuxi is indeed a city with a good industrial foundation, but the surrounding cities in Wuxi are also very competitive. Why is Suntech Power 1. The National Sensor Network Innovation Demonstration Zone has not settled in Shanghai, Suzhou, Nanjing, Hangzhou, Ningbo and other cities in the Yangtze River Delta, but chose Wuxi? This shows that the Wuxi city government has a strong sense of service and stands out from the fierce competition in the Yangtze River Delta. "

In addition to Wuxi, cities that want to make the Internet of Things a pillar industry include Wuhan and Shenzhen, but the city with the most potential and the most potential is undoubtedly Beijing.

"No high-tech industry like the Internet of Things has so many resources like Beijing. Beijing is the capital of China and the central government is in Beijing. This is a political advantage; Zhongguancun is already China ’s largest innovative economic industrial zone. It is an industrial advantage; coupled with the scientific and technological advantages of dozens of key universities such as the Chinese Academy of Sciences, Tsinghua University, Peking University, and Beijing University, Beijing is the most promising to win the competition. "Li Huafang said.

In fact, even though the pace of action is behind Wuxi, Zhongguancun also started the action. On November 1st, the Zhongguancun Internet of Things Industry Alliance Founding Conference and Industry Development Summit Forum was held in Tsinghua Tongfang Technology Square.

It is understood that the Zhongguancun Internet of Things Industry Alliance aims to build China's Internet of Things Industrial Center, is application-oriented, industry-oriented, technology-centric, and innovation-driven as the purpose of the alliance, and strives to promote construction through 3 years of hard work10 — 12 iconic demonstration application projects, nurture 8-10 industry leading enterprises, form a batch of independent intellectual property rights products and integrated application solutions, national or industry standards more than 5 items, making Beijing Zhongguancun the center of China ’s Internet of Things industry.

The scale application stage is far from coming

Although the concept of the Internet of Things has long been known by the capital market, there are still few cases of systematic application of the Internet of Things.

Since 2005, the Institute of Computing Technology of the Chinese Academy of Sciences and the Palace Museum have jointly implemented the application of sensor networks in the protection of cultural relics. The main method is to use sensor nodes to obtain temperature, humidity and other data of the environment of the exhibition site of cultural relics, and then wirelessly transmit these data to achieve monitoring .

However, experts believe that the case of the Palace Museum does not mean that the sensor network can be applied on a large scale, because the Palace Museum only involves dozens of sensor nodes, and in many occasions, thousands of sensors may be used.

"If the Internet of Things is to be applied on a large scale, it still needs to overcome many technical problems." Said Cui Li, a researcher at the Institute of Computing Technology of the Chinese Academy of Sciences and the Secretary General of the Sensor Network Professional Committee of the Chinese Computer Society.

According to the reporter, in addition to the museum, the current application of the Internet of Things is mainly concentrated in the areas of higher security such as airports and prisons and the field of intelligent transportation.

Zhang Junlin, Sales Department of the Wuxi Institute of Internet of Things, told reporters that there are currently several systems in the institute that can achieve sales. "A set is called the sensor network fence anti-intrusion alarm system. This system is mainly used for key facilities with high security requirements, such as airports, nuclear power plants, prisons, etc. This system can monitor foreign climbing, overcoming invasion and even from Underground entry, etc. The system is currently being used at Pudong International Airport. "

Another application is the intelligent sensor network vehicle management system, which is mainly used for traffic control. It has been piloted in Jiaxing, Zhejiang. "At present, when the traffic lights are switched, a set time is set. After our smart system goes up, it can be based on traffic The status and flow rate will be automatically changed at the traffic light time, "said Zhang Junlin.

In addition, the high-speed data image transmission system is also a key product launched by the institute. "The system is mainly used for large-scale security activities and major foreign affairs activities. For example, a country ’s leader wants to come to Shanghai, he travels to various places around When driving on land, monitor through images and other methods to ensure safety. "Zhang Junlin said.

Capital Game: Sowing the Internet of Things for the Future

"Now the concept of the Internet of Things is very hot, but there are not many companies that really do the Internet of Things. It's hard to say. Don't talk about the forming company. It is now difficult to find a decent entrepreneurial team."

At the end of November, senior partners of domestic top PE and VC institutions gathered together to hold a closed-door meeting to discuss investment in the Internet of Things in a five-star hotel by the Jinji Lake in Suzhou.

"Now the concept of the Internet of Things is very hot, but there are not many companies that really do the Internet of Things. It is hard to say, not to mention the shaped company. Now it is difficult to even find a decent entrepreneurial team." A senior partner at the meeting said "In a strict sense, the current hype of IoT concept stocks in the secondary market is still quite different from the true IoT. Some A-share listed companies' main business is only a small one in the IoT industry chain. Link. "

The partner said, "Compared with the photovoltaic industry, the trouble of the Internet of Things industry is that it has not yet produced a leading company like Suntech Power. At present, many domestic photovoltaic companies come from Suntech Power." In fact, just like this As one partner said, IoT talents are scarce in the country, and the formation of entrepreneurial teams is even rarer. Take Wuxi IoT entrepreneur Mei Yuhai as an example. He is a leading overseas entrepreneurial talent introduced by Wuxi City through the "530" plan this year. He founded Wuxi Naman Sensing Technology Co., Ltd. to produce gyro (turn angle) gyro The sensors are mainly used, and the product has a wide range of applications. It can be used in many fields such as intelligent transportation, consumer electronics, energy, medicine, and environmental monitoring. The product has been researched and developed. But even such a start-up enterprise has long been targeted by PE and VC. "In recent months, there have been many PE and VC that I want to cooperate with." Mei Yuhai said.

Qin Bangyun, the partner in charge of Ji Ming Capital, has been paying close attention to the development of the Internet of Things industry in the past six months. "In the past three months, I have seen no less than 50 Internet of Things companies in five cities: Beijing, Wuxi, Shanghai, Nanjing and Shenzhen. But there are no companies that have truly implemented large-scale applications, but I have invested 4 out of these 50 companies, which is a seed investment. No company has an investment amount of more than 1 million US dollars. "Qin Bangyun said that the main owner of the company he invested in now Business operations are just one link in the IoT industry chain. "At present, there are no enterprises that have seen large-scale use or engineering of the Internet of Things in China."

In November this year, Hangzhou, Zhejiang also had an VC investment in the Internet of Things, but the amount was only 2 million yuan. Hangzhou SMIC Microelectronics is an enterprise specializing in the development, production and sales of micro-power long-range radio frequency identification (RFID) products. The security alert system developed by the company is mainly used in prison management. The company received a 2 million yuan investment from a local VC in Zhejiang.

In fact, before the rise of the concept of the Internet of Things, a group of local VC companies seized the opportunities of the Internet of Things companies. Take Yuanwanggu, a small and medium-sized board listed company and the A-share market IoT concept leader, as an example. Before the listing, the company had 3 VC companies. Among them, Shenzhen Venture Capital was the third largest shareholder with 5.827972 million shares. Shanghai Lianchuang Yongxuan and Shanghai Shibo Investment are its shareholders, holding 1.924 million shares and 962,000 shares, respectively.

"Internet of things companies must be invested, even if there is no mature company in China, I think there is no way to directly find a team of international students from Silicon Valley to go back to China." Qin Bangyun said.

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