The Future of The

Internet of Things in China

(2013-2018)

Copyright 2013
Corporate Immersion Institute
Bentley University

Brian Kelleher
Jiaqi Wei
Zeeshan Shaukat

Overview
Technical
Aspect

R&D for IoT in China is

among the best in the world

Market Size
Internationa
l Standards
Establishme
nt

China has become the main

initiator and leader

Wireless networking
IoT
/broadband coverage
Infrastructu
provides a foundation to
re
support the progress of IoT

33%

12%
36%

RFID
Transistor
MEMS
Others

19%
Industry
Aspect

Internet of Things industry

chain has taken shape in
China

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Five-year Plan for IoT

MIIT - State agency of the People's Republic of China

responsible for regulation and development of the

economy in China.
Understand the importance of the IoT
Correctly get the general idea of the IoT
Assign the development of the IoT
the development of the key projects
2010 Guide
of IoT
2015 Create a favorable environment for the
Objectives development of the IoT
Create 10 clusters and more than 1000 IoT
firms
Build a $100 Billion industry by 2020
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IoT Industrial Classification

IoT industry China is

classified into 5
industrial layers, with
a total output value of
$45 billion.
Perception Layer
Transfer Layer
Platform Layer

Market Share (Layers)

3% 5%

22%

38%
33%

Perception
Transfer
Platform
Support
Application

Support Layer
Application Layer
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Map of China's IoT Industry

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Developmental Clusters

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Cluster 1: Bohai Rim Area

Beijing

Advances in IoT R & D; standardization,

strong regional comprehensive
scientific research; a complete IoT
industry chain.

Hebei

A technologies and industry base; focus on

collaboration of production, learning and
research but has a scattered industrial
layout.

Tianjin

Focus on the development of

intelligence equipment industry chain,
integrated solutions, smart
transportation and information security
sensors of IoT.

Shandong

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Breakthroughs in demonstration
projects of IoT transportation,
agriculture and animal husbandry,
energy saving and environment
protection, city management, logistics,
electricity, security, home furnishing

Cluster 2: Yangtze River Delta

Shanghai
After IoT Expo 2010, construction
industry and Shanghai IoT Center
are setup to seize the high-end IoT
industry chain

Zhejiang
Aggregating the IoT industry, taking
advantage of key manufacturing
units, sticking to the strategy of
making the two ends strong and the
middle part excellent by completing
the network framework system

Jiangsu

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Sensors, integrated circuit,

intelligent computing, software and
information service industry; focus
on construction of Wuxi core
industrial area and innovation parks;
develop a pilot region for
8
applications of the IoT

Cluster 3: Pearl River Delta

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Midwest Region

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IoT China Companies

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IoT China Companies

Public companies in China have taken a significant leap in

the development and promotion of IoT

Since 2009, investment in R&D is of historic proportions
As par the five-year plan, companies are particularly
innovating in IoT for 5 industries

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Tatwah Smartech Company Ltd

Primarily engaged in the research, development,

manufacture and distribution of RFID products.

Close-Apr 19: CNY 10.73 (SHE: 002512)
Mkt Cap:
$540 million
Sales:
$45.06 million
Net Profit:
$6.83 million
Employees:
1,503
Address: No. 9, Shuiyi South Road
Taifeng Industrial Zone Xiaolan Town
ZHONGSHAN, GNG 528415, China
+86-760-22108818 (Phone)
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Invengo IT Company Ltd

Primarily engaged in the development and sale of

RFID technology and system solutions

Close-Apr 19: CNY 7.65 (SHE:002161)
Mkt Cap:
$940 million
Sales:
$58.28 million
Net Profit:
$17.72 million
Employees:
430
Address: F3 Building B
T2 Hi-Tech Industrial Park South,
SHENZHEN, GNG 518057, China
+86-755-26711633 (Phone)
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Aisino Corporation Inc

Primarily engaged in the development and

application of information security technologies,

networks, software and system integration
Close-Apr 19: CNY 13.86 (SHA:600271)
Mkt Cap: $2.35 billion
Sales: $1.68 billion
Net Profit: $161.59 million
Employees: 9,830
Address: No.18A Xingshikou street Haidian
District, Aerospace Information Park
BEIJING, BEJ 100195, China
+86-10-88896051 (Phone)
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Institute

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Xiamen Xinde Co Ltd

Primarily engaged in trading and retailing,

electronic information and property business

Close-Apr 19: CNY 7.85 (SHE:000701)
Mkt Cap:
$340 million
Sales:
$1.98 billion
Net Profit:
$23.96 million
Employees:
1,560
Address: 2nd Floor Xin Hong Building Hu Li
XIAMEN, FUJ 361006, China
+86-592-5608098 (Phone)
+86-592-6021391 (Fax)
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HANGZHOU CENTURY CO.

Engaged in the research, development,

production, distribution and technical support of

electronic article surveillance (EAS) products and
RFID products.
Close-Apr 19: CNY 11.58 (SHE:300078)
Mkt Cap:
$320 million
Sales:
$39.26 million
Net Profit:
$8.73 million
Employees:
+1,000
Address: No. 1418-48 Moganshan Road, Gongshu
Dist.
HANGZHOU, ZHJ 310011, China
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+86-571-28818665 (Fax)

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Perception Layer

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Transfer Layer

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Support Layer

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Platform Layer

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IoT in Chinese Universities

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First Universities Offering Major

18.Huazhong University of Science and

1. Beijing Institute of Technology University

Technology
2. Harbin Institute of Technology University
19. Wuhan Institute of Technology
3. Harbin Engineering University
University
4. Nanjing University of Aeronautics and
20. Central South University
Astronautics
21. Chongqing
5. Northwestern Polytechnical University
22. Southwest Jiaotong University
6. Dalian Maritime University
23. University of Electronic Science and
7. Beijing University of Science and Technology
Technology of China
8. Beijing University of Posts and
24. Sichuan University
Telecommunications
25. Xi'an Jiaotong University
9. North China Electric Power University
26. Taiyuan University of Technology
10. Tianjin University
27. Suzhou University
11. Northeastern University at Qinhuangdao
28. Jiangsu University of Science and
12. Jilin University
Technology
29. Shandong University of Science and
13. Hohai University
Technology
14. Jiangnan University
30. Northwestern University
15. Hefei University
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31. Chengdu University
16.
Shandong
University
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32. Zhengzhou Institute of Light Industry
17. WuhanRed
University
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Highlight = Universities with Experimental/R&D Laboratories

33. Hunan University

Sample Course List

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Consumer Products & Technologies

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Nodal Points
Building blocks of a Smart

City infrastructure
Multi-functional flagship portal
Networking, information
sharing and control
monitoring
Features:
3-sided LED Display Panel
Interactive Information
Bubble
Speakers
Keyboard & Trackball
Central control and cooling
system
Docking Port

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Application
Macro:

Surveillance Camera
Pollution Monitor
Objects Counter
Wifi Ports
Landscape Imaging
Lighting Rod
Micro:
Advertising
E-Information Booth
Health & Safety
Individual Customization

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Cybertecture Mirror
Main Features:
Vanity Lighting
Health/Weight daily
monitoring
Watch TV programs
Live feeds from social
media/messaging
Workout coach/guide
Control via remote or smart
phones
Link with computer program
portal
Made
by: James Law Cybertecture
Retails for $5000 USD
Website:
http://www.cybertecturemirror.com/main.php?id=home

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Oruibo Smart Home

Modes: Wake up mode, Away

mode, Home theater mode,

Return settings
Remote network control control
with smartphone
Promotes energy conservation
cost effective
Ready to use out of the box
Security system similar to ADT
Currently B2B only
Technology implemented all
over China & in Australia
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Intelligent Security Management

Platform
Positioning management
Mobile communications
Three-dimensional display

and video linkage

Openness and scalability
Made by: Wuhan Melit
Communication Co., LTD

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Application
Parks
Schools
Mines
Oil drilling sites
Prisons
Construction sites
Ship management
Government agencies
The Military
Other important places

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Smart Grid
Intelligent power distribution

networks are under

construction in 23 cities of
China
58 million intelligent electric
meters installed
38 million KW wind power and
450 thousand KW solar power
have been connected to the
national Grid
Online monitoring for
transmission lines
Patrol of power transmission,
transformation and distribution

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The Smart City

Last year, eighteen Tier-1 cities in China formulated their

detailed smart city plans, along with 80% of Tier-2 cities

IoT applications are being developed in economic, civil life,
government management, infrastructure and cultural
environments
Major companies in this industry: Hollysys Co. Ltd., Supcon
Co. Ltd, Yokogawa Sichuan Instrument Co. Ltd

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Internet of Vehicles & Transportation

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Internet of Vehicles in China: Issues

85 million cars in 2010 and probably 200 million cars

in 2020
China is the 2nd oil consumption country just behind
USA, cars take 40% of the oil consumption
30% oil ($55/month) is consumed on the way to find a

parking spot

Over 500,000 accidents cause 100,000 death and

40,000 ~ 50,000 injured/physical disability , $50 billion

loss
Traffic jam causes over 170 million/day in 15 biggest
cities
Cost people 62.3 min/day ($50) in Beijing

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Internet of Cars
In-Car
Features

Track playback, fuel consumption monitoring, route

planning, car data recorder, speed & places, video
camera

In-Car Major
Players

"Black Box" capable of car & travel efficiency

monitoring, provides insurance benefits, helps safety
(for police), can deliver maintenance/R&D info to car
manufacturers
Progen Enterprises Co.; Shenzhen Jinjitong Electronic
Technology Co., Ltd.; Shenzhen DAZA Technology Co.,
Ltd; WinChange Technology Co., Ltd; Shenzhen Cheetah
Intelligent Technology Co., Ltd; Shenzhen
Basihengxingye Technology Co., Ltd

Navigation

Provides information on nearby vehicles and hazards,

Determines location via sensors, contains maps
displayable in human readable format via text or in
graphical format

Applications

Navigation
Major Players BDStar navigation, China Galileo Industries (CGI)
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Intelligent Transportation System

Provided by: National Intelligent Transport Systems

Center of Engineering and Technology ITSC

IoT first utilized in China railway system
Current applications also include city transportation,
highways and water carriages
About 2,500 ETC stations have been opened in 22
provinces covering 80% of China express highways
Over 2.2 million users of Intelligent Transportation
System
30 to 50 patents and ITS standards in 3~5 years
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Water Quality & Food

Safety

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Water Quality Monitoring

Tai Hu Lake
Sensor Network
Innovation ChinaUK (ICUK)

Lake Tai Hu
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IoT Vegetables
The system records, collects and inquires all information of

the food chain from production, processing, packaging,

storage and transportation, and distribution to sales

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Cucumber Traceability
Real time monitoring/GIS technology
RFID tags attached to packaging
Consumers can scan codes to get

information regarding:
Geographical location
Company data
Processing workers and time
Farmers profile
Vegetable cultivation/environment
Fertilizer and drug info
Testing information etc.
Forecasting better outputs
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IoT in Food Safety

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Breeding Area and Slaughterhouse

Breed Information
Feed information

RFID Tag

Create a complete
files of individual
livestock

Epidemic
Prevention
Medication
Environment

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Breed Information
Slaughterhouse
Information

RFID Tag

Quality
Information

Food security
platform data center

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Food Traceability

Sellers
Self-inquiry Terminal
InternetInquiry Phone line
Message
Customers
Livestock: Breeding Information, Slaughterhouse Information,
Quality Information, Wholesale and Retail Company Information,
Inspection and quarantine Information

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Emerging Trends
IoT resources are continuing to congregate in well-

developed areas
New areas in Chinas IoT industry are emerging constantly
Tianjin, Kunming and Ningbo have started to focus on
the development of IoT
Areas with solid industrial foundations are focused on
perception, transfer, support and platform layer
tier-2 and tier-3 cities are focusing on the development
of the application layer
Predicted domestic need for 20 million qualified individuals
in next 5 years
Areas professionals needed most: Beijing, Shanghai,
Guangzhou, Shenzen
Annual
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2013 Salaries for Senior Engineers $200k-$700k
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For additional information and copyright restrictions, please contact:

Professor Perry Lowe
Corporate Immersion Institute
Bentley University
Waltham, MA. 02452
plowe@bentley.edu

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