Research agency IDC has forecast that Chinese manufacturing enterprises’ spend on the Internet of Things (IoT) was expected to reach US $127.5 billion by 2020, with a compound average growth rate (CAGR) of 14.7 per cent between 2016-2020.
The report said software and services would lead the way in this growth.
IDC pointed out that ‘Made in China 2025’ was the first 10-year action plan for the Chinese Government to implement its strategy of building China into a manufacturing powerhouse. The policy and financial support of the government would push forward the development of smart manufacturing, hastening the manufacturing industry’s transformation into services. This would, thus, drive the continuous fast growth of IoT spending in the manufacturing industry in the next three to five years.
With the integration of emerging technologies and IoT into this industry, and the integration between IT and OT, the potential of IoT technology will be released at an accelerated pace. IDC forecast that IoT in China’s manufacturing industry will show three major development trends in the next two years.
As more and more enterprises deployed IoT applications, IDC said the manufacturing IoT platforms will represent one of the main directions for the change and development of smart manufacturing.
With the large-scale deployment of IoT devices, IoT-generated data was expected to witness exponential growth, IDC said. Therefore, data filtering and processing through scattered devices and IoT gateways will become an important direction for IoT applications in the manufacturing industry.
Image Credit: IDC