The status quo of commercialization of the Internet of Things: Device market will break out

The Internet of Things is a huge social information system project consisting of the perception layer, transport layer, and processing layer. It has a huge industrial chain involving all fields of national economy, industries, and society. The industry chain of the Internet of Things has four major operating entities. Different operators have different statuses in the industry chain of the Internet of Things. The role played by each entity will determine the depth and breadth of the industry chain of the Internet of Things and will also affect the business model of the Internet of Things. The formation of a direct impact. All operating entities cooperated to promote the implementation of the Internet of Things and determined the speed of development of the Internet of Things. In the stage where the Internet of Things industry has not formed a large-scale business, the profit of the industry is mainly concentrated on equipment manufacturers and system integrators, so their enthusiasm for developing the Internet of Things will be higher.

Looking at the status of the Internet of Things from operators

First, equipment manufacturers

IoT device manufacturers can produce visible products, such as sensors, radio frequency cards, and chips, and users can get hands-on experience through the use of related products or services. Its advantages are: 1. At the front end of the market, the user needs are more in place; 2. Rapidly convert technology into products to realize the commercial value of technology; 3. Making tangible products is easy for users to accept and they are willing to pay for them.

The Internet of Things is the focus of future development. Today, the Internet of Things (IoT) industry chain and industrial system have been initially formed, and all have evolved from the concept to the ground. For example, Intel Corporation has expanded its chip design, manufacturing process, and software capabilities to meet consumers' needs for smarter, connected life, to build a personalized “interconnected computing” experience, and to expand smart computing to a wider range of areas and provide comprehensive support. Retail, education, transportation, medical and many other industry developments.

Second, system integrators

System integration is a multi-vendor, multi-protocol, and multi-application oriented architecture. It needs to solve interfaces, protocols, system platforms, application software, etc. between various types of equipment and subsystems, and subsystems, construction environment, construction cooperation, and organization management. Everything related to staffing and integration-oriented issues. Therefore, system integrators have obvious advantages over equipment manufacturers, can integrate multiple resources, and have the advantage of being integrated from top to bottom in the industry chain. Therefore, it is easy to form a multi-participation business model.

For instance, Yinjiang Stock Co., Ltd., which first proposed the concept of “Smart City”, is a system integrator of “Left and Right”, focusing on the vertical industry applications of IOT, such as Urban Intelligent Transportation, Smart Medical, and Intelligent Building. It is considered as an A Share. There are few "pure" Internet of Things companies.

Third, network operators

When the application of the future becomes widespread, the network operators will benefit the most. Network operators are directly oriented to large-scale users, have a large user database, have many resources, and have strong business promotion capabilities and industrial chain integration capabilities. Therefore, they are the most promising beneficiaries in the future. At present, major telecommunications operators have already begun the development of the Internet of Things business, and also accelerated the construction of negative aspects such as 3G and wireless networks, and telecommunication operators are most likely to be transformed into IoT operators.

As early as August 2008, AT&T launched a computer network and storage service for business users - SynapticHosting, thus becoming the first telecom operator to enter the "cloud computing" field.

Fourth, platform suppliers

The IoT platform was originally an important means for operators to differentiate and compete, and was also the best entry point for operators to enter the Internet of Things. With the rapid development of the Internet of Things, more and more Internet of Things platforms have emerged, such as the Internet of Things information platform, Internet of Things service platform, Internet of Things application platform, Internet of things cloud platform, Internet of Things public service platform.

The IoT platform provides end customers with more reliable and comprehensive pipeline services, provides system integrators with flexible billing and customer service capabilities, and provides equipment manufacturers with terminal monitoring and fault location services for international terminal manufacturers and logistics. Manufacturers provide unified billing and network services, providing developers of small and medium-sized applications with fast and inexpensive development tools.

As a wave of information technology after computer, Internet, and mobile communications, the Internet of Things has a broad application prospect. When China gets its strategic position as a national emerging industry, it will face tremendous development opportunities and flourishing development prospects.

IoT device market will break out

According to Mario Morales, vice president of the IDC Semiconductor and EMS Research Department of the market adjustment agency, after 2020, IoT devices are expected to reach 25 billion. According to IDC's survey, in 2016, the IoT market reached US$2.9 trillion, which surpassed the market size of traditional embedded systems and Intelligent Systems.

Transformation of Capital Communication Industry

In addition, Jiang Fangyun, deputy director of IDC research in Taiwan, also stated that the current telecommunications industry is in an age of mobile devices and is moving toward the cloud and the Internet of Things. Mario Morales said that if the Internet of Things is to be popularized or companies want to enter the Internet of Things market, there are still many places to explore.

He believes that companies need to find ways to integrate data between systems. That is, systems must use the same language to communicate. Enterprises can make good use of this information. He also said that regardless of whether the company wants to enter the Internet of Things market, such as health care, it must have a complete solution to provide the true value of Internet of Things services.

To enter the Internet of Things market, provide a complete solution

Mario Morales believes that companies need to provide a complete solution to enter the Internet of Things market, that is, not only to provide software and hardware, more importantly, companies need to be able to know how to integrate information from different objects, and this is what he thinks One of the biggest challenges.

But he also saw great opportunities in this. He pointed out that each of the current vertical systems has different languages. Therefore, these systems cannot communicate with each other and they cannot effectively use the benefits of data. It takes time to develop. Mario Morales also added that companies such as Microsoft and Oracle also tried to solve this problem.

Mario Morales also said that we will see a lot of interesting IoT applications and smart systems one after another because there will be more IT vendors joining the market. In addition, IT vendors will also start to acquire other companies because they want to enter specific markets. . Or some big companies, even Siemens or US GE, will work with IT vendors to think about how to apply IT technology to the services provided by these big companies. These large companies do not know how to use big data and analysis to provide customers with better services, and these are also part of what they are currently exploring.

Mario Morales believes that security in the Internet of Things is the only idea that comes afterwards. The reason is that these systems have not yet been linked, so most of the Internet of Things is not as safe. Although companies understand that they need security, they do not even understand how to make money through the Internet of Things. Many manufacturers also provide security-protected chips, but these vendors do not know how to charge higher fees.

In addition, in 2013, the proportion of smart systems began to exceed traditional embedded systems. From 2013 to 2018, the market size of smart systems continued to increase, opening up more gaps with traditional embedded systems. Jiang Fangyun added that the smart system can link to big data, and it will also use large data.

According to the IDC survey, in 2013, the market size of the Internet of Things was significantly smaller than that of smart and traditional embedded systems. The market size was 1.6 trillion US dollars and 2.4 trillion US dollars, respectively. In 2014 and 2015, the market size gap between the two gradually narrowed. By 2016, the market size of the Internet of Things began to exceed the market size of smart and traditional embedded systems, respectively 2.9 trillion US dollars and 2.6 trillion US dollars.

After that, the gap between the market size of the two has started to widen. In 2017, the Internet of Things market size was 3.6 trillion US dollars, while smart and traditional embedded systems were 2.7 trillion US dollars. By 2018, the Internet of Things market size was 4.4 trillion US dollars, while smart and traditional embedded systems were 2.8 trillion US dollars. Observing the scale of the market between 2016 and 2018, we can see that not only has the gap widened, but also the growth of the IoT market scale is much faster than that of smart and traditional embedded systems.