IOT to Drive Expansion in China’s Economy

by OMA | Thursday, September 10, 2015

IOT to Drive Expansion in China’s Economy

By Zhu Shenshen | September 10, 2015, — The Internet of Things will be a major force powering China’s economic growth, with the IOT’s contribution to the economy expected to be a combined US$1.8 trillion by 2030, Accenture said in a report yesterday.

The total IOT market in China is estimated at 500 billion yuan (US$78 billion) this year, according to Xinhua news agency. IOT, which refers to connected smart devices through radio and other technologies, is forecast to contribute US$1.8 trillion to the national gross domestic product in the years through 2030, according to Accenture.

“The Internet of Things is fast becoming the new force driving the global economy,” Accenture said in the report.

However, “China still needs to close the gap in critical skills and infrastructure, promote cross-industry collaboration and accelerate IOT investment,” the report said.

The faster Internet access and wider bandwidth such as 4G and the future 5G network will see better connection between smartphones and other devices, further boosting IOT development, said China Mobile, which has over 200 million 4G users.

China Mobile, China Unicom, Huawei Technologies and ZTE Corp are also members of a global industry body, Open Mobile Alliance, as they seek opportunities in IOT.