Development and Outlook of Internet of Things in China. CATR of MIIT June 5, 2012

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1 Development and Outlook of Internet of Things in China CATR of MIIT June 5, 2012

2 Contents I. Development of Internet of Things in China Main Contents II. Outlook of Internet of Things in China 2

3 IoT for green, smart and sustainable development The role of Internet of things: To motivate the transformation of China economic development mode by taking full advantage of ICT technology; To realize the people-oriented Urbanization and social public service; To achieve green, smart and sustainable development. Strategic emerging industry Upgrading the traditional industry Smart social service Improvement of people s life Smart city and smart infrastructure 3

4 Overview of IoT Application Development in China Generally speaking, the IoT in China is still at the initial stage. A series of application pilot and demonstration exploration projects in manufacture industry, agriculture, infrastructure, city management and energy conservation & environment protection have reached preliminary progresses and characteristic applications have come into being. 4

5 IoT Application Pilot Projects in Various Sectors (1) Industry Currently, IoT are mainly applied in the supply chain management, manufacturing process optimization, equipment supervision & management and energy consumption control of such sector as the steel, petrochemical and automobile manufacturing industries. Statistics show that over 40% of sensor products in China are used in industrial process control and automobile electronic products. Agriculture IoT pilot projects have been implemented in crop irrigation, production environment monitoring and agricultural product track & trace. The Ministry of Commerce and the Ministry of Finance jointly launched a pilot project of track & trace system of meat and vegetables in 20 cities, in which advanced technologies of RFID, bar code were used to improve the preciseness. 5

6 IoT Application Pilot Projects in Various Sectors (2) Financial service Due to the implementation of a series of government-facilitated projects such as Golden Card Project and issue of the 2 nd generation ID card, China has become one of the three largest RFID application market. New applications such as mobile payment grow rapidly. For example, the number of registered subscribers of China Mobile s mobile payment service reached nearly 40 million. Smart grid State Grid announced its smart grid development plan in After the announcement, it initiated several demonstration projects in succession, including smart power substations, smart power distribution and smart power utilization. At present, 18 smart power substations have been completed; smart power distribution network have been under construction in 23 cities; 58.5 million smart meters were installed; charging networks for electromobiles are building in several cities; and State Grid has integrated 38 million KW of wind power and 450,000 KW of solar power. 6

7 IoT Application Pilot Projects in Various Sectors (3) Smart transport IoT was put into application early in the railway system and positive results have been reached. Currently, demonstration applications of IoT in urban transportation, highway and maritime transport just started, among which, the video surveillance was the most prevalent application. At present, interconnected highway surveillance was realized in 22 provinces. Around 2,500 ETC lanes were put into operation, cover 30% of the national highways. The number of ETC users exceeded 2.2 million. Logistics Key IoT technologies such as RFID, GPS and wireless sensing were widely applied in all logistic processes, particularly in automatic identification and positioning, process tracing, online track, and online scheduling. 7

8 IoT Application Pilot Projects in Various Sectors (4) Health & care Public safety Generally, IoT application in health & care sector was just started. A series of pilot projects have been implemented in remote health surveillance, RFID-based patient identity and positioning, and RFID-based drug management. The all-in-one medical card has been put into wide application. Explorations have been made in IoT application in urban security, safety production (coal mine), security monitoring (bridge, highway, tunnel) and anti-invading at key facilities (such as airport). The grid management a digital city management model based on geographic information system, GPS and mobile communication network has been put into application in several cities. 8

9 IoT Application Pilot Projects in Various Sectors (5) Smart environment protection China has established 343 two-tier (provincial and municipal level) pollution source monitoring centers, implementing automatic monitoring on over 15,000 major pollution sources. The IoT has been applied in automatic monitoring system of pollution sources. M2M As of the end of 2011, the M2M terminals of China s telecommunication operators totaled up to around 20 million, making China the largest M2M market in the world. 9

10 Smart city becomes the important carrier of China s IoT The smart city has become the important direction for all the cities to solve development problems in economic development, social management, public service, low carbon, etc.; IoT shall be the key area for smart city construction, and the development of smart cities shall provide the application market for IoT; By February 2012, over 40 cities have applied for the construction of smart cities, most of which are from economically developed regions, such as Yangtze River Delta and Pearl River Delta; over 10 cities have formulated the smart city plans, action plans, and promotion policies. The urbanization ratio increased by 1% each year, in urgent need of the people oriented, smarter development model :urbanization ratio in China

11 R&D of IoT The R&D of IoT is the important part of National Science and Technology major Project III the new generation wireless broadband mobile communication, Project I core electronic devices, high-end general chips and basic software, 863 Project, 973 Project, and National Natural Science Fund (NNSF); The special IoT fund was established in Around 500 million fund was allocated to the IoT technology development, application demonstration and promotion, standards, and public service,of which 2/3 was used to support the R&D and industrialization. S&T Major Project I S&T Major Project III 863 plan 973 plan Some implemented IoT NNSF IoT special fund Basic IoT research M2M strengthening Industry control Sensors Smart processing of abundant Smart traffic information RFID Ubiquitous network Smart medical care Sensor network Environment protection Smart cities Sensor network IPv6 Public security Short-range wireless communication technology Smart grid 11

12 Contents I. Development of Internet of Things in China Main Contents II. Outlook of Internet of Things in China 12

13 The 12 th Five-Year Development Plan of IoT MIIT has issued the 12th Five-Year Development Plan of IoT to put forward the objective and roadmap of China s IoT development in the future. By 2015: Technical innovation: over 500 research achievements in sensing, transmission, processing, application; formulation of over 200 national and industry standards; promote the construction of demonstration enterprises, key labs, and project centers. IoT-related industry system: formulate complete the IoT industry chain and develop 10 industry cluster areas and over 100 backbone enterprises IoT application: formulate mature and sustainable development-based operation mode in key areas and industries; complete a set of demonstration projects in 9 key areas and strive to realize scale application. 13

14 Major tasks of IoT development Security Security technology Safety and Security Protection of network facilities Master of core technology sensing technology Transmission technology Processing technology Standardization system construction Standard framework Promotion of industry development Sensing manufacturing industry Common key technology IoT communication industry Common technology Industry application standard IoT service Implementation of application demonstration Economic area infrastructure and security Cultivation of backbone enterprises Area layout planning Social management and public service Public service Public service platform Labs and project centers Public service system 14

15 IoT application demonstration and promotion Make efforts to solve the key problems in the costs, technologies, and standards of the scale application of IoT, adjust the laws, regulations, and mechanism, and combine China s advantages to select key demonstration areas closely related to the economy, society, livelihood, and industries. Formulate the driving force of the R&D and the industrialization of IoT technologies. Traditional industries Smart industry Smart agriculture Smart logistics Livelihood Smart healthcare Smart living Critical Infrastructure Smart grid ITS Environment and safety Environment protection and energy saving Public safety 15

16 Objectives of IoT application in certain areas Food security: the logistics and tracing system of urban meat and vegetables will cover all the cities with 100 million population and above by Smart grid: the State grid will install 230 million smart electric meters during the 12 th Five-Year Plan and realize the connection of 90 million kilowatts wind power and 8 million kilowatts solar power ITS: the national traffic facility and transportation monitoring network will be basically completed in the 12th Five-Year Plan; ETC will cover 60% of the national highways ; urban smart traffic will be another key development area, for instance Beijing plans to cover all the major roads by the smart traffic management system in the 12th Five-Year Plan Health care: During the 12th Five-Year Plan, with the health files, electronic medical records, and remote medical care system as the key construction areas, we will make efforts to achieve 80% penetration of health cards and electronic health files among residents

17 Promote the development of China s IoT Driven by pilot applications, solve four major issues: costs, standards, technologies, and security Make breakthroughs in the technological and industry bottlenecks in sensor, identification, intelligent data processing etc. Develop wireless sensing network and M2M communication technologies Build up such infrastructures as identification, cloud computing which can support the application of IoT Realize the commercial of the IoT application 17

18 Thank you!

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