Frame of IoT in China
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1 Frame of IoT in China EuropElectro Summary Orgalime - The European Engineering Industries Association, Brussels Orgalime - 欧 洲 工 程 行 业 协 会, 布 鲁 塞 尔 ZVEI - German Electrical and Electronic Manufacturers Association,Frankurft ZVEI - 德 国 电 气 电 子 制 造 商 协 会, 法 兰 克 福
2 Preface As the so-called third information revolution in the world, IoT has been granted high priority by China government since 11 th Five Year Plan. Now, at the start of 12 th Five Years, IoT in China will enter a period of high-speed development according to the 12 th FYP. In order to support our members in benefiting from the new wave of development, EuropElectro is reporting the overall picture, current status and plans available for IoT in China and will track and update all the information related to policies, standards, technological trends and application issues of IoT. Should you be interested in any specific topic in IoT, please let us know and we will be glad to do more research. Frame of IoT in China Policy Environment & Plan Standards Development Technology Development Application (Business Model + Best Practice)
3 Policy Environment Government Background for IoT During the second half of 2009, a number of significant public speeches were delivered about Internet of Things in China. On 7 August, Chinese Premier Wen Jiabao made a speech in the city of Wuxi calling for the rapid development of Internet of Things technologies. Premier Wen followed up with another speech on 3 November at the Great Hall of the People in Beijing, in which he called for breakthroughs in wireless sensor networks and the Internet of Things. Then China has pushed forward with major policy initiatives to speed up the development of its national industry. At the same time, Chinese provinces, municipalities and industrial parks started to release supporting policies. Internet + IoT = Wisdom of the Earth
4 Policy Environment IoT in the 12 th Five Year Plan Importance in the 12 th FYP: IoT is one of the most important industry topics in 12 th FYP and appears twice - in Chapters 10 and 13 of part 3. <NOTE: Translation of the original text of 12 th FYP done by EuropElectro - for reference only> Chapter 10 of Part 3 of Industries Restructuring & Upgrade Development key points of next-generation IT industry include: new generations of mobile telecommunications, new generations of the internet, integration of telecommunications networks, the radio and television broadcasting networks and the internet, IoT (Internet of Things), cloud, integrated circuits, new display technologies, high end software, high end servers and information services. Chapter 13 of Part 3 of Industries Restructuring & Upgrade - build up smart national backbone network with high speed and huge capacity - Develop key technologies and demonstrations (pilot projects or demonstration projects) in critical areas with IoT - Integrate telecommunications networks, the radio and television broadcasting networks and the internet.
5 Policy Environment - Objectives vs. Current Status Grasp the critical core technologies Set up a set of standards system Build an industry chain Carry out a series of demonstration applications Over ten regions and cities carried out their specific plan for Internet of Things development
6 Policy Environment Key Factors - Critical Core Technology - Industry Standards - Collaboration among Different Industries - Security - Carry out Policies first - Lead by Technologies - Drive by Requirements - Application in industries is the major driver. e.g. Application in Transportation, Security and Defend, Power Grid, Environment Protection, etc
7 Policy Environment Development Plan in 12 th Five-years The Ten Key Application Areas of IoT include: 1 Smart Grid 2 Smart Transportation 3 Smart Logistics 4 Smart Home 5 Environment & Security Detection 6 Industry & Automation Control 7 Medical Treatment & Health 8 Fine Farming 9 Finance and Service Industries 10 National Defense
8 Policy Environment Development Plan in 12 th Five-years cont. Smart Grid Plan - The biggest investment area - From , there are three developing phases of Strong Smart Grid Phase Pilot Phase Overall Construction 2 trillion RMB 4 trillion RMB Phase Basic System Finished 1.7 trillion RMB -Investment will focus on: Remote monitoring of electric power equipment Electric power equipment operation status detection Power dispatch application
9 Policy Environment Development Plan in 12 th Five-years cont. Smart Transportation Plan - Investment will be 40 billion RMB over the 12 th five years - Market scale will grow by 100 billion RMB annually - Major application areas will focus on: Vehicle Information Communication Systems Fleet Management Goods Monitoring Interactive Car Navigation Vehicle Tracking and Positioning
10 Policy Environment Development Plan in 12 th Five-years cont. Plan of Local Government By the end of 2015, the following should be finished: 50 demonstration projects 5-10 cities with an IoT industry scale of 200 billion RMB, composed of Sensors 10 billion RMB Detection and Testing 70 billion RMB Chip, Middleware, Integration Modules and Equipment 60 billion RMB Engineering, Service and Operations 60 billion RMB
11 Standards Development NOTE: EuropElectro will track the standards plan of each industry & area and keep members updated. Major Achievements: - Initial Framework of Sensor Network Standards System has been setup - Some of the standards have been adopted by international standards organizations - A Technical Committee for Sensor Networks was established in September, 2009 Plans: Both the Electronics and the Telecommunications industries plan to develop IoT related standards during the 12 th Five Years.
12 Technology Development Three-Layer Structure of IoT: Sensors, Network, and Application Sensor Layer Network Layer Application Layer RFID, M2M, Gateways for Sensor Network, Monitors, etc. 2G/3G/4G Mobile Networks, Coding, Cloud Computing, Storage, etc. Agriculture, Industrial Control, Public Security, City management, etc.
13 Applications business model NOTE: Business Model is critical for IoT development and maturation. EuropElectro will track successful business models for our members review and inspiration. Below are major business models in IoT industry till now: 1 Customer Constructed, Proprietary Systems 2 Leas Platform 3 Advertisements 4 Government BOT s 5 Mobile Payments
14 Applications best practice NOTE: As IoT in China is still in a demonstration phase, EuropElectro will update best practices with our members for reference. By the end of 2009, the PuDong International Airport in Shanghai had installed sensor products in its Security System In October, 2009, the Jinan Garden Expo applied Zigbee products in its road lights control system In June, 2010, the first IoT technology application center for High-speed Railway was completed. By January, 2011, the first intelligent substations with 220 KVS were completed in Wuxi city and put into operation.
15 Thank You for Reading! Should you have any questions, please contact Ms. Xu Ling. Ms. Xu Ling, June 3, 2011
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