The Internet of Things (IoT) was first conceived in 1999. With the IoT, a briefcase can remind its owner if she or he forgets a customary object. This is how the International Telecommunication Union envisioned an era of the IoT in 2005.
China started developing the IoT industry in 2009 and the IoT was listed as an emerging strategic industry. However, 10 years later, no major breakthroughs have been made in the industry and there is no large-scale commercialization either.
There are several factors that have restricted the industry's growth. The IoT technology is highly fragmented. There has been no systematic research and development of the technology in the market. As a result, no enterprise can produce world leading products.
The application of the IoT is also fragmented. There are multiple industries which need IoT applications. However, as their requirement for IoT products is different, it's hard for the IoT industry to realize such large-scale production. In addition, the heavy reliance on imports of key equipment such as chips in sensors and middle- and high-end sensors is the biggest hurdle for the commercialization of the IoT.
Nevertheless, with the government issuing 5G licenses for commercial use in June, the IoT industry may embrace new opportunities for growth. Currently, telecommunication companies and leading Internet companies like Alibaba and Tencent have all jumped onto the IoT bandwagon. Industry insiders say there is bound to be a leading IoT company in the next 10 years but it remains to be seen whether the company is a smart hardware provider, an Internet company or a solution provider.
(This is an edited excerpt of an article originally published in China Newsweek on September 9)
