The United States is leading the world in the personal computer revolution. Europe took the lead when the phone took off. So, who is leading the way in the era when the Internet is beginning to innovate and consumers are gradually accepting related products?
The answer is China.
With the recent public listing, Alibaba has become an example of the rise of the Internet of Things strategy. Seeing the success of both Nest and Dropcam products in the US, all major Chinese network companies, including Sina, Baidu and Tencent, see wearables as a way to increase their market share and advertising revenue. Sina joined the battle last year through wirelessly connected weather hardware. We have also seen wars between these Chinese Internet giants who are trying to provide IoT services to third-party manufacturers, similar to Amazon Cloud Services, targeting themselves and their US partners.
I will explain three reasons below to prove why China will take off and lead the world in the field of Internet of Things.
First point: China is the center of the world's manufacturing industry and is firmly grasping this position. Manufacturing capabilities provided by Chinese manufacturers are growing. 15 years ago, Chinese manufacturers were mainly at the very end of the supply chain. Products are designed in the United States or Europe, shipped to Taiwan companies, assembled in these companies. China's foundries are only producing cheap and bulk. Today, Chinese companies are in charge of industrial design, design for manufacturing, and actual manufacturing processes. What people often overlook is that American companies are not only going to China because of cheap labor and engineering, they are increasingly traveling because of their professional level.
Second, Chinese manufacturers are rapidly building their own retail brands. Let's take a look at Shenzhen Yifang Digital Company. This is not a household name, but you are likely to see the products they ship on their own or around them. Yifang's Nextbook is the fifth-best-selling tablet in the US, and its global shipments are ranked eighth. The company's products can be seen on the shelves of Target, Wal-Mart and other large retailers.
Soon you will see the company's NexTurn home control system on the shelves of US stores, the price will be very challenging compared to other competitors. Google acquired the thermostat company Nest, and Nest acquired another camera company, Dropcam. This awakens the infinite potential of Asian manufacturers to develop IoT hardware.
These two factors: the wisdom of the growing manufacturing base, and the willingness of retailers to sell or accept new products, will have a profound impact on the electronics industry in China. If you ask the veterans of this industry, they all say the same thing: if anyone else wants to enter the market, it is too late. Big brands have long blocked the entire market.
But you see, in the personal computer field, Dell has sprung up among some old brands and finally locked its own market share.
In the mobile phone field, mobile phone brands like Nokia or Motorola were eventually replaced by Apple and Google.
In the television world, Vizio, a small company with only one hundred employees and no brand recognition, built a network of goods from an obscure brand and became the largest TV distributor in the United States within a few years.
Change is always more than you think. However, the third factor is perhaps the most important factor.
The third point: China and other fast-growing economies need the Internet of Things. In the United States, smart thermostats are a fun, interesting little object. In India and China, they will likely become a necessity. More than 1.4 billion people are still not powered, and when they join the grid, they are not using clean energy. The probability of electrification in India is only up to 35%, while energy in many areas comes from fossil fuels.
In places like Harbin and Shanghai, traffic jams can become epic spectacular sights, but more people are pouring into big cities every day. Every year, China builds a large city with the equivalent of 2.5 Chicago cities. By 2025, there will be 221 cities with more than one million people.
If we have the technology to intelligently adjust household appliances such as air conditioners, it will be necessary to reduce carbon emissions and energy consumption. The sensory network in streetlights and smartphone apps can provide instant updated traffic information that will fight the first line of defense traffic networks.
The Internet of Things will help monitor and increase the income of agriculture. Many people expect that the world's food output will double by 2050, but we must achieve this by not growing farmland or using more water or fertilizer. This is impossible without technology.
The Internet of Things will be quickly accepted in some parts of Asia, Latin America and Africa, and will be accepted faster in China. The Internet of Things has begun the evolution of products in the domestic market. Equally important, local officials are showing policy bias towards the Internet of Things in terms of laws and regulations and investment promotion.
Earlier this year, we signed an agreement with China's largest venture capitalist and received support from them, including InternaTIonal Finance CorporaTIon, the World Bank's investment arm, to build the IoT cloud system in China. Based on experience, IFC will replicate similar models to other markets.
The popularity of smartphones will be another important role in the industrialization of the Internet of Things. Smartphones will be a universal remote control for managing almost everything in everyday life. In recent years, some thermostats are not available with a liquid crystal display, they will be tiny, disposable chips, and the screen and controller will be in your pocket.
We need to recognize the situation. The Internet of Things has just begun to develop. If you judge the future through the energy already generated by the market, you will easily conclude that this market will be dominated by some big names in the United States.
Then you are waiting to be surprised!
——More topics in IoT applications, please participate in ETD No. 11: Intelligent lighting system for IoT architecture! (hot registration)
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