At the heart of the Chinese economy is manufacturing. Increase its efficiency and the overall economy of the country can be expected to increase commensurately with it. This is what the Industrial Internet means for the digital transformation of the Asian nation.
China has stepped up efforts to boost the development of the industrial internet. As such, Machine to Machine (M2M) will inject new vitality into the industrial economy, improve the competitiveness of manufacturing on the global stage and foster high-quality development, industry experts have said.
The Ministry of Industry and Information Technology (MIIT), the nation’s top industry regulator, recently said in a work plan that it will promote the application of ultra-fast wireless technology. 5G in the Industrial Internet. Best of all, the agency will support initial public offerings from eligible industrial internet companies.
The Industrial Internet, a new type of manufacturing automation that combines advanced machinery, Internet-connected sensors, and big data analytics, will boost productivity and reduce industrial production costs.
The application of digital technologies has extended from the realm of consumption to the realm of production. In particular, new industrial forms are emerging such as the industrial internet, which has become a new engine for the growth of the digital economy and has remarkable development potential, said a leading specialist in the manufacturing industry.
Accordingly, additional efforts should be made to build 10 factories fully covered by 5G and cultivate about 10 industrial Internet utility platforms in specific regions. In addition, they are expected to accomplish the construction of regional subcenters of large domestic industrial Internet data centers in Chongqing, Shandong, Zhejiang, Liaoning, Jiangsu and Guangdong provinces, according to the plan.
The country will further boost the application of 5G plus industrial internet in the consumer sector, as well as accelerate the innovation of key technologies to advance the digital transformation of enterprises, according to the plan.
Data from MIIT showed that the country has developed more than 100 industrial Internet platforms which have strong regional and industrial influence, with 76 million units of industrial equipment connected to the platforms, which served 1.6 million industrial enterprises covering more than 40 key industries.
The positive transformation brought about by M2M will ripple through all industry sectors. The booming Industrial Internet will drive an increasing demand for precision in:
- data acquisition
- baud rate
- storage space
- computing capabilities
- smart app
As such, it will boost the development of big data and cloud computing infrastructure and foster a batch of industrial internet companies with global competitiveness. In addition, measures such as support for the listing of eligible industrial Internet companies will help to broaden the financing channels of these companies and accelerate the development of the industrial Internet.
China’s industrial internet market revenue is expected to reach 914.7 billion yuan ($143.6 billion) in 2022, growing at a compound annual growth rate (CAGR) of 14.4% over the next three years , according to government data.
Noting that the industrial Internet is built on the basis of traditional industries and information and communication technologies, Ni Guangnan, an academician with the Chinese Academy of Engineering, said more efforts should be made to promote the integration of technological innovation and industrial applications.