Internet of Things (IoT) services revenues in China will grow more than five times in the next five years, surpassing $41 billion by 2020, according to ABI Research’s IoT Market Tracker.
Driving the growth of IoT in China will be the smart meter segment.
“It leads all other segments in both connections and revenues. By 2020, smart meter connections will exceed the next highest market segment in total connections by nearly 10 to 1,” said Dan Shey, VP and IoT Practice Director at ABI Research.
Besides smart meters, home security and automation, OEM telematics, video surveillance, home appliances, aftermarket telematics and home monitoring will also be driving the Chinese IoT market.
ABI Research said home monitoring is expected to become an important market in China as it attempts to care for its aging population, which will reach nearly 340 million people in 2020 for citizens age 55 and older.
Data analytics revenues will generate the most IoT revenues in China. It is indicative of the relative lack of revenues in both platform and professional services in the China market. Platform revenues are not as high due to a higher share of proprietary embedded telematics deployments, especially by domestic OEM brands.
Professional services revenues are not big due to fewer connections in the telematics segments, a higher proportion of tethered solutions and lack of maturity in IT and consultancy services.
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