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China's IoT Services
Revenues to Grow Faster
than Any Other Major
Country to $41 Billion
by 2020
Oct. 22, 2015
China's Internet of
Things (IoT) services
revenues will grow more
than five times in the
next five years,
exceeding
US$41 billion by
2020. This is the
fastest revenue growth
rate of any country
monitored in ABI
Research's new IoT
Market Tracker.
The tracker provides IoT
revenues across six
services segments
including connections,
connection management,
security, data
analytics, platform and
professional services.
"Driving China's IoT
numbers is the smart
meter segment," says
Dan Shey,
VP and IoT Practice
Director at ABI
Research. "It
leads all other segments
in both connections and
revenues. In fact,
by 2020, smart meter
connections will exceed
the next highest market
segment in total
connections by nearly 10
to 1."
Besides smart meters,
other major segments
driving the Chinese IoT
market will be home
security and automation,
OEM telematics, video
surveillance, home
appliances, aftermarket
telematics and home
monitoring. 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.
"Interestingly, data
analytics revenues will
generate the most IoT
revenues in China.
This statistic is
reflective of the sheer
volume of smart meter
connections," continues
Shey. "But it is
also 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, for example, a
higher share of
proprietary embedded
telematics deployments,
especially by domestic
OEM brands.
Professional services
revenues are similarly
not as high, not only
due to fewer connections
in the telematics
segments, with a higher
proportion of tethered
solutions, but also
because IT and
consultancy services are
not as mature a market
segment as in some of
the more developed world
markets such as
Japan,
South Korea
and
the United States."
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