Research Report on Chinese Internet of Things Industry, 2010-2012

RFID is the most important technology foundation for Internet of things. However, it develops extremely slowly in recent 1-2 years. The global RFID market scale was about USD 6 billion in 2008.
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Dec. 28, 2009 - PRLog -- - Internet of things, also called sensor network, uses information sensing equipments such as radio frequency identification (RFID), sensor, global positioning system (GPS) and laser scanner to connect things with the Internet based on the given agreement to carry out information interchange and communications, realizing intelligent identification, positioning, tracking, monitoring and management. Internet of things involves numerous technologies such as radio frequency (RF), integrated circuit, communications, computer, software, system integration and Internet. As to the universality, only through the collaborative development of the above six technologies, the elimination of barriers among various industries and large scale and multi-industry application can realize the broad sense Internet of things. RFID is the most important and essential technology for Internet of things.

The explosive growth of Internet of things relies on the large scale application of super high band. As Internet of things is mainly for tracking, monitoring and management of things, the frequency band suitable for the large scale application of Internet of things is the ultra-high frequency (UHF). However, UHF is restricted by frequency resources in most countries, leading to various application frequencies for UHF in different countries. Moreover, the identification code of the label of Internet of things is also very important because things have to match with the only ID code to acquire their corresponding information from Internet. The coding rule and analytic method should be in accordance with the analytic method of Internet of things to acquire the information of things through accessing to the label.      

RFID is the most important technology foundation for Internet of things. However, it develops extremely slowly in recent 1-2 years. The global RFID market scale was about USD 6 billion in 2008. The growth rate in 2008 was reduced significantly compared with the high growth rates in the past few years.

In China, RFID is mainly applied in certificate anti-counterfeiting, electronic payment, access and exit control, things tracking and management, production and manufacturing, warehouse and logistics, etc. The certificate anti-counterfeiting market covers the second generation ID card market, the student electronic ticket purchase certificate market and the electronic admission ticket, etc; the electronic payment market refers to fields related to consumption such as transportation card, campus card and measuring instrument (water, electricity and gas); the access and exit control system is applied in entrance guards of residence, enterprise and public institution, school dormitory and library as well as parking lots; other applications of RFID include tracking and management, security tracking and production management of things, which is concentrated in the high frequency of 13.56MHz. High-frequency technologies are widely accepted because of their maturity, globally united standard and actual demands.        

The high-speed development of Chinese RFID market in past few years benefits from two factors: the original market is of small scale, so the relevant project construction in a region can arouse the rapid reaction of the market; it is stimulated by governmental projects prominently, which is also the most obvious characteristic of Chinese RFID market. If ID card is included in the RFID market, Chinese ID card project started since 2005 can be regarded as the world largest RFID application project. Thanks to the implementation of the second generation ID card project, Chinese RFID market still saw a high-speed growth in 2007 after the explosive growth in 2005 and 2006. Besides, Chinese transportation informationization construction has also provided opportunities for RFID in the transportation field. RFID technology has been applied in electronic admission tickets of Beijing Olympic Games, National Games, Shanghai World Expo, etc. However, due to the gradual saturation of the broad ID card market and the lack of large projects to drive the overall market growth, the growth rate of Chinese RFID market was reduced for the first time in 2008.  

Based on the network structure, Internet of things is a distributed system to connect numerous RFID application systems through Internet and identify things in the wide area network. Chinese Internet of things still stays in the concept introduction stage while the market development is limited in its branches such as RFID, sensor and MEMS, etc. There is a long way to go to realize the collaborative cooperation of these technologies to form a gigantic Internet of things. Chinese Internet of things industry will only enter the high-speed development stage after 3-5 years.

Through this report, readers can acquire more information:
- Relevant concepts of Internet of things
- Current status of Internet of things market
- Application of Internet of things
- Factors affecting the development of Internet of things in China
- Relevant enterprises of Chinese Internet of things industry and their operation
- Prediction on the development of Chinese Internet of things industry

Following persons are recommended to buy this report:
- Relevant enterprises of the Internet of things industry
- Logistics enterprises
- Smart card and card reader manufacturers
- Investors concerning Chinese Internet of things industry
- Research institutes concerning Chinese Internet of things industry
- Others concerning Chinese Internet of things industry

To get more details, please visit:

Eileen Gu
China Research and Intelligence
Tel: 86-21-6852-1029 ext.601

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The primary and secondary research was conducted by consultants in China who know the industry and the local markets well.
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