The release of system standards will expand the scale of the Internet of Things industry

The Internet of Things concept stocks became one of the largest dark horse breeds in the market in 2010, but this year's market is lackluster, and the sector has now fallen to a low point in recent years. Among them, in addition to encountering the systemic risks of the weak market, it is also related to the expectation of the slow expansion of the Internet of Things industry in China. The popularity of bar codes took 30 years, and the more pessimistic view is that the radio frequency identification electronic tags (RFID) of the Internet of Things must fully reach the application of bar codes, and it will take another 20 years. The lack of a unified system standard for the entire industry has also become a limiting factor affecting the further expansion and development of the Internet of Things. However, this situation is about to change.

The "Twelfth Five-Year Plan" for the Internet of Things just released by the Ministry of Industry and Information Technology pointed out that one of the current main tasks will accelerate the completion of the construction of the standard system framework, actively promote the development of common and key technical standards, and vigorously develop the application standards of key industries . According to media reports this week, it was revealed at the first seminar on the new generation of information technology standards that China ’s Internet of Things system standards will be released by the end of this year or the first half of next year. It is expected that China ’s Internet of Things industrial system will exceed 500 billion yuan by 2015. In the next few years, the compound growth rate will be as high as about 30%. The establishment of system standards will provide a catalyst for the expansion of the scale of China's Internet of Things industry, and will also bring market opportunities for relevant listed companies to increase valuations.

The development of the Internet of Things in China is in the initial stage with the world. It has initially possessed a certain technology, industry and application foundation, and has shown a good development trend. Although there is still a big gap in the maturity of core technology, high-end products and large-scale applications, the application promotion in some areas has achieved initial results: At present, China's Internet of Things is in the fields of security, power, transportation, logistics, medical care, environmental protection, etc. It has been applied, and the application model is maturing. In the field of security, applications such as video surveillance and anti-intrusion have achieved good results; in the power industry, applications such as remote meter reading and transmission and transformation monitoring are gradually expanding; in the field of transportation, applications such as road network monitoring, vehicle management, and scheduling are being played. Active role; in the field of logistics, the application of item warehousing, transportation and monitoring is widely promoted; in the field of medical care, applications such as personal health monitoring and telemedicine are becoming more and more mature. In addition, the Internet of Things has also been widely used in environmental monitoring, municipal facility monitoring, building energy saving, food and drug traceability, etc.

This year, the global Internet of Things industrial system market scale is 100 billion US dollars, and the Chinese Internet of Things market has also reached 200 billion yuan. 28 provinces and cities across the country have adopted the Internet of Things as one of the development priorities of emerging industries. The Internet of Things not only contains huge strategic growth potential and growth space, but also can effectively promote the deep integration of industrialization and informatization, and drive the transformation and upgrading of traditional industries. The central government has positioned the Internet of Things as a strategic emerging industry, and in 2011 allocated RMB 5 billion of the Internet of Things Industry Fund. During the "Twelfth Five-Year Plan" period, the Ministry of Industry and Information Technology will support demonstration projects in key areas of the Internet of Things, including: Nine areas of smart industry, smart agriculture, smart logistics, smart transportation, smart grid, smart environmental protection, smart security, smart medical and smart home. Listed companies in related industrial chains will also benefit intensively.

In terms of specific varieties, RFID industry applications are still the fastest-growing and most widely-used fields in the core components of the Internet of Things industry. They currently cover industrial-grade applications such as logistics, animal and food traceability, ETC non-stop toll collection systems, and library management. Therefore, the benefit of related companies is also the most direct. It is recommended to focus on the four leading companies in the Internet of Things sector: Yuanwanggu (002161), New World (000997), Eastcompeace (002017), and Xiamen Cinda (000701). Key recommendation: Outstanding technical advantages, products cover the industry's wider Yuanwang Valley (002161).

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