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China vs. the US: Who Has the Bigger Internet of Things Opportunity?
Who has the most connections? China leads with 27% of global machine-to-machine connections The US ranks third, behind China and Europe, with 19% By the numbers:
Why the US is losing the numbers game The Chinese government. The main driver of China’s Internet of Things growth is... Great Hall of the People. Source: Voice of America (public domain).
Why the US is losing the numbers game “Proactive government support has benefited China and its mobile operators, whereas in many global markets, regulatory uncertainty has held back the deployment of M2M solutions.”Alex Sinclair, Chief Technology Officer at GSMA.
Why the US is losing the numbers game The Internet of Things is officially part of the Chinese government's current five-year plan. From 2010 to 2020, China's government has committed to spending $603 billion for M2M connections. Government aid:
Why the US is losing the numbers game "China is adapting to the Internet of things like it adapted to mobile -- by leapfrogging earlier infrastructure efforts and letting the consumers adopt services with rapidity not seen in the U.S.” Stacey Higginbotham of Gigaom
2 Chinese companies succeeding in the IoT World’s largest M2M operator, with more than 32 million connections Has its own network for M2M connections Makes IoT chips, wireless modules, and consumer products China Mobile:
2 Chinese companies succeeding in the IoT More than 10 million M2M connections Has smart city meters, video surveillance, and emergency response connections throughout the country Manages the ConnectedDrive services for BMW in China China Unicom:
What’s driving US Internet of Things innovation forward?
What’s driving US IoT innovation Individual technology companies
2 US companies succeeding in the IoT Believes the IoT (or “Industrial Internet”) can save companies billions if systems were just 1% more efficient Has more than 10 million sensors in the industrial equipment it sells Has its own IoT platform for connections, called Predix Company will have $1 billion in IoT revenue this year Will generate $5 billion in IoT sales by 2017 General Electric:
2 US companies succeeding in the IoT About 44% of company revenue from the microcontrollers it makes for the IoT auto industry Q3 2014 was a great quarter for company, with sales from all segments up double digits year-over-year Freescale Semiconductors:
Clearly, there’s some crossover GE said last year that it would “expand its current Industrial Internet offerings to provide better services for Chinese customers” according to CEO Jeff Immelt GE’s Industrial Internet is expected to save Chinese business $24 billion over the next 15 years US companies can benefit from China’s growth:
Clearly, there’s some crossover China is expanding its TD-LTE connections, something Freescale directly benefits from. "A lot of our revenue growth is driven by LTE, especially from China," Tareq Bustami, vice president of product management of Freescale Semiconductor's digital networking group US companies can benefit from China’s growth:
Clearly, there’s some crossover Cisco says the global value of the Internet of Things will be $19 trillion by 2020 US value will be worth 32% of that China may be growing faster, but the US opportunity is larger:
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