The Industrial Internet of Things (IIoT), as a product of the deep integration of information and communication technology, intelligent science and technology, and industry, is a key support for the deep integration of the real economy and the digital economy, and for implementing a new round of industrial revolution.
“For most countries, leveraging the IIoT can help more nations achieve a leapfrog in the transformation and upgrading of manufacturing and industrialization processes, seizing opportunities is the key to success,” said Zhang Hua, Vice Chairman of the World IoT Congress Executive Committee, at the Industrial IoT Forum of the 2023 (8th) World IoT Congress.
Accelerating the Industrialization Process
Countries are launching strategic plans related to the IIoT. For example, the United States is focusing on cutting-edge layouts, reaching a new height in its emphasis on IoT; the European Union is promoting the development of IoT towards intelligent, universal, trustworthy, and open directions; and China is implementing the “Industrial Internet Development Action Plan” to achieve deep integration of the real economy and the digital economy.
Ruslan Zenalgarov, AI project manager at the Fourth Industrial Revolution Center of the Ministry of Economy of Azerbaijan, stated: “Our AI project at the Fourth Industrial Revolution Center is more about addressing economic issues, including environmental and climate issues, and how to cooperate more with other countries.” He introduced that many fields in Azerbaijan are already laying out IoT, such as applying IoT systems at borders, using AI algorithms in customs operations to detect whether there are violations in the goods being cleared, greatly improving work efficiency; in sports like wrestling and boxing, AI algorithms provide suggestions on team preparation, diet, and daily routines.
Farzad Ebrahimi, founder and CEO of the IoT Academy of Iran, views the development of the industrial internet from the perspective of how IoT can enhance citizens’ awareness and capacity building to bridge the digital divide. He stated that IoT or AIoT will bring many benefits, but these benefits are not equally distributed. The most important thing now is to enhance the awareness and capacity of every citizen so that they can benefit from the overall digital transformation. He suggested that to bridge the digital divide, it is necessary to formulate policies supporting intelligent technology from a top-level design perspective. Relevant personnel in the technology sector should understand how to use the different components of the industrial internet, from hardware to sensors, communication modules, processors, gateways, and how to visualize these systems for users. From a social perspective, people should understand and apply intelligent technology so that they can better enjoy the dividends brought by intelligent technology.
The Flourishing Development of Industrial Internet in China
According to the latest statistics from the China Academy of Information and Communications Technology, the number of registered identifiers in China’s industrial internet has exceeded 400 billion, serving over 320,000 enterprises, and forming 50 industrial internet dual-cross platform enterprises recognized by the Ministry of Industry and Information Technology. As one of the most important application areas of IoT, the industrial internet has flourished in China.
Over the past 40 years of reform and opening up, China’s industrial development has achieved remarkable accomplishments. In 2022, the added value of China’s manufacturing industry accounted for 30.5% of the global manufacturing added value.
Zhang Hua stated that the industrial IoT is one of the most important application areas of IoT. As the only developing country with the most complete industrial categories, the most complete manufacturing chain, the most abundant creativity, and the largest physical capacity, China has made many explorations in the research, application, and promotion system of industrial IoT.
“For research institutions and enterprises in the field of industrial IoT, not only can they enhance product quality and efficiency through research results and technology applications, but they can also create, establish, and empower the emergence of unexpected new industries and sectors. For example, industrial IoT tourism can create more job opportunities and learning and exchange opportunities for society, promoting the transformation and upgrading of industrial civilization towards intelligent, demonstrative, and enjoyable industries,” Zhang Hua pointed out.
However, Sheng Zhaoxun, director of the Strategic Office of the Decision-Making Consulting Department of the China Macro Economic Research Institute, also pointed out that China is still relatively weak in key components of industrialization and needs further improvement. He suggested: “The new type of industrialization must be built on a more solid foundation, continuously enhancing and strengthening basic capabilities.” He stated that the new type of industrialization has five major pillar industries: first, manufacturing, which should develop towards high-end, intelligent, and green; second, strategic emerging industries, such as new energy vehicles, lithium batteries, and photovoltaics, which are very important results of cultivating strategic emerging industries; third, the integrated development of modern services and manufacturing, better promoting the quality and efficiency of modern services; fourth, modern agriculture; and fifth, upgrading infrastructure.
Academician Li Bohu of the Chinese Academy of Engineering stated that to develop a smart industrial internet, six accelerations must be achieved: accelerating the construction of the scientific and technological innovation system; accelerating the training of various talents; accelerating the infrastructure construction at the national and local levels; accelerating the improvement and implementation of national/local policies, especially accelerating the legislation of the data industry, improving and implementing data open sharing mechanisms and industrial data security policies, improving intellectual property protection, and improving regulatory policies; accelerating innovation and overcoming shortcomings, focusing on cultivating and developing key technologies and products of the new generation of industrial APPs with digital twins as an important carrier; and accelerating open cooperation among countries, especially strengthening open cooperation between industrial chains.
The Industrial IoT is Seen as a Key Force for Enterprise Digitalization
The industrial IoT, as an important carrier of industrial digital transformation, has become a significant feature of the new industrial revolution. The application of IIoT is deepening globally, and many leading enterprises have regarded the industrial IoT as a key force for enterprise digitalization.
Gu Mu, Deputy General Manager of Aerospace Cloud Network Tianzhi Company, stated that the current development of the industrial internet has entered a fast lane, becoming a strategic infrastructure for China’s new type of industrialization. Since the proposal of the industrial internet, it has entered a rapid growth phase, achieving not only quantitative growth but also qualitative improvement, further promoting the integration of the real economy and the digital economy.
It is reported that the current industrial operating systems can support the digital upgrade of enterprises, including self-organizing dark factories, intelligent scheduling of production, and agile development of industrial applications. At the same time, more industrial operating systems are sinking to the edge, supporting the digital transformation of enterprises and the flexible access of various industrial elements in a series of scenarios. In terms of security, it also pays special attention to the technology of industrial privacy computing, supporting related production processes to operate in a secure, controllable, and privacy-protecting environment.
Currently, industrial operating systems are showing a diversified development trend both domestically and internationally, forming many representative products, including Siemens Mindsphere and PTC as representatives abroad, forming operating systems for industrial IoT, and INDICS-OS from Aerospace Cloud Network as a representative in China, aimed at the entire lifecycle of intelligent manufacturing and model-driven industrial operating systems. Domestic companies like Lanjing and others have formed open data analysis and application industrial internet operating systems.
Looking ahead to the future of industrial operating systems, Gu Mu believes: “The rapid development of intelligent technology will accelerate the effective iteration and upgrade of industrial operating systems. Combined with current 5G, 6G, and large model technologies, it will support industrial operating systems to have stronger capabilities for low-latency access to massive industrial resources, agile and rapid construction capabilities, and further data value mining capabilities, supporting the continuous improvement of enterprise intelligence.”
Jiang Hongye, a senior IoT expert at China Unicom, stated that Unicom has built an industrial terminal ecological system around modules, industrial terminals, and intelligent equipment to enhance the real-time data collection capabilities on industrial manufacturing sites.
In February 2023, China Unicom announced that it would launch the world’s first 5G Redcap commercial module at the MWC 2023 5G Innovation Release Conference in Barcelona, achieving optimization of end-side and power consumption, and cost reduction.
Regarding the future upgrade of the intelligent manufacturing industry, Jiang Hongye believes: “This not only requires the work of China Unicom but also the collaborative capabilities of industry partners up and down the supply chain. China Unicom has actively built two major alliances and three major laboratory ecological platforms, hoping to use this as a link to create a collaborative ecosystem for technology breakthroughs, product innovation, testing certification, and large-scale promotion. We actively leverage the resource aggregation effect of the ecological alliance to compose a new chapter in 5G AIoT intelligence.”
Further Reading
AR/VR Devices Increasingly Integrated into Daily Life
——Top Ten Insights into the Chinese AR/VR Market for 2024
Recently, IDC summarized and provided the top ten insights into the Chinese AR/VR market for 2024 based on shipment trends, hardware product characteristics, user demand scenarios, supply chain development, and competitive landscape.
Insight One: In 2024, China’s AR market shipments are expected to grow by 101.0%, with standalone AR shipments expected to account for 87.6% of the overall AR market.
In 2024, AR shipments are expected to continue to grow rapidly, with a growth rate expected to reach 101.0%. Standalone AR will still be the mainstream of AR categories, but it is worth noting that with the release of Qualcomm’s AR-specific chips and advancements in waveguide technology, mainstream manufacturers will successively release or iterate all-in-one AR glasses, with an expected total shipment of 60,000 units for the entire year, a growth of 68.5%.
Insight Two: AI Accelerates the Penetration of AR/VR Devices into Smart Life Scenarios, with Deepening Collaboration between AR Hardware Manufacturers and Large Model Manufacturers.
In 2024, the trend of AI+AR development will help glasses products achieve better NLP interaction and display presentation. High-speed text processing, accurate intelligent Q&A dialogue, precise semantic understanding, and efficient command recognition will shine in applications such as real-time translation, navigation, video photography, and life assistants. AR hardware manufacturers will adopt a parallel self-research + collaboration model, and hardware in collaboration with large model manufacturers will be successively launched, guiding users to experience, accept, and rely on more efficient and convenient new productivity tools.
Insight Three: Image Processing Chips Strongly Enter the Market, Efficiently Processing Real-Time Information to Assist Seamless Connection of Virtual and Real.
The dual-chip design of M2+R1 used in Apple Vision Pro has drawn widespread attention to the importance of image processing chips. In terms of visual and spatial experience, image processing chips provide real-time processing of sensory inputs, reducing the delay in users’ perception of their surrounding environment, assisting in seamless connections between the virtual and real worlds. Domestic chip manufacturers are also deepening their layout in this field.
Insight Four: Entering the “1+3” Era Around Core Visual Experience, Upgrading Olfactory, Tactile, and Auditory Sensory Experiences in All Dimensions, with Related Component Performance Entering a High-Speed Optimization Period.
In 2024, VR devices will make significant upgrades from LCD screens to Micro-OLED screens, and AR glasses will transition from Birdbath solutions to waveguide solutions in optical schemes, greatly improving visual experiences. Beyond visual aspects, in terms of sound units, the design of directional speakers in AR glasses will become a key point of competition for manufacturers in terms of directional propagation, sound quality, and privacy. Technologies such as gas sensors, VR interactive gloves, and linear motors for handles will continue to optimize, upgrading sensory experiences in all dimensions centered around visual experience.
Insight Five: Scene Differences Foster Continuous Development of Multimodal Interaction, with Multiple Interaction Methods Coexisting for a Long Time.
Differentiated scene demands determine that AR/VR devices will coexist with multiple interaction methods in the future. In entertainment, audio-visual, and fitness scenarios, handles will play an important role; smart rings can help users better control AR glasses through voice; in productivity applications of mixed reality headsets, gesture interaction will be more efficient and straightforward.
Insight Six: The Tightness of XR Devices with Other Terminals Increases, Lowering Barriers.
As connection adapters and application compatibility continue to improve, tablets, game consoles (Switch, PS, Xbox, etc.), and smart cars will better connect with AR/VR devices, allowing AR/VR devices to more smoothly integrate into the smart terminal ecosystem, playing roles in travel, productivity, and entertainment scenarios.
Insight Seven: Key Supply Chain Costs Continue to Decline, and the Domestic Proportion of Multiple Links in the XR Industry Chain Will Continue to Increase.
With the launch of Apple Vision Pro in 2024, the domestic supply chain will accelerate its entry, and the cost of display screens will begin to decline. Manufacturers’ cost pressures will begin to improve, making it easier to achieve hardware profitability in the post-subsidy era. From the perspective of supply chain layout, the domestic proportion will continue to increase in multiple links, including complete machine assembly, image chips, display screens, speakers, and batteries.
Insight Eight: The Offline Channel System Continues to Enrich, with Manufacturers Entering Multidimensional Competition in Sales Channels, Marketing Strategies, Content Layout, and Supply Chain Costs.
From the perspective of channel system layout, manufacturers are increasingly collaborating with general agents, increasing cost investment and layout efforts in offline retail stores. In terms of marketing investment, digital enthusiasts remain the primary target audience for manufacturers’ advertising. In content layout, manufacturers adopt a parallel route of introducing + self-research for competition. In terms of supply chain costs, traditional hardware manufacturers like mobile phones have more advantages. Currently, competition among AR/VR terminal manufacturers has shifted from a single hardware product competition to multidimensional competition in sales channels, marketing strategies, content layout, and supply chain costs.
Insight Nine: The Manufacturer Landscape Faces Restructuring.
In the first three quarters of 2023, Pico achieved a shipment share of 58.5% in the Chinese VR market, ranking first in all three quarters; in the AR market, Xreal, Thunderbird, and Rokid accounted for over 70% of shipments, with rankings varying each quarter. It is noteworthy that 2023 has also been a challenging year for Chinese AR/VR manufacturers, with several leading manufacturers facing layoffs, structural adjustments, funding chain difficulties, and even market exits. In 2024, leading overseas manufacturers are expected to enter the Chinese market, with Apple’s new products making a strong entry, and mobile manufacturers preparing to launch new AR glasses, making the competitive landscape in the Chinese market full of uncertainties.
Insight Ten: The Progress of Standardization in the Domestic Virtual Reality Industry Will Continue to Accelerate.
In recent years, the Ministry of Industry and Information Technology and other units have repeatedly issued action plans for the integration and development of virtual reality and industry applications, promoting the unification of industry standards from multiple aspects, including basic general, content production, content distribution, and testing evaluation. Compatibility difficulties, format differences, and high costs remain issues that the entire industry needs to solve together. In 2024, the progress of standardization in the domestic virtual reality industry will continue to accelerate.
