The Internet of Things (IoT) has seen rapid development in recent years, with increasing investment activities. Major investments in 2020 focused on key areas like 5G, artificial intelligence, cloud computing, and big data analytics. As the supporting infrastructure matures, we expect to see continuous growth in IoT adoption across consumer, industrial, and government sectors. This will drive further investments in innovative IoT companies and technologies.
Huawei leads in 5G and other core technologies
As a leading technology company, Huawei has invested heavily in R&D for 5G, AI, and other core technologies. In 2019 alone, Huawei spent over 10% of revenue on R&D, more than key competitors like Xiaomi and Apple. With over 80,000 patents globally, Huawei aims to drive innovation in areas like 5G infrastructure, advanced networking protocols, fundamental sciences etc. Such sustained technology focus makes Huawei well positioned to capitalize on rising IoT demand.
Industrial IoT promises huge market potential
Industrial IoT offers substantial efficiency gains through connecting sensors, machines, and supply chains. Huawei cites wireless sensor networks in factories as a prime example where proprietary machine protocols can link to IP networks and cloud analytics. If solutions like 6LoWPAN mature further, IoT adoption in industrial sectors could accelerate rapidly. This spells promising IoT investment opportunities.
Chinese government supportive of IoT growth
Chinese government policy initiative like the 14th 5-year plan prioritizes high-quality development and technology innovation. Chinese companies are also using global platforms like UN SDGs to showcase IoT-enabled sustainability solutions. Upcoming events like 2022 Beijing Olympics and COP15 summit will likely encourage more progressive IoT investments aligned with national goals.
Emerging trends like waste management using IoT
Rising middle-class consumption and urbanization in China is driving waste volumes, forcing the government to implement strict waste sorting and recycling policies. Technology players can leverage IoT, cloud analytics to enable smart waste collection, processing and reuse across cities. Early pilots in cities like Shanghai, Shenzhen and Xiong’an new district provide the test bed for such innovative business models.
In summary, IoT is an attractive sector for technology investments today given high growth potential across consumer and industrial applications. Huawei as the bellwether has invested heavily in core enablers like 5G, AI to capitalize on emerging segments like Industrial IoT and smart cities. Supportive government policies also provide tailwinds for promising IoT startups in areas like intelligent waste management.