IoT market grows rapidly in China

A recent report from ABI Research projects a fivefold increase in China's Internet of Things market by 2020, growing to more than $41 billion. As demand for connected devices increases in China, supply will go up and could provide many opportunities for exporters into a market with improved expertise and diverse product lines.

The biggest increase is expected for smart meter products, for which connections could exceed the next highest IoT market segment 10 to one. Other segments expected to see high growth include home security and automation, surveillance equipment and home appliances. Home monitoring is predicted to gain more importance in China because of the country's aging population.

Much of the new revenue in China will come from data analytics and other IoT services. In this way, China is still catching up with more developed markets like Japan, South Korea and the US. However, no market exists in a vacuum. A better service industry can boost demand for IoT hardware in China, which will in turn affect supply and expertise. The report reinforces what past data shows in rising demand for ‘connected’ surveillance and home security products. China is not the only market with an aging population, either. If this trend holds across economies, interest in home monitoring can be expected in many markets from Europe to Asia.