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

Internet of Things concept stocks became one of the biggest dark horse varieties in the market in 2010, but they have not performed well in this year's market, and the sector has fallen to its lowest point in recent years. In addition to the systemic risk of the weak market, it is also related to the slow expansion of my country's Internet of Things industry. It took 30 years for barcodes to become popular, and a more pessimistic view is that it will take another 20 years for the radio frequency identification electronic tags (RFID) of the Internet of Things to fully reach the application level of barcodes. The lack of a unified system standard in the entire industry has also become a constraint on the further expansion and development of the Internet of Things. However, this situation is about to change.

　　The MIIT's recently released "12th Five-Year Plan for the Internet of Things" points out that one of the current main tasks is to accelerate the completion of the construction of the standard system framework, actively promote the development of common and key technical standards, and vigorously develop application standards for key industries. According to media reports this week, the first seminar on new generation information technology standards revealed that my country's Internet of Things system standards will be released at the end of this year or the first half of next year. It is expected that by 2015, China's Internet of Things industry system will exceed 500 billion yuan in scale, and the compound growth rate in the next few years will be as high as 30%. The establishment of system standards will provide a catalyst for the expansion of my country's Internet of Things industry scale, and will also bring market opportunities for valuation increases for related listed companies.

　　The development of the Internet of Things in my country is at the same starting stage as the world, and has initially acquired a certain technical, industrial and application foundation, showing a good development trend. Although there is still a big gap in the maturity of core technologies, high-end products and large-scale applications, the application and promotion in local areas has achieved initial results: At present, my country's Internet of Things has been applied in the fields of security, electricity, transportation, logistics, medical care, environmental protection, etc., and the application model is becoming more and more mature. 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 power transmission and transformation monitoring are gradually expanding; in the field of transportation, applications such as road network monitoring, vehicle management and dispatching are playing a positive role; in the field of logistics, the storage, transportation and monitoring of goods are 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 IoT industry system market size is 100 billion US dollars, and the Chinese IoT market size has reached 200 billion yuan. 28 provinces and cities across the country have made IoT one of the key areas of development of emerging industries. IoT not only has 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 IoT as a strategic emerging industry, and allocated 5 billion yuan of IoT industry funds in 2011. During the 12th Five-Year Plan period, the Ministry of Industry and Information Technology will support application demonstration projects in key areas of IoT, including nine areas: smart industry, smart agriculture, smart logistics, smart transportation, smart grid, smart environmental protection, smart security, smart medical care and smart home. Listed companies in the relevant industrial chain will also benefit.

　　In terms of specific products, RFID industry applications are still the fastest growing and most widely used field in the core components of the Internet of Things industry. At present, it has covered industrial-grade applications such as logistics, animal and food traceability, ETC non-stop toll collection system, and book management. Therefore, related companies benefit the most directly. It is recommended to pay attention to the four leading companies in the Internet of Things sector: Yuanwanggu (002161), Newland (000997), Eastcompeace (002017), and Xiamen Xinda (000701). Key recommendation: Yuanwanggu (002161), which has outstanding technical advantages and products covering a wide range of industries.