2021 Global AI+IoT Developers Ecosystem White Paper
Co-production Welcome Preface
In 2021, with the increasingly obvious trend of open platform in AI+IoT industry, developers have become the key driving force for the development of this industry. The more a platform supported by developers, the more chances it has got to achieve the win-win situation in the industry, popularize connection to all walks of life, and make IoT a common practice in families. by Schneider Electric 2021 Global AI+IoT Developers Ecosystem White Paper predicts that IoT, industrial internet and new infrastructure of B2B industry will be implemented on a large scale in 2021. As the ToC consumer market gradually went to saturation, technologies that would help the manufacturing, industry and vertical industries to reduce the cost and improve the efficiency would be more favored by enterprises and capital markets.
The world is becoming more digital, leading to disruptions in every sector of our economy. The global pandemic has profoundly shaken society and 1.Current will continue to be a catalyst for change as we build the new normal. ● The origin, background, and development of AI+IoT………………………………………………….……………02 Digitization of everything has rapidly increased as companies look for ● The analysis of the macro environment of AI+IoT industry…………………………………………………………04 solutions to ensure business continuity. apid acceleration of digitization ● The analysis of global market for AI+IoT industry……………………………………………………………………11 brings new opportunities for growth for some, and challenges for those ● AI+IoT industry chain and value analysis……………………………………………………………….……….……13 not able to pivot and adapt. ● The Status Quo and Trend of Investment and Financing of AI+IoT industry……………………….……………14 As industries digitize, the Internet of things (IoT , real-time information, and digital tools are breaking traditional silos, enabling remote operation 2.Practices of facilities and creating innovative and sustainable economic models. ● Smart Hardware Artificial Intelligence technologies are enabling new solutions that can (Five Major Categories: Home Appliances; Security; Health & Fitness; Lighting; Electrical)……………………19 Emmanuel Lagarrigue increase efficiency and sustainability as decisions are made in real-time. ● Smart AI+IoT Application Scenarios -Chief Innovation Officer, At chneider Electric, we believe ife is n and have a customer-first (Smart Business; Smart City; Smart Home; Smart Industry)…………………………………………………………58 Schneider Electric approach and obsession with innovation and sustainability. We are leveraging IoT to connect energy, automation, software, and analytics to 3.Challenges fuel revolutionary innovations in efficiency, sustainability, reliability, and ● Security of IoT Platform…………………………………………………………………………………………………99 safety for our customers. ● At present, one of core challenges IoT industry has to face is the incompleteness of the standards……...103 We also know we can’t create all the solutions needed for a more sustainable and resilient future on our own. This is why we believe in 4.Prospects building an eco-system of partners to co-innovate and scale bold ideas ● Developer become the Key Role for the Industry to Take Off………………….…….……..…….…….….……115 to meet customer needs. We also empower our over 0,000-strong ● Open platform the Main Driver of the Industry………………….…….…….….….…..….….…….…….….….…118 partner ecosystem to expand our coverage. ● Integration of Advanced New Technology and IoT .………………….……….….….….…....…….……….….…122 It s clear that AI and IoT industry s development cannot be separated ● Scale of IoT in ToB industry………………….…….…….…….…………………………………………….….…….130 from a diverse developer ecosystem and a neutral and open ● Industrial Internet Drives Manufacturing Upgrading………………….…….……...….…….…….…….…..……136 development platform. Industries working together to build an ● New infrastructure will Accelerate AI+IoT Industry………………….…….…….….….….….…….…….……….144 interconnected development ecosystem strengthens the innovation generated. trategic partnerships and alliances are essential to create and shape the future of IoT technology and smart living to ensure our buildings are efficient, sustainable and adaptable to new technologies. By working together and leveraging technology, we can develop the innovations needed to tackle the biggest problem we face collectively- fighting climate change, reducing ine uality and creating a more sustainable world. Preface
by Schneider Electric
The world is becoming more digital, leading to disruptions in every sector of our economy. The global pandemic has profoundly shaken society and will continue to be a catalyst for change as we build the new normal. Digitization of everything has rapidly increased as companies look for solutions to ensure business continuity. apid acceleration of digitization brings new opportunities for growth for some, and challenges for those not able to pivot and adapt. As industries digitize, the Internet of things (IoT , real-time information, and digital tools are breaking traditional silos, enabling remote operation of facilities and creating innovative and sustainable economic models. Artificial Intelligence technologies are enabling new solutions that can Emmanuel Lagarrigue increase efficiency and sustainability as decisions are made in real-time. -Chief Innovation Officer, At chneider Electric, we believe ife is n and have a customer-first Schneider Electric approach and obsession with innovation and sustainability. We are leveraging IoT to connect energy, automation, software, and analytics to fuel revolutionary innovations in efficiency, sustainability, reliability, and safety for our customers. We also know we can’t create all the solutions needed for a more sustainable and resilient future on our own. This is why we believe in building an eco-system of partners to co-innovate and scale bold ideas to meet customer needs. We also empower our over 0,000-strong partner ecosystem to expand our coverage. It s clear that AI and IoT industry s development cannot be separated from a diverse developer ecosystem and a neutral and open development platform. Industries working together to build an interconnected development ecosystem strengthens the innovation generated. trategic partnerships and alliances are essential to create and shape the future of IoT technology and smart living to ensure our buildings are efficient, sustainable and adaptable to new technologies. By working together and leveraging technology, we can develop the innovations needed to tackle the biggest problem we face collectively- fighting climate change, reducing ine uality and creating a more sustainable world. by Philips
Today, a world based on Internet of Things is at the horizon. rom single smart device functionality to multi-categories devices interactions, from remote control in mobile to user value generation in data, users extract more from AIoT applications. eanwhile, AIoT ecosystems turn more diversified. ew collaboration models appear continuously across the spectrum as “closed in one end and “open in the other. nder various scenarios, richer vertical applications will be seen. At Philips, a 1 0-year history health-tech company, we believe that care should be organized seamlessly around people s health ourney, across consumers healthy living at home, out-of-hospital and in healthcare settings connecting people, data and technology. We believe that IoT is really about people not things. Andy Ho The true added value of the AIoT lies not in any single device, but in President of Philips Greater China, integrated solutions combinations of many systems, devices, software Member of the Royal Philips and services, configured and delivered in a way that address needs of Executive Committee our customers and consumers. IoT enables real-time data capturing and integration from various consumer and medical devices, translating those data into useful insights through AI. ur engagement and care can be very personalized, proactive, and preventative, across an entire ourney. The Global AIoT Developers Ecosystem White Paper analyzes the current situation and future direction of the AIoT industry from a macro perspective, and reveals the current challenges and the key to the development of the industry. In order to realize the interconnection of all things, rich and diverse developers, and an open and neutral platform are indispensable. We look forward to the publication of the White Paper to in ect new vitality to the AIoT industry, and enrich vertical applications in different scenarios. by Philips by Calex
Today, a world based on Internet of Things is at the horizon. rom single The surge of digitalization, which took place in the past decades, changed smart device functionality to multi-categories devices interactions, from the global business landscape. The new environment pushes the traditional remote control in mobile to user value generation in data, users extract business model s transformation to feed the consumer experience s new more from AIoT applications. eanwhile, AIoT ecosystems turn more re uirements. taying "smart" and "connected" have become the new rules diversified. ew collaboration models appear continuously across the of survival. spectrum as “closed in one end and “open in the other. nder various scenarios, richer vertical applications will be seen. ighting is an essential need in daily life. As an innovator of the lighting At Philips, a 1 0-year history health-tech company, we believe that care industry, Calex has been fortunate to follow the progress of the smart home should be organized seamlessly around people s health ourney, across market as a developer since its early days and has offered various consumers healthy living at home, out-of-hospital and in healthcare products. With the introduction of the Tuya Platform, we found the ideal settings connecting people, data and technology. We believe that IoT combination between the ease of use from a consumer point of view and is really about people not things. the right price entry point, making smart products available for the mass Andy Ho Will Smits The true added value of the AIoT lies not in any single device, but in market. President of Philips Greater China, Electro Cirkel B.V. integrated solutions combinations of many systems, devices, software Member of the Royal Philips Managing Director and services, configured and delivered in a way that address needs of Technology develops itself as uickly as consumers can adapt. ost good Executive Committee our customers and consumers. IoT enables real-time data capturing and corporations have now come to a stage where they have embraced an integration from various consumer and medical devices, translating ecosystem and welcome its broad compatibility and functionality. o longer those data into useful insights through AI. ur engagement and care does a consumer have to worry about choosing the wrong platform or can be very personalized, proactive, and preventative, across an entire system as long as there is the cloud to cloud communication between the ourney. primary standards. ne should think of Google and Amazon, where all the The Global AIoT Developers Ecosystem White Paper analyzes the diverse platforms can come together, and the different protocols included in current situation and future direction of the AIoT industry from a macro the platform like Wi- i, Bluetooth, Bluetooth esh, and igbee. Each perspective, and reveals the current challenges and the key to the protocol serves a different purpose with its uni ue features though it is no development of the industry. In order to realize the interconnection of all longer the basis of a consumer choice for a specific smart platform. things, rich and diverse developers, and an open and neutral platform are indispensable. We look forward to the publication of the White Paper In the lighting industry, the discussion on the dimmability of bulbs when to in ect new vitality to the AIoT industry, and enrich vertical applications changing from incandescent to compact fluorescent to ED took almost in different scenarios. five decades. We genuinely believe that the discussion about smart lighting will take less than one decade to come to the conclusion smart will be the standard for a light source.
It is my privilege to be the preface writer of the 2021 Global AIoT Developers Ecosystem White Paper. The articles inside this white paper indicate the industry s potential trends and elucidate the possibilities of consumer habits variation in the future. I strongly recommend you to read. 2021 Global AI+IoT Developers Ecosystem White Paper
1 The Current
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1.1 The Definition of AIoT or AI+IoT
AIoT stands for artificial intelligence and internet of things. Broadly speaking, it refers to the integration and application of artificial intelligence and internet of things. AI (Artificial Intelligence) refers to a technical science about the theories, methods, technologies and application systems to simulate, extend and expand human intelligence through research and development. As a branch of computer science, AI seeks to understand the essence of intelligence to produce a new, intelligent machine that reacts in a similar way to human intelligence. IoT (Internet of Things): Built upon the internet, IoT is one step beyond connecting devices: it establishes connection between physical objects as well as between physical objects and people. When AI and IoT are combined, massive amounts of data generated and collected by the IoT are stored on terminals, edges or clouds. These data are then analyzed intelligently through machine learning, thus allowing us to digitize and intelligently connect everything. On the technical level, AI enables IoT to acquire perception and recognition capabilities, while IoT provides data that trains AI algorithms. On the commercial level, the two work in synergy to enhance the real economy through promoting industrial upgrades and experience optimization. 1.2 The Origin, Background and Development of AIoT
AI (Artificial Intelligence) was first formally coined (mobile Internet), by its very nature, is a network of at the Dartmouth Conference, by pioneers in the people, and it’s the reason behind a booming mobile discipline such as John McCarthy, who was the first devices sector which churns out smartphones and to conduct in-depth academic research on AI. laptops. In addition, signal transmission of the The concept of the Internet of Things was network has evolved from fixed lines to radiowaves. proposed in 1991 by Professor Kevin Ashton of the With the popularization of the Internet, the Massachusetts Institute of Technology. In 1999, a number of netizens is gradually increasing, but research on Radio Frequency Identification (RFID) the demographic dividend is gradually being first clarified the definition of the Internet of Things: exhausted, and the shipments of PC devices and all things are connected to the internet through smartphones, representatives of the two eras, have information sensors, such as RFID and bar codes, peaked. As network communication technologies to achieve smart recognition and management. are continuously innovated (the upgrade from the In 2017, at the "All Things Smart · New Era AIoT fixed network to the 5G network brings forth a Future Conference", China officially proposed the comprehensive upgrade of bandwidth, capacity, concept of AIoT. and transmission rate) and device connection From the perspective of industrial development, the technologies see further development (the cost of first-generation Internet (PC Internet) is essentially networking is further reduced), the new generation a network of computers. Users gain access to of the Internet will grant connection to various information on the internet through machines, and devices, bringing us one step closer to the phase of the main media for connection are signal lines/ "All Things Connected". network lines; the second-generation Internet
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With the iterations of technologies such as AI, Academy of Engineering, predicted that for AIoT big data, and cloud computing, the ultimate to become truly intelligent, it will go through three development objective of IoT is "All Things developmental stages: single-device intelligence, Connected." AI technologies are used to analyze interconnected intelligence, and active intelligence. and process data collected by smart terminals to AIoT is evolving from single-device intelligence to improve user experience and product intelligence, interconnected intelligence, while the development which ultimately leads to a shift in our lifestyle. of smart terminals is reaching maturity. Wu Hequan, an Academician of the Chinese
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Development of the Internet of Things" was formally 1.3 released, which laid out the overall strategy of An Analysis on the Macro the Internet of Things and clarified developmental objectives. Environment of the AIoT Organizational structure: The Inter-ministerial Industry Joint Meeting and Expert Advisory Committee for 1.3.1 An Analysis on Policies for the AIoT the Development of the Internet of Things was Industry established to coordinate all relevant departments; Many countries across the world are attaching Development plan: "Special Action Plan for the great importance to the development of the AIoT Internet of Things Development (2013-2015)"; "the industry, and continue to introduce relevant policies Development Plan for the Internet of Things (2016- and establish strategies to gain an upper hand in 2020)" (to clarify the development goals of our main the international competition of future technologies, performance indicators, in the IoT industry by 2020). especially in developed countries and regions such Financial support: The central government has as the United States, the European Union, Japan arranged dedicated funds for the development and South Korea. of the Internet of Things for 4 consecutive years, and has included the Internet of Things in the China list of high-tech industries to be determined and National strategies: On November 3rd, 2009, supported. Strategic upgrade: During the "13th Five- Premier Wen Jiabao delivered a speech entitled "Let Year Plan", the Chinese government emphasized Science and Technology Lead China's Sustainable the implementation of the "Cyberpower" strategy, Development", in which he stated clearly that acceleration of the building of “digital China", and the Internet of Things is one of China's strategic promotion of a full integration of technologies such emerging industries; in 2010, the Internet of Things as the IoT, cloud computing and AI into various was first included in the "Report on the Work of the industries. In 2017, the State Council issued "The Government". New-generation Artificial Intelligence Development Top-level design: During the "12th Five-Year Plan", Plan", elevated the development of AI into a national the government strengthened its efforts in promoting strategy. The "2019 State Council Report on the the industry; in early 2013, the "Guidelines of the Work of the Government" proposed to "build an State Council on Promoting the Orderly and Healthy industrial Internet platform and expand 'smart+' ",
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an initiative regarded as the government’s first foray Europe", in which the Commission proposed 14 IoT into a new era of all things connected intelligently; action plans. In 2020, the country emphasized the development Organizational structure/financial support: In 2015, of "new infrastructure", namely, cloud computing the Alliance for the Internet of Things Innovation and artificial intelligence, blockchain, 5G, Internet of (AIoTI), an organization that bridges the EU and Things, industrial Internet and other technologies, the industry circle, was established with an as well as the integration of these technologies, investment of 50 million euros; in 2016, the Internet empowering traditional industries to make smart of Things - European Platform Initiative (IoT-EPI) upgrades. was established with the purpose of building a sustainable European IoT ecosystem; through the United States "Horizon 2020" R&D program, nearly 200 million National Strategies: In 2009, the Obama euros will be invested in the IoT to build an IoT administration proposed their key strategy to platform that connects smart devices, which revitalize the economy and establish the US's global promotes IoT integration and platform research competitive advantage, namely the US Internet of and innovation. The R&D program focuses on five Things strategy. And the American Recovery and smart applications that will be carried out on a large Reinvestment Act (787 billion USD in total) proposed scale: connected cars, smart cities, smart wearable to focus on industries including energy, technology, devices, smart agriculture and food safety, and education and health in terms of developing and smart elderly care. applying IoT technologies through increased Strategic upgrade: In April 2018, the European government investment. Commission issued a policy document "Artificial Organizational structure/financial support: In 2015, Intelligence for Europe", which proposed the EU the US government announced that it would invest way of artificial intelligence; in February 2020, the $160 million to promote the Smart City Initiative; the European Commission issued the "White Paper US Department of Energy established the "Smart on Artificial Intelligence", emphasizing that the Manufacturing Innovation" organization and invested European AI strategy aims to improve innovation $70 million to promote the R&D of advanced capabilities in the field, while simultaneously sensors, controllers, platforms and manufacturing promoting the application of ethical and trustworthy modeling technologies. AI technologies in the European economy. Strategic upgrade: In February 2019, US President Trump signed Executive Order No. 13859 to launch Japan and South Korea the new US artificial intelligence plan, as a national In August 2016, the South Korean government strategy to enhance the US AI leadership; at the identified nine national strategic projects (AI, end of February 2020, the White House Office autonomous driving, smart cities, virtual reality, of Science and Technology Policy released the etc.) as new engines for new economic growth and "American Artificial Intelligence Initiative: Year One improving the quality of their citizens' lives. The Annual Report", which outlined the progress of AI Ministry of Science, ICT and Future Planning of development in the United States and emphasized South Korea will invest over 2 trillion won to promote six key policies and practices. these nine projects, while South Korean carriers are actively deploying dedicated networks for the The European Union Internet of Things. In January 2019, the Ministry of Strategies: In June 2009, the European Commission Science and ICT of South Korea formulated and submitted the world’s first IoT development strategic released the "Economic Activation Plan Based plan, titled "Internet of Things - an Action Plan for on Data and Artificial Intelligence" to promote the
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integration of data and artificial intelligence. Committee of Integrated Innovation Strategy. In 2004, the Ministry of Internal Affairs and Communications (MIC), the authority of Japan's 1.3.2 An Analysis of the Economic information and communications industry, proposed Environment of the AIoT Industry the "U-Japan" strategy. Subsequently, Japan The global economy has slowed down (the began to promote the application of the Internet of growth rate of global GDP has decreased), Things in power grids, remote monitoring, smart and it is expected that 2020 will see a slower homes, and Internet of Vehicles; In July 2009, the economic growth due to the impact of global trade Japanese IT Strategy Headquarters proposed disputes and the Covid-19 pandemic. Meanwhile, "I-Japan Strategy 2015", setting the goals to international competition has intensified, and achieve a citizen-centered digital security and a countries are increasingly vying to become a society of vitality, and to strengthen the application technological power. Therefore, they have paid of the IoT in the fields of transportation, medical more attention to the development of emerging care, education, and environmental monitoring. technologies such as artificial intelligence, cloud In January 2016, the Japanese Cabinet proposed computing, communications, and the Internet “Super Intelligent Society 5.0”, aiming to make of Things. Due to the overall macroeconomic lives more convenient through technologies environment, the investment environment for AI and such as the IoT, robotics, AI, and big data. In IoT has gradually become more rational, and the June 2018, the Japanese government proposed commercialization of AIoT-related fields has become a new artificial intelligence strategy, "Integrated the key to future strategies. Innovation Strategy", and established the Promotion
1.3.3 An Analysis of the Social Environment products, the most representatives of which are of the AIoT Industry smart speakers and smart watches, continue Mass consumers: Globally, the per capita to enjoy more and more variety, while their fast consumption continues to rise. Consumption iterations also offer new functions. As a result, upgrades have brought about changes in people are more willing to purchase smart products consumption mindsets. In addition, smart terminal that could improve their lives.
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Business environment: Digitalization has penetrated underlying components that perceive various industries. Traditional industries, most notable information and data related to the objects, their representatives of which are manufacturing, medical status, and the environment. Sensors are gradually care, and energy, are facing digital transformation. moving away from their traditional forms and The application of the intelligent IoT is one becoming smart. They are now able to detect the important way to complete digital transformation. external information, perform self-diagnose, process Driven by industrial applications, the business data and adapt to different situations. Currently, models surrounding the AIoT industry are constantly MEMS1 (Microelectro Mechanical Systems) sensors being innovated, developed and optimized. have become a new development trend. Due to Services such as shared bicycles and telemedicine integrated communications, CPU, batteries, etc., are all innovative business models based on the and a variety of sensors, MEMS sensors are small, development of the Internet of Things. lightweight, inexpensive, and easy to be integrated. They make the terminals smarter. 1.3.4 An Analysis of the Technologies in the As sensing technologies develop, the average price AIoT Industry of sensors continues to fall globally, and the cost of network deployment of smart devices has been Sensing technologies: greatly reduced, which supports the development of In the AIoT industry, sensing technologies are the AIoT industry from the infrastructure level. the entry to data collection, and sensors are the
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Semiconductor chips: devices and reduce latency, the iterative evolution At this stage, AIoT devices still need smart phones of network and communication technologies or Wi-Fi to be connected to the network. In order are essential. Therefore, in order to support the to improve the flexibility and portability of AIoT development of the AIoT industry, the performances terminals, it is necessary to ensure that the built- of network and communication technologies in in batteries of AIoT smart terminals are small, terms of transmission rate, bandwidth, connection lightweight and have a long battery life. Therefore, capacity, low power, delay, etc. have been greatly the built-in device processor (semiconductor chip) is improved, including 5G, Wi-Fi6, IPv64, Zigbee5, getting more energy-efficient and high-performing. LPWAN6 (NB-IoT7, LoRa8), among other network MCU2 and SoC3, which enjoy notable advantages and communication technologies widely used in the in performance, cost, low power, reliability, and AIoT industry. scope of application, have matured and become an Massive machine-type-communications (mMTC) important technical support for the AIoT industry. in the three major commercial scenarios of 5G technology include narrowband Internet of Network and communication technology: Things (NB-IoT) and enhanced machine type In the era of "All Things Connected", connected communication (eMTC), which can be adapted to devices continue to increase. In order to large-scale IoT applications. simultaneously connect an enormous number of
LPWAN (Low-Power Wide-Area Network): It is 2.4Gbps to 9.6Gbps, the number of connected suitable for IoT terminals. It has low broadband, devices from 5-10 to 50, and the network low power consumption, long range, and large delay reduced from 30ms to 20ms. All of these connection. It will cover 60% of IoT devices in the improvements enable communication with terminal future. equipment while reducing power consumption. Compared with Wi-Fi5, Wi-Fi6 has been Bluetooth technology is an open global standard comprehensively improved in terms of performance. for wireless data and voice communication. It is The total bandwidth has been increased from a radio technology that supports short-distance
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communication between devices, enabling short- commercialization potential in smart lighting control distance data exchange among fixed devices, systems, and could also be promoted and applied mobile devices (mobile phones, PDAs, wireless to other industries. headsets, laptops, etc.) and personal LANs within Zigbee is a short-range (10-100m), low-bit buildings. Bluetooth connects multiple devices (250Kbps), low-power, low-cost, two-way wireless and offers the solution to data synchronization. Its communication technology. It can work on three advantages include applicability among multiple frequency bands: 2.4GHz (globally common), devices, national working frequency bands and 868MHz (common in Europe) and 915 MHz strong anti-interference, but it is insufficient in (common in the US). It is mainly used for data terms of power consumption and safety. BleMesh transmission among various electronic devices (Bluetooth Mesh) network is a new network topology with short range, low power consumption and of Bluetooth Low Energy (also known as Bluetooth low transmission rate, and can be embedded in LE) used to establish many-to-many device various devices. The advantages of Zigbee include: communication. Its advantages are low module low power consumption, low cost, large network cost, lower packet loss rate and delay during data capacity, reliability, security, and great scalability. transmission, directly supported by smart phones, However, Zigbee mainly uses the 2.5G frequency in portable networking, and strong anti-interference the ISM frequency band, and has weak diffraction performance. Currently, BleMesh is getting the and insufficient wall penetration in the home attention of the entire industry. It has certain environment, greatly affecting the signal.
A comparative analysis shows that Wi-Fi is currently easy networking. the most widely used wireless communication technology with the highest transmission rate; Cloud computing and AI: Zigbee's advantages are ad hoc network and low In recent years, artificial intelligence has fully entered power consumption, and Bluetooth's advantage is the era of machine learning. With the support of
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data mining, cloud services, data analysis and [2] MCU: Microcontroller Unit, also known as Single- other technologies, AI now has access to massive Chip Microcomputer or single-chip unit, serves to pools of data for learning, and AI technologies moderately reduce the frequency and performance and their core algorithms are constantly being of the central processing unit (CPU), and to upgraded and iterated. Core AI technologies, integrate memory, Timer, USB, A/D conversion, most notably, computer vision technology, natural UART, PLC, DMA and other peripheral interfaces, language processing technology, and intelligent and even LCD drive circuit into a single chip to form adaptive learning technology, have achieved great a chip-level computer, providing various control breakthroughs. Due to the fact that the technologies combinations for different applications. are becoming more and more mature, AI technology [3] SoC: System-level chip, or System on a Chip. has gradually entered the commercialization stage, Academia in China and abroad generally tend to integrating with traditional industries to improve the define SoC as an integration of microprocessor, production efficiency. analog IP core, digital IP core and memory (or off- More connected devices will inevitably lead to chip storage control interface) on a single chip. It a surge in data volume, so there will be a higher is usually custom-made or a standard product for demand for data storage and data processing specific purposes. technology. The development of cloud computing [4] IPv6: Internet Protocol Version 6, is the next and big data technology also provides support to generation IP protocol designed by the Internet the AIoT industry. Currently, more mature cloud Engineering Task Force (IETF) to replace IPv4. computing technologies include hybrid cloud [5] Zigbee: It is a wireless network protocol for low- technology (for horizontal modular expansion), bit and short-distance transmission. It is low-bit, hyper-convergence technology (to solve the low-power, inexpensive; supports a large number problem of storage device capacity, performance of network nodes and multiple network topologies; and computing power mismatch) and edge and it is also incomplex, fast, reliable and secure. computing technology (to solve issues related to [6] LPWAN: Low-Power Wide-Area Network, also central capacity, network delay, transmission energy known as LPWA or LPN, is a wireless network used consumption, privacy protection, etc.). in the Internet of Things, enabling communication The development of AI and IoT technologies are over long distances at low transmission rates. complementary to each other. AI technologies [7] NB-IoT: Narrow Band-Internet of Things. It is a advance from learning big data, and the smart new narrowband cellular communication LPWAN connection of the IoT requires intelligent analysis technology proposed by the 3GPP, a group of from AI. Therefore, developing these technologies in standard organizations, in September 2015. Its core synergy helps the AIoT industry to grow. application is low-end IoT terminals (low current consumption), suitable for broad deployment in Notes: smart homes, smart cities, smart production, etc. [1] MEMS: stands for Micro-Electro Mechanical [8] LoRa: Long Range Radio is a low-power wide- Systems, which refers to micro components or area network protocol developed by Semtech. systems that can be produced in batches, and serve Under the same power consumption, it has 3-5 to integrate micro mechanisms, micro sensors, times the frequency communication distance of the micro actuators, signal processing and control traditional radio, achieving low power consumption circuits, even interfaces, communication modules, and long distance simultaneously. and power modules into one or multiple chips.
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billion in 2019 and will exceed $1 trillion by 2022. In 1.4 the meantime, data transmitted via IoT has reached Analysis of the Global AIoT 14 ZB in 2019 and will reach 80 ZB by 2025. As IoT, 5G, big data, and other technologies develop, Market the penetration of AI in IoT market will rapidly AIoT market has been expanding due to the grow in the next few years. Global Smart Business powerful convergence of artificial intelligence(AI) estimates that the global AIoT market size was technologies and IoT applications. According to about $226 billion in 2019 and will grow to $482 IDC, a leading international information technology billion by 2022, with a compound annual growth data company, the global IoT market size was $686 rate of around 28.6%.
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China Global Smart Business estimates that the US AIoT Since many IoT companies and manufacturers market size in 2019 was approximately USD 68 (with a low AI adoption rate) are relatively young, billion, and will reach USD 136 billion by 2020 with China’s AIoT market only took up a small share in a stead annual growth rate of 26%. the overall IoT market in 2019 compared with other regions, but it also means opportunities for future The European Union development. Global Smart Business estimates that Similar to the United States, the EU has a higher AI China's AIoT market size in 2019 was about USD adoption rate. Therefore, despite its IoT market size 55 billion, and thanks to recent policies on new was smaller than China in 2019, its AIoT market size infrastructure, it will reach USD 128 billion in 2022, was almost as big as China’s and was about USD with a compound annual growth rate of about 33%. 55 billion. According to the forecast of Global Smart The growth rate will surpass the United States, the Business, the EU’s AIoT market size will reach USD European Union, Japan, South Korea, and other 120 billion in 2022, with a compound annual growth regions, making China one of the world's most rate of about 30% and the potential to become a potential AIoT markets. more mature and stable AIoT market.
The United States Japan and South Korea As the world's largest AIoT market, the United Japan and South Korea started early on the States will remain on top for the next three years. combination of AI and the IoT, so their technologies
Source: AIoT Business Source: AIoT Business
are relatively mature. The AIoT market size in 2019 was about USD 34 billion. However, since they have experienced a rapid growth at the early stage, the growth of the AIoT market in Japan and South Korea in the next three years will slow down, and the market size is expected to reach USD 64 billion in 2022, with a compound annual growth rate of about 24%, which is relatively lower compared to the US market. Source: AIoT Business
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Mobile and Orange; platform layer is to store and 1.5 analyze data and the key player here is IoT platform The Introduction and providers such as Tuya Smart; application and service layer is to provide applications and services, Analysis of the AIoT Value with added values from AI technologies, for Chain downstream companies, and the key players here The AIoT value chain can be divided into four include Baiseniao, Schneider Electric, Siemens, etc. levels: sensor layer, transmission layer, platform In conclusion, AIoT is the extension of IoT with more layer, application and service layer. Sensor layer emphasis on AI chips, AI solution providers, and AI is to collect data and information, it includes open platforms. Therefore, software development/ basic components like sensors and chips, smart system integration/value-added AI services have terminals, operating systems and software adapted become an important part of the AIoT market. to IoT smart terminals, and AI algorithms/solutions According to Ericsson, hardware/smart terminals that support and analyze terminal devices, and (chips, sensors, modules, smart terminals) account the key player here is product/solution providers, for 25% of AIoT value chain, communication such as iFlyteck; transmission layer is to transmit services account for 10%, platform services data from sensor layer, it includes communications account for 10%, and software development/system hardware and connectivity networks, and the key integration/value-added services/applications player here is service providers, such as China account for 55%.
Source: EqualOcean
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Source: EqualOcean
raised a great number of funds from 2016 to 2017, but the amount of each fund wasn’t big so the total 1.6 capital was relatively small; in 2018, the number of funds fell dramatically but the amount of each AIoT Investment and fund increased, so the total capital was large; in the Financing Status and first 6 months of 2020, the investment market has Investment Trends been cautious and the amount of one single fund has only increased slightly, so it is estimated the total financing amount will surpass that in 2019 by IoT, AI and AIoT all have received a lot of attention merely a little. of capital market in recent years. From 2016 to Based on the investing and financing activities 2017, many startups just established but investment recorded by itjuzi.com in the past 5 years (from institutions were optimistic about AIoT’s future and 2016 to October 2020), the capital market has paid invested a lot in early-stage and mid-stage projects; more attention to projects in a relatively early stage since 2019, capital market has cooled down and as in this field with the most investments being Series good projects and enterprises stand out, the amount A & Series A+ fundings every year. From 2016 to of a single investment increases, but the number of 2018, the capital market was enthusiastic: not only investments decreases. the number of investing activities accounted for a Venture Scanner’s statistics show that IoT startups relatively high proportion, but also investors were
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willing to invest in projects in the very early stage. market has cooled off. The number of projects in angel rounds was 35.4%, In terms of deal size, fundings in 2019 were the 22.8% and 24.3% respectively from 2016 to 2018, largest and single deal reached the highest level. which indicates the confidence the capital market Due to the pandemic this year, the capital market had for IoT and AIoT. From 2019 to 2020, quality has grown tighter in general and it has also affected companies have stood out, and internet giants have the investment and financing in IoT to a certain entered the competition, and therefore the capital extent.
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(Note: If the investment size is not disclosed, it is digitalization, with the aim to connect devices and not counted; “hundreds of thousands” is counted digitalize internal business processes; the second as 700,000, “millions” as 5,000,000, “tens of stage is using data generated by the action of millions” as 30,000,000, “hundreds of millions” connecting devices to provide value-added services as 200,000,000; the USD to CNY exchange rate for operations and to help customers transform is 6.7, the euro to CNY exchange rate is 7.8, the from traditional transaction-based enterprises GBP to CNY exchange rate is 8.6, the JPY to CNY to service-oriented enterprises; the third stage exchange rate used is 0.064, and the INR to CNY is the connection and integration of value chain exchange rate is 0.090.) components through multi-party collaboration to In terms of investment direction, sensors and form a network of multipoint-to-multipoint services. chips, software development and services, Take Tuya Smart as an example, it provides IoT cloud platform and data services are the major modules to help home appliance manufacturers investment targets for sensor layer, transmission and developers to connect devices to the cloud layer and platform layer respectively in AIoT. first, enables customers to create value-added Generally speaking, Investors are more interested services and new business models with operation in investing in companies working in the application data generated at the platform next, and finally of AIoT, especially those who provide solutions or integrates upstream and downstream resources operation services. Smart home, smart industry of the industry chain to helps customers access and smart business (including smart retail, smart overseas ecosystem and market resources via a logistics, smart community, smart agriculture, smart comprehensive developer platform. education, etc.) are relatively popular investment Wang also pointed out that the connection of directions. devices is the foundation of AIoT but the market Kevin Wang, a partner at Mount Morning Capital, has for connectivity is limited, and the value created been looking at 5G and IoT, smart manufacturing, through the data generated by the connection is and enterprise services for long. According to him, worth more attention. AIoT can be applied to many the business models and market values of the AIoT vertical industries, such as industrial engineering, companies worth investing will continue to evolve logistics, energy, city management and other as technologies and enterprises develop. The industries with huge market potential. Cost savings, first stage of the development is networking and efficiency improvement and business model reforms
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that are driven by AIoT data will create huge value. investing in AIoT in the future: value-added Investors should focus on how much value AIoT AIoT applications based on data, 3D vision and applications and services can create, how much applications, low-cost sensors (MEMS), and IoT profit AIoT technology or services providers can security (IoT will be adopted in a large number of make, and how much money and time is needed. active devices, such as automobiles and industrial Wang shared 4 areas that he believes are worth production equipment, so its security is crucial).
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2 The Practices
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2.1.1 Major and Small Home Appliances 1. Overview of the Home Appliance Industry As widespread adoption of AI and the IoT, the intelligentization development in the home appliance industry has made a preliminary progress. Meanwhile, the number of users for smartphones and smart speakers has increased very quickly, promoting the update and development of smart According to the data by GfK Temax, in 2018, the home products greatly. global sales for major home appliances reached 177 billion euros and the number for small home According to the data from Statista, a world- appliances was 86 billion euros, accounting for renowned data analysis company, the global market 32.7% of the global sales for home appliances. size for home appliances reached 430 billion dollars in 2013 and the number is expected to be up to around 588 billion dollars in 2020. As for the major home appliance market, in 2019, the global sales reached 203.1 billion dollars, up by 3.4 % year on year.
2 Compared with the traditional home appliance market, smart home appliances can meet diverse life demands of new consumer groups The Practices In the smart home appliance field, in 2019, the global and largely improve the interactive experience market size for it reached 16.97 billion dollars and in of home appliances to create a cozy, intelligent 2020, the number is expected to reach 21.52 billion and immersive life environment. According to the dollars, up by 26.8 %. In the next five years, the development trend, the smart home appliance global market size for smart home appliances will industry will lead the consumption upgrade for achieve a compound annual growth rate that equals a long time in future. The smart home appliance to 16.5%, reaching 39.63 billion dollars in 2024. market has a great prospect.
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1.1 Smart Major Appliance Industry though the ages. In the past, people were only concerned with eating with fill, whereas at present, Smart major appliance refers to home appliances they want to eat well. people’s relentless pursuit of such as air conditioning, refrigerator, washing good food also changes the definition of modern machine and television, featuring taking up a kitchen. large space, high cost and low replacement rate In recent years, they have started to adopt a and being the major application scenario in smart healthy diet supported by science and wanted to living. Currently, the market of smart TV, smart air cook easily and smartly. Therefore, products such conditioner, smart refrigerator and smart washing as smart range hoods and cooktop, smart oven, machine is pretty mature. The leading manufactures smart soft cooker, and smart air fryer have been in the industry keeps updating the existing products, developed. Different smart kitchen appliances developing and introducing innovative and scenario- provide targeted and professional cooking methods based ones. according to what the ingredient is. At the same Among traditional home appliances, the highest time, these devices can help cook delicious penetration rate is smart TV which can reach over food easily by being smart and connected with 95%. Smart TV is also the most frequently used diversified recipes online to ensure the correct as well as the most interactive entry level smart amount of ingredients and operate automatically. product among the smart home appliances. The These functions allow the industry to develop and proportion of smart major appliances, for example, expand further. air conditioner, refrigerator, washing machine and etc. is increasing rapidly through innovation 1.4 Smart Pet Products and iteration in the functions of remote control, The pet ownership is on the rise and the pet connectivity and voice interaction. economy is also growing. Having dogs or cats is not only for leisure. Instead, pets often offer emotional 1.2 Smart Small Appliance Industry attachment. Pet owners have greater demand, with Different from the smart major appliance industry, more and more young people hoping more than just the smart small appliance industry is more keep their pets alive. A lot of people who were born diversified, including smart sweeping machine, in 1980s and 1990s are willing to spend their money smart air purifier, smart heater and smart fan, being on pets to please themselves and enjoy the life to in various forms. It has market demands under the fullest. different scenarios and provides great interactive With regard to pet food and accommodations, experience based on its functions, such as device products such as smart pet feeder, smart drinking status alert, time-sharing and schedule setting dispenser, smart self-cleaning litter and smart pet and real-time remote interaction. The smart small toys have been promoted for remote monitoring, appliances have gained a firm footing in the market regular feeding and real-time interaction. The smart place quickly for being easy to use and with clear pet products help pet owners to show their care functions and high replacement rate. At the same and love in a real time way, let owners keep pets time, new brands in the industry have been growing easier and make pets feel less lonely, and provide a rapidly. In particular, the emergence of creative concreate way for users to express their emotions. products makes the industry enjoy broad market With an increasing number of young people who prospects. would keep pets, the acceptance and demand for smart pet products will also continue to grow. 1.3 Smart Kitchen Appliance Industry Market potential will be huge. People’s passion for food has never diminished In a word, the continuous technological change
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and consumer’s pursuit to make life easier make Shenzhen SKYWORTH Air Conditioning the smart home the best choice in the future. And Company was founded in June, 2014 as a the improving and upgrading Smart home related wholly owned subsidiary of SKYWORTH Group. industries also give consumers more choices. With It is an environmentally-friendly and intelligent growing consumer demand, all sectors in smart air conditioning manufacturing company with home market will develop rapidly. We can see capabilities of R&D, production and sales. It has top that planning ahead will be helpful for business R&D and manufacturing teams in the industry with transformation. advanced laboratory equipment from both home and abroad and its sales channels cover all over the 2. Solutions world. Currently, it has two manufacturing bases, Currently, there are some smart kitchen solutions namely Shenzhen Longgan Base and Zhuhai Jinding with functions such as the clouding platform for Base, with a total designed yearly production menus, interconnection between multiple devices capacity of 5 million. and intelligent speech interaction, concentrated Among all home appliances, an air conditioner is the on kitchen and home scenarios. It makes use of product that can directly offer a cozy and healthy synergistic partnerships between kitchen appliances environment for users and it is an indispensable to offer the best cooking experience from purchasing part of smart home. There are two reasons for ingredients to personalized recommendations on the success of SKYWORTH Air Conditioning: ingredients, satisfying users’ everlasting demands first, SKYWORTH wants to increase its product for various delicious food. categories; second, it is a part of the company’s In the scenario of smart kitchen, the smart smart home strategy in the era of smart home. In refrigerator is the central hub, recording and recent years, as the growth of air conditioning sales managing food ingredients in storage. It can also in the domestic market slows down, the market recommend healthy diets and recipes based on in China has become highly competitive. Many users’ personal preference. Meanwhile, it can be air conditioning companies are expanding their linked to the food ingredient market, with food international market shares, so is SKYWORTH. ingredient shopping lists automatically generated Faced with various customer brands and customer for recommended recipes, to materialize the smart demands, SKYWORTH also tries to find the best purchase by one click. solution for its customers. With preset recipes, refrigerators can control the In 2019, SKYWORTH Air Conditioning released whole kitchen by connecting with smoke exhausts, its voice-controlled smart Wi-Fi air conditioner. gas stoves, ovens and fryers to realize the whole This air conditioner is not only intelligent, but process of cooking including purchase, storage, also allows users to control other IoT devices by cook and cleaning. Users can enjoy the convenience giving voice instructions to it. In this case, the of smart kitchen. air conditioner becomes the smart center of all In addition, through the connection with public smart home appliances and makes separated clouds, screens on refrigerators can show videos appliances connected with each other. The case from video doorbells, ensuring a holistic approach also offers brand a new solution for home appliance for the safety at home. With the speech function intelligentization that one kind of home appliance of smart speakers, users can use voices to control can be more than just an ordinary product and it devices such as stoves, which is convenient and can be upgraded as the smart center to control interactive. other devices. SKYWORTH air conditioners are sold globally. SKYWORTH Air Conditioning Unlike traditional home appliances, smart home
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appliances face challenges such as various internet it released the first IoT refrigerator in the world. In speeds and varied response time in cloud computing 2015, it further expanded smart home market by in different regions. As a smart device, when sold launching the U+ App. to different regions and countries, it needs to deal Many companies start their smart home business with issues such as connection to local data centers by offering one category of smart devices, which and clouds, distribution of networks and match with causes difficulties for interconnection between local mainstream smart voice assistants. various categories of devices. According to relevant Based on global third-party AIoT platforms, statistics, there are averagely over 40 electrical SKYWORTH air conditioners can be controlled devices of more than 10 brands in every family. Due and managed by popular smart speakers such as to different systems, these devices are separated Amazon Alexa and Google Home in the international from each other and they are difficult to be market. In the past, SKYWORTH managed various connected together. clients’ materials of different regions separately, Additionally, limitation of application scenarios is which was inconvenient and time-consuming. also the existing difficulty in the field of smart home However, with unified materials, now SKYWORTH appliances. Segmented scenarios at smart home only needs to maintain one material account for are important indicators to test whether smart devices, which simplifies management and greatly home appliances are “humane”. Only by knowing boosts the efficiency of maintaining smart devices. about scenarios and customers’ demands and discovering more segmented application scenarios Qingdao Haier Smart Home can a company serve users better. Undoubtedly, Haier Group was established in 1984. Qingdao customers also prefer brands that can cover more Haier, one of the Global 500, is the main brand segmented scenarios. of home appliances in Haier Group and changed As for existing problems of smart home appliances, name to “Haier Smart Home” in June, 2019. Since Haier Smart Home deals with them in the process of its establishment, Haier Smart Home has founded intelligentization by its ecosystem and application dozens of manufacturing and R&D centers and scenarios. Haier Smart Home shapes itself as a offered eight kinds of products such as refrigerators, solution provider for all IoT application scenarios, washing machines, air conditioners, water heaters offering all categories of products including and freezers. It is the only home appliance brand in refrigerators, freezers, washing machines, air China that has created a sound ecosystem for smart conditioners, water heaters and kitchen appliances. home from products, services to the brand. With these smart products, Haier Smart Home As home appliance market has been saturated in offers customers “5+7+N”, a whole set of solutions recent years, it is a consensus in the industry to for all scenarios, with features of“being a complete find new profit drivers. With the increase use of 5G set, customization and iteration”. technology for business and the development of However, in order to offer more diversified scenarios IoT, UI and smart terminals have been upgraded. In and services, Haier Smart home cannot achieve the meantime, lots of customer demands have not the goal of covering all scenarios just by itself. been met yet. Home appliance companies are at the Therefore, in the course of intelligentization, it critical stage to intelligentize themselves. chooses to cooperate with Tuya Smart, a global Unlike other companies which have just started their AIoT platform, to enhance its scenario ecosystem smart home journey in recent years, Haier Smart for smart home by creating seven ecospheres Home began its own journey long time ago. In including Internet of Clothes, Internet of Food, 2006, it founded and operated U-home Lab to test Internet of Air and Internet of Security. the reliability of smart home appliances. In 2010,
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GUANGDONG XINBAO ELECTRICAL upgrading, accumulating rich experience and APPLIANCES HOLDINGS CO., LTD comprehensive development programs. Guangdong Xinbao Electrical Appliances Holdings Relying on the technology of Tuya, developers Co., Ltd was founded in 1995. It is a listed of Xinbao only need to embed the cloud module company focusing on developing, designing, of Tuya into the existing circuit to complete the manufacturing and selling kitchen appliances, hardware development. In terms of software homecare appliances, baby appliances, health and development, Tuya offers multiple SDKs for Xinbao beauty appliances, intelligent appliances as well as to complete the integrated construction of control electrical accessories and etc. Xinbao Co., Ltd is end, cloud side and equipment side, as well as one of the export leaders of China’s small household to tremendously shorten the period needed from appliances industry, with a leading export volume of conceptual design to sales and use of products. ten categories of small household appliances for 10 Based on its own innovation and technology genes, consecutive years. Xinbao, joining hands with Tuya, has achieved Now, Xinbao has grown into a leading enterprise rapid, efficient and low-cost intelligent upgrading for in China’s small appliance industry, leading and its current products, and quickly met the intelligent participating in the formulation of a number requirements of its global customers of its products. of national standards. Owning multiple core At present, Xinbao has accomplished intelligent technologies, more to the point, Xinbao has driven upgrading of many of its products including its tremendous growth of the enterprise by industrial coffee maker, bread maker, humidifier, kettle and design, and has won many design awards including slow cooker, etc. The launch of those new products Red Star Design Award, Innovative Design Award, is greatly welcomed and recognized by the global IF Award，Red Dot Design Award as a typical market and its consumers. enterprise that evolves from “ made in Guangdong” to “ designed in Guangdong” and finally to “designed Anker Innovations Technology Co., Ltd. in china”. It has been recognized as a National Ever since its establishment in 2011, Anker Enterprise Technology Center, Provincial Engineering Innovations Technology Co., Ltd. ("Anker Technology Research and Development Center, Innovations") is one of China's largest suppliers of National High-tech Enterprise, with more than 3300 export-bound consumer electronics, specializing patents including nearly 300 invention patents. in the design, research and development and sales With a keen sense of the market, Xinbao deeply of intelligent accessories and intelligent hardware. understands the increasing need for intelligent Anker has always been committed to shaping a products in the market, and quickly starts to find Chinese consumer electronics brand for the world. the best way to upgrade its products to the level of Through continuous innovation, it has brought intelligence. In the Canton Fair in 2018, Xinbao firstly leading scientific and technological products to met Tuya Smart and after primary communication global consumers, a full demonstration of the and research, the two sides found themselves in strength of China's intelligent manufacturing. great harmony and agreed to cooperation at the end Anker Innovations has successfully created the of 2018. smart charging brand Anker, and has successively As a well-known brand of small household launched independent brands such as Soundcore appliances that are ready for export overseas, (Speaker and Headset), eufy (Smart Home) and Xinbao has a wide product range and a huge Nebula (Audio and Video Entertainment) as it capability matrix. Tuya Smart is also a rapidly- stepped into the smart home field. It has made growing enterprise that has enabled thousands three smart hardware brands over a period of nine of companies with their products intelligence years that were sold 1.5 billion yuan each per year,
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winning nearly 80 million loyal users in more than actively worked on AIoT, based new growth points 100 regions and countries around the world. on smart home products. It had worked to launch Since its establishment, Anker Innovations has wireless audio products and smart innovation grown at an annual growth rate of more than 50%, products. The proportion of these two new product far exceeding the industry average growth rate: series in the main business income increased from revenue in 2018 reached 5.232 billion yuan; In 26.40% in 2017 to 41.97% in 2019. At present, 2019, the annual sales reached 6.655 billion yuan. Anker Innovations provides more than 1,000 In August 2020, Anker Innovations was listed on product models, which better meet the diversified the Growth Enterprise Market of Shenzhen Stock needs of the global consumer electronics market. Exchange, with a revenue of 6.019 billion yuan from On the pathway to the integration with AIoT January to September 2020. Its market value is technology and quick realization of the intelligent about 50 billion yuan. upgrading of traditional household appliances, Anker Innovations has done pretty well in AIoT, Anker Innovations chose to carry out in-depth smart home, smart acoustics, and smart security. cooperation with Tuya Smart, the world's leading AI For example, in the field of smart home, there + IoT developer platform. Since 2018, Tuya Smart are sweeping robots, wireless vacuum cleaners, has been providing stable and secure cloud storage smart bulbs, smart switches, and smart scales. In and connection solutions for Anker Innovations’ the field of intelligent security, there are security intelligent hardware products, thereby effectively cameras, intelligent doorbells, intelligent door locks reducing its development costs and accelerating and other products, which occupy a large share development progress. With the support of Tuya in the United States, Europe, Japan and other Smart's cloud module series services, eufy and markets, representing high brand presence and user other intelligent products under Anker Innovations satisfaction. brands are able to offer stable network connection To build up its competitiveness in the international and data transmission. A stable, efficient and safe market and remove the original main products- interactive experience is ensured for products conventional charger products, Anker Innovations shipment quantity up to tens of millions. has continuously increased its R&D investment, 2.1.2 IPC
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1. Market Size and Estimations about 39% in China, the number is visibly smaller. According to a 2019-2022 survey issued by Boston From the global consumer IPC shipment data 2019- Consulting Group (BCG), a total of 44 million units 2020, the annual shipment to the North America of IPC will be shipped in the global smart security accounts for over 60% of global amount, meaning products market, representing an average growth of approximately 10 million units, which is followed 20% over four years. closely by Europe. In China, the market is on the Looking at different countries, the sales volume of track of recognizing consumer IPC. Currently, consumer IPC is closely linked to their respective shipments were made mainly from the three biggest economic status and household consumption telecommunication operators, in which China expenditure. The National Bureau of Statistics Mobile and China Unicom are the major player, who reported that China’s household expenditure shipped approximately 3 million units from 2019- accounts for less than 40% of its GDP, a number 2020. Riding on this trend, with growing population far smaller than other economies. Globally, the and escalating economic level, China’s consumer household expenditure accounts for approximately IPC market could exceed that of the North America 69% in the USA, 63% in the UK, 56% in Japan and in 2022. 54% in the European Union. Compared with only
2. Consumer IPC Industry Analysis (Industry cameras in the recent one year. Apart from these Key Players) operators, another major player locally also includes online retailers, namely JD.com, Taobao and Industry Key Players in China Pinduoduo. Leading players in the market include 360 and Currently, IPC prices are trending down, overseas Imou. Due to varying preference between Chinese sellers priced at RMB250 on average, while it was and overseas consumers, mini cameras are not as only about RMB100 if sold by domestic sellers. It popular as versatile cameras locally. is observed that before IPC sales volume ticks up For those key industry players, China Mobile, China significantly, the prices are already kept at very low Unicom and China Telecom offered only versatile levels. If the trend continues, it is expected that
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only a tiny fraction of the 1000+ manufacturers will survive here domestically.
International Key Players The North America, as a demonstrable market, key players are Ring and Arlo. Consumer IPC has seen exponential growth because the two players began to educate the market three years ago. Many other established brands, such as GE and Philips who focus on smart lightings, are beginning to sell IPC products, riding on the trend of IoT smart products. Versatile Camera In contrast to China’s market, leading brands in Versatile camera supplements what a mini camera the North America rolled out their respective star is unable to cover in a wider area, that by adding a products for consumer IPC. Ring offers video cloud platform feature which allows users to control doorbells, Arlo offers low-power IPC pack. The two and change the position of the camera, hence brands are the forerunners of consumer IPC in the adjusting the area under monitor. Thus, it is building North America, whose product MSRP (suggested on a mini camera that adds on cloud platform- retail price) continues to remain high as brand related features. influence has been boosted by over three years of marketing. Wyze, an emerging brand in recent two years focuses on low-priced mini cameras and versatile cameras, who marked a legendary sales record on Amazon by distributing over 1 million units in a year. More fresh IPC brands are emerging offering basic types of mini and versatile cameras, making the cheap mini cameras a household device.
3. Major Types of Consumer IPC
Cloud Platform Control: Through mobile App, Mini Camera users can adjust the camera in 8 directions for Basic function type of IPC comprises of the body monitoring the target area. The cloud platform and a stand. The body has the major parts of can control the camera to rotate horizontally and imaging unit and audio receptor. The stand allows vertically to adjust the area for monitoring. multi-directional rotation to adjust the suitable angle for installation. Main features include its convenience and portability. Once finished installation, the area under monitor is fixed unless adjusted manually. Other features include video, audio, infrared, indicator light, SD card and power jack.
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Remark: Common types of cloud platform cameras improved versions supporting enhanced features of can rotate approximately 300° horizontally, hence security and police-calling. achieving an all-round monitoring through the lens width. Some of the upscales types supports 360° Water and Dust-roof: Typically marked as IPXX, horizontal rotation, allowing fast rotation to any with the first number as dust-proof level and the angle. These upscale cameras are more costly. second water-proof level. It defines how a device can still operate under specific conditions, ensuring Default Setting: Areas to be monitored are usually it will be functional under undesirable weather fixed. Using cloud platform to adjust camera to conditions such as rain, snow, wind or dust. Device certain positions repeatedly could be troublesome gradings can be seen as below: and may affect accuracy. The device has default IP gradings (IPxx) setting function to pre-set certain camera angles IP First number Second number as default, allowing simple click to rotate the 0 No protection No protection camera automatically when deemed appropriate, 1 50mm solid substance, eg. Hand-touch water thus enabling quick switch to monitor places such drip, eg. condensation as door entrance and windows, where vigilant 2 12mm solid substance, eg. Finger direct water- monitoring should be needed. spray, tilting not over 15° 3 >2.5mm solid substance, e.g. gadgets, power Patrolling: Adding on the default setting, the device cable water spray, tilting not over 15° supports automatic patrolling, monitoring all of the 4 >1mm solid substance, e.g. gadgets, thin power areas without manual manipulation. This feature is cable water-spray from various angles, moderate similar to automatic security patrol, monitoring the water-proof level pre-set target areas one by one. The device also 5 Dust-proof –moderate dust-proof level (no harm supports setting up of patrol clock, and how much to device) low-pressure water-spray from various time will be spent on monitoring a specific area. angles, moderate water-proof level Remarks: Patrol function needs hardware support 6 Secure and dust-proof High-pressure water- for frequent rotation, buyers may need to pay spray from various angles, eg. Ship cabin, moderate attention when making purchase. water-proof level 7 submerge in water 15cm to 1m Outdoor camera 8 Persistent submerge in water possible Designed for outdoor purposes, which is susceptible Common outdoor cameras should require at least to changes of environment as different from indoor. IP65, while IP66 is suggested. One key feature is water and dust-proof, with Color and night vision camera: In contrast to infrared light used in indoor area, some outdoor cameras are equipped with white light, since it eliminates the concern of disturbing people in an outdoor area, while also allowing the light to be seen by lawbreakers as an alarm. More details can be seen through color camera. Light and sound can be of alarming effect.
Low-power(Battery) Camera The above camera types have their own characteristics and appropriate scenario, one
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commonality is that they must be connected to for battery charge frequency and its use. Battery power or internet, which means that the installation devices usually are installed in areas with less must be made near power socket or internet- human movement due to its wake-up mechanism. covered areas, limiting the versatility of the devices Hence, if people movement is frequent leading to to be installed. Longer power cables exposed frequent wake up of the device, the batter life will presents certain risks and may be too visible to be significantly shorter. people. To solve the problems, a battery-powered camera is thus produced. Powering the device Cases in the IPC Industry from batteries and Wi-Fi enables installation at any Lloyd’s Enter just about any large retail store in Mexico, including The Home Depot, Walmart, Sam’s Club, or Best Buy, and you’re almost certain to find Lloyd’s products. But the company’s beginnings—like that of so many successful companies before it—were humble, inspired nearly 30 years ago by the founder’s desire for an automatic lighting solution in his apartment building’s hallways. He found one and he took it to market. And the rest is history. Today, Lloyd’s motion sensors, smart lights, and high-definition IP security cameras can be found designated place without needing a connecting in more than 400 stores across Mexico and South cable, maximizing versatility while not having to America. Lloyd’s products are easily and remotely compromise your home aesthetics. managed through any smartphone via the Lloyd’s Smart application, which is available on Android Device Waking up: Devices on dormant mode do and iOS. not capture pictures and conduct analysis. Usually Of course, Lloyd’s hasn’t always been plugged into a built-in sensor is installed to alert of capture and smart technology. In fact, wireless technology the the time of it, and waking up the device. In a home way we understand it today wasn’t even around setting, it is mainly used to monitor the people when the company started off many years by selling coming in and out, hence PIR technology to monitor its motion sensors. if an invasion is being made. Lloyd’s saw an increasing interest in and need for the integration of smart phone technology to its PIR: PIR is the abbreviation of Passive Infrared products, such as the ability to control its lighting or Detector. This detector can target human movement security solutions from mobile phone apps. while not affected by movement of pets and In Tuya, Lloyd’s saw a chance to get an entire IoT objects, enhancing its accuracy and lowering power ecosystem—app + connectivity + cloud—in one use. PIR can be used on battery-type devices or shot, plus the huge advantage of also being able to other devices. tap into Tuya’s vast global manufacturing network. Thanks to Tuya, Lloyd’s was able to launch its first Battery Life: One key parameter of battery-type smart home line. In Mexico, smart security is a device is the battery life, which is a major factor market with huge potential, and Mexican families
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invest heavily in security devices to protect their baby monitors. Its products have penetrated from homes, both rented and owned. developed markets including Europe, America and Lloyd’s smart camera set a smart home security Australia to developing markets including Southeast precedent in the Mexican market, greatly reducing Asia and South America, and have gained popularity the price threshold of Mexican smart security on e-commerce platforms such as Amazon and products and making affordable and convenient AliExpress. smart security products accessible to more local With the rise of smart home, demand for civilian consumers. For example, unlike traditional cameras surveillance products has been increasing, that only have monitoring functions, Lloyd’s smart especially in North America, where demand has cameras can actively respond to the recorded surged driven by leading companies such as Arlo images and alert users to potential crime or and Ring. However, civilian surveillance products intrusions. are different from traditional security products, Another example is Lloyd's family alarms. Unlike which impose high requirements on App, server and conventional products, which simply sound the cloud architecture, as well as ongoing demand for horn, Lloyd's family alarms automatically send value-added services such as cloud storage and AI. warning information to family members if the alarm To address these pain points, Meari encapsulates is not cleared within one minute to ensure a timely the interface between security devices and App response when danger comes. quickly through its access to the global cloud These smart security products are more in line with and App SDK. With the ability to invoke relevant the security needs of local consumers in Mexico APIs, developers only have to develop embedded and have become the best-selling products in the software to realize connectivity between devices Mexican market. and App/the cloud. In the future, Lloyd’s plans to launch more smart In addition to smart security products, Meari has home products around smart security to fully meet been expanding its business and diversifying the needs of consumers. Building on their increased its product portfolio by accessing other smart smart home presence and ease of new product platforms, developing other smart home products introduction that Tuya has enabled, Lloyd’s plans to with surveillance module as the core, such as broaden its reach not just geographically but also mopping robots, pet feeders, and lamps. portfolio-wise as it builds smart home and smart In terms of global business, Meari also has rapid security awareness in Latin America. access to smart voice platforms such as Amazon and Google through the global AIoT platform, which Hangzhou Meari Technology Co., Ltd. allows it to update third-party voice service in real- Hangzhou Meari Technology Co., Ltd. is a smart time and enhance the performance of its smart technology company specialized in the R&D, products. production, marketing and operation of IoT, smart Meari offers a diverse product portfolio with ten- home, and civilian surveillance products. As a R&D- plus models of civilian surveillance products. With and technology-focused company, Meari has built a an annual production capacity of over 5 million full-fledged R&D team, with over 80 R&D engineers units, it manufactures products of its own brands working on architecture, hardware, embedded and serves dozens of well-known players in the software, APP and server. It is particularly industry. Its products have presence in dozens of competitive in low power consumption products. countries around the world, and are available in The Meari product line boasts a complete set of most of the major supermarket chains in Europe civilian surveillance products, including various and the United States. types of cameras, doorbells, garden lights and
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2.1.3 Sensor
1. Overview of the Sensor Industry integrated sensors and intelligent sensors. China’s At present, about 40 countries in the world are sensor industry has formed a spatial pattern engaged in the development, production and featuring four major regions (the Yangtze River application of sensors, among which the United Delta, the Pearl River Delta, the Bohai Rim, and the States, Japan and Germany are quite strong. There central and western regions) based on its obvious are more than 6,000 research and development geographical distribution characteristics. Here is a institutions and about 26,000 different types general introduction to the sensor industry with a of products. Sensors evolved through three few charts. generations of technology: structural sensors,
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The global sensor industry has been growing The United States is the largest sensor market in steadily from 2015 to 2020, and now it is a huge the world with a share of 29%, followed by Japan market worth over $250bn. and Germany
From the perspective of product structure, CMOS (micro-electromechanical system) with a share image sensors (CIS) accounted for 27% of the of 25%. Fingerprint sensors as a type of single- global market in 2018, followed by MEMS sensors material sensor enjoyed 8%.
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From the perspective of market, sensors were and industry which accounted for more than half of mainly applied in automobile, consumer electronics the market share, about $100bn.
Source: Market Intellica
From 2013 to 2024, the global market size of $1.4bn in 2019. Each type of smart sensor (pressure/ smart sensors is expected to grow rapidly with a environmental/optical/chemical) shares a similar compound growth rate of 18.2%, reaching about volume.
Source: Market Intellica
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From the perspective of application, smart security followed by smart energy management (about 23%) enjoyed the largest market share (about 30%), and wearable devices (13%).
Smoke alarms, temperature sensors and infrared and networking. As the primary condition to realize sensors accounted for more than 50% of the automatic detection and control, sensors and their demand. As people pay more attention to the development enable objects to have senses such environment and health, PM2.5 detectors had the as touch, taste and smell, making objects come to highest growth rate in demand. In addition, due life. According to their basic perception functions, to the needs such as elderly care and enhanced sensors are generally divided into ten categories: awareness of security and fire protection, the thermal sensors, light sensors, gas sensors, force demand for human presence sensors, smoke alarms sensors, magnetic sensors, humidity sensors, and infrared sensor increased significantly, all above sound sensors, radiation sensors, color sensors, 30%. and taste sensors. Sensors are usually composed of four parts: sensing 2. Sensor Solutions element, conversion element, conversion circuit and A sensor is a detection device that senses the auxiliary power supply. The sensing element directly measured information and converts it into electrical detects the measurand and outputs corresponding signals or other required forms based on certain physical quantity signals. The conversion element rules, so as to meet the needs of information converts the physical quantity signal into electrical transmission, processing, storage, display, signal. The conversion circuit is responsible for recording and control. amplifying or modulating the electrical signal. The Sensors are featured by miniaturization, digitization, conversion element and conversion circuit usually intelligence, multi-functionality, systematization need to be powered by the auxiliary power supply.
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2.1 Cases in the Sensor Industry technical know-how in IoT, Siterwell quickly built a Sensor products are essential in various fields real-time and reliable big data platform based on its including home appliances, security, commercial own sensing devices, providing better services to lighting, elderly care, hotels and apartments. the smart security ecosystem. Some major players in the industry have already Using Wi-Fi modules, Siterwell developed smart produced intelligent sensors to match them with smoke detector and smart water detector, upgrading other intelligent products and improve the overall traditional devices to wireless smart devices. Users experience. For example, traditional security and can remotely control smart smoke detector through fire protection brands Heiman and Siterwell have the mobile app, keeping track of home security even launched intelligent smoke alarms and made big when away from home. When the alarm is triggered, sales. Traditional sensor manufacturer Multi IR has in addition to sound and light effect on the spot, intelligentized its human presence sensors, door/ users can also receive notification on their mobile window magnetic sensors and temperature and app. humidity products, gaining a good reputation in the Moreover, users can monitor all aspects of the industry. device’s operation on their mobile phones, including product fault, battery and voltage status, etc., to Siterwell Electronics Co., Ltd. ensure that the device is working well; through the Founded in 2010, Siterwell Electronics Co., Ltd. cloud, Siterwell’s alarms can be connected to other is a high-tech enterprise specialized in the R&D, smart products in the ecosystem, and integrated production and sales of security products and into a customized smart home solution. solutions. Based on IoT and smart home, Siterwell is Siterwell’s smart security devices support wireless committed to building one-stop industrial solutions operation and remote control, demonstrating catering to multiple scenarios such as smart overwhelming superiority over traditional stand- security, smart fire fighting, safe city and smart city. alone alarms. They have been widely recognized Data collection and data processing are of great and accepted by end users. Smart smoke detector importance for smart security, which contributes to and smart water detector not only meet urgent the huge market size of smart sensors. According to needs in home security, but also offer better user China Business Research Institute's 2019 Research experience with smart operation, ease of use and Report on China Sensor Market, the market size of practical design. Currently, Siterwell’s smart sensors China's sensor industry was nearly 150 billion yuan are among the best-selling products in Australia and in 2018, which further expanded to nearly 200 billion many European countries, receiving positive reviews yuan in 2019. from the market. With the AIoT platform Tuya Smart's strong
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IDC’s statistics suggests, nearly 9.7 million units of 2.1.4 smart locks were traded in 2019. The market size Smart Lock is set to upsurge at 38% annually, reaching 25.4 million units till 2022. BCG’s estimation is relatively 1. Analysis of Smart Lock Market and conservative. The market capacity was about 2 million Industry units in 2019, and will increase to 3.8 million units by 2022 at an annual rate of some 25%. In terms of 1.1 Global Market Overview and Forecast market volume, it is reckoned that America (North and The global smart lock market size is expected to South) will account for over 50% in the global smart reach USD 24.20 billion by 2024, according to a door lock market between 2020 and 2022. new report by Grand View Research, exhibiting a European market is following close on the heel, CAGR of 60.1% during the forecast period. Rising given its growing momentum in the development of awareness about smart home solutions, surging hospitality industry and construction of new hotels. In demand for portable connected smart devices, and respect of market growth, smart lock market in Asia growing preference for dynamic keyless locking/ Pacific region is anticipated to grow at the faster rate, unlocking mechanisms are some of the primary owing to fast progress in urbanization and continuous factors fostering the growth of the smart lock increase in disposable personal income in China, market. India and Indonesia in particular. In 2019, more than Regionally, developed countries are attaching 17 million units of smart locks were shipped in China greater importance to smart lock market. As a where vast market opportunities from retrofitting predominant market, North America has more than existing households and adoption of smart locks in 1.5 million homes that are using smart locks. As urbanization are the strong driving force.
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1.2 Smart Lock Industry Analysis including smart locks and lock boxes. All of these companies are typical innovators fueling the Professional Players development of smart lock market. In the global smart lock market, the prominent players are three security groups, namely Assa 1.3 New Trend of Smart Lock Market and Abloy, Allegion, and Spectrum, each of whom has Product abundant and mature brand lines and product Communication Capacity: Wi-Fi keep-alive solution portfolios. Among them, Yale, August and Mul-T- that allows real-time connectivity features plenty Lock that are well-known to overseas consumers, of advantages, such as convenience of real-time come from Assa Abloy. Schlage is a core consumer control, and cost benefits of no need to purchase brand belonging to Allegion. A mass-market brand gateway, thus becoming a weathervane in the in Spectrum, Kwikset together with Baldwin in the market. Group is focused on premium products. Interaction with Devices: Given the increasing penetration of smart home, consumers are in Ecosystem Partnership stronger demand for the interaction with door locks, Amazon, Google and Apple, the three Internet giants including video door phone and intelligent audio all have introduced businesses and ecosystem voice control. planning relating to smart lock products. In Amazon’s smart lock business (Amazon Key), the 2. Solution of Smart Locks product unit that incorporates smart camera and smart lock from the company’s ecosystem enables 2.1 Overview of Smart Lock Solutions consumers to grant user-set one-time password Generally, smart lock solution is an integrated to Amazon delivery people based on the APP, solution that consists of smart lock, smart home and to watch the real-time video recorded by the system and hardware “connected to cloud”. Relying camera after the courier enters their home. This is on wireless communication module, smart lock to solve Amazon’s last-mile shipping problem, and App, IoT cloud platform service, industry SaaS, to promote the implementation of its ecosystem of and application system etc., the smart lock solution smart home. is dedicated to empower door lock enterprises Alphabet, Google’s parent company has got its to provide smart solutions at fast pace and low smart home division, Nest merged into Google’s cost. The solution is comprised of Wi-Fi, Zigbee, hardware team. It is expected that Nest will integrate Bluetooth, NB-IoT, and other telecommunication AI service and Google Assistant into more hardware modes. products, so that the smart door lock products can Comparison Between Various Telecommunication be controlled via voice. Modes: Apple Homekit is one of the ecosystems that are connected with all leading smart lock brands in the North America market.
Start-ups Latch is a North America-based start-up specialized in commercial smart lock for apartments. Nuki is a European company focused on smart locks for household retrofitting. And igloohome has been offering Asian markets with a full range of products,
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2.2 Core Functions in Smart Lock Solutions a key; Smart door lock, born to be a must-to-have basic ● Smart locks, like your butler, can tell you every product, has an abundance of extensible functions. occurrence out of your door, including the real- Different from conventional mechanical locks, smart time door opening record, doorbell ringing, entering locks have these advantages that can be divided incorrect password, warnings like low battery, and into four categories: information like the coming back of the old and ● Forgetting keys is a headache facing all in daily young etc. life. Smart locks are compatible with plenty of ● Door lock permission is distributed in an intelligent unlocking methods using fingerprint, password, way, thus catering the needs in various scenarios, door card, face recognition, and finger vein etc., such as life service, social networking, and business thus allowing you to go out of home without taking management. The smart lock supports remote door
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opening, member management, one-time password, widely for enterprises. and off-line password ( that can be created and In terms of solutions, smart locks in various forms used when the network is disconnected). and for multiple application scenarios have their ● Last but not the least, the lock is more a gadget distinctive features. For instance, home lock that can interact with household living scenarios solution that has a higher commonality is able to than a smart device. Put it into perspective. Door upgrade conventional mechanical and electronic opened, light at the entryway turned on, electric locks into smart lock by connecting cloud and APP curtains pulled slowly, timer of hot water heater set, via mainstream module. Besides, the solutions aroma diffuser activated, all are working to generate can provide vast number of value-added services, a pleasing and comfortable experience after you are including third-party voice and audio control, back home. SMS and Phoning for security alarming, and video cloud storage etc. Generally, the solution costs 2.3 Products and Applications of Smart RMB500,000 less per year than the independent Lock Solutions research and development by door lock companies. Smart lock solutions have upgraded the full range The connection can be completed in 7 days in the of mechanical locks used both at home and best case, and the mass production of smart lock abroad, including household door locks used in products can be realized within one month. China, commercial door locks used by hotels and Commercial door lock solutions are focused more apartments, popular locks sold abroad, smart lock on connection efficiency and cost performance. conversion kit that allows to keep existing deadbolt, Given the target of minimizing retrofitting cost, and such developments of smart locks as small Bluetooth cloud key adopted by hotels and other Bluetooth padlock, smart cabinet lock, key box, SOC solutions are more suitable for the upgrading smart safe, gun safe and other innovative locks. of a large number of rooms in hotels. Furthermore, Therefore, apart from developments for household commercial scenarios, such as apartment lock, use, the smart lock is the core product in apartment hotel lock and office building control, should be and hotel SaaS. Integrated into SaaS systems in accompanied by various SaaS systems, so as to the industries, for instance, long and short-rent realize smart space management and improvement apartment, hospitality and real estate, smart lock of renting and living experience. solutions have expanded market opportunities
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3 Cases in the Smart Lock Industry as unstable connection, frequent data loss, high power consumption, and slow technology upgrade. VOC In order to address theses bottlenecks, VOC not Founded in 2012 and headquartered in Wenzhou, only put in more efforts in technology R&D, but Zhejiang, Zhejiang VOC Technology Co., Ltd. also searched for innovative solution for smart lock (hereinafter referred to as VOC) is a R&D-oriented network connection. company integrating high-end intelligent hardware After integrating the Wi-Fi connection solution on manufacturing, SaaS platform R&Dd method a third-party IoT development platform, VOC was supplier and independent brand operation. VOC able to utilize the platform's relevant APIs, and develops and manufactures smart door locks, smart further connect its devices to App and the cloud by doors, and smart safes under its own brands. In developing embedded application software. It only 2019, it was among Forbes’ “Top 100 AIoT Chinese took VOC half a month to complete the integration Companies”. of its smart door lock and the Wi-Fi connection Used at the entrance of a smart home, smart door solution, which saved the company a great deal of locks are the most critical devices in home security. time and costs and allowed it to launch the finished In recent years, the market for smart door lock has product quickly for higher market share. grown rapidly, and a variety of new technologies After the launch of the finished product, VOC have sprung up. In 2019, competition intensified continued to optimize the product’s performance and network connection became a standard feature through refined data operations to better meet the for smart door lock products. As one of the leading market demand. It now offers various functionalities brands in the smart security, VOC has been making including device distribution review, device vigorous moves to develop its smart door lock condition monitoring, active device calculation, business as well. App usage analysis, and real-time failure reporting. Despite their variety, networking solutions on the With big data and AI tools, the operation of smart market back then had inherent weaknesses, such products can also be smart.
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twice as much as of 2020, amounting to RMB 9 2.1.5 trillion. In 2023, it is expected to be at RMB 14 Health trillion and at RMB 16 trillion as of 2030. The coming decade holds a golden era for the development of 1. Industry Overview the healthcare industry. Affected by the Covid-19, the global economy The future trend of the healthcare industry will continues to take a slide, and countries around be going digital, constructing a user-centered the world have attached even more importance to healthcare model through smart devices that the development of the healthcare industry, which are driven by data in an intelligent way. Devices, will enter the era of universal access to healthcare. data, intelligence, users, artificial intelligence (AI), The healthcare industry boasts tremendous market these core concepts of the healthcare industry’s potential, with an array of segments closely- development coincide to profoundly align with what related to personal health, including health care, internet of things (IoT) entails. health(care) devices, health management, leisure & In the fields of sport & health wearable products fitness, and health consultations. for sports and home fitness continue to gain The global healthcare industry was valued at USD intelligent market share on a yearly basis. According 4.5 trillion as of 2018, maintaining a 6.5% yearly to IDC, a market intelligence agency, the global growth, and accounted for 5.3% of the world’s shipment of wearable devices increased gradually economy, with key areas including personal health, over 2012-2018, with an average annual rate of healthy diet, sport & health, health tourism, medical growth reaching above 150% from 2012 to 2015. health, health & real estates, etc. In 2017, 115.40 million units of wearable devices China’s healthcare market was valued at RMB 4.5 were shipped, meaning a 12.7% increase year- trillion in 2014, and it is expected to grow almost on-year. In 2018, 122.6 million units were shipped
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globally, meaning a 6.24% increase year-on-year. becoming increasingly popular every year. Medical It is expected that in 2022, the global shipment of wearable devices play an important role in users’ wearable devices will amount to 190.4 million units, self-monitoring and health data monitoring, allowing representing a five-year CAGR of 11.6%. access to effective health data for doctors and Bluetooth protocol has been upgraded to BLE services providers. 5.0, which brings faster transmission rate, longer Personal care products are transforming to become transmission range, lower power consumption, and IoT-connectable as well. It is expected that China’s the development of wearable devices. With fitness personal health appliances market will worth RMB watches and bands already claiming substantial 32.56 billion in 2020, the CAGR between 2015 and market presence, other innovative wearable 2020 will be 15.5%. In 2018, electric shaver, hair products such as smart eyewear, earphone, care appliances and electric toothbrush recorded rings and shoes, are getting more attention from a retail sales volume growth of 24% year-on-year, consumers. Wearable devices can effectively record and 40% year-on-year growth in terms of sales users’ activity data, transmitting data to cloud value. Manufacturers are also trying out ways to storage using IoT technology. Users’ historical data product smart personal care products, such as will be stored and shown directly to them on mobile toothbrush, shaver, hair clipper, facial steamer and Apps. Home fitness devices are now more than hair dryer. They do not account for a high proportion just fitness devices. Manufacturers leverage on the in market, while their market share is increasing opportunities presented by the IoT development, significantly. Product users can also feel the service and make their products smart – from bigger and experience beyond product functions. machines such as treadmill, elliptical machine Products are becoming smarter and data-driven in and spinning bike to smaller ones like dumbbell, sport & health, medical health and personal care. skipping rope and hula hoop – they produce data Data generated by these products will help provide which will be connected to mobile records and a better condition for data-driven services quality, stored. These products are gradually favored by enabling corporations to become more diverse, consumers. and giving birth to new market and development In the field of medical health, the market share of opportunities. the current home devices is also growing rapidly. In 2017, the global medical device market value 2. Solutions exceeded USD 400 billion, and the value went up For the health industry, devices as vehicles for to USD 427.8 billion in 2018, and was estimated data collection are of significant importance. All to reach USD 600 billion by 2024, meaning a health products and services rely upon users’ data 5.6% CAGR between 2017 and 2024. For at-home to pinpoint customer issues, allowing accurate medical device, the market was only valued at RMB user services to be provided, hence the ability to 41.9 billion in 2014, it grew to RMB 94.8 billion in collect and upload data to cloud drive has become 2018, representing a CAGR of 22.6%. The market is a prerequisite for health products. Health devices estimated to worth RMB 150 billion by 2020. collecting users’ data have become increasingly Medical wearable devices can collect users’ health relied upon various scenarios, where services data and upload them to platforms for statistical providers can provide more customized services to and analytical purposes, giving advice to users with users according to their respective health data. the connection to medical services. At-home blood As market demand changes, traditional offline pressure monitor, glucose meter, pulse oximeter, ear devices are being gradually replaced by smart thermometer and thermometer are widely-used for ones in the health industry. Market share of smart families, and smarter versions of the products are health products increases every year. Traditional
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manufacturers are seeking their ways of producing services through smart devices as a comprehensive smart devices that align with their business health package for users. development goals. Smart health products usually The core of smart health product hinges on the revolutionize the value chain in six areas, namely abilities of networking and cloud platform, smart smart hardware, data communication, front-end product solution with width and depth, and product software, cloud platform, smart data and health services. The solution can be explained as follow: service. They are driven by data, providing health
Connectivity is imperative for health devices to be of up to centimeter. Home fitness machines smart. Deriving from such standpoint, Bluetooth such as treadmill and elliptical machine will still technology is characterized by its convenience and apply Wi-Fi connection which allows continuous low power use, hence most wearable health devices connectivity, thus any data could synchronize with and personal care products are featured with the cloud drive at any time. Given accessibility to Bluetooth connectivity. Bluetooth 5.0 version has Wi-Fi in home setting, these machines and other better performances. In contrast with Bluetooth 4.2, home devices have become more convenient and the 5.0 version is twice as fast in transmission, and interactive. On the other hand, some outdoor sports has 800% as much the transmission volume has products transmit data without being connected to increased by 800%. The transmission bandwidth a mobile phone, usually using NB-IoT or 4G. is increased from 1M to 2M, with 4 times as much The cloud platform, its application and service the transmission range increased by 4 times. solutions structure: Meanwhile, Bluetooth 5.0 technology entails lower The cloud platform, its application and service power use and higher broadcast capacity, and solutions structure: versions of 5.1 and 5.2 have an enhanced precision
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3. Industry Case Analysis clinical workers, as well as one-stop hospital IoMT IoT is already common in the health industry. It solutions, etc. Helian Health now works with over is popular for sport & health, medical health and 1,900 hospitals in 245 cities across China and personal care. Below is a smart healthcare project served more than 900 million outpatient visits; with incorporating smart devices, IoT cloud drive and its Wireless access points (APs) reaching nearly health management system, and its main business 100,000, Helian Health is currently the largest is to offer health management services as solutions hospital Wi-Fi service provider in China. package to people who need at-home care. In April 2018, as the executive meeting of the The whole system encompasses three core State Council pushed to promote “Internet Plus elements, namely smart devices, IoT cloud drive Healthcare”, Internet-powered Healthcare has and health management system. been developing in full swing. The medical industry Smart health devices are mainly used for collecting has gradually moved closer to Internet market users’ daily health data in a home-setting, users from physical clinics and hospitals, and medical could evaluate their health status based on the applications are coming out to provide healthcare statistics shown on the devices. For users of services catering to different needs in old and new healthcare needs, especially for people with chronic scenarios. And this requires traditional medical illnesses, daily blood pressure, blood glucose and institutions to improve its services and efficiency blood oxygen monitoring have become a part of through the integration of informatization and their daily routines. Most of the people have the intelligent technologies. devices at home to assess their health index in a Helian Health initially entered the medical market timely manner. as a hospital intelligent network provider (Wi-Fi IoT acts as a bridge connecting data from devices business), and has become the industry leader with with application systems, making health data 60% market share within 4 years. Helian Wi-Fi now full of vitality. After data is collected, they will be has covered 1,900 public hospitals nationwide, with synchronized to cloud drive and stored, then these more than 97 million end users (i.e. patients) and 1.3 data will be processed and analyzed for each user, million daily active users. generating more meaningful and comprehensible The operation and maintenance of equipment in statistics. more than 1,900 public hospitals is the biggest Health management system uses data generated problem faced by Helian Health. For example, from devices and synchronized to IoT platform breakdown is fairly common to medical equipment, for developing higher-level applications, allowing and it requires engineers to deal with it on-site. service providers to collect corresponding users Although a simple reboot can fix the problem at data and provide services pinpointing users’ needs. most of the times, Helian needs to ensure engineers Smart healthcare project uses data collected from are always available to keep equipment going devices, consolidate the data and prepare weekly without causing delays in diagnoses. or monthly reports, and provide professional Another characteristic of working in medical comments and advice to users. industry is high demand for accuracy and reliability. This low tolerance for errors means demanding Helian Health technical requirements, tendency to collaborate Founded in 2014,Helian Health, knowledgeable in with big, stable platform and preference for mature medical industry and The Internet of Medical Things technologies. (IoMT), aims to build a large online platform to Helian Health cooperates with the global AIoT serve patients, doctors and hospitals. It provides platform, Tuya Smart, to deploy smart single plugs hospital Wi-Fi, medical apps for patients and and power strips in hospitals, and maintain a large
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number of equipment through Tuya's operation and than-fortunate circumstances through Monster maintenance platform. When there is a problem with Cares. the equipment, it can be rebooted by restarting the Monster announced at CES 2019 that it is teaming socket in the SaaS back end, which reduces labour up with Tuya Smart, the world’s leading AI+IoT (AIoT) cost and improves the maintenance efficiency. Platform, to co-create a new line of “Monster Smart Helian Health also has developed an operating Powered by Tuya” smart home products. platform for hospital equipment management based These products include innovative solutions for on Tuya Smart Cloud development platform, which controlling everything from lighting and home provides real-time data on any equipment status for entertainment to power, security, and more. all hospital devices. The partnership between Monster and Tuya will facilitate the development of an entirely new Monster category of highly efficient, easy-to-use, and Monster®, the world leader in premium secure smart products for the home and office. headphones, speakers, and power accessories, has Monster Smart Powered by Tuya products will been a catalyst for innovation and big ideas. After benefit from Monster’s world-renowned expertise discovering that cables in hi-fi systems influenced in product design and development, supported the sound, Head Monster Noel Lee developed by Tuya’s unsurpassed AIoT Platform, including Monster Cable, which became an immediate hit big data capabilities that enable geolocation and with music lovers. Monster went on to engineer environment-sensing features. the sound of Beats® headphones and has now Initially, the product lineup will include the become the world’s leading manufacturer of high- next generation of the Monster IlluminEssence performance headphones, all featuring Pure Monster products, with new power, home entertainment Sound™ technology. Today, the company offers control, security system solutions, and more to be advanced connectivity solutions for professional announced in the coming months. musicians, home entertainment, computing, mobile, Lee noted, “‘Always Deserve Better’ is why we’ve and gaming, as well as high performance AC Power focused on better audio for 40 years. And now we and air conditioning products. Monster continues think IoT and smart products will help consumers to lead in innovation, with over 500 patents granted have a better life in so many ways and we’re looking and 100 patents pending worldwide, offering more forward to directing our innovation with Tuya in all than 5,000 products in over 160 countries. Monster things smart – starting with lighting, power, and also prides itself in helping those who are in less- security.”
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increasing, consumers are paying more attention on 2.1.6 the health, thus the positive impact of smart lighting Lighting on people’s health will become an important driving factor for consumers to upgrade their lightings into 1. Overview of Lighting Industry smart ones, however the impact is hardly mentioned According to the investigation report published by in the publicity materials. Omdia in 2020, the annual sales of global smart There is a widely accepted concept concerning lighting and connected controllers will reach $21 smart lighting’s impact on people’s health, namely, billion in 2030, a double increase from $10 billion in “Human Centric Lighting”. According to this 2018. concept design idea, human body can regulate The investigation report points out that while the hormone production from sunrise to sunset so as to expected sales will double in the coming few years guide the schedule for work and rest. The invention and enjoy a pretty growth curve, it is also worth of of light, however, has disrupted regular variation noticing that consumer’s lack of understanding brought by sunlight, thus causing people’s schedule about the technological advantage of smart lighting in disorder, The lighting system should be in accord will become a major factor to impede the greater with the laws of nature to benefit people’s health. market growth. Currently, light industry are paying Scientific study indicated that relatively high color more attention to emphasize the ways of controlling temperature in light help people concentrate and the lighting and which automatic mode to choose, reduce the risk of making mistakes in work or study, which are not impressive enough to persuade medium color temperature can decrease fatigue consumers to change their traditional lightings feelings and is suitable for long time use, low color into smart ones. With people’s living standards temperature can create cozy environment and is
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suitable for leisure. Inappropriate use of light may displays. In 2020, the major lighting driver factories bring unpleasant results. For example, the use of has made great advances in the level of driving chip cool white light before sleep will disrupt melatonin integration with fewer peripheral components, lower production thus interfering with the sleep and energy consumption, wider adjustment range, more influencing children development. So it is suggested precise adjustment control, and the original design to use a lower color temperature like warm while focusing on the intelligent lighting solutions. light before sleep. LED light source with its energy-saving, stable, Three-dimensional Structure triggered the fourth generation of lighting source There are many types of lighting sources: such as A reform. Now with the rapid development of various type, PA type, BR type, GU type, MR type, etc. The technologies, lighting system as the most important intelligent upgrade of small light sources may face part of smart home, will be given more capabilities. many challenges and the structure, heat dissipation, So helping consumers realize and accept those light type, and wireless signal processing need to capabilities will become a significant driving factor coordinatee with each other. At present, there is a to boost smart lighting revolution. minimum mass-production solution that can embed the power supply, driver, and wireless modules into 2. Lighting Solutions the E14 lamp holder through a three-dimensional structure. 2.1 Miniaturization Solutions Antenna Upgrade Demodularization Accordingly, the antenna designs of these different With the rising market acceptance, sales of smart types of light sources are also constantly changing. lighting are surging, so it is becoming increasingly The antenna can not block the lamp beads important to control cost of single product. It and should be characterized with the radiation remains the top priority for different ends of the performance, directional performance, as well as supply chain to figure out how to control the cost other features including the miniaturization, easy without sacrificing the quality of product. In 2020, installation and easy fixation. Each link of smart some lighting factories have already tried to reduce lighting design is worth deeply exploring, including the PCB of wireless module, simplify the whole the inventions of PCB printed antennas, wire-type production procedures to control cost by combining monopole antennas, as well as ceramic antennas communication module and driver board together. and tries in making antennas by using aluminum Meanwhile, this production plan has also brought substrates and aluminum lamp cups. some challenges to the lighting factories including refined SMT processing capabilities, wireless 2.2 Sensor Fusion calibration test capabilities, RF design capabilities, As the eyes, ears, nose and mouth of AIoT, board-level anti-interference design capabilities and sensors need full-time and omnibearing coverage. process control capabilities. People’s reliances on light make lighting products so ubiquitous that as long as there are human Highly Integrated Chips activities, there will be lighting products. This wide Previously, due to the small share of smart lighting coverage of lighting products is very suitable for in the industry, many driving solutions were pieced combining sensors and smart light sources, which together from the driving solutions in traditional can not only be used to control the light, but also industry, such as power supply chips from home increase the security attributes of the intelligent appliances and RGB driving chips from outdoor system, including intrusion detection, illumination
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detection, smoke detection, image collection, etc. into the alarming mode. For example, solar lawn light are featured with Users can add these smart scenarios one by one illumination detection, human body pyroelectric in the App, or just find a large number of default induction, MESH networking, and solar power scenarios in the scenario database to quickly supply. Through the App, it can be set to a normal complete the setting. lighting mode where the light is on when people come, or an alarming mode where automatic video 3. Cases in the Lighting Industry will be recorded and reminders be sent when people come. Foshan Electrical and Lighting Founded in 1958, Foshan Electrical and Lighting 2.3 Multi-Protocol Interconnection Co., Ltd. is a well-known enterprise focusing on Commonly used smart IoT communication methods the R&D and production of high-quality energy- such as Wi-Fi, Bluetooth, Zigbee, Cellular network, saving lighting products. Since its establishment, etc., all have their own best applicable scenarios, so it has been dedicated to promoting green lighting how to interconnect these devices will play a vital products, providing customers with comprehensive role to constructing smart IoT. lighting solutions and professional services. With Based on this idea, super gateway solutions, sound and efficient production operation system including aggregation gateways and voice gateways, and quality management system, it is now one of will reconstruct the linking center. The aggregation the strongest brands in China’s lighting market. gateway can support multiple communication In recent years, on the basis of its portfolio covering protocols at the same time and can realize the all elementary lighting products, Foshan Lighting interconnection and intercommunication of multi- has been expanding its business in smart lighting protocol smart devices such as Wi-Fi, Zigbee, and health lighting. Product lines of its brands, Bluetooth with one gateway, so as to create a more including FSL, Fenjiang, QL, and Fozhao Electrical powerful smart home system. cover home lighting, commercial lighting, office lighting, outdoor lighting and many other categories. 2.4 Custom Scenario Around 40% of its products are for export, serving When the smart IoT devices used by users reach customers from over 110 countries and regions a certain number of categories, the joint actions across the world. among products will make the smart system smarter. One problem that has arised as Foshan Lighting While autonomous learning capabilities, have not yet goes global is the lack of interoperability between been achieved in smart devices, custom scenarios different products and platforms. Now, major setting will provide better experience for people to communication protocols on the market include enjoy the convenience from intelligence devices. Bluetooth, Zigbee, Wi-Fi, 2.4G, DALI, DMX512, For example, setting home mode: when you return while products from different companies or cloud home at night, the smart door lock will automatically platforms cannot connect with each other. As a be opened , followed by the soft lighting mode, result, users have to install several Apps on the then the fresh air system, and the air conditioning cell phone in order to use products from different system will be turned on with the alarming mode companies, which is inconvenient and inefficient. of the sensors at home canceled. When you go out Nowadays, with various types of smart products of house pressing the leaving button, or when the emerging, customers have higher requirements for indoor sensor cannot detect the owner's activity for user experience. How to meet the customers’ “all- a long time, the leaving mode can adjust the above- round needs” and enhance product reliability is a mentioned equipment to the off state and the sensor serious question that each smart manufacturer must
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answer. smart lighting market expert to improve its pricing Centered around smart lighting products, Foshan competitiveness and get a true foothold in the Lighting has been diversifying its product line by market. integrating smart hardware on third-party AIoT In 2018, Calex partnered with Tuya to develop platform. With its well-developed one-stop solution and launch a €10 Wi-Fi smart bulb. Using Calex's for smart home, consumers can enjoy complete smart light bulb app, users can create various services and a carefree life. smart scenarios and automations, such as using In terms of product development, Foshan Lighting voice control to turn a bulb on or off or connect it uses module SDK to develop smart lighting and to an alarm clock. The lighting can also be used smart security products, so that products can be with various other home appliances, including deployed into the network quickly, and can ensure refrigerators and washing machines. “ever-lasting” network connection under normal Thanks to the combination of a powerful smart circumstances. The Foshan product lines covers lighting app and affordable pricing, Calex's smart light bulbs, light strips, light strings, downlights, bulbs quickly took hold in the European market. ceiling lights, security alarms, etc. all of which are Within a few months, Calex smart bulbs could be constantly updated and boast high malleability. found in the main retail channels of six Western Foshan Lighting’s products offer optimal user European countries, and in less than a year, Calex experience and good value for money, which help was able to distribute more than 5 million products them quickly gained popularity in both online and bringing more than 1 million smart households to offline channels at home and abroad. Its light source life. products have long been among the top three best- selling products on Amazon's e-commerce platform. Globe Globe Electric, founded in 1932 and headquartered Calex in Montreal, designs and manufactures LED A Dutch decorative lighting company founded in lighting and electrical products for the consumer 1970, Calex is the best-selling decorative lighting market. Working with the top North American brand in Western Europe and the European retailers, Globe is a leading provider to the retail decorative lighting market leader. Calex’s parent and consumer segment, and is widely known for company, Electro Cirkel B.V., has been around for bringing new and innovative technologies to market. nearly 60 years. Partnering with Tuya in 2017, Globe has brought Calex offers more than 400 SKUs in 15 categories. their vast experience in lighting and the ways in Its lighting products are characterized by a full which consumers interact with lighting controls to range of dimmable, vibrant colors and high intensity the relationship. Strong collaboration between the whites from cool to warm. Tuya and Globe development teams has resulted in About six years ago, Calex began to see the huge compelling product introductions, including a floor growth and opportunity of the European smart lamp that was featured by both Google and Amazon lighting market. The penetration rate of smart bulbs as part of their hot new product showcase at CES in Europe was 3.8% in 2019 but is expected to in 2020. reach 10.7% by 2024, according to Statista. Feeding off their many years of experience in In 2015, Calex launched a Bluetooth smart light category management positions with the leading bulb at a price of €25, but did not sell many of them retailers, Globe has consumer insights and a data because of the relatively high price and the need to driven decision making approach to guide their improve the product experience. That’s when Calex product development. This has enabled a focused realized it needed to partner with a smart home and approach, leveraging the technical expertise
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of the Tuya team while driving innovation at the WCCLG has been working with Tuya, since 2018, product and category level. Opportunities within which has helped Wipro to become the No.1 connected products are limitless, but there remains smart lighting brand in the Indian market with a the issue of a massively fragmented industry with comprehensive product portfolio that covers smart the result being added confusion for consumers on bulbs, smart battens, smart downlights, smart panel interoperability, and ease of setup as the hurdles to lights, smart LED strips, smart COB lights on both more widespread adoption. Further, while there are Wi-Fi and Bluetooth. The Wi-Fi based products certain product categories that are super saturated, target at the consumer lighting market for individual there remain more niche products and features that home use, that enables users for smart home are experiencing tremendous growth as they satisfy lighting experience at extremely low-cost price of a market need. Rs.699, which is around $9, with overall functions The next phase of adoption, product and technology of remote control, dimming, color changing, timer/ introduction has the potential to move the needle scheduler, smart scenes, and automations with for manufacturers and retailers in the industry. The other smart home devices. All the smart devices are key will be accurately identifying the use cases, connected to Alexa and Google voice platform, that consumer needs, and enhancing, wherever possible, helps users control the connected devices via voice the simplicity in use and setup. commands. Wipro Smart LED turns your home into “The smart home industry, despite several years a party lounge, a mini movie theatre, an office, a of sensational growth and popularity amongst yoga class, even a campaign spot for your kids! It's consumers, remains in its infancy,” says Adam 16 million color combinations create mood lighting Chaimberg, Chief Merchandising Officer of Globe suitable for every occasion. The “Wipro Next Smart Electric. “The realm of IoT, AI, and smart home Home” App is a cross-protocol and scalable app is like a great story; we are only finishing the that not only controls smart lighting, but also other introduction,” continues Chaimberg. Globe has category products, which includes electricals, built out a robust product roadmap across their home appliances, security products, and healthcare key categories, with a keen eye towards meeting products. This gives benefits to end users as it is consumers where they are technologically but also platform-agonistic, and be it products that work with respect to more subtle aspects, such as how on Wi-Fi, Bluetooth or Zigbee, they can use the consumers live and how home automation can same app to connect and configure. This helps in positively impact their lives. Despite nearly 90 years creating a smart home with an easier and seamless of lighting and electrical design and manufacturing, experience. With rich product lines and the vendor this is a company that behaves and acts with the partner eco-system, that Tuya provides, Wipro can speed and enthusiasm of a nimble startup. choose from over 200,000 products from more than 30,000 manufacturers. This helps cut the smart new Wipro Enterprises Limited product development time from one or two years to Wipro Consumer Care and Lighting (WCCLG) caters simply one or two months, thereby improving the to the Fast-Moving Consumer Goods (FMCG) product lifetime management efficiency by 10 times. segment which deals in personal care, home care, Besides consumer lighting and smart home lighting and furniture products. Established in businesses, Wipro has also entered into the smart 1945, WCCLG is now a company with revenues commercial lighting segment, by adopting Tuya of over Rs.7700 Crores and a global workforce of SaaS lighting system, so as to provide complete over 10,000 from 22 nationalities and a marketing wireless lighting solutions for SMBs – which include presence in over 60 countries including India, South offices, hotels, schools, retailers. Compared East Asia, East Asia, Africa and the Middle East. with traditional wired solutions like Lutron or
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Casambi, the Wipro wireless commercial lighting Technology range allows you to manage your home could help forge a same lighting solution at only electronics, appliances or devices wherever you 8%~10% of the total cost. It not only reduces the are, at any time, instantly. cost significantly, but also is a revolution in the Brilliant has a wide range of solutions ranging reduction of wiring and helping improve project from lighting, electrical, air movement and smart implementation efficiency. The system allows the technology. installer a hassle-free implementation experience Brilliant’s Smart Technology is fuelled by the simple with wireless scanning and auto connection, yet powerful BrilliantSmart App, designed for ease and even plug-and-play. The management and of use and controlled directly by voice or smart settings of the lights thus become handy. For small device. Just say the word, and your house instantly deployments it even does not require electrician or obeys — even from hundreds of kilometres away. technical expertise. Through SaaS web management Brilliant Lighting has partnered with Tuya since 2018 portal, the administrator could monitor the real-time to launch a range of smart home products dubbed device status and power consumption statistics BrilliantSmart. The BrilliantSmart range includes in a transparent way. The system also supports about a dozen products, including lighting, security hierarchical settings and administration authorities cameras, home appliances, and sensors, that can to support headquarter and branch management interact with Google Home and Amazon Alexa in a same dashboard. The scalable system allows and can be controlled from an Android or iOS innumerable lighting device connections to cater to app without the need for a separate hub. These different scale of project installations. The solution is products all proudly wear the “Powered by Tuya” becoming an important part of Wipro home service badge. By relying on the Tuya IoT Platform, end segment. users benefit from smart scene control to power Based on the rapid development of domestic their devices and appliances on or off according to smart business and good expectation of global predetermined schedules. IoT market, Wipro is now expanding their domain BrilliantSmart technology is simple to operate into multiple smart categories of smart electricals, via a large range of lighting, security, switches retrofit solutions, security kits, and also has a plan or electrical products, which can be controlled to launch smart products overseas in the US, UK, either individually or by each family member. Middle East and South East Asia, etc. To make these benefits accessible to everyone, BrilliantSmart is designed with the broadest Brilliant Lighting compatibility in mind. All Smart Technology is fully Smart Technology is already changing the way we connectable via your mobile, tablet, Alexa or Google live around our homes. By connecting your lighting, Home device. home appliances and security and partnering with Brilliant is ever expanding its smart offering, Google Home or Alexa – this innovation has the always at the forefront of new technology to ensure power to transform our everyday lives. customers’ needs and ease of use is prominent With its comprehensive scope and intuitive in what we do. Brilliant is now introducing BLE design, Brilliant’s range of Smart Technology has Mesh systems to assist large scale use of smart the capacity to transform virtually every aspect technology, which will assist customers in their of both households and businesses. Working its smart experience if they require large amounts of magic through your Wi-Fi connection, our Smart smart products.
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manufacturing and other emerging industries. 2.1.7 As basic devices in people’s life and work, Smart Electrical smart switch and socket products will witness its penetration going up to above 8% in the Engineering global market by 2024. Thus, the smart electrical 1. Global Development of Smart Electrical engineering market can provide sustainable and Engineering Industry abundant business expansion opportunities. With the enforcement of “new infrastructure” policy Owing to progress in IoT, big data, and and further development of AIoT technologies, smart cloud computing etc., and the establishment home products have gained increased attention of ecosystems such as “smart city”, “smart from customers, in which a new round of explosive community”, and “smart home”, the application growth will surely take place. According to Statista’s of smart electrical engineering has been extended data, smart home market value will exceed $195.2 incessantly, and the industry has witnessed billion by 2025. Smart switch and socket, one of continuous transformations in aspects of upstream the first popular smart home products, have yielded players, downstream channels, and product great dividends to the development of IoT, intelligent demands etc.
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1.1 Increased Number of Players in the use scenarios, distribution network and other new Industry experiences, in addition to displaying information on common product. Offline channels, conventional Accelerated Smart Transformation in hardware stores, DIY channel and retail shelves Conventional Power Companies have also launched their smart electrical engineering It is an inevitable development trend in the industry products. that more and more conventional electrical To further lower the bar for installing and using the enterprises realize the importance of digital power smart products, China has found the step-by-step and smart energy. From the bystander to the player, development of real estate channel for delivering a number of companies have laid out their smart a house with refined decoration, home decoration power product system. Starting from the whole- channel for housing improvement, and channel for house smart home products including switch and business upgrade in hotels and apartments etc. socket, upstream exporters and OEMs, as well as Each channel is actively trying to set up an offline traditional electrical engineering enterprises like experience store and smart home showroom, so Schneider Electric, Siemens Electric, and Simon that the customers can have direct experience in Electric, have attempted to improve their product smart product. lines’ comprehensive competitiveness through the layout of smart electrical engineering product line . 1.2 Diversified Product Needs
Active Participation of Players from Other Diversified Product Interaction Mode Industries Conventionally, electrical engineering products Smart electrical engineering products, with its smart interact with each other by touching on physical solutions, endow their traditional counterparts with buttons. With the help of the smart technologies, playable and expandable attributes. Not only are the products can be controlled remotely on APP, there more opportunities for product innovation and and in near field through the instructions from smart function integration, but also many differentiations speakers. This is the typical interaction mode in the have been realized. The smart electrical engineering 1.0 generation of smart home. enterprises and giants such as Haier and Lenovo, As AIoT technology further develops, customers have attached great importance to the smart have higher expectations of interacting with the electrical engineering market. smart products. In the future, AI computation may become the same infrastructure as water Continuous Extension of Channel Boundary and electricity, so that the less people will rely on Smart electrical engineering product is screens and actively-sent instruction. With the characterized with the features of the electrical help of such core intelligent driving forces as big product and the intelligent technology. It inherits data and algorithm, smart electrical engineering from traditional electrical engineering products in products together with other smart products will terms of installation, function and usage, but its make a difference in our daily life in a way that is main highlights are the brand-new function and people-oriented and more consistent with how interaction process. It is necessary for the market human interacts, so that users are enjoying them to speed up training users and lowering the user subconsciously. threshold. Sales channels and strategies are more diversified. From Smart Product to Smart Scenario, Online channels, for example Amazon and China’s From Smart House to Smart Space Tmall have paid more attention to explain product At the early stage of smart home development, its
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focuses are enriching product types and interaction smart electrical engineering products play a critical approaches, and improving product experience role. to the extreme. So there are emerging popular products going viral in the global market, including 2. Solutions of Smart Electrical Engineering smart single plug and smart panel. Smart product Industry solutions are laying emphasis on the scenario experience, considering customers’ rising needs 2.1 Multi-product Solutions in safety, lighting, entertainment, energy and other Electrical engineering products are everywhere in comprehensive scenarios. In these scenarios, our daily life. A number of the products , including several devices are connected by means of power management, lighting control, intelligent interaction, automation and other strategies to build metering, and low-voltage distribution etc., have various scenario modes, including “going back been developed for convenience, energy saving, home”, “leaving home”, and “audio & video”. These safety and comfort. Typical products are as follows: scenarios are the foundation of smart home. The whole-house smart applications based on smart Electrical Socket: including all kinds of portable scenarios are no longer exclusive to home settings. conversion plug, power strip, outdoor socket, grass A lot of public areas, and business scenarios have plug, and innovative composite products, such as been exploring into the user value and business lighting and plug (scene light socket) composite, value generated by smart products, in turn creating and infrared and socket composite (air conditioning vertical solutions to the scenarios of community, controller) etc. These easy-to-use smart products school, hotel, apartment, and office building where have gone viral in the global market and are thought
ea ure lue oo e
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highly of by customers. The communication protocols above all have their best application scenarios. Various communication Smart Panel: It is a basic product in a smart home. protocols will coexist in the coming space There are lighting control systems including light intelligent solutions. To achieve better connectivity switch and dimmer that directly control lighting control for devices with different communication fixtures and light sources, in-wall curtain switch that protocols, multi-protocol super gateway or router- directly controls traditional curtain motor, fan switch, gateway integration products will emerge to hot water heater switch that controls water heater support the connection of sub-devices using and other electrical appliances, and add-in card multiple communication protocols, and to integrate power switch used in hotel scenarios. Furthermore, voice control capabilities, thus empowering the new products have been provided, such as scene connection hub of smart products. switch, central control panel, and wireless scene remote, which makes it possible that one button 2.3 Digital Electric Solutions can be used for scene control, voice control, multi With the further development of big data computing device management and other functions. and device perception, it is critical for the smart electrical engineering industry to figure out how Conversion Kit: To refit conventional electrical to apply electrical products’ specifications and engineering products into smart ones at lower establish digital solutions. The industry focuses on cost, many conversion kits have been developed, electrical equipment’s data collection, monitoring, including cassette on-off devices (switch box) for analysis, pre-warning, and early intervention by lighting control and curtain control, conversion kits using big data computing, to discover problems for garage door motor and irrigation. in equipment and user end immediately, assist customers in decision making, improve user Low-voltage Distribution: Products include circuit experience, and make full use of big data, thus breakers and air switches etc. In addition to the taking a stride from smart home application basic protection function of breakers, the product scenario to smart business, smart industry and is integrated with other functions such as smart smart city. metering, alarming management, and remote switching. 2.4 Smart Energy Solutions Focusing on “power”, the solution by connecting Smart Metering: There are electric meters, water with multi-ecosystem devices in IoT, can realize meters, gas meters, heat meters and others. The power consumption monitoring, intelligent device collects energy consumption data and scheduling, and energy efficiency calculation, finally uploads it to the cloud, and monitors historical delivering targeted energy-saving management energy consumption trends. strategies to provide customers and end users with impressive energy efficiency and economic 2.2 Multi-protocol Connectivity benefits. This is also an important direction for As the basic networking capability, wireless the development of smart power solutions, since communication protocols serve as an important there are urgent needs in areas of business lighting access method in the smart home sector. The main system, smart green buildings, household energy connection protocols used in electrical engineering management, and long and short-term apartment products, include: Wi-Fi, Zigbee, Bluetooth mesh, leasing. Sub-G and NB-IoT, etc. The application scenarios For instance, electricity and water meters, and air and development trends are as follows: switch can collect energy consumption data for
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end users to visually monitor power consumption enables Apeman to obtain assistance with software and manage prepayment. When the power of and hardware support quickly. photovoltaic equipment is high, the system can Apeman's Teckin series of intelligent electrical automatically turn on some equipment, such and lighting products using Tuya's intelligent SDK as water heater socket and power supply, and module has been listed on the Amazon online car charging pile, etc. When the power is low, platform, allowing them to break into the European the equipment of low importance level can be and American markets. The safety, convenience, automatically shut down to save energy. While and stability of the products have also helped increasing the efficiency of photovoltaic power establish and enhance Apeman's reputation. generation, it can also extend the life cycle of the After more than four years of development, the equipment, significantly improving the economic Teckin series of intelligent electrical and lighting benefits of the system. products that Apeman designed and launched have provided safe, convenient, and intelligent IoT life 3. Cases in the Smart Electrical Engineering experience for tens of millions of users in Europe Industry and the United States. Apeman's product goal is to bring the safest and Apeman most convenient home experience for European Shenzhen Apeman Innovation Technology Co., and American users. The company plans to create Ltd., founded in 2016, is a consumer electronics an integrated smart home life experience and company focusing on motion imaging and IoT. It cooperate with foreign design teams through includes intelligent imaging and AIoT products in its region-specific enhancements. product ecosystem and has independently designed and developed a series of smart home products, Okasha Smart such as intelligent electronic devices and intelligent Okasha Smart is a smart product solution provider lighting products. that has a portfolio of smart devices for everyday In 2018, when developing IoT products, Apeman life. IoT smart devices from Okasha Smart are faced the problem of speed to market. They equipped with the latest cloud computing and needed rapid design ideation, robust networking AI technology, which makes them more secure, connectivity, and integration with Amazon Alexa for user-friendly, and affordable. Their wide range of traditional electrical and lighting products. devices cater to the everyday needs of security and They solved their time-to-market problem with energy efficiency for homes, hotels, and offices, as Tuya's SDK technology module. Now, their hardware well as for corporate, industrial, and educational products can be operated in a more secure, institutions. convenient, and energy-efficient way by connecting Okasha Smart formed in 2007 by providing the Powered by Tuya device to an Amazon Echo renewable energy and power solutions to or other mainstream smart speaker to enhance the households and firms. Their sister companies, user experience for Apeman end users. Power Highway® and Solar Max®, have a Tuya has established a deep cooperation and nationwide sales and distribution network within partnership with most voice service platforms, Pakistan offering renewable energy systems including Amazon and Google, so that the product including solar energy, wind power, and hydro can immediately leverage the third-party voice power equipment and products. Every project of service capability. Systems and processes specially theirs is turnkey, with a mix of design, stability, and developed by Tuya for efficient production tests, performance. Before coming up with their latest data operations, and after-sales problem processing smart solutions and devices, they worked with both
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government and private sector companies and ● Internationally certified products individuals over the years and have presented in Smart devices from Okasha Smart include lighting, international forums, helping to establish their brand electrical products, home security kits, and home trust globally. appliances connected via Wi-Fi, Zigbee, and NB-IoT By fully leveraging Tuya’s IoT Platform, Okasha protocols to meet various business demands. For Smart is able to introduce affordable smart home example, Wi-Fi devices are targeted at consumer products to its customers with various options by retail business for individual home use, Zigbee means of multiple wireless protocols, a network devices for real estate projects, and NB-IoT devices of more than 30,000 competitive manufacturers for smart city projects. offering more than 200,000 devices, and most Keeping up with the demands of time, the importantly, a stable and cost-friendly cloud service. partnership between Okasha Smart and Tuya has This has helped Okasha Smart to shorten its generated products to keep up with the latest development cycle, lower development cost, and innovation and technology. Together, they aim to minimize operational cost. provide effective and efficient smart solutions and Some of the core competencies of Okasha Smart devices to end users, so that they can enjoy a better are: living experience. In the future, Okasha Smart and ● Easy installation and management Tuya will also continue their in-depth cooperation in ● Solutions for both households and corporate the IoT field for different smart solutions such as a companies smart commercial lighting system and smart hotel ● Innovative technology system to continue to provide value to companies ● Professional and competent customer service in the region.
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shaped market structure in terms of quantity and 2.2.1 grade. iiMedia Research’s (Ai Media Consulting) big Smart Business data monitoring in 2019 shows that the proportion of hotels serving the mass market reached 92.6%, Smart Business aims to improve business reflecting the people’s livelihood attribute of the performance and comprehensive competitiveness hotel industry. At present, mid-end hotels have by coming up with effective business proposals become the mainstay of development, which will with the help of collecting, managing and analyzing pay more attention to the segmentation needs of business information and data through technological personal consumption and provide personalized means and gathering business knowledge and and high-quality services. insights. With regard to the operation, the traditional hotel Based on the current technological development, industry has low profit margin due to the high staff AIoT and its core technologies (5G, AI, VR and & operational cost, and serious product similarity. IoT) are being used in different business scenarios In 2017, the hotel industry’s profit margin was to promote the digital transformation in various only 1.0%, down 9.1% from 2016. Therefore, business fields, create brand-new smart business the industry urgently needs to make a major models, so as to provide smart and personalized breakthrough in reducing the cost, increasing the services for consumers. Generally speaking, the efficiency, adopting digital management, improving market of smart business consists of smart retail, guests’ services experience, and increasing non- smart catering, smart hotel, smart apartment, smart room revenue. community and etc. The development of smart retail is based on the New Retail model. In order to improve the customer experience, digital transformation has become an important means for the global retail industry to meet the challenges. With the support of technologies including network communication, cloud computing and IoT, retail companies are able to collect user data to the maximum extent. The operation efficiency and customer stickiness can be better improved with the data integration and smart data analysis provided by data service platforms with AI technology. Smart hotel and smart apartment aim to provide intelligent hardware and services, so as to improve user experience, enhance safety, reduce energy cost and human cost.
Smart Hotel
1. Overview of the Hotel Industry Development
The Chinese hotel industry maintains a pyramid-
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2.Definition and Status Quo of the Smart technology capabilities such as “5A” automatic Hotel control system were applied, and information systems and equipment began to replace human 2.1 Definition operation partially. Smart hotel aims to manage hotels in a highly In recent years, as the new generation of efficient way, reduce energy consumption and technologies such as IoT, cloud computing and improve the guests’ services experience through big data grows, the influence of “smart hotel” is intelligent promotion and marketing, digital asset further verified in terms of the technical capacity, management, intelligent process management and the market demand and the transformation effect. accurate performance management, relying on the More mid- and high-end hotels have increased their new generation of information technologies of cloud investment into smart development. Accordingly, computing, IoT and AI. the tech giants, such as Baibu, Alibaba and Tencent, and start-ups have entered the smart hotel industry, 2.2 Advantages which has become a hot outlet for investment. The traditional hotel industry is facing problems According to the China National Tourism such as weak marketing, inefficient management, Administration, the market investment of intelligent high staff costs, and serious service similarities. transformation in hotel in major cities exceeds 100 Smart hotel has a competitive edge in these billion yuan. Besides, the number of hotels increase regards: by 20% each year, meaning the promising prospect of the application of smart systems. Excellent Customer Services Through the use of diversified smart devices, 3.1 Smart Hotel Solutions smart hotel provides one-stop services that are Smart hotel aims to provide intelligent and accurate contact-free, high-tech and user friendly to improve services for guests based on the data collected customer satisfaction and loyalty. from right before check-in to after check-out.
Operational Cost Reduction Before Check-in The use of smart devices and information systems can effectively improve the operation management Membership System: Guests are able to become and service efficiency to reduce the human cost and hotel member through the OTA channels, hotel energy consumption. WeChat official account, official websites, or marketing activities to follow the updates and enjoy Operational Data Collecting the benefits of membership. Smart platforms and devices could collect and manage guest data and operation data to improve Online Booking: Guests are able to inspect and the operation and service efficiently with the big choose rooms and make reservations at any time data and AI. through the OTA channels, hotel WeChat official accounts and official websites, and prepay the hotel 2.3 Status Quo rooms by the third-party payment methods, such as The development of China’s smart hotel can be UnionPay, WeChat pay and Alipay. traced back to 2001, when some high-end hotels began to develop the smart hotel mode according Self-Check-in: Guests are able to complete the to Standard for design of intelligent building 2000. identification through the WeChat Small Program, In the scheme, a large number of information the self-check-in machine or the robot in the lobby,
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or they could come to the front desk to complete directly through the third-party payment systems. At the check-in on iPads or computers. After getting the meeting room, guests could sign-in and attend the authorization from hotel’s PMS, guests can the meeting through video-conferencing, phones open the door automatically by using mobile phone, and iPads. Guests could enjoy the services through fingerprint and face recognition. the facial or finger recognition, or WeChat at the entertaining area where there are shopping centers, 3.2 In-room SPA, swimming pools, mahjong rooms, bars and gyms. Smart Elevator: It is very safe and convenient for Guests to take the smart elevator through QR code 3.3 Check-out scanning or facial recognition. Quick check-out: Guests are able to check out Smart Door Lock with Facial Recognition: Guests through the self-check-in machine ( using room are able to open the door with the convenient way card, ID card or facial recognition) or the moblie of facial recognition. apps and autopay could be completed with the consumption list printed. Voice-control Room: After entering the rooms, guests are able to enjoy a great welcome Booking Invoice: Guests are able to get the digital experience. The lights, curtains, air conditioning, or paper invoice through the WeChat small program. and stereos will be switched on as programed to create the most comfortable environment. In Reviews after Check-out: Guests are able to addition, guests could use the robots, mobile apps, review expense details, leave reviews through iPads or specific control devices to control the WeChat small programs or official websites, redeem smart devices (lights, air conditioning, curtains, ipTV membership points or go shopping on hotel’s systems, stereos and etc.) online shopping centers.
Social Entertainment: Guests are able to use the 4. Technology Empowerment of Smart Hotel devices such as robots, phones, iPads and stereos The construction of smart hotel prioritizes the to interact with their friends; they could also watch solutions that integrate the software and hardware. TV and play the game, watch on-demand movies, Hotels can improve the efficiency and reduce order food, book cars or tickets, make laundry the cost through connecting with the third-party appointments, go shopping in the hotel’s online information platforms and being compatible with shopping center, redeem membership rewards, and mainstream manufacturers’ hardware equipment. check the energy consumption. Based on its budget and human resources, hotels could do research by themselves or work with the Room Service: Guests are able to order room third-party platforms to choose intelligent platform services through mobile apps, confirm the visitors and scheme, as well as complete construction through the video doorbells, and book robot delivery landing. services. 1.Developing the smart hotel management platform independently is for those high-end hotel groups Smart Common Areas: At the canteen, guests are with adequate budget and R&D capabilities. able to order the food by iPads, touch screens or 2.Working with the third-party PaaS platforms is QR code scanning, with the food being delivered for those hotels that have R&D capabilities to meet by robots. The bill can be tied to the room or paid specific demands.
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Working with high-quality smart third-party Smart solutions in all scenarios, which can be used to SaaS platforms is for those mid-end hotels or long promote “smart living habits” by establishing IOT tail hotel projects, which can carry out branding guest room experience scenarios through smart OEM. The cost of R&D and maintenance is relatively hardware, customized system and authorized films low, and the construction deployment is convenient, so as to eventually create a smart living ecosystem and it can achieve the fastest landing. featuring human-centric. Private Theater Theme Hotel is a smart theme hotel 5. Cases in the Smart Hotel Industry equipped with large screen projector and smart customer-controlled system. Located in Hohhot Xshuai Technology of Inner Mongolia, the hotel is adjacent to several Established in July, 2015, Xshuai Technology is a business zones including Changle Palace and Mall high-tech enterprise incubated by Haier. City and enjoys very convenient transportation. As the pioneer and leading player in “internet movie More than 40 rooms in the hotel are all equipped projector”, products of Xshuai Technology has won with whole set of smart hotel products designed many renowned awards in the industry, including by Xshuai Technology, including Xshuai smart 13 software patents, 5 patents for utility models projector H8, smart customer-controlled products and 9 appearance patents. Xshuai Technology (curtain, lighting, air conditioner, large screen, voice has been reported by CCTV programs including communication, etc), customers can control the Focus Interview and CCTV News. Besides, Xshuai products in the room via voice assistant. Technology has made its appearance during “national innovation week” (mass entrepreneurship In order to meet hotel’s demand to upgrade smart and innovation) consecutively. What’s more, Xshuai system, Xshuai Technology help hotel to install Technology has also participated in “Twelfth Five- customer-controlled internet system, smart door Year National Science and Technology Innovation locks and electric curtains so that customers can Exhibition” of China. experience multiple functions including opening Since 2016, Xshuai Technology has been focusing doors without card, smart control of scenarios, on hotel industry and dedicated to develop a screen control interaction, one-button delivering, cloud platform intelligence system catering to AI interaction and self service check in and so on. hotel, providing solutions about smart filming and Thus hotels can operate with high efficiency and low smart client-controlled system by learning from energy costs, provide better services, realize value- the successful experience of Haier smart family added extension and deliver better experience solutions and conducted in-depth research ranging for customers in using smart devices and screen from data analysis of hotel customers and AI control interaction. application in future hotel industry. By integrating with tuya, a third party AIoT platform, Currently, Xshuai Technology has been applied in Xshuai has successfully combined AI with large over 200,000 hotel rooms and become first tier screen filming system, smart TV system and system supplier for the top 10 hotel groups in China smart control system in the room. Residents can including huazhu and jinjiang. Products of Xshuai control different devices in the room through one Technology are compatible with mainstream smart device, which has made the room become more devices in the industry. Xshuai Technology has intelligent and entertaining and caters to residents’ become strategic cooperative partners of many customized needs. first-tier smart hardware manufacturers including Haier, Hisense and Philips. BTG Homeinns In 2019, Xshuai Technology introduced smart BTG Homeinns is one of the three franchised hotel
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giants in China consisting of the former BTG Hotel guests’ identities, rooms and billings with it before Group and Homeinns Group, owning nearly 20 operating separately. However, PMS apparently brands and almost 40 products for accommodation. cannot fulfill the task as the primary data system By the end of September, 2019, it operated over these days because now all kinds of smart 4000 hotels in over 400 cities in China. hardware and sensors become sources of important According to statistics by China National information. In the era of smart application of Tourism Administration, the market value for the IoT, huge amount of data produced by hardware intelligentization of hotel rooms was over 100 and smart systems require storage, cross-system billion RMB in major cities in China in 2019, and the exchange and real-time analysis, which makes number of hotels grows by around 20% every year. PMS, a system focusing on management of guests In 2019, BTG Homeinns and Huiyi Technologies and booking reservations, hard to meet these announced and created the Smart Hotel Innovation requirements. Institute together. The institute studies the Wenshu Platform is an open system which can be development of the hotel industry extensively accessed by various smart systems and creates and organizes its research work concentrated on opportunities for new application scenarios. The functions, extensions, technology and entertainment key value of the platform is to liberate hotels from from the perspective of guests. It aims to establish business operation with PMS and allows them to industry standards for smart hotels in the next manage the “application system” based on the 3-5 years, which can improve accommodation general control platform with functions of internet experience, enhance hotel management and operate connection, control and scene interaction. By hotels with technology. connecting and analyzing smart devices, business By studying fundamental needs of guests and operation and group behaviors of guests, smart critical points for hotel development, BTG Homeinns hotels can operate better to meet guests’ demands creates updated smart and innovative services by and improve its management. It can also reduce comprehensive and systematic research of guests, repeated back-office work for hotel management, hotel owners, hotels, city life and other aspects. In which allows staff to offer more front-office services this case, BTG Homeinns launches “Wenshu”, a to guests. smart general control platform for hotel operation, to promote its smart hotel business. Smart Apartment The rapid development of “New Infrastructure” and the gradually accepted intelligentization tendency 1. Overview of the Smart Apartment of hotels have greatly helped hotel industry in China Industry recover from the coronavirus breakout and made smart hotels reach new heights. Various smart 1.1 Definition systems spring up like mushrooms, which boosts Smart apartment aims to meet various needs of the level of intelligentization for hotels. However, renters, increase income, reduce the cost, improve these new systems are separated from each the efficiency, provide personalized and humanistic other and difficult to manage, making people feel services for renters and manage the apartment confused about the real meaning of intelligentization in a highly efficient way through making the and digitalization of hotels. management process available online, digital and At the early informatization stage of hotels, PMS intelligent with the new generation of the ITs such is definitely the primary data system. It acts as the as the IoT, big data, AI and mobile internet, and with information hub for hotels and other application smart devices as the carriers. systems need to exchange information such as
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1.2 Advantages The intelligent devices in the apartments will make The apartment rental industry has been facing tenants feel impressive, simplify the rental process problems such as high operational cost, and improve tenants’ satisfaction and loyalty. complicated installation procedures, high risk of In recent years, with the progress of science and rental arrearage, complex management process technology and the upgrading of consumption, and low digital capacity. In comparison, the smart people are no longer satisfied with the basic living apartment has the advantages as follows: needs but pay more attention to the life quality. The majority of renters are people, born in 1980s and Cost Saving 1990s, who have stronger demands for apartment Converging the intelligent hardware and products with technology, experience, scene and management software could reduce the labor customization. Therefore, “Smart apartment” are costs to the maximum extent and optimize the attracting more attention. effectiveness. 2.Analysis of the Apartment Rental Industry Management Optimization Energy consumption can be reduced to the greatest 2.1 Analysis of the Global Rental Housing extent through integrating the big data with the Industry digital operation platforms. By collecting data According to the international data, by 2018, online, the unmanned monitoring can be realized, America had a population of 300 million, with a and management cost can be decreased. rental population of about 100 million, and the rent Gmv of about 1 trillion yuan. Japan had a population Tenant Experience Enhancement of 120 million and the number of people there living
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in rental housing was around 34 million, with its 2.2 Analysis of Rental Housing Industry in rent GMV bring around 720 billion yuan in total. Major Countries The proportion of rental properties in developed countries was around 30%, while it was only 12% The United States Market in China, which shows that there is expected to be Since 2010, the national average rent in the U.S. significant potential growth in the rental market in increased by $390 with a rising rate of 36%, future. boosted by increasingly valuable land, progressively
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sophisticated apartments, and the booming job ownership of housing. This country with a large market. rental housing market, has the highest proportion of In the U.S., renting gained higher popularity in the renters in the EU. past decade. Since 2010, the number of renters German government’s rental laws and policies play increased two times (+9.1%), higher than that of a critical role in the industry, which regulates the homeowners (+4.3%), showing a considerable rental fee, the supporting facilities, usable space shift in the American lifestyle. The growth rate of and housing safety for guaranteeing the habitability. the number of households with annual income At the same time, in order to manage the real estate over 15W (+ 157%) is twice as fast as that of high- brokerages strictly and protect the interests of income households (+ 78%). It represents that more both landlords and tenants, Germany introduced high-income Americans are renting houses, and the Housing Brokerage Law, regulating the behaviors of rental housing market plays an important role in the brokerage agencies. social stability and people’s normal life in the United One of the important characteristics of German’s States. rental housing market is that most people prefer to rent. Germany Market Based on the statistics of the Eurostat, the China Market proportion of rental population in Germany was According to the Report on China’s Long-term 48.3%, while only 51.7% of the population had the Rental Housing Market Outlook and Investment Opportunity 2020-2025 released by ASKCI Consulting Co., Ltd, the rent GMV in 2015 exceeded 1 trillion yuan in total, paid by approximately 160 million people. It is expected that the number could reach 2 trillion yuan in 2020 with 200 million renters, 3.2 trillion yuan in 2025 with 250 million renters. In addition, accoeding to the research report published by the Oriental Securities, in 2030, the number of renters is expected to be 270 million with the market value of 4.2 trillion yuan. China has a large population and a rapid growth in demand in rental housing market, which is still in the primary stage. Chinese people’s attitude towards housing rent has changed, and there is an unprecedented potential growth in the apartment rental market.
3. Smart Apartment Solutions: “Improving apartment management efficiency and enhancing the tenant experience” is the fundamental purpose of the smart apartment solutions. The efficiency is improved mainly through online management, centralized control and simplified procedures. For example: 1. With the connection of smart door lock and
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property management software, the password power electrical appliances could save energy to open the door can be sent to renters through consumption. messages. Tenants are able to visit the rental Lastly, the data generated by the smart devices can properties with no need to deliver the key. be checked online, so as to detect anomalies and 2. The water and electricity meter reading can be take preventive actions. done remotely with the intelligent water-energy meter systems. One-button power cut can realize 3. Cases in the Smart Apartment Industry smart collection of fees and allocation of water and electricity charges, which reduces the burden of HUIYI TECHNOLOGY tenants. As a national chain commercial IT comprehensive 3. With connecting to sensing equipment, the most service provider, HUIYI TECHNOLOGY can realize energy-consuming appliances or lights could be the high-efficient response model (24 hours *7days turned off when there is no one in the public area a week) in 300 cities of 31 provinces nationwide for a long time to meet the needs in use and avoid with the advantage of more than 200 professional wasting energy. operation and maintenance team of service 4. Smart devices in the apartment can supply engineers stationed in 48 cities. Meanwhile, tenants with better experience by making life more focusing on the development philosophy of using efficient, secure, comfortable and intelligent. smart innovation to empower society, HUIYI The essential demands of smart apartment are: TECHNOLOGY has long been dedicated to providing smart scenario solutions that caters to Technological empowerment actual needs for apartment rental industry. In the solution of software and hardware integration, Previously, it’s challenging to refashion smart the high compatibility with the third-party devices apartments. What’s more, it usually requires can help improve the debugging efficiency, so as to high cost and complex wiring construction. A reduce the investment in the software and hardware common challenge facing the whole industry is in the preliminary stage. how to renovate traditional apartments into smart apartments with low cost and high efficiency. Cost Reduction In terms of construction, by applying the For clients who hope to rent the apartments, guest apartment’s universal SaaS construction model, houses and other properties, various measures such HUIYI TECHNOLOGY can finish the essential work as adopting unmanned monitoring system, energy online including distribution of construction work, consumption control, low-cost upgrading and management of project progress, whole project sustainable development, are trying to reduce the acceptance and management of builders so as operational cost and increase competitiveness. to finish batched installation and operation of the First, renters can reduce the manual labour apartments’ equipments with high efficiency. expenditure and realize the operation with low labor By using the API capabilities of smart apartments’ cost through the self-service check-in and online PaaS, HUIYI TECHNOLOGY can seamlessly payment of tenants. integrate apartments’ SaaS functions into clients’ Second, no rewiring is required with the wireless backend without changing software, thus realizing solution of smart devices, and the maximum unified backend management and reducing the cost operating income can be obtained with the least and time in software developments. time cost at the same time of operating and By establishing its own backend auditing system upgrading. on brands owners, HUIYI TECHNOLOGY can audit Thirdly, the unmanned automatic cut-off of high- clients that already registered on the system so as
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to better manage its clients, including developing and maintenance man to help them deliver quick new clients, managing clients and providing service door-to –door service. for clients. By installing smart electricity and water meters, Through smart apartments’ PaaS on AIoT platform, the apartment management team can remotely HUIYI TECHNOLOGIY’s construction team have control the meters through the apartment’s SaaS already finished the installation of smart door locks, for power outage so as to remind tenants to pay intelligent access control of townhouse’s doors, their electricity bills. Meanwhile, the apartment smart water and electricity meters and smart indoor management team can provide reasonable charge appliances controlled by customers in the boutique in public areas to help accommodate tenants’ apartments of Sunshine Hotel. The construction concerns of the charge sharing in these areas and team also assist the apartment team in providing can realize digitalized energy consumption and guidance for the daily operation and management smart energy management by remotely calculating of equipments by using apartments’ SaaS platform, statistics. which has not only improved customer’s living Equipped with a whole set of interior smart devices experience and boosted brand names, but also including intelligent switch, PIR, curtain, air greatly reduced the management burden of the conditioner, TV, temperature and humidity sensors, operation team. the apartments can present different automated Currently, HUIYI TECHNOLOGY has already scenarios with the help of the management team by finished installation service work for 106 boutique using the apartments’ SaaS. The management team apartments in Sunshine Hotel . can then expand the scenarios to other apartments to ensure tenants can experience smart scenarios Nanjing LuYi Apartment (lights on when they open the door) at the start of Located in the college town of Jiang Ning District their occupancy. of Nanjing, LuYi Apartment strives to create After their occupancy, tenants can use App (Zugo) Internet+Youth Venture community which covers to remotely control and check the status of the both long and short rental smart apartments and smart devices and choose the automated scenarios various patterns including internet fitness, online according to their preferences. gaming and online teaching forums with the Based on various scenarios including available objective to establish a community in the college apartments management, house viewing before town that combines the function of living, studying occupancy, tenants occupancy, tenants service, and entertainment. LuYi Apartment further integrates smart door The three phase projects in total contains 500 locks, electricity and water meters, interior smart apartments and it is expected to finish 62 long devices and management system, which has not rental apartments and 65 short rental apartments for only greatly improved the operation efficiency of phase I project this year. the management team and reduced human cost By introducing one-stop solution including and management risks, but also provided young smart device (smart door locks) and apartment tenants with smart devices, thus, the quality of the management software, LuYi Apartment makes it apartments was boosted and it has also provided possible for the apartment management team to a safer, more comfortable and more convenient remotely send the password to tenants through the living experience for tenants and helped clients to apartment SaaS so that they can independently have their own apartments with different features view apartment without housekeepers. The and establish the brand name of the youth venture apartment management team can also remotely community. send temporary password to the house cleaners
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The housing sector is required to innovate products, 2.2.2 reduce costs and improve efficiency, and evolve Smart City from house development to operation. First, the sector is increasingly concentrated with more fierce As a promising business scenario in the application competition, which makes it necessary to innovate of AIoT, smart city that counts on plenty of cross- products continuously to stand out. Intelligent sector technologies and solutions consists of smart technologies should be the focus. Second, due to real estate, smart security, and smart commercial the increase of labor cost, it is urgent to reduce lighting. the cost and improve the efficiency of property management. Last but not the least, the sector Smart Real Estate expects to get exposed to and understand customers, so that they can do more accurately in 1. Overview on the Development of Smart product development and project planning. Real Estate Sector In terms of technological development, in the post- According to the report by Prospective Industry internet era, cloud computing, big data, AI and IoT Research Institute, China’s property sales exceeded technologies are on the highway of development, 10 trillion for the first time in 2016. The country’s which drives the application scenarios more mature. commercial housing sales reached 15 trillion in With higher expectations on “living” a pleasing 2018. Although the trend is continuing, the growth life, customers are looking forward to more rate declines sharply, and the growth was 1.5% healthy, convenient, comfortable and intelligent life slower than 2017. experience. Fueled by massive demographic dividend, traditional In this context, the leading housing developers housing sector has witnessed continuous breakneck have established their technology subsidiaries, growth over the past two decades. But due to policy for example, Vayi Tech and Vanrui Tech in Vanke, tightening, the disappearance of demographic Evergrande High-tech and Xingluo Technology in dividend, fierce market competition, and the serious Evergrande, HSUNION in China Overseas Land problem of homogenization, the sector has been & Investment, and Shimao IoT in world Trade facing the risk of transforming from a growth market Center (Shanghai) Group, etc. Most of these tech to inventory market. The traditional development companies were set up in the past two years. mode of purchasing land for house selling has been Smart property has been turned into a group phasing out of the mainstream, while the real estate standard from a regional pilot project. The housing operation mode is now a breakthrough point in the sector has been including smart home into group sector. Operation mode applied in the property purchase. Besides, the developers have started sector drives the transition of players from physical to establish an integrated IoT platform for whole- space provider to digital home service operator. house intelligent/smart community. For instance, The downstream’s digital transformation in the real Vanke, CIFI, Languang, and other house developers estate sector featuring a huge market volume has have built up an integrated real estate IoT platform. explicitly created impressive smart business value Leading tech companies are dedicated to for the upstream players. developing smart property business. The smart Given the macro policy, the principle of “house for property sector mainly consisted of companies living in, not for speculation”, and the recently- focusing on smart home and community previously. announced “three red lines”, the housing sector In recent years, prominent tech companies including is forced to shift more attention to product and Tuya Smart, Sense Time, Megvii, and iFLYTEK, operation for competitiveness. etc. begin to make progress in the area of smart
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property. data silos. In the end, households have no access Driving force of Smart Property Development to one-stop smart life experience. Design, construction and operation are expensive 2. Industrial Chain and Roles in the Smart without any management. When scheming Property Sector intelligent solutions, designers are faced with Hardware suppliers. The basic hardwares mainly high threshold and are low-efficient; a number of consist of lights, door lock, security products, projects are delivered at the same time, and device curtains, environment-related products; and the debugging is low-efficient and impossible to be additional products include all kinds of home controlled; after moving in, home owners find that appliances. a vast number of device operation and aftersales Whole-house intelligent technology providers. There problems are out of control. are two kinds, namely start-ups and traditional Due to the lack of data, house developers find it companies, mainly focusing on video door phones impossible to manage users. Intelligent solutions and switches. are isolated from community services, since the Integration suppliers. The integration business data is in the hand of equipment suppliers instead is devoted to developing whole-house intelligent of real estate companies who can’t get aware of solutions and establishing intelligent community. proprietors’ experience and feedbacks. Meanwhile, Smart property platform. For example, Tuya Smart, without data collection and analysis, developers Sense Time, and iFLYTEK, etc. can only fine it hard to figure out owners’ needs, Tech Companies Affiliated to Property Developers. thus failing to provide them with accurate operation Over the past years, tech subsidiaries established services. by house developers have been playing three roles. They are solution providers to facilitate 3.2 There Are Two Mainstream Modes in the projects, official functional departments to develop Sector. Take Smart Home as an Example: and uphold intelligent technology standards in One-stop solution. Whole-house intelligent solution real estate groups, and players in exploring and supplier provides one-stop solution consisting implementing the strategy of property + intelligent of software and hardware, as well as project technology. implementation, featuring a main strength of responsibilities clearly defined. 3. Smart Property Solutions Division of work. Work is distributed among platform providers, tech companies affiliated to property 3.1 Pain Points of Smart Property Business developers, and hardware and device suppliers. The Devices do not interact with each other, provide developer tech subsidiary, playing a critical role, bad experience, and can’t be extended. Power and provides project solutions, with three strengths as lighting, security sensors, and small and big home follows: appliances from various brands need more than one First, deliver user experience. All users are using the App, thus generating unpleasant experience. The same interaction gateway, such as App. Diversified basic and additional devices fail to interact, resulting brand ecosystem on the platform, and property in failure to meet owners’ needs on extending management and life services extended from “living” intelligent device. work together generating an integrated and rich Indoor and outdoor scenarios are little integrated. intelligent experience. There is the absence of effective interaction Second, realize group-level management and between home space and public space. Smart control, reduce cost, and increase efficiency. The home is isolated from smart community, leading to whole-chain management covering planning,
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construction, debugging, and equipment operation, example work, shopping, studying, traveling, etc. as well as the all-in-one management platform Therefore, commercial lighting can cover multiple that integrates intelligent devices, intelligent public application scenarios, including office buildings, areas, and whole-house intelligent solutions, schools, commercial space, warehouses, parking enables to reduce the cost while increasing the lots, exhibition halls, libraries, factories, stations, efficiency of property management, and to facilitate etc. the operation and profit earning for property Nowadays, people spend 90% of their life in management business. buildings, so green and healthy buildings are what Finally, empowers house developers to lay a people lay the greatest attention to. It is reducing foundation for data enablement business. Smart building energy consumption that is critical for home data is collected as a reference for evaluating the construction of green buildings. The dominant the improvement of real estate product quality and energy consumer in a building is HVAC that customer experience, and to support community accounts for 45%. The second highest is lighting service operation. that normally takes up 30% of the total energy consumption. 3.3 Value of Smart Property Business There are lighting stipulations both in the US Improve product competitiveness. User focused, LEED green building certification rules and China’s people, devices and services are connected in green building certification standards. Due to the a certain space to create intelligent scenarios new LEED standard, lighting control system that and pleasing experience, so as to enhance the is playing an increasingly significant role, has competitiveness of property products, yield been regarded as a must-have and included into premiums, and improve absorption rate. the prerequisites in some projects. Furthermore, Reduce the cost and increase the efficiency. A the control system has been extended from the unified management platform linking the whole traditional artificial lighting to cover daylighting, house with public areas can realize integrated and measuring, monitoring, innovation, etc., creating intelligent management on information, devices, an integrated system, which helps to win a higher and services, thus reducing cost and increasing scoring in LEED evaluation and obtain a higher-level efficiency. LEED certification. According to the Energy Saving The second building-up curve. Adopt intelligent from Networked Lighting Control (NLC) Systems solutions as an entrance to your “home” to connect report by the US DLC, smart lighting control with users, reaching and understanding them to system has a notable effect in reducing energy offer them precision products and services, and to consumption. On average, 47% can be saved. Most set up an all-new business mode, in turn increasing notably, warehouse can consume 82% less. In value and profits. Shaping a second building-up offices, the system helps to save energy by 63%. curve allows real estate companies to upgrade from Buildings can shelter people from danger, and developers to operators. impact people’s health. In May, 2018, IWBI launched the trial version of WELL v2 globally to Commercial Lighting promote the development of healthy buildings based on edge-cutting scientific and medical know- 1.Overview on Commercial Lighting Sector how, and counting on healthy building standard As people cannot live without lighting, and spend and certification system. WELL has been adopted part of their time at home, a set of smart and flexible by more than 30 countries. In WELL, the light home lights is a must. The other part of people’s solution advocates people’s exposure to light, time is spent on work and commercial activities, for which is meant to create a luminous environment
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beneficial to vision, psychological and physical also recognized and playing a role. Global Lighting health. Playing a significant role in healthy buildings, Association has clearly depicted the development light control system provides solutions pertaining roadmap of future lighting. In the future, lighting will to circadian lighting, automatic control, on-off gradually evolve to service-oriented and upgradable and dimming, daylighting and shading, indirect intelligent lighting system, and ultimately to the illumination, scenarios, etc. As the prerequisite in human centric lighting that is beneficial to people’ s WELL certification system, light control system is health.
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2. Commercial Lighting Solutions hospitals, schools, factories, street lamps, landscape lighting and other application scenarios As lighting should be people-centered, its products, have their own uniqueness. design and application should be focused on ● Given the professional aesthetic requests, a health and comfort. Currently, specifications can specialized design team will be needed. make a difference in realizing good luminous ● Safe-to-use is rather critical. In case of an environment, including reflectivity, luminous flux, accident, not just an individual will be impacted. color temperature, glare, and CRI for lamps and light So there are high requirements on the reliability of sources, as well as environment-related indicators products and systems. like illuminance, evenness, brightness contrast, ● There are higher demands on energy saving, in consistency, shadow, etc. Some software are able particular in the application scenarios previously to simulate and compute the quality of illuminous using a number of high-power light equipment and environment. lamps. But natural lighting is not consistent throughout The IoT-based commercial smart lighting system the day. Sun’s position, color temperature, and can give a boost to many benefits. illuminance are different in the morning, at noon, Firstly, in terms of professional aesthetic needs, and at nightfall, thus exerting various impacts on visual effects for lighting can be created, typically people’s psychological and physical conditions. the light levels in certain application scenarios, and Similarly, it is impossible to rely on unchanging focus on highlighted objects. The expression is artificial lighting to deliver the best and comfortable realized not solely through parameters or software illuminous environment. Besides, people’s requests simulation, but also needs adjustment according for the light environment vary in application to the real environment. The whole process can be scenarios. For example, the light environment is enabled by a smart lighting control system. needed to refresh people in studying for a higher Secondly, to meet the need of multi-scenario learning efficiency. In a restaurant, a comfortable application, a smart lighting control system can rely and elegant light environment is necessary for on pre-setting, sensors, and other approaches. working up an appetite, facilitating communication, Thirdly, clock manager, and smooth dynamic control and ensuring privacy. In other occasions, different methods help to control timing, time sharing, behavior settings have different requirements for and zoning, thus realizing various scenarios at light environment. For instance, a small meeting different time, and dynamic lighting effects such room needs to have the settings of greeting, as color temperature, illuminance, and even color speaking, discussion, summarizing, etc. Sensitivity adjustment. to light varies among age groups, for example, Fourthly, detecting state parameter and monitoring the old and the young have varying degrees of software are used to warn on to-be-scrapped sensitivity for light with different requirements. devices, inform of lighting devices out of service, Therefore, only the intelligent lighting control system and implement a range of lighting control strategies featuring dynamic lighting can generate a people- like soft start, delayed start, soft shutdown and centered illuminous environment. power supply voltage surge protection, easy The needs of light environment for commercial use for centralized management and equipment depend on the place and settings of application: maintenance. ● There are multiple subsectors in commercial Fifthly, energy can be saved with the help of the building industry, whose needs are different from control system. Energy saving strategy can be pre- each other. Office buildings, transport connections, set, so that light will be turned on when people are stadiums, performance centers, museums, coming, and will be turned off or down when people
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leave. Light balancing, a control method making use modules of monitoring, sensing, measuring, of natural light helps to save energy by 15-75%, and managing and controlling. “Monitoring” stands extend the lifespan of light sources by 2-4 folds. for the functions of equipment failure alarming, A systemic intelligent lighting control system life alarming, data analysis, etc. “Sensing” means takes an effect in three visualized ways, namely the functions of human centric lighting, automatic on-off, dimming, and color adjustment (including illuminance balancing, movement detection, color temperature and color). But in the system, etc. “Measuring” covers the functions of energy various technologies are adopted such as light consumption measurement, equipment usage time source, electrical, microelectronic, computer, gauage etc. “Managing” represents the functions automatic control, communication, and networking of access management, construction management, technologies. In existing bus and wireless protocols, centralized management of projects at various there are 485, KNX, Longworks, DALI, and DMX512, places, etc. “Controlling” indicates the functions the relatively long-life wire protocol; Zigbee, Wi- of graphic control, scheduled appointment control, Fi (TCP/IP), Bluetooth, and Zwave, the flexible scenario-based control, and basic functions protocol; and Lora, NB-IoT, POE, LIFI, GPRS, and including single light control and group control for 5G, the emerging protocol. Devices include smart on-off, dimming, and toning. switches/relays, dimmers, dimmable electronic Furthermore, an IoT-based smart commercial drivers, smart lamps, control panels with CPU, lighting system should be a one-stop solution computer software, wireless modules, etc. applicable to various scenarios using pluggable The current main dimming methods consist of: installation without complex wiring, which can help leading edge phase control, trailing edge phase to increase application and management efficiency, control, PWM pulse width control, 0-10V control, thus realizing green and healthy buildings. The DALI control, etc. To achieve perfect dimming system consists of client interface to meet end effects, it is necessary to ensure a wide dimming users’ needs on integrated control; management range and create a perfect atmosphere; deliver interface to provide data overview, and device excellent dimming consistency and overall effect; visualized management, and energy management have a smooth dimming curve without jitter or platform to realize equipment centralized flicker; protect drive circuit and light source; and use management; and construction management safer and more reliable lamps. platform to achieve construction management, rapid Apart from the basic control functions listed above, network distribution, and convenient deployment. a complete smart commercial lighting system is An ideal IoT-based smart commercial lighting based on IoT platform, and suitable for the new and system boasts the features as follows: inventory commercial lighting market. It provides ● Impressive functions, the market with a complete solution ranging from ● Compatible with multiple network protocols, devices to software control and to construction, ● Powerful ecosystem, and realizes green and healthy buildings through ● Digital operation management, device management, energy control, and human ● Security of network data, centric lighting. Besides, a digital and visualized ● Sustainable service supporting system. management platform is offered for product The system can be integrated with natural maintenance and operation after sales, so as to lighting, air quality monitoring, environment enable users to have access to intelligent business, temperature monitoring, visitor management, safety and reduce management cost. management, and AI computing and prediction An IoT-based smart commercial lighting system to establish a comprehensive solution for smart should be developed to cover the five function buildings and community. Using BIM-based three-
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dimension system for three-dimension presentation solutions greatly improve efficiency and significantly and visualized operation management allows to reduce upgrade costs, relieving companies of the improve customer experience and effects, and burdensome installation and repairs involved with accelerate the development of green and health using wires. buildings. Through the flexible, automated solutions and intelligent control of its commercial lighting 3. Cases in the Commercial Lighting PaaS offering, Construlita helps its partners and Industry customers save on energy and labor, improve user experience and management efficiency, and reduce Construlita Group operating costs. Construlita Group is one of the largest domestic lighting brands in Mexico and Central America, Lighting & Equipment Public Company providing solutions for residential, commercial, and Limited. industrial applications. Founded in 1993, Lighting & Equipment Public A 35-year veteran in the lighting industry, Construlita Company Limited. (L&E) started with an initial has created a brand image driven by innovation, capital of 25 million Baht, marketing fluorescent creativity, and design. The company does luminaries to electrical contractors and reaching businesses in nine countries, including Mexico, out to governmental agencies. In 2018, the annual Colombia, Costa Rica, El Salvador, Nicaragua, and revenue was 2,923 Million Baht, and 69% of that Honduras. came from project business. Now, L&E ranks No. 1 Through its brands Tecnolite Connect and in project lighting industry in Thailand, with a 20% Construlita Connect, Construlita provides smart share of the overall lighting market of Thailand, and solutions for residential, telecommunications, and an influence covering most SEA countries such as professional services firms, empowering significantly Vietnam, Cambodia, Indonesia, Malaysia, Myanmar, enhanced customer experiences through behavioral etc. data analysis. L&E has been working with Tuya since 2018, and Traditional wired lighting systems face problems started with retailing business. L&E expanded such as complicated wiring work and high rapidly from Bluetooth & Wi-Fi lighting products to installation costs. Although wireless lighting electrical outlets, sensors, IP cameras, promoting solutions are gradually becoming mainstream, ICON Link as its smart home brand. Soon, L&E upgrading from wired to wireless lighting also brings stepped up to the second place in retailing channel new challenges such as dealing with a distribution of smart lighting, as most attempts from Thai network and figuring out how to manage multiple brands, including L&E itself, failed due to high costs, devices at one time. lacks of variety, and poor customer experiences. Using the Tuya AIoT Platform, Construlita has been For the first time, L&E is able to introduce affordable able to make this essential transition to wireless smart home products to its customers, as Tuya has commercial lighting and develop a commercial helped provide various options in terms of multiple lighting PaaS solution via a new brand: Construlita communication protocols, more than 200 thousand Connect. Construlita Connect offers the full range ready-to-go products from more than 30 thousand of lighting products and easily incorporates different competitive manufacturers, and most importantly, types of devices, including sensors, switches, circuit a stable and cost-friendly Cloud service. All these breakers, water meters, and cameras. helped L&E to shorten its development cycle, to Construlita Connect can also transform traditional lower its development fee, and to minimize its solutions. Wireless smart commercial lighting operational cost.
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In 2019, L&E faced challenges from some smart Sichuan Languang Development Co., Ltd (“BRC” or building solution providers such as Lutron and the “Company”) is a TOP30 enterprise in Chinese Signify. The top management team of L&E saw real estate industry. Languang Development strives Smart Lighting with great significance, and decided to provide innovative solutions for living and to go deeper with Tuya for the potential IoT lifestyles, and to create happy living environments technology, that could add to its project lighting for people. The Company was restructured and business. L&E knows what kind of solution works listed in the Shanghai Stock Exchange in 2015, in the Thai market, but it took quite a long time for since then the brand value has reached RMB24.28 L&E to start forging its own from scratch, and by billion in 2019, making it one of the “TOP100 then the market share had already been grabbed Chinese Real Estate Development Enterprises” by its competitors. As a result, L&E reached out to for the 13th consecutive years. The Company was Tuya for a solution, and Tuya, in return, provided a ranked as one of the “TOP20 Chinese Real Estate Lighting SaaS for smart building scenarios. There Development Enterprises 2020”, and “TOP11 Brand are in total 6 things Tuya provided with Lighting Value for Chinese Real Estate Enterprises 2020”. In SaaS: 2019, BRC’s sales value exceeded RMB100 billion ● Lighting Luminaires including light tubes and for the first time, amounting to RMB101.554 billion. panel lights As the demand for smart living continues to ● Multiple sensors such as humidity, temperature, strengthen among Chinese consumers, real luminance, and human motion estate projects of premium quality rolled out new ● A control App for its users properties that incorporated a wide range of high- ● A web system for monitoring and management of tech smart home designs in order to seize a larger the whole building market share, to increase customer stickiness ● An installation app for builders to connect all the and to provide value-add potentials. Smart home devices when Internet is not in place design has become a selling point for developers to ● A robust and powerful cloud service facilitate sales and enhance properties’ value-add This wireless system enabled L&E to compete and competitiveness. against other bidders, as the overall cost was Smart living has gradually become a tailwind for reduced by more than 90% comparing to that of the real estate industry. BRC, as an enterprise a wired solution. With the automation capabilities, incorporating technological development in its light will automatically go off when no one is in this genes, we have already constructed a scalable room or area, lighting condition will be adjusted blueprint for smart living. With the central mission according to the specific time of the day and the of developing real estate projects, BRC has readings of luminance sensors. A heat map will constructed cloud platforms for AIoT smart living inform managers which area generated most human and smart marketing, and has launched intelligent activities, and administrators and technicians will solutions and digitalization across the entire know the running status of all devices, and if there’s properties industry’s value chain, including smart a maintenance needed to be arranged. L&E has a living, smart communities, smart business and great foundation of customer base, and now L&E smart marketing. could help its customers to improve management In 2019, BRC has preliminarily completed the efficiency, to save energy, to bring down installation construction of its self-developed AIoT Smart costs, and to boost user experience for every Living Platform. There are, however, a wide array of person who works in these buildings. products available for the platform, making cross- brand integration and compatibility just unavailable Sichuan Languang Development Co., Ltd yet. Since cloud services, product manufacturers
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and system integrators in the real estate industry launched, and it was actively expanded nationwide offer mostly customized products and services, and on a large scale. In the new era, in order to provide given the lack of ready-to-use products, BRC has customers with a more comfortable, safe, and to invest more to improve the AIoT Smart Living secure life, Okura is actively introducing the latest Platform, which would mean a longer time horizon technology. In recent years, Okura has actively for payback. promoted the smart city plan to maintain the To upgrade real estate products for smart living, initiative in the AIoT era. and to cater to the increasing demand for the To fulfill this, Okura has built smart whole-house same, BRC sees the urge to expand its internet of model rooms in Chiba, Wakayama, Okayama and things offerings quickly, especially for household Aichi prefectures, so that more Japanese people appliances, large or small. can experience the convenience of smart real estate. At present, Okura’s real estate businesses, BRC collaborates with Tuya Smart, a globalized such as residential and apartment under AIoT platform, to jointly established the "BRC & Tuya construction, will gradually introduce whole-house Smart – IoT Innovation Lab". After being integrated smart solutions to provide a smart experience of into the Tuya App SDK, AIoT Smart Living Platform intelligent connection of things. With the same can configure network and manage all Powered by mobile app or smart speaker, users can operate Tuya products, including the IoT devices developed the smartest devices in the house, including lights, by BRC, thus expanding the BRC product matrix curtains, air conditioners, etc. rapidly. BRC is poised to meet the demand for fully For real estate developers, AIoT technology is smart living homes both in the factory-installed and becoming a new decisive point in the real estate aftermarket-installed products market. industry. More and more consumers tend to choose projects that bring their own smart whole-house Okura. Co., Ltd solutions or houses that can combine smart cities, Established in 1962, Okura. Co., Ltd is a real security, and smart elderly care so that the aging estate company with extensive influence in the Japanese population will have a safer and more Japanese real estate industry. Its business involves independent residential environment in the future. comprehensive real estate related businesses such In the future, Okura also plans to build smart whole- as land acquisition, home development, housing house model rooms in Hokkaido, Sendai, Kyoto, construction, housing sales, and housing renovation. Gifu, and Okinawa to make the concept of smart Over the past 50 years, Okura has developed more real estate be popularized in Japan more quickly. than 60,000 homesteads and independent houses, and about 512 apartments. Based on such a huge Smart Security housing construction and zoning foundation, Okura is vigorously promoting smart city planning to 1.Overview on Smart Security Industry seize the development opportunities in the era of With the rapid development of global economy and intelligent connection of things. people’s standard of living, people have paid more In business, Okura focuses on life basics, "housing", attention to the security of their private wealth, as and develops business in Japan around one-family it is not pursuing wealth but safely owning wealth construction, apartment, new town development, that is the concern. Among the public, security apartment, real estate renovation, and other fields. means protection, while the industry players believe Also, in 1974, with the goal of "providing customers security stands for high tech-based protection with a fast and comfortable life", a membership- in which information tech-based service, picture based resort and recuperation business was transmission, and storage technology are counted
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on to avoid health and wealth risks. distributed video surveillance network layout led to As Juniper Research’s report suggests, global a surge in the demand for surveillance equipment; intelligent security market size will go up from $12 Since the start of the Xueliang Project in 2016, billion in 2018 to $45 billion in 2023 at an CAGR the security facilities in big cities have become as high as 30.26%. Currently, the physical security increasingly saturated, and security monitoring market is playing a dominant role, accounting platforms have begun to penetrate counties and for 65%. In the global Top 50 intelligent security villages. The smart security industry, which focuses companies in 2019, Chinese players had an eye- on home security and public safety, quickly caught catching performance. the first train empowered by AIoT and began to In China, security industry planning is a national innovate the traditional security industry. strategy. Traditional security systems have In recent years, driven by the principle of a safe witnessed the increase in penetration. The industry city project strongly supported by the government, has undergone four stages: beginning, growth, many technology giants have laid out a diversified explosion, and saturation. footprint to seize the blue ocean market in face of At the beginning stage in 2003, the Golden Shield the cake of AI+ security. AI+ security is one of the Project was initiated, and the infrastructure of main tracks with the fastest commercial deployment the public security communication network and of artificial intelligence technology and the largest computer information system was established, market capacity. AI technology began to be adopted which laid an application foundation for the security in 2015. Self-monitoring and active identification electronic equipment, and delivered development have become the mainstream for video surveillance opportunities for the industry; products. Various vertical applications based on In 2005, the industry was at growth period when the AI technology are constantly emerging. China’s real opportunity for the industry to bloom up was security industry has already transitioned from the launch of the Skynet project. The large-scale strategic investment to a highly mature situation.
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Compared with the highly mature security industry market and a long track. in China, there are still many new scenarios in the Core players in the smart security industrial chain: international security market that has not been fully Upstream: Chip manufacturer, hardware developed, and there are huge market opportunities manufacturer to be explored. Although the security industry Midstream: Security vendors, AI companies, cloud originated in the United States, after more than service vendors half a century of development and evolution, it Downstream: System integrator, project integrator, has gradually developed into a large-scale mature engineering construction service provider industry covering the global market. Most companies only play one of these roles, and Most of the international security hardware suppliers it is rare to see such platform companies as Tuya are from China. The service models of American Smart that integrates diverse hardware ecologies, security operators are mostly monopolistic, their AI technology and cloud services into one. services are expensive, and their hardware options are not diversified and are mostly sold in the form 2. Smart Security Solutions of kits. But some international small and medium- Mainstream Solutions in the Smart Security Industry sized security service providers and channel From security hardware to software, aiming at providers are in need of a more cost-effective the distribution market, companies rely on 2B/2G platform or need to build up their brands, so the (business-oriented/government-oriented) resources, customized service providers of Chinese security and the security business and cloud platform App and SaaS management platform have flooded strategy are strongly coordinated. into the international market. Notably, due to the Companies provide enablement from the bottom huge economic, cultural, and political differences of the industry, work along both lines of investment among countries, the mature security market is only and merging, focus on foundation-started cloud in Europe and the United States. The smart security development, and advocate secondary development market in many regions is still in its infancy. For of Paas layer. the Chinese security enterprises, the international Intelligent development, and unified establishment security market has much more to be tapped than and planning of smart city structure are the trend. It the Chinese market. is a must to avoid repeated underlying architecture, Since smart homes are still a kind of user experience to share data and resources in real time, and to demand, there are still certain market differences maximize the use of computing resources. between smart home market and the just-needed The applicable mainstream security solutions security market, and the market and user habits at home and abroad, and their highlights are as need to be cultivated and impacted. follows: By comparison, the international security market 1.There are self-developed systems. It is hoped to has greater opportunities. “Going out” to the global expand the hardware product ecosystem, but the market can generate more profit in a faster manner cost of docking one by one is high. than “staying” in the mature Chinese security market Solution: Integrate smart hardware ecosystems, and for companies to provide hardwares, software and only need to dock PaaS to support device access. complete solutions. Video surveillance, access Highlights: Based on years of practice in the IoT control, and anti-theft alarm are the three major industry, a wealth of open interfaces has been products in the security industry. However, in terms deposited, which completely covers multiple of current market trends, video surveillance is still business scenarios such as authorization the mainstream product in the security industry. management, user management, distribution AI security industry has many players, a large network management, equipment control, and
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scene automation. Therefore, the smart security solution that is most 2.Existing security product channels/brands have a in line with the big security trend in the industry certain degree of influence, and are expected to be currently has the characteristics of full-stack SaaS, used to increase revenue. zero development and visualized security. Solution: Intelligently upgrade existing products by Under the background of AI, big data, and the inserting cloud modules to expand sales channels Internet of Things empowering the security industry, at home and abroad. it is now the beginning of the outbreak of artificial Highlights: Save the cost of hardware development, intelligence in the security industry. Companies and expand the channel market with the help of the will use this opportunity to transform and upgrade brand image of the solution provider. their traditional business models to get closer to 3.There is a rigid need for security scenarios in the general trend in the overall security industry. business, which drives to seek suitable solutions. The polarization in the industry will also become Solution: Build a complete set of smart security increasingly obvious. Some companies that have system at low cost, and coordinate with hardware not kept up with technological development will fall sales, operation services, and software value-added behind, and those companies that understand the services to support profit earning in all aspects. lifeblood of the market will have more opportunities Highlights: Flexible device authorization mode, in the future. support integration of App SDK, OEM App, public App scan code and other authorization methods. 3. Cases in the Smart Secuity Developers obtain user and device data by using Industry OpenAPI, and control devices through permissions. Video surveillance: Alarm message feeding and Intelbras operation: trigger the alarm from the alarm device, Founded in 1976, Intelbras is a leading Brazilian visualize the alarm push, perform alarm verification smart home security brand and one of the top three through video review, and make alarm processing IP camera manufacturers in the world. They’re a based on the video content feeds. one-stop home security solution provider offering Non-gateway single-product devices (Wi-Fi, BLE, the full range of home security devices—including NB-IoT) can be virtualized as a security gateway sensors, door locks, energy saving systems, and in the cloud, so that they have the ability to deploy connectivity—to create safer living and working and withdraw security devices, and provide flexible environments for people worldwide. configuration of pan-scenario security capabilities. Intelbras serves customers across Brazil with over Highlights: Based on the huge smart hardware 200 dealers and 120,000 agents. Intelbras also has ecosystem, App and platform support flexible four factories in South America and more than 3,300 customization, adapt to multiple scenarios, and global employees. The company generated around meet the needs of subsequent expansion. $372 million in revenue in 2019. Relying on the ecosystem of AI + IoT platform, big COVID-19 has brought new opportunities to data and huge hardware product, smart security is a the world of smart security, and Intelbras has comprehensive smart security solution for families, responded by creating a new human temperature communities, zones, buildings and business monitor. scenarios, covering security operations, elderly care, Launched in early 2019, this new monitor is being campus protection, smart fire protection, property used in different communities and office buildings management, chain commerce and other smart to remotely detect people entering buildings who security fields. This is to enable global security have a high temperature or fever. Combining its industry partners to quickly enter the global market. capabilities with those of a smart camera, the
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detector can warn and directly send a notification to cameras to their existing line. the security guards or medical workers as soon as Zebronics is committed to becoming a leading someone with a fever is detected. brand in the field of smart security and surveillance Intelbras has also formed a strategic partnership in India. The company has an in-house R&D with global leading AIoT platform provider, Tuya department monitoring the latest developments in Smart, to realize smart transformation and device the field of technology and innovation to find best controlling across different product categories, as possible products and services for the Indian smart well as offer a better user experience. home market. Intelbras’ app, Izy Smart, can control all Intelbras Thanks to the continued quality of products and smart home products. It also supports smart scene services it provides, the loyalty of country-wide linking and smart scene automation for users to dealers, these dealers’ faith in Zebronics as a brand, enjoy a truly convenient smart life. and the backing of Tuya technology, Zebronics has Intelbras has also launched its top-rated smart light been able to find and maintain success in the Indian bulb in Brazil. It features voice control with smart smart home market. speakers, where users can select different colors and modes, such as reading mode, leisure mode, and music mode. 2.2.3 Zebronics—Connecting to Global IoT Capabilities Founded in 1997 and headquartered in Chennai, Smart Home Zebronics is India’s top IT peripherals, audio/ 1.Overview of the Smart Home Industry video, LED TV, healthcare, mobile accessory, and surveillance brand, providing products that are 1.1 Trend in Smart Home Product: From designed well but also affordable for any household. Wired to Wireless The company has over 1,100 employees across The global economy was in the Electrical Age from 31 offices and 127-plus Zeb Care service centers. 1920 to 1980, when the development of electrical These central offices are backed by strong network technology laid a solid foundation in hardware of dealers, resellers, and integrators that add control for the smart home industry. Households another 50,000-plus retail locations across the around the world began to have access to country. The Zeb Care centers provide support to electricity, and the growing residential demand led the consumers and the channel network. to the booming development of automated home The demand for home audio and video products devices. Various kinds of electrical appliances were has increased with the rise of smart homes in invented, creating the early form of smart home. India, and Zebronics has responded by developing With the coming of the Information Age from 1980 a comprehensive home smart video product line, to 2018, smart home technology and solution including PTZ cameras, IP cameras, a four-in- evolved more rapidly, and smart home product one camera, a fisheye camera, and a smart Wi-Fi began to transform from wired to wireless. camera. The communication technology used in the smart Tuya has enabled Zebronics to have quick access home control system iterates continually, from power to intelligent voice platforms such as Amazon Alexa line communication to fieldbus communication, and and Google Assistant, and, through this, Zebronics then to wireless communication. Based on these has created a smart home app named ZEB Home. three methods, three major ecosystems of smart They have also launched a smart IP camera based home communication were formed. Starting from on Tuya’s platform and will soon add more IP 2019, as the global economy enters a new cycle
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and the Digital Age, devices with human-machine interaction are becoming smarter and better.
Meanwhile, connecting device to the cloud under With the global deployment of cloud base stations, wireless protocol and processing high-value in cloud wireless protocols, apps and device-to-cloud through edge gateway have become a major trend connectivity have become the mainstream forms of for smart products. smart home products. Developers adapt different communication protocols according to type of 1.2 Trend in Smart Home Communication device and application scenario. Technology: Cross-Protocol Communication Most smart home appliances, large and small, Currently, there are mainly three categories of now support human-computer interaction, and the communication technology for smart home iteration of home appliance is faster than that of applications. pre-installed product. As home wireless routers and These three communication technologies can also mobile devices with Bluetooth module are widely be divided into only two categories: wireless and accessible, Wi-Fi and Bluetooth are often used wired. In reality, wired solutions have high data for smart upgrades, which can be completed and transmission speed, low sensitivity to external used immediately without complicated network environment, and strong anti-interference capability. configuration. However, they also have drawbacks, namely, the Meanwhile, most pre-installed devices, such as long construction period, the need of complicated smart electrical products, lighting, home theatre wiring in advance and the fixed location of device, control panels, often adopt the Zigbee protocol which lead to the wired solutions unsuitable for with strong anti-interference capability, low power house remodeling or later decoration. In contrast, consumption, excellent networking performance, wireless solutions are smarter and simpler, which and low latency, and thus short-distance signal can automatically network, expand and change transmission is relatively stable. They also support terminals flexibly. With the development of wireless the scene linkage control of different equipment communication technology, wireless solutions’ combinations through the smart gateway hub. performance in power consumption, transmission With the advancement of 5G mobile base stations, distance, transmission rate, and anti-interference 5G technology is about to bring a new round of capability has been greatly improving. leaps and bounds in communication technology
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for the smart home industry. According to the 2019 personalized “ID-based service”. Analysis Report on Development and Trend of China’s 5G Industry, written by Forward Industry 1.3 From Smart Device to Smart Scenario Research Institute, one of 5G’s key strengths is The development path of smart home clearly that it can deliver speed of 1Gbps for mass mobile indicates that China's smart home technology users in hotspots. Also, according to IMT-2020, and solutions are 3-5 years later than those compared with 4G, 5G has better performance in of developed countries. For instance, Amazon user experience rate, traffic density, latency, mobility launched the smart speakers Echo in 2014, which and peak data rate. led to the rise of voice speakers in the world. But As technology evolves from 1G to 5G, more in China, the promotion of smart speakers took functions have been realized. 3G began to support place between 2017 and 2018. Speakers were video, and 4G began to support VR, while 5G’s the most popular items back then as it was the peak data rate will reach over 10Gbps with its first carrier of AI technology in smart home. After average data rate being between 1Gbps and 2015, major domestic manufacturers began to 2Gbps. As 5G offers faster data transmission, it join the race and vigorously promote their own will enhance the flexibility of smart home. Through hardware as entry-level products for smart home, mobile communication technology, more hardware including those specialized in smart lighting, smart will become smart and connected to smart home electrical devices, smart door locks, and smart devices, ushering the world into the age of “cross- home appliances. After several years of promotion, space IoT” and “mobile IoT”. Chinese consumers’ acceptance of integrated smart Changing from wired products to wireless products, home solution gradually increased. Around 2019, from power line carrier technology to 5G+AIoT, smart panels that are more in line with the habit of the new era of Internet of Everything, the smart Chinese household gained more popularity in the home product is now entering a new era of great market, and became a major entry-level product of connectivity, when everything is connected. Cross- smart home central control system. Nevertheless, protocol connectivity is an important trend for the the centralization of market demand has led to coming development of IoT devices. Devices with product homogeneity and intensified competition, different protocols will become fully digital and and thus manufacturers began to focus more on interact in the cloud, so as to help businesses to design, materials, processes and the form of touch- make smart decisions in production, manufacturing, control. operations, sales, etc., and provider users with more The COVID-19 pandemic in 2020 gives the entire
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world a huge blow. In China, the epidemic has been growth cannot be achieved by only one company, basically under control since the second quarter, but by breaking the boundaries and realizing and many Chinese manufacturers that used to connectivity. Digitalization of the living environment focus on exports began to turn to domestic market, and various scenarios can only be achieved with the competing as the “New Made-in-China”. Such help of global smart platforms such as Tuya Smart, trends have led to the diversification in products, and a more open smart ecosystem. and needs for greater connectivity between people and communities, between communities and urban 2. Smart Home Solution management units. Governments have speeded up the application and management of behavioral 2.1 Whole-House Smart Solution big data on living environment. Smart home is Whole-house smart solution aims to provide expanding from indoor scenarios to outdoor ones, multiple control methods, connect different devices as well as scenarios that are interconnected with and scenarios, improving the quality of the house human behavior, such as communities, commercial and creating smart, safe, comfortable, healthy and buildings, automobiles, hotels, etc. More convenient living experience. manufacturers are now aware that large-scale user
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1. Subsystems of Whole-House Smart flexible product combinations can be carried out Solution according to functions, scenarios, and purchasing The diversification of whole-house smart products power. offers various product combinations, allowing the
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2. Packages for Whole-House Smart businesses, industry ISVs (Independent Software Solution Vendors) have launched a series of software for the smart home industry, which is conducive to 2.2 Software for Smart Home helping practitioners quickly get started, and master When bringing a smart home solution to reality, standardized operation and implementation. These the efficiency and labor cost of the process is applications and tools have greatly enhance the determined to a large extent by the standardization efficiency of materialization. For example, Tuya level of each process step, including pre-sales Smart’s Whole-House PaaS provides one-stop communication, solution design, quotation, solution covering the entire smart home business installation, commissioning, after-sales, etc. In process, and aggregates capabilities in design, order to address the common needs of smart home construction, operation and maintenance onto one designers, service providers, integrators and other platform, cutting labor cost and raising efficiency.
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3. Cases in the Smart Home Industry information, locate problems and help the user solve the problem in a very quick time. It helps Advanced Info Service Public Limited AIS offer a very good after sales service for smart Company solution. Advanced Info Services Public Limited Company AIS also uses Tuya security SaaS for various (AIS) is a “Digital Life Service Provider” which projects. AIS security system offers protection in consists of three core businesses namely mobile, and around your home. With security sensor kits, fixed broadband, and digital service. Established cameras, doorbell devices, you can keep a watch in 1990, AIS is a company with revenues of over anytime and everywhere. You get a notification and 180,000 million Thai Baht in 2019 and global call whenever there is a stranger break in. All you workforce of over 10,000. As Thailand’s largest have to do is, open “AIS Smart Life”, see what has GSM mobile phone operator, AIS has maintained happened and call the police. AIS security system its leading position with 45% revenue market share also helps connect with the police center, so as to and is serving 41.1 million subscribers nationwide. alarm them of something happening at your home, AIS has been in collaboration with Tuya since thereby helping them get the information and also 2019, and is now Thailand’s leading IoT brand. AIS so that they can come and check. IoT system brings a brand-new life experience to AIS and Tuya will continue the in-depth cooperation people with rich smart products and a perfect smart in the IoT field for different smart solution such system. Smart devices from AIS include lighting, as smart commercial lighting system, smart hotel electrical products, home security kit and home system etc. and make different fields smarter. appliances, etc. with Wi-Fi, Zigbee and NB-IoT Schneider Electric protocols to meet various business demands, such As a Fortune 500 company, Schneider Electric as Wi-Fi protocol devices target at consumer retail has been leading the digital transformation of the business for individual home use, Zigbee protocol energy automation sector. Its digital products and devices for real estate project and NB-IoT protocol solutions which have a significant global influence, devices for smart city projects etc. cover five end markets，that is, building, data “AIS Smart Life” App is a super App with integrated center, infrastructure, industry and home. This AI + Big Data to offer the user an interconnected global company has 140,000 employees in over 100 and interactive Experience. With “AIS Smart Life” countries. App, people can connect devices of different In recent years, Schneider has been collaborating brands, categories and communication protocols with enterprise IoT platforms within the industry, which use Tuya solutions, remote control and actively building an open ecosystem and a smart voice control smart devices. All the devices which home ecosystem, which move closer to end users connect with “AIS Smart Life” App work with each by extending its business from infrastructure to other and realize many kinds of smart scene. For smart home and whole house smart solution, so example, with Geofence function of “AIS Smart as to realize full coverage of businesses within the Life” App, when people are 2 kilometers away from ecosystem. home, the air conditioner will automatically turn In 2012, Schneider launched wireless smart home on, rendering the space cool, when you arrive. AIS products based on first-generation Zigbee. At the IoT system makes life easier, safer, and helps link same time, it introduced a smart home control AIS service and security system, automatically. system to the Chinese market, which could control With Tuya operation and maintenance service, speakers, home theater, air conditioning, curtain when the devices have issues, AIS can lock the lights, security alarm and other appliances and device location immediately, quickly view device applications.
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In September 2019, Wiser, Schneider Electric’s with over more than 8 million active subscribers. smart home automation platform that offers a Kogan.com is an Australian portfolio of retail and consistent user experience by integrating products services businesses, including Kogan Retail (the and functions from third-party partners through Kogan.com and DickSmith.com.au retail websites), its "Works with Wiser" mechanism was released. Kogan Marketplace, Kogan Mobile, Kogan Internet, Moreover, Wiser brings together Schneider's Kogan Insurance, Kogan Health, Kogan Pet strengths in energy management, security, lighting Insurance, Kogan Life Insurance and Kogan Travel. control and temperature control into a single According to the research from Telsyte, nearly 5 platform, creating new value for users. For partners million Australian families--half of the country’s such as developers, system integrators and households--have installed at least one smart home electricians, it offers a comprehensive experience device in their homes by the end of 2018. As one and one-stop end-to-end solutions covering of the largest e-commerce platforms in Australia, multiple aspects including configuration, selection Kogan has partnered with Tuya Smart, the global and installation. AIoT Developer Platform, to launch smart light Wiser Smart Home Automation Platform is designed bulbs, smart sockets and smart plug-ins of its own to serve the real estate industry and its end brand. Kogan is Tuya’s only partner who has sold customers. As projects with smart whole house more than 200 SKUs smart products with Tuya solution gradually gain popularity, smart whole solution. All the smart devices are connected to the house solution has become an important parameter Alexa and Google voice platform, that users can for builders’ competitiveness. To better serve voice control of the connected devices. buliders’ needs in smart home and produce better Kogan Smart LED turns your home into a party smart whole house solutions, Schneider Electric lounge, a mini-movie theatre, an office, a yoga adopts the open cooperation strategy, collaborating class, even a campaign spot for your kids. It's 16 with platforms and manufacturers from various million color combinations create mood lighting fields. suitable for every occasion. The “Kogan Smarter So far, Schneider’s whole house solutions have Home” App is a cross-protocol and scalable app to been materialized in China, Vietnam and many control smart lighting and other category products, other markets. Throughout this process, Schneider including electrical devices, lighting, security has been working with global AIoT platform Tuya & sensors, small appliances, white appliances, Smart, making smart whole house construction healthcare & entertainment and outdoor products. more efficient and easy by connecting to Tuya’s This gives end-users benefits that no matter Wi- whole house PaaS. The partnership has enabled Fi, Bluetooth or Zigbee products, they can use the Schneider Electric to batch deliver its smart same app to connect and configure. products, and builders to manage all projects with Kogan is the bellwether of Australia’s smart range. only one application. In a best-case scenario, All the brands will check their website every day LAN-based installation and deployment at a single to see if new smart products are coming. Its online household can be completed within 10 minutes. business advantage can sell the products directly Such connectivity also allows customers to control to the end-user without any middleman profit, and all devices with one app. its smart globe is already sold at AU$6.33 price, which is the lowest price in the whole market. It is Kogan Australia Pty Ltd believed this price will increase its sales a lot soon Kogan Australia Pty Ltd was founded in 2006 by and will affect the entire market to an aggressive Ruslan Kogan, now is the most significant local environment in the smart range. online business brand in Australia and New Zealand, Since the Corona-Virus issue, online business is
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booming in 2020. As the biggest online website use different APPs to manipulate different brands in Australia and New Zealand, Kogan share is of equipment. Baiseniao from software to hardware four times higher than before in the stock market, sides provides intelligent solutions for the whole continues increasing based on the current situation. house. We do believe Kogan will do a more fantastic job in Since its establishment, Baiseniao has been the smart range in the following days. working in the field of smart home and continued to perfect its products. Collaborating with Tuya Baiseniao Smart, Baiseniao has been developing its AIoT Baiseniao Smart Home is a subsidiary of Baiseniao eco-platform and has contributed to projects such IoT Technology (Zhejiang) Co., Ltd.. Established as smart real estate, smart office, smart hotel and in November 2018, Baiseniao is committed to smart nursing home, which enable its industry becoming the world’s leading provider of smart application solutions to come true. It serves home products and services. Through the service of hundreds of projects in China, and provides the one-stop smart home products, it aims to provide ultimate whole house intelligent experience for tens overall solutions to the intelligent life in the future for of thousands of families. customers. Baiseniao enables the intelligent upgrading and BARDI transformation of traditional home building materials The two most important considerations for smart industry by integrating more smart home solutions, home adoption, according to a recent survey by thereby building a new retail scenario of smart Global Web Index, are: 1. Can the devices be home. Smart home is a natural strongly correlated interlinked? And 2. Can they be remotely operated network for home building materials industry: and monitored? whole house customization can realize the linkage BARDI Smart Home Indonesia (BARDI), being of the whole house intelligent home scenario, and powered by Tuya, can answer both of these customization of ceiling, cabinet and bathroom can questions with an emphatic “yes”. All of BARDI’s create the intelligent kitchen and bathroom. products are compatible with all other Powered by If a traditional home building company intends the Tuya products and can be controlled via a single intelligent transformation but does not know where mobile app, and that has been key to the company’s to start, Baiseniao is here to help. As its name success in the smart home market. suggest (Baiseniao’s literal translation is birds with “We’re growing at our own speed with Tuya ready hundreds of colours), Baiseniao can provide rich and to support us on scaling the business,” said Ryan diversified smart scenarios on the base of different Maurice Tallulah, CEO of BARDI. “Our technical home scenarios, ranging from bedrooms, kitchens, support was initially provided by Tuya, and now we living rooms to bathrooms, with everything included. have our own after-sales team of four members.” Baiseniao works with real estate developers and “We believe it does not stop there,” Ryan continued. traditional home building materials companies to “Since Indonesia is still in the relatively early stages carry out intelligent upgrading starting with the of smart home adoption, Wi-Fi is the best protocol supply chain-end. And ileadsun, an integrated wall for penetration. However, as the market matures, we panel manufacturer, is one of its partners. foresee that Zigbee or Bluetooth mesh will be the Baiseniao now offers a wide assortment of smart protocol of choice. Tuya provides all three protocols hardware products and allows customers to and many more.” control all smart home products across brands With the background of being Indonesian digital and categories, only by means of one App, which marketing agency with Google Premier Partner addresses customers' pain points that they have to badge, BARDI is one of a select group of Indonesian
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businesses that has managed to actually grow smarter is becoming the trend, and smart during the COVID-19 pandemic. communities have mushroomed. As the smallest Next Digital, BARDI’s parent company, specializes construction unit of the smart city, smart community in SEO, Facebook advertising, social media, video will inevitably become one of the indispensable content creation, and website building, has decided components of smart city. to start its own brand as a way of verifying its own With new infrastructure projects, the governments digital marketing strategies. of China are paying more attention to “We wanted to focus on products historically done promote intelligentization, digitalization and by service providers that can now be done DIY, like informationization of communities. Such efforts car detailing, pest control, and smart homes,” said are based on the basic needs in community Ryan. “We eventually decided that smart homes governance, namely, using AI, IoT, cloud computing, are the most visually marketable with the widest big data, edge computing and other cutting-edge demographic target. Also, we checked on Google technologies, taking community management and Trends and saw that the search volumes for smart community services as the entry point, and aiming home are growing exponentially.” to realize people’s aspirations for a better life. As With close to zero investment on technology, BARDI a result, a unified community management and was able to grow from three simple smart home community service platform is built, creating a new SKUs, launched in the fall of 2019, to more than 30. model of modern community management and They also created a BARDI-branded Powered by community service. Tuya smart home app that integrates with Google At the same time, several ministries and department Home, Alexa, Siri, and SmartThings, and was able at various levels such as the National Development to deploy this app within a week of its creation. and Reform Commission, Ministry of Science Also, with Tuya’s connections in the smart home and Technology, Ministry of Housing and Urban- market, BARDI has was able to launch a soft bundle Rural Development, Ministry of Public Security package with Google Nest Mini and have privilege have introduced policies, plans and standards to consideration to exclusive exposures in JD.ID, one promote the building of smart community, which of the leading ecommerce platforms in Indonesia. also highlights the importance of this task. Smart community integrates information of people, places, things, situations, events, organizations Smart Community and housing, and coordinates resources in public management, public services and 1. Overview of the Smart Community commercial services. Relying on a comprehensive Industry service platform and the moderately advanced In the past two decades, China’s reform and infrastructure construction, it promotes the opening up with its rapid economic growth has modernization of community governance and greatly promoted the development of residential community management, and the intelligentization construction. In the 21st century, residential of public services. It serves as an innovative model construction in China will enter a new development of community management and community service, stage with focusing on the quality. The focus of and is one of the important ways to achieve the the real estate industry is also shifting from large- goals in China’s New Urbanization Plan and to build scale land acquisition and property construction to a community service system. property management featured with “high quality”, According to China’s plan, preliminary “good experience”, and “comprehensive service”. demonstration projects of smart community Making residential construction and community should be built by leveraging modern technology
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comprehensively based on local conditions, and property owner control terminal (App / small integrating various community resources, and program, etc.). The former is used by property strengthening capacity building in community manager for digital, smart and online management service. These display sites should have sound of community property, with the goal of improving infrastructure, efficient community services and community governance and service efficiency, as governance, diversified public services, and well as community service applications. The latter is the ability to serve local residents with smart used by residents, who are able to use and control technology, as well as sufficient support in policy, smart devices and services in their own houses and organization, human resources, and fund. in the community with this platform. Meanwhile, it realizes the connectivity and linkage of both indoor 2. Smart Community Solution and outdoor devices. Smart community system is a system with smart System Operation and Maintenance Layer: The information technology as its foundation. It aims system operation and maintenance layer guarantees at integrating various community resources. The the security of the smart community platform. overall structure of the system consists of the A unified end-to-end security system, including infrastructure layer, platform layer, application layer, multiple mechanisms such as user privacy, security and operation and maintenance system, data security, cloud platform security, secure open system and other parts. development lifecycle, security operation and Infrastructure Layer: The infrastructure layer maintenance, business security and risk control, provides smart perception of people, things and terminal security and others. objects in the community. By means of a unified IoT base platform and the sensor networks, this layer 3. Cases in the Smart Community Industry connects and manages devices in smart homes and smart communities, including facial recognition Zhejiang Uniview Technology Co., Ltd. entrance, vehicle recognition access barrier, elevator Zhejiang Uniview Technology Co., Ltd. is a control, monitor device, lighting, smart well covers, solution provider and pioneer in the fields of global fire protection system, smart whole-house system public security and intelligent transportation with and other commonly-seen hardware, so as to panoramic, digitally intelligent, IoT technologies perceive, identify, monitor, control and collect data as its core. Within 8 years from 2011 to 2019, its from these infrastructures within the community. sales revenue has increased by 15 times. In 2018, Digital Platform Layer: The digital platform layer Uniview ranked fourth in the global intelligent video is responsible for the convergence, governance, surveillance market. The R&D staff accounts for storage, analysis, smart modeling and the exchange 50% of the total number of employees working in of data, including those of basic objects, dynamic research institutes in Hangzhou, Shenzhen, Xi’an, perception and other businesses. It unifies and Jinan, Tianjin and Wuhan. The global intelligent standardizes the building of basic and common manufacturing base in Tongxiang produces services related to access, device, event, scenario, 10 million high-end video security surveillance project, and space. Through the platform open equipment annually with clients spanning 145 interface (open API), the upper application can be countries and regions. uniformly enabled to assist the standardization of By the end of 2019, Uniview has completed 249 the upper application construction and realize the Xue Liang Rural Surveillance Programs, 741 Ping data exchange and ability sharing. An Programs, around 450 Smart Transportation Smart Application Layer: The smart application projects and 280 landmark complex projects. In layer mainly consists of smart community platform recent years, Uniview has been an active partner in
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the building of Smart Community, and has provided enhancing the security. It can also help avoid the solutions in Yuhang District in Hangzhou, Sanhe, a awkward situation of forgetting keys and improve county-level city in Langfang, Hebei Province, and the convenience for the residents. In this way, the Jinnan District in Tianjin. legalized, scientific, refined and organizational level Take Yuhang District in Hangzhou as an example. It of urban and rural community’s management can be has 14 subdistricts, 6 towns, 184 villages and 159 improved in a comprehensive way. communities with a registered household population of 1.04 million and registered floating population of Aurine Technology Co., Ltd. 1.65 million. The total area of the district is 1,228 Established in 1993, Aurine Technology Co., Ltd. square kilometers. For the past few years, with in Fujian Province is a leading provider of smart the increasing influence of land acquisition and community products and solutions that integrates housing demolition in its surrounding areas and R&D, production, sales, and service in the IoT intensified support for the industrial upgrading, the industry. It has been awarded as “Top 100 Security industries, featuring low productivity, small scale, Defense Enterprises in China”, “Top 10 Competitive loose structure and poor capacity has moved Video Door Phone Suppliers for Real Estate in inside quickly and the inflow of migrant workers China” and “Top 10 National Brands of China’s accelerated. Yuhang has the largest floating Security Defense” and has been on the “Forbes population in Zhejiang Province, which creates huge China’s Up and Comers List”. problems for the grassroot social governance and As an important promoter of smart community and public safety. smart home, with the ability of in-depth application Therefore, Uniview designed and developed a development of high-tech chips, Aurine is able to Smart Grid Management Platform with an interface create new values for community life by providing of five function modules. Through the functions of the paradigm of hardware + software + platform. information gathering, risk identification, conflict Based on its deep understanding of the industry resolution, coordination and livelihood services, the and innovative application of products, Aurine capacity and efficiency can be improved while the provides a complete solution, products and services burden reduced for the grid administrators. to partners and clients. 18 pilot communities in Yuhang District have At present, Aurine has 2500 new smart community deployed the Uniview’s system, including projects annually, and has empowered 30,000 subsystems such as for video surveillance, vehicles communities, providing services to over 30 million management and personnel access control. Various users nationwide. Through launching smart types of Uniview’s products have been installed to community projects with well-known real estate provide three protective circles. In the first circle, enterprises such as China Overseas Property, Face Recognition Access Control Terminal and Luneng Property, Country Garden and China Intelligent Monitoring and Recording System of Vanke, Aurine provides a complete solution and Vehicles were deployed at the gate entrance/exits. technological service to thousands of clients. By providing the authentication mechanisms and There are four pain points in managing traditional real-name management system, the public safety community, including low efficiency in operation can be further increased. In the second circle, and maintenance, high complexity in application, Uniview installed IP cameras to monitor the main information silo and complicated management roads and public areas to avoid disputes through process. The top priority of community is to ensure recording. In the third circle, its face detection public security. However, the traditional security system was installed on the gate to units for only model obviously fails to meet the needs of property allowing people living in the unit to go in and out for owners nowadays.
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In order to meet the demands raised by the through the security information system of the Comprehensive Management Bureau and community, and help improve the self-management Public Security Bureau, Aurine’s Xue Liang function.Industrial Internet Market Size Smart Community Solution, integrating the Face Data source: the China Academy of Information and Recognition and Intelligent Access Control System, License Plate Recognition System based on Video images, and Wireless Sniffing System, focuses more on access control monitoring and makes sure everything is traceable, so as to effectively strengthen the community’s security capacity and emergency response capabilities. In the meantime, 2.2.4 through the connection with the databases of Public Security Bureau and Comprehensive Management Smart Industry Bureau, the data that is related to people, vehicles 1. Smart Industry Overview and houses can be managed in real time and the In the context of Made in China 2025 (MIC 2025), alarm linkage can be enabled. In this way, “people, which aims “to accelerate the integration of next houses, vehicles, parking lots and internet” can generation IT into manufacturing industry and to be monitored in a three-dimensional, visible and make intelligent manufacturing the main priority”, manageable way. “Smart Industry” came into being. Based on cloud In addition, through deploying the “Aurine’s Smart computing and combined with edge computing, Community Integrated Devices Management Smart Industry adopts multiple cutting-edge Platform” in the community’s Integrated Control technologies, such as AI algorithm, big data, digital Center, applying the Internet Technology and twin, etc., and applies internet to different aspects Software Engineering Technology on the basis of of industries, including equipment, control, data, community’s intelligent and integrated system, and etc. to achieve industrial intelligence. Compared deploying the software platforms, the intelligent with traditional industries, Smart Industry puts systems, information systems and all devices can emphasis on integration, connectivity, data drive be united as one “organic” system. and mesh collaboration. In the implementation stage of smart community Currently the mainstream manufacturers in this field projects, Aurine found out that it is difficult to deploy include: multiple smart devices. In the process of project ● software manufacturers including MES implementation, typical applications cannot be used (manufacturing execution system); for multiple devises, rooms, networks and etc. By ● equipment manufacturers; cooperating with the third party, the AIoT platforms, ● operators; for its solutions that are dedicated to the project ● cloud services providers; implementation, Aurine is able to help complete ● AIoT manufacturers; a series of deployment operations such as smart These manufacturers either use their own device join, room completion, scene configuration, advantages to expand upstream and downstream, and so on in a complex on-site environment, so or seek changes in other fields. Both are because as to establish a fast and batch implementation of the bright prospect of Smart Industry. According capability. The AIoT platforms, through connecting to a report released by the China Academy of with the smart community’s PaaS, managing and Information and Communications Technology, the operating all the business data and devices data market size of the Industrial Internet will reach 3 that does not violate the user privacy, can get trillion RMB by 2020.
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manufacturing; improve edge computing and increase availability of terminal capabilities; enhance device connectivity and data sharing. The goal of all manufacturers in Smart Industry is to integrate upstream and downstream manufacturers, tear down data silos, and achieve efficient collaboration.
2. Smart Industry Solutions Manufacturers are now offering different solutions according to their own strengths. Software manufacturers like MES have expanded their business horizontally and vertically to cover more part of supply chain and offer software solutions; equipment manufacturers have a strong advance Communications Technology on data collection and control; operators focus on (Y axis unit: RMB 100 million) “connectivity” and provide additional services while There are many factors that factories need to promoting solutions like 5G; cloud service providers consider when building production lines, mainly emphasize the application of cloud computing in all including: kinds of industrial scenarios, while bringing other ● Product attributes, types of vendors to clouds to provide services; AIoT ● Product life cycle, vendors build interactive platforms based on IoT, ● The volume of orders, focusing on the construction of an ecological chain, ● Production process, and often offer platform-based services (PaaS). ● Production efficiency, Here are a few examples of specific solutions to ● Input-output ratio. Smart Industry. But even after considering all these factors, there are still many problems in production: Smart Industry Platform with Smart ● Growing product differentiation, which makes Infrastructure it difficult to scale up production and keep A Smart Industry platform needs to address manufacturing costs low in order to meet the users’ common problems in traditional manufacturing, personalised needs; such as poor planning and processing, low ● Frequent product upgrades, which result in efficiency, low traceability and poor quality control, constant updates or replacements of production in order to view, track and control production lines; and gain real-time production data. The platform ● Higher requirements for better quality, demanding needs SaaS capabilities to provide on-demand a better control and traceability system. applications for production, and PaaS capabilities ● Labor-intensive enterprises, most of which to provide infrastructure, and the construction of the depend on workers to record the information, easily platform should be based on production equipment. leading to errors, bringing low efficiency, and lacking Take electronic manufacturing industry as an data analysis; example: equipment data collection includes ● Data silos, which delays issue handling process; collecting raw data from a local server or data Considering the problems listed above, Smart acquisition devices, data processing (edge Industry needs to develop in below areas in the computing), and data uploaded to cloud; visual future: bring manufacturing to cloud and digitalize technology can be used for code scanning, testing,
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production monitoring and shape recognition; comes from the demand side that wants to create procedure and process control is on cloud and an industry centered on services rather than not limited by the physical location of the server; manufacturing. So even after a product is sold, it complete production information query and varied can still affect the supply chain, and give feedback electronic dashboards fully demonstrate the value of to improve the system, growing “smarter”. real-time data in production and provide basis and guidance for future production. Large-scale Product Customization In addition, the platform offers a range of PaaS The traditional way of mass production with capabilities: advanced planning and scheduling assembly lines is driven by supply side, and it meets engines that are continuously optimized by customers’ requirements through standardization. algorithm and that can make best use of production While large-scale product customization combines resources, digital twins for industrial equipment to “scalability” with “non-standardization”, two create a real-time replica of physical equipment on seemingly contradictory concepts in the past, cloud, and AI algorithm-based analysis to predict and are demand-side driven. This new production future maintenance and other things. method requires more flexibility in production, shorter response time for new requirements and Integrated Supply Chain and Manufacturing better prediction. And it needs big changes in More integration between upstream and downstream organizational structure and product R&D. The manufacturers is needed to share business insights benefits of large-scale product customization are and data for better decision-making. The optimal also evident: less pressure in inventory and more production is not only manufacturing but to fulfill flexibility for manufacturers. the needs of all players of the supply chain within limited time and resources. Smart Industry focuses Virtual Production on overall improvement and the local optimization Virtual production refers to the remote production brought by overall improvement. management and remote equipment operations The relationship between upstream and downstream based on virtual models, using technologies like manufacturers in traditional industrial production is AR/VR. There aren’t many real cases that actually linear and closely dependent. A common problem is are adopting virtual production, but as automation that a delay in the upstream manufacturer can hold develops this is a trend, especially for high-risk up the production in the downstream manufacturer or remote operations since virtual production is a and it’s difficult to change that. Meanwhile, product perfect solution to ensure safety and timeliness. lifecycle management and traceability along the However, it’s worth noticing that this process supply chain is often merely a concept and rarely requires extensive data collection and precision get addressed. Integration can turn this “linear control technologies. structure” into a “chain”. All nodes on the chain therefore are visible to every player to avoid 3. Cases in the Smart Industry problems caused by one single issue, reach “a dynamic equilibrium” and control risks. In this way, Hangzhou Hongshi Electrical Co., Ltd the synergy of the collaboration will be enhanced Established in 1973, Hangzhou Hongshi Electrical as more players join in, instead of “the longer supply Co., Ltd is specialized in the production of electrical chain, the more problems” in the traditional supply accessories based on British BS standards and chain, and therefore the whole industry becomes Chinese GB standards and series of smart home “smart”. products. It has excellent capabilities of design Of course, the driving force behind this change and development, mold making, manufacturing
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and quality management. It owns a provincial- system, the company has managed manufacturing level company research institute, a research center plants more effectively. It establishes a production cooperated with Hangzhou Dianzi University, a line information management system based on national-level laboratory and an innovation and the status of current production lines; it collects, creative design center in Shenzhen. supervises and manages manufacturing information The company produces over 80 million pieces online; it supports to track product quality and of electrical accessories, selling products across ingredients, and reserves the access for the regions in Europe, America, Middle East and enterprise resource planning. Meanwhile, the Southeast Asia. Series of British BS Standards company effectively controls the manufacturing electrical accessories designed and developed by process to realize the paper-less and visualized the company has been respectively approved by manufacturing process, which improves the BSI, ASTA, NSAI, PUB, ITS and 11 testing agencies management of production lines extremely well. in other countries and regions and received quality Also, the company uses data sharing to facilitate approval certificates from these agencies. With the the development of business, which further makes help of CCPIT, the trademark of the company “SWE” full use of enterprise resources. It quickly allocates has been registered in more than 120 countries outside resources, adjusts excess capacity and such as members of the Madrid System, members sensible allocation of resources by visualizing of the African Intellectual Property Organization and and sharing cross-region resources, establishing countries in the Middle East. the whole product supply chain, and creating In 2017, the company, which firstly was concentrated the information sharing network for all business on the production of traditional electrical appliances, activities. In the map mode, it can directly see noticed the development smart home appliances the distribution and capacity of professional and started its journey of R&D on smart products. production units in different regions and the detailed In recent years, it has launched series of smart information about these units, which makes it more home products, including some new categories convenient to choose outsourcing. It cultivates a such as universal remote controllers, single smart healthy and benign environment for competition sockets and wireless switches. Its products are sold based on data, which creates a win-win situation for in more than 50 countries in the world. However, both suppliers and customers. during the production and R&D, the company find With intelligentization of production lines and plants, it challenging to use traditional production lines the company not only increases its efficiency and to produce smart products which require a more capacity for producing smart products, but also intelligent manufacturing approach. realizes two intelligent transformation in terms of By using the PMS cloud smart manufacturing products and production lines.
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3 The Challenges
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accessed through the Bluetooth key with the same 3.1 MAC address as the padlock device. The specific IoT Platform Security risks include: ● Weak, guessable or hardcoding password ● Hardware issue I. Potential Threats of IoT Security ● Lack of security update mechanism Even though the services of IoT platform ● Old and unpatched embedded operating systems have facilitated the automation and intelligent and software transformation of enterprises and realized product ● Insecure data transmission and storage intelligent upgrades which bring technology and convenience to consumers’ lives, the more 2. Users Lack Knowledge and Awareness of interconnected the world is, the more extensive the Security harm will be caused and the more difficult it is to Over the years, Internet users have learned to avoid maintain safety once data is leaked and the system spam or phishing emails, scan virus on personal is attacked. computers, and use strong passwords to protect The security expert Longwei Liu of Tuya Smart Wi-Fi networks security. However, IoT is a new pointed out that throughout all links of the IoT technology, users are unfamiliar with its functions. industry chain, basically every link might produce Although most of the risks of IoT security issues are security risks. For example, lack consideration still in manufacturing, users and business processes of security design at the R&D stage. Leakage of may pose greater threats. authentication information and key of intelligent devices caused by the faulty process at the 3. IoT Security Issues in Device Update manufacturing stage will lead to the risk of intelligent Management devices. Device information leakage, network Another source of IoT security risks is insecure configuration QR codes replacement, and return and software or firmware. Although manufacturers can exchange equipment modification at the sales stage sell devices with the latest software updates, new may all be attacked and exploited. vulnerabilities are almost inevitable. Updating right At the use stage, the design flaws of network after new vulnerabilities are spotted is critical to configuration activation and device control, and the maintaining the security of IoT devices. However, security flaws of three-party interaction including some IoT devices still operate without essential authentication, authorization and information updates comparing to auto-update smartphones encryption will bring potential security threats. or computers. Another risk is that the device will Besides, the firmware might be hijacked or replaced send a backup to the cloud and have a short during Over-The-Air(OTA) upgrade process. period of downtime during updates. Hackers may 3 We summarize the top 10 greatest security threats take advantage of the window to steal sensitive of the IoT field: information if the connection is not encrypted and the updated file is not protected. 1. Incompliant IoT Vendors The Challenges The majority of security issues are originated from 4. Insufficient Physical Reinforcement insufficient investment in resources and time in the Lacking physical reinforcement can lead to IoT aspect of security from vendors. For example, the security issues. Although some IoT devices should Bluetooth pairing status is still visible after the be able to operate autonomously without user first time fitness tracker pairing for most Bluetooth interference, they need to be physically protected fitness trackers. A Smart fingerprint padlock can be from external threats. Although some IoT devices
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should be able to operate autonomously without 7. Hijacking IoT Devices user interference, they need to be physically Ransomware is known as one of the most malicious protected from external threats. Sometimes, these types of malware ever. It will not corrupt sensitive devices are placed in a remote place for a long time files but encrypt them to block access from users. and might be physically altered, for example, a USB Then the hacker who infects the device will demand flash drive with malware. However, installing security a ransom in exchange for the decryption key to sensors and transmitters on low-cost devices is a unlock the file. With the constant evolution of challenging task for manufacturers, and users are ransomware, the IoT devices with poor security responsible for maintaining the physical security of might also become targets. IoT devices. It is rare to see a ransomware-infected IoT devices case, yet wearable devices, healthcare devices, 5. Botnet Attacks intelligent homes, and other intelligent devices, A single malware-infected IoT device will not pose a as well as the ecosystems, might be at risk in real threat, but a collection of them can be a serious the future. The good news is that most of the IoT threat. To launch botnet cyberattacks, hackers information is stored in the cloud so that malware create multiple malicious applications by infecting might not be able to lock critical data, but it could devices with malware and command them to submit still lock the device’s functions. For instance, a car overloading requests to knock down the target. IoT cannot be started unless a ransom is paid. devices do not receive regular software security updates like computers, so they are vulnerable to 8. Data Integrity Risks of IoT Security in the malware attacks. Medical Industry More importantly, botnets can pose security threats IoT devices can be intelligent thermostats, HVAC, to power grids, manufacturing plants, transportation TVs, and medical equipment…etc. Sometimes the systems and water treatment plants. For example, above devices will send unencrypted data to the hackers can trigger cooling and heating systems cloud, which could allow hackers to access the simultaneously to reach the maximum capacity of medical IoT device, control the device, and alter the the power grid, causing nationwide blackouts once data. the scale is large enough. 9. Rogue IoT Devices 6. Industrial Spy and Eavesdropping We have already known the rapid growth of the If hackers control surveillance by hacking into number of IoT devices. According to the prediction IoT devices, they can not only monitor the scene of Ericsson, the number of IoT devices will reach but also demand a ransom. Therefore, invasion 18 billion by 2020. With such a large number of of privacy is another critical issue of IoT security, devices, problems might arise in business and home and many different sensitive data might be leaked networks. Rogue devices or fake malicious IoT and used in attacks against its owners. In addition, devices start to be installed in the secure network several IoT devices such as health devices, without authorization. A malicious device can intelligent toys, and wearable devices record user replace the original one or turn into an add-on to information. At the industry level, hackers can collect or alter sensitive information. These devices collect a company’s big data and expose sensitive break network boundaries and become rogue business information. Some countries have begun access points, thermostats, cameras, and man in to ban specific IoT devices with security issues. the middle (MITM) that intercept communication data without the end-user knowing. Other variants of rogue device might also emerge in the future.
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10. Mining Digital Currency standards. The security levels of IoT products and Mining cryptocurrency requires enormous CPU and platforms on the market are inconsistent. Most GPU resources. As a result of that, one more IoT of the products do not have a proper security security issue comes to the fore – taking advantage design and have huge security risks because of of IoT Trojan Horse to cryptocurrency-mining. The hardware cost management. For example, most of open-source cryptocurrency Monero is one of the the products except mainstream platforms do not first batches of cryptocurrencies that are mined by implement Transport Layer Security Protocol (TLS) hacked IoT devices (such as cameras). Although encryption. TLS aims to provide three fundamental a single camera does not equip with powerful guarantees for information transmission: resources to do cryptocurrency mining, a large confidentiality, identity verification, and data number of devices can accomplish the task. integrity. In the era of IoT, massive user data is transmitted to In addition to the above security risks, the privacy the cloud from network devices. The more diverse of security of the IoT industry is also facing huge IoT devices, including household consumer devices, challenges that involve collection, utilization, public service devices, large-scale industrial storage, and legal regulation of privacy data. Many devices, energy devices, and transportation devices, intelligent devices are like probes of personal life the more complex the security issue of IoT will be. and collect all aspects of information related to The stronger publicness of the devices, the higher one’s daily life to compose a full picture of a person. they related to public safety in society. International Therefore privacy security and compliance are the organizations and governments need to establish bottom lines of all services. worldwide IoT standards to manage security in cities, homes, nuclear power plants, manufacturing II. IoT Security Measures processes, and other fields. Regarding these potential security risks, the current In the future, the IoT security field still requires major security measures of the IoT industry include: a robust security solution system to support. In ● In the product R&D stage, Implementing this way, bring higher standards on cloud security completed Secure Software Development Lifecycle because any design of cloud platform permission (SDLC) to satisfy security requirements and might lead to huge security risks. At the endpoint verification from product design, development, security level, a wide variety of intelligent devices coding to delivery. Simultaneously, privacy makes IoT security more complicated, and hardware compliance design and auditing are also required. attacks might threaten the personal safety of users. Longwei Liu brought out that the existence of data The security expert Longwei Liu of Tuya Smart sovereignty allows access with the user’s consent. pointed out that due to difficulties of intelligent Same for the platform like Tuya Smart, there is an device upgrades and management, the security explicit character definition between the platform issues of products that have been delivered cannot and the user. Regarding the user and device data be effectively patched in a timely fashion. Plus, under the OEM application, the platform needs to due to the lack of consistent standards of industry gain access through the authorization of clients and techniques and huge differences in computing users. power among devices, until now, IoT intelligent ● In terms of endpoint product security including devices lack the support of a unified security devices and applications, reinforcing a multi- solution. layer approach to protect codes, keys, and data is At the current stage, due to fragmented products, required. exaggerated product capabilities and diverse usage ● In terms of intrusion prevention, an in-depth scenario, the IoT industry has no specific security defense mechanism is required. By simulating red
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and blue confrontation, the mechanism could detect and standard APIs. Besides, it also supplies attacks, intercept them precisely, and inspect the hardware security functions an easy-to-use interface security and robustness of the entire system and through a drive API. network. ● An encrypted library that contains various APIs ● For business security, establishing a completed provides security functions like macro security and risk management system is required to audit root of trust and is equipped with the ability that abnormal user behaviors and assess risks. could identify trusted sources and codes. To be more specific, enterprises can also enhance ● Native support for common communication the safety factor of the device both in hardware and protocols and transmission protocols, such as software in the following ways. Hypertext Transfer Protocol Secure (HTTPS), For hardware: Transport Layer Security Protocol (TLS), and other ● Encryption key management aims to ensure that designated cloud protocols. the key is inaccessible under plain text. Device ● Updating the software and patching vulnerabilities should be able to create and store the key (including in time. private key) securely to accomplish unique identifier According to the expert from SGS-CSTC Standards and configuration real safety. Technical Services Co., Ltd, in addition to ● Cryptographic accelerator, Hash function, and technology, management is also needed, such as True random number generator aim to accelerate IoT risk assessment, process management, and encryption computation on the device. The security assurance…etc. Hence, Enterprises require hardware support can save computing time and to set up an IoT security management system. “As power. a worldwide recognized third-party inspection, ● Providing security storage access to protect verification, testing and certification company, specific parts of RAM and flash memory and to SGS is aware of the big picture that IoT companies prevent unauthorized access. An independent are doing a good job on information security, and storage area can isolate sensitive code and data the application of security technology has always from unsafe ones. At the same time, the write- been at the forefront of the market, but we need once secure storage can prevent code and data to pay more attention to data and information from unsafe ones. At the same time, the write-once control problems such as excessive collection, secure storage can prevent code and data from unauthorized usage, and data trading.” tampering and reprogramming. The expert said that some of the companies ● Providing access protection for debugging and certified by SGS-CSTC Standards Technical programming, which would reduce the risk that Services Co., Ltd are already aware of security issue hackers use debuggers and programming interface of user privacy, so they will apply for ISO/IEC 27018 as attacking entry points. certification. The ISO/IEC 27018 is a certification For software: that pursues the Code of Practice for Protection ● An integrated and optimized commercial-grade of Personally Identifiable Information (PII) in Public software provides certified application frameworks Clouds.
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threats. 3.2 However, the IoT communications connection alone The Chaotic Standards for involves use of many technologies. Wired includes KNX, RS485, TCP/IP, CAN-BUS, LonWorks, PLC, the IoT Industry etc. Wireless includes Zigbee, BLE Mesh, Duplex 1. Status Quo of Standard Confusion RF, Z-Wave, EnOcean, NB-IoT, LoRa, and the Currently, one of the core challenges facing the IoT rapid landing of 5G also injects more innovative industry is the incompleteness of its standardization power into IoT. There is no absolute difference system. “The essence of a standard is de facto an between advantages and disadvantages in various industry consensus. It takes time to reach such networking technologies, especially the common consensus. At present, although there are some networking technologies in the market, which are standards about the IoT, a complete standardization developed and applied to meet specific needs. system has not yet been well established and Let’s take Wi-Fi, Bluetooth and Zigbee, the most accepted. The Internet had also gone through a long common short-range wireless standards in the field period of adjustment before reaching an industry of IoT smart home, for example. Wi-Fi is used for consensus”, argued Zhang Feng, vice-chairman high-speed data transmission connection, such and secretary-general of Zhejiang Digital Economy as video; Bluetooth is used for connecting mobile Association. and wearable devices. Zigbee, on the other hand, Some experts pointed out that the essence of provides stable, scalable and interoperable network the IoT is one of the reasons for fragmentation of support for numerous control sensing and lighting its standards. The heterogeneity represented by devices. They are classified by their role in the the diversity of IoT technologies and standards network, inclusive of protocols for connectivity corresponds to the diversity of things in the world infrastructure (e.g. 6LowPAN), communication (Wi- to be interconnected by the IoT. There may never Fi, Bluetooth), data transmission (MQTT, CoAP, be a real need for an all-inclusive standard. Just as XMPP), security (DTLS), device management, and updated applications and use cases continue to telemetry technology (LwM2M). emerge in the IoT industry, so will the IoT protocols It is evident that all technologies have special suitable for its deployment. application situation to exert their features. With The interaction between sensors, devices, the continuous enrichment and humanization of gateways, servers and user applications is the basic application scenarios and the support of new feature of the IoT. What enables all these intelligent technologies, especially AI, the development trend devices to talk and interact is the IoT protocol, of networking technology is to integrate and apply which can be regarded as the language used by IoT various technical standards to bring better user devices for communication. Only when there is a experience. communication medium and all devices in a specific Today, the IoT supports dozens of different IoT IoT ecosystem can share and use a common protocols. As pointed out by Longwei Liu, a senior “language”, can connectivity be achieved. security expert of Tuya Smart, the IoT industry The IoT protocol provides either an Internet protocol involves a huge industrial chain and subdivided that has been used for a long time or an IoT protocol fields. In different scenarios, the technical specially developed for the communication of requirements and standards are different. At the connected devices. The main purpose of the unified same time, the computing power span of intelligent standard for the IoT is to avoid further division, devices is also very large, ranging from sensor so as to maximize the interconnection and simple devices the size of a thumb to large devices such control of equipment, and reduce the risk of security as automobiles. The computing power and business
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requirements they carry also show great differences. management use cases, then it can provide a The IoT industry needs formulation of unified solution suitable for a purpose and meanwhile, standards, including classification and classification propose a general standard. standards for intelligent equipment, as well as safety Of course, the diversity of IoT standards is not equal requirements and testing standards for various to the complexity and redundancy of standards. actual business processes, such as those for The scenarios and requirements involved in the IoT distribution network, remote control of equipment, are ever changing. There can be no unified standard near-field control. In addition, there are differences to meet different needs. However, at present, the in product models and product interaction biggest challenge in standard setting is that there experiences. At the same time, different national are too many competing IoT standards and many and regional alliances compete fiercely in standard standard application scenarios overlap. Such setting, which increases the difficulty of cooperation redundant IoT standards not only lead to standard between standards. confusion, but also hinder the formation of the However, in the past few years, there were standard system and the development speed and some protocols in the field of the IoT, hoping to scale of the IoT. provide versatility without compromising security, Take the wireless standard Zigbee for example. The deployment speed or simplicity. One of the IoT same standard will also cause confusion due to protocols is OMA lightweight M2M, which can meet standard iteration and non-standard application by the specific requirements of various equipment manufacturers.
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1) Evolution of Technical Standards establish a relatively unified standard system and a Each technology will iterate from time to time to small ecology of interconnection. solve the problems found and add new features to For consumers, unified standards represent meet the market demand. Zigbee had application convenient product experience. If a user purchases layer protocols for different vertical industries before, a home thermostat that supports IoT, he will want such as Zigbee Home Automation (ZHA), Zigbee the device to use open standards that allow third- Light Link (ZLL) and Zigbee Building Automation party applications to communicate and control the (ZBA). While Zigbee 3.0, which integrates different thermostat and other home IoT devices. The user standards, was introduced in 2016. also hopes that the device can support effective Of course, this is the only way for standards to security standards so that hackers cannot break mature continuously and meet the market demand. through intelligent systems, invade homes or control Generally, relevant standards organizations will home devices. reduce the impact of iteration on the existing market The ‘private gardens’ of platforms and the through compatibility of agreements, publicity and equipment that cannot communicate with each other methods. other restrict consumers’ freedom to product choices, and the cumbersome product configuration 2) Non-standard Application of Standards greatly reduces the use experience, so they either vendors may have joined some private protocols don’t want to buy or stop buying another intelligent due to business models or differential competition products. In order to meet the specific requirements when applying open standards. of multiple standards and multiple ecosystems, However, when they did not participate in the equipment manufacturers need to invest a lot of relevant product certification plan, they still claimed resources to realize basic ‘connections’, instead of to use the open standard, resulting in different providing better functional products, which cannot application experiences and sending wrong expand production scale, reduce costs and upgrade signals to the market. At the same time, in order to the products themselves. This hinders the rapid improve the viscosity and security of users, some development of the market in both demand and ecosystem platforms often adopt the strategy supply. of “private garden” in the early stage, adding special requirements for their own platforms to the 2. Solutions to Standards Confusion standards to allow access, which also increased the Looking at the whole world, the EU also has differentiation of unified standards. a relatively centralized official organization for In the past 20 years, the IoT has continued to standard-setting. It organizes enterprises to develop rapidly in the world. It has played a role in participate in the formulation of standards. At the many industries such as manufacturing, medical same time, many standards can enforce market care, automobile, safety, transportation, etc. It has access and be more practicable. greatly enhanced the capabilities of enterprises Governments, enterprises, trade associations, and brought them economic value. In the process alliances, experts and scholars have all played an of applying IoT technology, what enterprises really important role in the formulation of standards. need is to understand the value brought to them Longwei Liu thinks that in the formulation of by each standard and their own business needs standards or rules, the government should be an and requirements, to understand the advantages initiator, enterprises should be the main contributor and disadvantages of the protocols provided by to the standards with more focus on practical the market, to select the most suitable protocol for application. Experts and scholars can provide some actual scenarios and established use cases, and to forward-looking opinions. The common solution
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is that trade associations or enterprises work with With the rapid development of the IoT over the each other to form a unified standard and promote years, the boundaries of vertical fields are no it. Based on the operating system and development longer so distinct, the number and types of devices system, it may be relatively more feasible to develop contained in a single scenario are increasing. Chip a unified AIoT standard. manufacturers have also introduced chips with Quite a lot of IoT standard alliances led by higher computing storage capacity and lower cost. enterprises, institutions and governments have In order to respond to this market trend, Zigbee been established in the world. Today, some of them Alliance members have integrated and opened have stood out amid the competition, matured up a number of application layer specifications and started to certify products on a limited basis, which previously applied to different fields, and including Wi-Fi Alliance, Zigbee Alliance, LoRa introduced Zigbee 3.0 specification. And through Alliance, etc. the specification of network behavior, they have Among them, Zigbee Alliance has launched Zigbee ensured the forward-looking compatibility of the 3.0 as a unified standardization solution. Zigbee previous specifications to significantly improve the Alliance is a non-profit standards development interoperability between different devices while organization. Member companies voluntarily join also ensuring the interconnection with the existing and contribute to the creation and promotion of products in the market. various IoT standards. Be it the introduction of a Therefore, it is workable for integrating standards new standard or the update of existing standards, that the major participants in the market comply with they do it based on the needs of the market. the market demand, cooperate and communicate The alliance first introduced Zigbee 2004 Network with each other on alliances or other platforms, and Layer Protocol to achieve interconnection among work together for common prosperity. devices. However, due to its low speed and low In the process of standards integration, there are power consumption, Zigbee network needs yet not only the standard-setting organizations acting to support many ‘small devices’ with limited as a platform for cooperation and exchange among computing power and no user interface. If a sensing members of the industry, but also the government, control network containing devices from different enterprises and experts, who can play different manufacturers is to be built, the devices in the roles. The government ensures a healthy and orderly network must be able to ‘know’ and ‘interact’ with competitive environment and introduces appropriate each other. For example, A is a switch and B is a incentive policies to support the development of light bulb, and in this case, A can control B. the industry. Enterprises work together on the field According to the requirements of these scenarios of basic standards, while continuously innovating and in order to meet the needs of different vertical and improving product differentiation and functions. fields, the alliance has defined a series of application Experts and scholars use their own expertise and layer specifications of device types, attributes and knowledge to review standard technologies, come functions based on network layer protocols. Zigbee up with opinions and suggestions, and popularize Home Automation (ZHA) was launched in 2007, knowledge of technical standards amid the industry. Zigbee Health Care in 2009, and Zigbee Light Link improving product differentiation and functions. (ZLL) in 2012. It is also the introduction of these Experts and scholars use their own expertise and application layer specifications that marks Zigbee knowledge to review standard technologies, come has become a full stack protocol that covers the up with opinions and suggestions, and popularize network layer and the application layer. It achieves knowledge of technical standards amid the industry. not only interoperability but also interconnection With regard to the formulation of industry technical and interaction between devices. standards in China, the Ministry of Industry and
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Information Technology has issued the Notice of 2. Consolidate the Basic Security of the General Office of the Ministry of Industry and Mobile IoT Information Technology on Further Promoting A security standard framework for the mobile the All-round Development of the Mobile IoT ( IoT will be set up, and a series of classified hereinafter referred to as the Notice), pointing out security management standards for key links will that it is necessary to accurately grasp the evolution be established such as IoT cards, terminals and trend of global mobile IoT technical standards and gateways. Enterprises and research institutions industrial structure: are encouraged to increase the research and application of trusted authentication technology for 1. Formulate Standards for the Integration mobile IoT terminal, block chain traceability and of Mobile IoT and Vertical Industries other security technology means. The goals are to NB-IOT standards will be more quickly incorporated speed up the construction of mobile IoT security into ITU IMT-2020 5G standards. Facing key areas supervision technology, improve the security such as smart home, smart agriculture, industrial situation awareness, card management, risk alert manufacturing, energy meters, fire smoke, logistics and other real time surveillance capabilities. tracking, financial payment, etc., formulation In addition, the National IoT Basic Working Group and implementation of technical standards and has set up an “overall project team” to develop interconnection standards will be advanced, such standards for China’s IoT terminology, architecture, as mobile IoT terminals and platforms, and the testing and evaluation system and others. standardization level of industry applications will be elevated.
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III. Standard Analysis of Subdivided Fields all products. “In the age of consumer electronics, and in the age of home appliances, there will Smart Home be no dominance by a single company. This Taking the promising smart home industry for phenomenon is very common in the software sector, example, global smart home manufacturers so many software companies will have the idea of use different communication protocols and key dominating the IoT. However, the industrial chain technologies, which results in separate ecosystems of the IoT is too long, making it impossible for one that are difficult to be compatible with and enterprise to integrate all players including chip makes it difficult for them to integrate the smart manufacturers, module manufacturers, designers, home ecosystem, thus causing inconvenience to product manufacturers, channels and stores. That is consumers. Consumers often need to download not something one enterprise can empower. So far, different apps for smart products of different brands no OS has been completely successful. ” and use them in different ways. In December 2019, Amazon, Apple, Google and Zhou Jun, Secretary General of the China Smart Zigbee formed a Working Group to develop and Home Industry Alliance, stressed that in the field promote a new patent-free connection standard for of smart home, there is no enterprise that covers better compatibility between smart home products
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Security will be a basic design principle. The project present, which do not constitute the ecosystem of is based on a common belief that smart home smart home. But Zigbee has formed an ecology devices should be safe, reliable and seamless and the technology has upgraded to the third in use. The goal is to simplify development for generation”, added Zhou Jun. manufacturers and increase product compatibility In addition, Zhou Jun also mentioned a lack of for consumers. delivery standards in the smart home industry. Based upon Internet Protocol (IP), this project “Uncertain project delivery standards are a big aims to realize communication among smart home concern. All software companies have different devices, mobile applications and cloud services, genes, each family environment is different, and and to authenticate devices by identifying a series workers’ training and salary are also problematic. of IP-based specific network layer technologies. The For example, there is no unified national delivery Working Group of the industry will employ an open standard for the installation of simple intelligent source approach to develop and implement a new door locks. In the future, delivery will become one and unified connectivity protocol. The project plans of the core competitiveness of IoT enterprises.” to use smart home technologies that have been In addition, another major strength of European, tried and tested in the market, such as Amazon, American and Japanese enterprises lies in product Apple, Google and Zigbee Alliance. quality and detail innovation. The development Board members of Zigbee Alliance, such as IKEA, of the IoT in the United States is supported by Legrand, NXP Semiconductor, Resideo, Samsung the entertainment industry. There are many kinds SmartThings, Schneider Electric, Meijie (formerly of household appliances, including speakers, Philips Lighting), Silicon Labs, Somfy, Tuya Smart televisions, players and others for home cinemas. and Nanjing Federation of Things, also joined the These products have been well integrated and Working Group to support the project. controlled. In this scenario, the content protocol The project aims to make it easier for manufacturers of the products is opened up. Japan is based on to make devices compatible with smart home voice consumer electronics and is especially good at services, including Amazon’s Alexa, Apple’s Siri, innovation of micro-products. Over the years, Japan Google’s Assistant, etc. The planned protocol will has also made a lot of refinement in the pension supplement the existing technology, and members industry. of the Working Group encourage manufacturers The most typical practice in Europe is building to continue use of the existing technology for intelligence. China’s smart home is characterized innovation. by a wide range of application scenarios, a lot of The types of smart home devices for this project demand and a fast development speed. However, include lighting and electricity (e.g. Bulbs, lamps, manufacturers do not have high enough quality switch sockets), air conditioning control, entrance requirements for products. Apart from the serious guard, security, home entertainment (TV, audio, homogenization of products in appearance design etc.), network access, etc., including almost all and technology, there is still lack of uniform major smart home equipment. defined measurement standards for lots of basic As for the communication protocol standards of technologies. For example, how many milliseconds smart home, Zhou Jun believed that in the future, of delay from the switch signal to the gateway is the chances are that one technology will not ban considered acceptable? In addition, the connection another; instead, they definitely coexist. “Zigbee is between enterprises and consumers is not close the mainstream protocol for smart home control. enough, and there is no proven market research Bluetooth is mainly used for lamps, and its security as the support for product and technology system and panel system are not so many at development, which may lead to the disconnection
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between products and real consumer demand. and SaaS are managed by different regulatory In early 2018, the General Administration of Quality authorities. It is very difficult to formulate a unified Supervision, Inspection and Quarantine of the standardization system for smart real estate. The People’s Republic of China and SAC approved three possibility is therefore that the formulation of national standards for smart home series, namely, national systems and standards may not keep pace Numbering of IoT Smart Home Data and Equipment, with the progression of technological innovation. The Descriptive Method for IoT Smart Home Equipment and General Technical Requirements for Smart Hotel Smart Home Automatic Control Equipment. The IoT Up to date, in the construction architecture of smart home is defined and standardized in detail the hotel IoT, the intelligent systems introduced in five aspects: textual and graphic identification, to the application layer exhibit considerable data and device coding, device description, user diversity, including diversities in front desk self- interface and design content. service check-in machine, intelligent guest control, The formulation of these standards has provided intelligent light control, intelligent ladder control, technical guidance for the design, production and network, information release, building intelligent operation of smart home products, accelerated the control, intelligent door lock (access control), industrialization of China’s smart home products, green irrigation, garage management, remote and provided a standardized guarantee for the meter reading, private wearable equipment, etc. A promotion of China’s IoT technology in smart home large number of different standards and resulting appliances. solutions and products are also introduced into the Zhou Jun pointed out that the process of setting network layer and perception layer. standards in Europe and the United States is Zhang Xingguo, COO of the China Hospitality relatively market-oriented, because there are Technology Alliance, argued that as a whole, too many standards involved in the consumer the use of standards lacks the commonness electronics field and it is difficult to rely on the and characteristics of the industry and is rather state government to force the formulation of disorganized and chaotic. For example, some standards. For example, there is naturally a market communication protocols in intelligent customer standardization system for PC, Type-C and USB control use Wi-Fi, some use Zigbee, and some use because they represent a huge market volume. Bluetooth. Even the widely used indoor wireless If such standardization system is not used, communication Wi-Fi, which has a relatively high manufacturers will be backward. The practice of the degree of standard uniformity, also has wrong and United States is that several large factories integrate disordered versions. These versions come with low protocols into modules, and then set up third-party compatibility and functional commonness, which organizations and alliances to carry out certification makes the user experience poor and hinders the for external entities. performance of sensors and application systems. Zigbee, Wi-Fi and other alliances are very powerful In general, in the construction of smart hotels, it is and omnipresent as third-party specialized common for the sensing layer, network layer and organizations, and their technical experts are application layer to use chaotic standards. focusing on the research and development of the There are many reasons for confusing inconsistency next generation of Wi-Fi technology. ” In addition, of standards. The main reason lies in 1) the he also mentioned that there are many competent suppliers’ limitation of talents and knowledge departments involved in the formulation of industrial reserves; 2)understanding and cognitive differences standards. For example, the building standards on the characteristics and limitations of various of real estate, internal electronic products, cloud technical standards; 3) the non-synchronization
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between the timeline generated by technologies and and experience of some technical standards of the standards and the suppliers’ timeline for developing IoT and the characteristics they exhibit. We have a specific products; 4) the technical standard which thorough understanding of scenarios for innovative in itself is also a process of gradual iteration and hotel intelligent application. Therefore, grasping improvement; and 5) the most important thing is that the adaptability of various technical standards is the hotel industry lacks overall, forward-looking and on the increase and a consensus is going to form. authoritative guidance on the basic requirements The construction of Chinese-style smart hotels has (functions and safety) and technical standards for become the consensus and trend in the current smart hotel application scenarios. construction of the IoT. " As far as the hotel itself is concerned, the technical “At present, there are indeed chaotic technical strength of major hotels or hotel groups tends to be standards in the construction of the IoT in the traditional IT, namely, traditional Internet technology, hotel industry (mainly smart hotels), which also and they are unfamiliar with the intelligent hotel comes as a normal phenomenon. In practice, the control technology and scene design under need and awareness of standardization can make the emerging IoT technology. Throughout the us avoid detours and improve the effectiveness construction of smart hotels, they mainly purchase of construction.” stressed Zhang Xingguo. The products and schemes from third parties. These diversity of standards can, to some extent, enable hotels are quite unfamiliar with various technical the characteristics of different technologies to be standards in the three-tier architecture of the IoT, effectively put into tests, although such tests may and of course, they lack a sense of discrimination mean great costs for ‘tuition’. in choosing standards and performance of products On the one hand, hotels can know more and better provided by the market. In that case, it is impossible about their operation status and the needs of the for them to come up with constructive suggestions guests, have better management and meet guests’ and requirements. potential experience. On the other hand, there also This situation, accompanied by the diversity are risks of privacy leaks and data abuse. Therefore, (including protocols, architectures, devices and the construction of smart hotels should not only be features) generated by different suppliers and focused on better unification of technical standards, different product solutions, directly leads to elevated but also on strengthening and perfection of non- access costs, low data exchange efficiency, reduced technical data and information management accuracy of process execution, weak background processes and of legal supervision. data reprocessing, and weak positive feedback and When it comes to the consistency of technical intelligent control of the system. This has delayed standards, Zhang Xingguo pointed out: “We are the development of the potential of the intelligent more inclined to add more principle guidance from IoT, resulting in a great rise in the application cost the government’s technical supervision department, of the hotel IoT. What is more noteworthy is that provide some guidance on the implementation with the introduction of a large number of intelligent of technical standards as the reference for ICT application systems, the accumulated security departments of developers and hotels, and risks (including data security, personal privacy maintain a certain amount of diversified space in and system security risks) in the perception layer, the application of specific products and systems. In network layer and application layer are rapidly doing these, we are able to make our IOT intelligent increasing. products more distinctive and survive the severity of Regarding a consensus on industry standards, the market selection. Zhang Xingguo thinks: “ With the increase of However, given the key point that IoT equipment practical activities, we gain more understanding is more secure and challenging than traditional
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networks, the priority is to strengthen the security problems, promote the establishment of standards, control legislation for IOT intelligent products coordinate contradictions and interests, draw up (systems). For example, a stricter and more lessons from the past, improve the process of operational non-technical management process industry standards and the final implementation for data security should be proposed, including of standards. Enterprises (including suppliers encrypted storage of data, fault tolerance and of equipment and systems, service providers remote backup of data, interface protection, identity and hotels as users of intelligent scenes and checksum authorization, continuous update of IoT applications) should be duty-bound to carry out equipment, patches, use and restriction of data scene innovation, make trial-and-error use of and so on. Only in this way can hotels avoid data standards and technologies and do summary, and and privacy crises that are worse than the chaotic practice and implement the established technical diverse standards as they are carrying out intelligent standards of the industry and the country. construction of the IoT. Experts and scholars are the explorers of the Zhang Xingguo believes that in the process of standardization of IOT intelligent technology and standards formulation, governments, enterprises, the creators of public opinions; they are also a experts and scholars, and hotel industry promoter of hotel intelligence. More importantly, it associations are in different positions, which is also necessary for them to have a public mindset determines their different roles. One clear thing is beyond the connection to interests and become that they should do something in the process of IoT presenters of new technologies and standards. The or hotel intelligent construction. most valuable thing is to become a “whistleblower” for the problems arising from the profoundly Government specialized departments should significant construction of the IoT intelligence for play a role in promoting and leading the technical China’s hotel industry. standards of the IoT. Industry associations can find
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4 The Prospects
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4.1 Developers Are Playing a Key Role in Driving the Industry
Developers are playing a key role in driving the industrial ecology of IoT. IoT device in smart internet era combines the virtual internet world with the real physical world, which is different from the era of PC internet and mobile internet when PC and smart phone are the major carriers and products are mainly composed of codes. The highly variable application scenarios and different kinds of hardware devices make it extremely difficult for technological companies to develop IoT device on its own. Instead, it requires the participation of tens of millions of IoT developers to develop the customized products catering to the needs of each client. According to the IDC’s forecasts, by 2023, the number of part-time developers in China will be double compared with that in 2019, increasing to 3.6 million from 1.8million with a compound annual growth rate of 12.2%. By 2020, about 15% of client experience applications will realize hyper-personalization through continuously combining various data with innovative reinforcement learning algorithm. IoT developers, who are usually regarded as the service provider for a certain project, could be smart hardware manufacturer, development team or individual developer, including product manager, UI designer, software engineer, hardware engineer as well as test engineer. As it is highly collaborative to develop smart hardware, without the support from toolkit and platform, individual developers can hardly finish the whole process on their own. Statistics from Evans Data Corporation show that there were 23 million developers in the world in 2018, of which more than 2 million focused on IoT. It is expected that the overall number of developers will reach to 27.7 million in 2023, and the proportion of IoT developers will further increase with the fast expansion of the industry. Greg Gorman, head of the IoT developer’s ecosystem in IBM, once stated that “ the research scopes of IoT developers are relatively wide and cover many technological fields including security, internet service, systems engineering, cloud programming, software structure and embedded development”. Developers with compound skills will be increasingly important in the project. Currently, developers in 4 IoT areas generally possess one or several key skills in the following areas. 1. Hardware Development combining more modules (CPU and I/O device) with The core of IoT is device connection, including integrated circuits. The Prospects digital-priority device connected with other devices (machine to machine), or physical-priority 2. Internet Connection device that implant embedded circuit in sensors, Connection is another key feature of IoT. It enables both of which require the knowledge in hardware the device to communicate with other device and design. Device design includes process and application and service operating in cloud. Internet storage functions. Device can be equipped with design and management remain the basic skills microcontroller or more detailed SoC, the latter in IoT, considering the large number of connected
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devices and the possible impact brought by internet the industry ecology. design and decisions. In the era of mobile Internet, one of the main reasons why Apple and Android can rapidly emerge 3. Big Data and AI and surpass Nokia, a superpower of feature By means of data mining, modeling, statistics, phones, is that they have formed their respective developers can train AI system, which can be used ecosystems by gathering developers through app to predict analysis in sensor data streams in real store and successfully developed a wide range time, or to make decisions automatically in response of applications. At this stage, Internet companies to incoming data and can be applied to historical attracted developers into their own platforms and data to identify the patterns or anomalies in data. ecology by using Open API and open source. For Currently, numerous connected devices using AI example, Google provided API of Google Map to help conduct real-time analysis are available in for other website services to call, and also built the market and there is a rising trend in widespread Google Code to provide its open source projects adoption. For example, the smart thermostats, to developers, which eventually attracted a large such as Nest, use AI to learn user temperature number of highly sticky developers. preferences and adjust energy usage accordingly. In the early days of the mobile era, six ecosystems were in competition, including Apple, the 4. Application Design and Development Smartphone leader, Linux-based Android, Applications provide users with an interface for BlackBerry, the first choice for businessman in interacting with IoT devices and using data, which North America, HTML5 launched by W3C, the are usually developed in high-level languages, development platform crossing Apple and Android such as Java, Swift, and Node.js. Application operating system , and Microsoft Windows Phone. development is not an easy task and the developers The reason why Apple and Android stood out is mastering the relevant skills will be more popular having more developers. The first consideration in the market. Developing applications can also for developers is the user base and monetization, produce a marked role in constructing automatically, followed by the demand degree for technology: deploying, managing and operating the open 1.Which platform has the most users and is most platforms for IoT applications. For example, Tuya likely to succeed to launch App? IoT cloud development platform can be completed 2.Are the development tools easy to learn and use? produced by the APP in five minutes. 3.Is the technological development advanced? Is it possible to lead the technology development of the 5. Security Compliance next generation and become a long-lasting general Internet security remains the key issue in any technology field? discussion about IoT. Since IoT devices are easily The following "competitive barrier" is actually the influenced by the security flaws, developers Matthew effect driven by competition among various attach great importance to internet security. Thus, companies. The more developers an ecosystem security engineering skills are of great importance, attracts, the more applications it will produce, which including threat assessment, encryption to ensure will bring better service to customers. This will data integrity, insurance of network architecture attract more customers to use the application and and application security, event monitoring, activity encourage more developers to join the ecosystem logging and threat intelligence. to share the dividends. The number of developers The reason why developers are so important is that in the world is limited. The ecology of the company they are the cornerstones of the industry. Therefore, or technology they decide to join will decide the the flow of developers determines the success of competitive barrier of developers ecology.
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To some extent, developer’s ecosystem in IoT by developers due to the non-open source and industry is facing the same situation. IoT developers closed nature of the Windows system. Therefore, would also consider some key questions. Which it has always attached great importance to grow platform covers the largest number of users the developer ecosystem. In addition to acquiring and communication treaties, produces the most Github, the world's largest code storage website commercial returns and convenient development and open source community, Microsoft has also tools and infrastructure. Whether the platform’s increased its investment in the open source field, technology can lead the trend and be applied in which has gradually changed the attitude of the the long run. Platform that can to solve the above developers toward it in recent years. problems will undoubtedly attract more developers. AIoT development platforms such as Tuya having As developers are becoming increasingly important, been rising for several years, have also dedicated more technology companies tend to develop to incubating the developer ecology based on their “developer relations”, which means to create own characteristics and improved the infrastructure a dynamic third party developer ecosystem by through the long-term promotion of common conducting two-way communication with developers industry standards and the provision of global and the project demanders. A healthy and dynamic cloud services. What’s more, it has also continued developer ecosystem lay a solid foundation for the to optimize the development framework and kits to success of IoT platform. meet the three major needs of developers including Open platform and open source ecology are data storage and analysis, device connection particularly important to establish developer management and application development at the relations. For this reason, technology giants have same time, and provide comprehensive support spared no effort in this regard. Microsoft purchased from hardware, cloud, OS to SaaS to maximize the Github for 7.5 billion US dollars and Google was convenience of platform tools. the leading investor of Gitlab with 100 million US Tech giants are trying to touch developers with dollars, making Gitlab's valuation more than 1 billion affectionate emotions and it is the best reflection US dollars. Tencent Cloud has invested 100 million of the key role of developers in the IoT ecosystem. US dollars into Coding. All these actions aimed to For the ecosystem, if the platform can provide attract more developers into their own sphere of open source or open capabilities to solve their pain influence. points, the high-value developers can become core Warner. Hans, CTO of AWS once expressed his view ones through community operation and interaction about developer on AWS summit, “AWS has always with developers. The developers will be loyal to been willing to establish a modern framework for and fond of using corporate tools and products. In software development by collaborating closely this way, they can complete development in high with software developers instead of telling client quality and become the best spokesperson and what tools they need.” As the world’s biggest communicator of the platform. cloud service provider, AWS has established a In general, the rapidly increasing IoT developers close cooperative relation with Tuya, which is a are not only participants and promoters of the global AI+IoT developer and the first choice for new technology era, but also valuable and limited many IoT developers in using cloud services. resources. Development platform that can attract Besides, Alexa ecosystem developed by Amazon the largest number of developer users in non- has also contributed to the rapid development of standardized fields , that is developer ecosystem, consumption IoT industry. can build their own barriers, therefore replicating the Starting as an operating system company, Microsoft success of Apple and Google in the mobile Internet was once criticized and negatively perceived era.
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4.2 Open Platform Will Become the Main Driving Force of the Industry
When the AIoT has become the opportunity of the era that is hard to ignore, the enterprise chief intelligence officers begin to take the return on investment (ROI) of entering the AIoT market into consideration. The value of the AIoT platform is that it can centrally manage decentralized and fragmented IoT applications and provide greater flexibility in cross-industry deployment. Choosing a right IoT platform is a key strategy for large and medium-scale enterprises to develop sustainably in the commercial market. Under the circumstances, the open platform emerges at the right moment. It originated from the open technology platform, and gradually developed into a one-stop develop pment platform covering functional interfaces, development tools, SaaS solutions and market channels after attracting a large number of developers. The most important role of an open platform is to prevent developers from reinventing the wheel by offering open sources and open techniques, so that enterprises that lack R&D capability or an individual can quickly obtain technical skills. In this way, the open platform improves industry efficiency and cultivates the next industry leader.
What is an Open Platform? by themselves. In the internet era, packaging and releasing web The AIoT industry is similar to e-commerce. Taking services as a series of machine-readable data Tuya Smart’s open AIoT cloud development platform interfaces for third-party use is called OpenAPI. The as an example, the platform opens up various platform that provides OpenAPI is known as an open cloud services including OpenAPI. The services platform. Through the open platform, developers cover general capabilities of core scenarios such as can not only process complicated data interactions, device control, intelligent homes, and smart scenes, but also use the development platform as an and integrate the PaaS capabilities of vertical operating system to develop various applications. industry such as intelligent security, intelligent The AIoT open platform mainly provides technical commercial lighting, intelligent community, interfaces and opens standardized technical tools. intelligent hotel and intelligent apartment. Based With the publication of open platform API or on Tuya Smart’s existing Paas capabilities in the function, external developers can quickly acquire vertical industry, developers could directly leverage platform capabilities without editing the source code platform resources to establish an intelligent city, of the software system. Many large e-commerce intelligent business, and intelligent industry rapidly. platforms, such as Amazon, Taobao, and Youzan, In the AIot industry, diversified user requirements have adopted this model that merchants could are barely fulfilled by a standard solution of a single entirely leverage the functions and resources of the company, therefore third-party development is platform to set up online shops without developing needed. So that’s why the developer plays an
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important role in AIoT ecosystem. One of the critical Connection management and application support factors that Apple and Android surpassed and are the main two services. defeated Nokia, the leader of the feature phone The third type is software solution providers market, and Microsoft, the king of the PC era, in focusing on enterprise applications, having the smartphone era is relying on open source and expertise in design, production, management, and application stores to gather tons of developers to operation. They have been in the industry for a long meet the needs of all kinds of users. time and equipped with rich software development Taking Tuya Smart as an example, in addition to its and service experience. Under the fad of the open technical interfaces, it provides developers Internet of Everything, they expect to integrate with an efficient AI+IoT development platform, with this new opportunity to provide better service allowing them to develop a featured App, which can and enhance service efficiency. In this condition, control intelligent hardware in ten minutes. Besides, companies transform the industry experience into developers can directly connect different types data models or tools by establishing platforms, and and brands of intelligent hardware without bridging offer application development platform services. different communication protocols based on the The fourth type is traditional enterprises in a vertical fundamental logical layer of Tuya Smart’s platform. industry. Companies utilize their own understanding Among them, the cloud development platform and experience of the industry to create a vertical further improves the development efficiency of platform. After accumulating sufficient data, data AIoT developers, not only meeting the top three realization is the key point of their deployment. developer requirements including data storage That is essentially different from the IoT companies’ and analysis, device connection management, and model that creates a platform first then collects data application development, but also providing multi- later. layer supports such as hardware, cloud, operating The fifth type is start-ups. Since they are optimistic system (OS), and Saas, etc.. about the IoT future development potential and have software and hardware experience related to Types of Participants in Open Platform industry segmentation selection, some companies According to the attributes of enterprises, there are choose to leverage past industry experience to build five major types of enterprises entering into AIoT platforms that serve customers. Although they are open platform: under pressure to survive, at the current stage lots The first is cloud service providers. When the growth of start-up businesses are SaaS solution companies of the mobile network slows down and the fad of instead of stand-alone selling platforms, and their industrial network surges, these providers hope to services are extended to some segments that are extend their network advantages of accumulated hard to reach by general-purpose platforms. Hence, techniques, business, and ecosystem to IoT. these start-ups have unique advantages to survive Currently, they mainly provide base layer computing in the market. resources and application enabling platforms. The second type is telecom operators, virtual Value Analysis of Open Platform network operators, and communication equipment At the emergence stage of the AIoT industry, a manufacturers, etc. Its original core business is great number of companies chose to build their to connect users. However, these complacent own platforms until influential platforms were businesses lost the once-in-a-lifetime chance of the developed. Yet, establishing self-developed mobile network era, putting themselves into “dumb platforms has greater technical difficulties, involving pipe” dilemma. For this type of enterprise, the IoT hardware, firmware, operating system, data storage, is a crucial opportunity to get rid of “dumb pipe”. communication channel, cloud service, edge
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computing, back-end service, and other techniques, the enterprise fully controls the production rights which are hard to bare for many small and medium- of all developers under its IoT platform to develop sized enterprises. products that fully comply with its development For small and medium-sized enterprises, bearing strategy. The benefit of this strategy is that the greater pressure of revenue and survival, facing enterprise can improve user experience greatly, lower-than-average net margin and financing and improve customer stickiness, and customer difficulties, which directly shorten the average loyalty through a “full-pack of intelligent hardware”. lifespan of these enterprises. The decentralized However, the strategy has low deployment nature of the industry causes a huge technical gap efficiency, so it cannot cover all relevant IoT fields between entities. Besides, the scale of developers rapidly. is under the growing phase and still very limited, The other one is the “open” strategy like the Android plus the Siphon Effect of talents from the leading system. The system opens up its platform to let companies, causing self-developed platforms even various hardware vendors join with no charge and more difficult to realize for small and medium-sized allow users to control intelligent devices through enterprises. the portal provided by the platform. The benefit of For large enterprises, the biggest reason why self- this strategy is that the enterprise can deploy IoT developed platforms are not definitely effective is system rapidly at a low cost to form an ecosystem. its closeness. The ideal IoT platform has features In December 2019, Amazon, Google, and Apple of massive connection, high availability, high jointly announced a working group alliance called replication, and high degree of standardization, “Connected Home over IP (CHIP)” to develop and while the reality is that the problems of limited create an internet protocol smart home standard. connections, high degree of project customization, The goal of CHIP is to increase compatibility and and insufficient degree of standardization still exist. coordination among smart home devices and Those problems affect user experience and hinder provide a better user experience. For developers, the scale-up development of the AIoT industry. the standard simplifies the development process In addition to technical issues, even though and reduces the cost. Manufacturers only need to the hardware companies claim that their self- add the new protocol on top of the original structure developed IoT platform is an open ecosystem, the to adapt voice services of multiple platforms at potential competitive pressure still exists, including once instead of adapting one by one. competition between vendors of the same type of Although the emergence of CHIP makes it possible platform, and competition between platform vendors to break the barrier of communication protocol, and clients who might build a self-developed CHIP is an alliance among industry leaders platform in the future. Besides, homogeneity in IoT instead of a platform. Either for consumers or techniques would cause the problem of reinventing manufacturers, a third-party is needed to integrate the wheel and the capabilities provided by each cross-brand and cross-category smart products. platform are similar. Eventually, the platforms In the early years, the role was played by a system need to rely on the ecosystem to form competitive integrator which customized smart home appliances barriers. from different brands and combined them into Now the industry has two deployment strategies a whole-house smart system to provide limited under this circumstance. One is to keep solutions for end-users. Nowadays, third-party open implementing the “closed” strategy like the iOS platforms emerge in the upstream industry chain, system. Enterprises set key points by deploying developing rapidly based on its neutral property. IoT and expand to all aspects to reach a closed- In addition to provide functional interfaces and loop IoT. The obvious feature of the strategy is that development tools, the platforms have a critical
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contribution to break the barriers among different the open platform, we can gather more industry brands and communication protocols. resources and realize a co-creation ecosystem. Tuya Smart is one of the typical representatives of After boosting the implementation of industry third-party open platforms. It has explicit platform standards, the industry ecosystem can even be positioning “Neutral, Open and Third-party” since established. Different roles in the open platform, its establishment. Tuya Smart launched “Powered including hardware manufactures, module by Tuya (PBT)” ecosystem a few years ago and manufacturers, platforms providers, software popularized in the industry. PBT is an interconnected developers, and system integrators, jointly promote smart sign. The products with the sign can be the AIoT industry to accelerate commercialization controlled by a unified App that can also control and scale development. other products of different brands and categories The open platform provides base layer operating rather than using multiple Apps of different brands. system, basic development environment and tools, The reason why PBT products with different brands cloud service resources, and market channels, can be controlled by the same App is that they and allows related enterprises who involved in the are connected to Tuya Cloud. One of the reasons ecosystem to leverage its resources to enrich their why the PBT product ecosystem grows so fast is products and gain more chances to promotion. that smart home devices with any communication In this way, it will facilitate the progression of the protocol can be connected to Tuya Cloud. overall industry and open platforms will become the With the gradual expansion of the influence of main driving force of the industry.
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4.3 Convergence of Cutting- Edge Technologies and IoT
In the era of internet of intelligence, technologies are either developed in series, evolved complementarily, or integrated with pioneer technique to commercialized industry, rather than developed independently. We believe that the IoT products in the future will have a complex system that keeps incorporating revolutionary technologies like 5G, Internet of Things (IoT), Artificial Intelligence (AI), Cloud Computing, Big Data, etc. Nowadays emerging infrastructures such as AI + IoT = AIoT and Blockchain+ IoT = BoT accomplish functions that standalone IoT can’t achieve. In this chapter, we will focus on converging leading technologies and IoT as well as their commercialized application.
1. Multimodal Deep Learning is Breaking recognizing voiceprint, fingerprint, or iris. This through with Development of AIoT approach that uses a single sensor and a single It’s obvious that AI enables IoT intelligence, and algorithm to solve a task is called "single modality". there are three aspects of AIoT: data, algorithm and However, the situation becomes more complicated computing power. Data is composed of multimodal when AI needs to deal with more than two types of heterogeneous data from IoT nodes. In terms of modality data source, namely “multimodal”. How algorithm, multimodal deep learning is gradually to do integrated modeling from multimodal data mature. becomes an issue, which we called “heterogeneous Modality is a biological concept proposed by gap”. At the current stage, the computing system is Helmholtz, a German physiologist. Creatures far less accurate than the human brain in processing receive information from their sensory organs and multimodal data, nevertheless problems such as experience. For example, humans have visual and mapping quality, alignment compatibility and noise auditory modalities. interference in multimodal deep learning have Now AI is well-developed in recognizing a single been progressively addressed, and some simple text, image, or voice, and is more advanced at multimodal applications are arising.
G
V
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IoT devices can collect three types of heterogeneous convergence of multimodal perception and IoT in data sources: 1. voice interaction: semantic an enclosed space. For instance, a smart screen understanding, voice command, etc. 2. machine device could adjust/control brightness, volume and vision: human faces, shapes, environmental objects, content through voice, vision and other sensors etc. 3. multi-dimensional sensor: temperature, to select proper content for minors. Starting from speed, infrared signal, etc. With the integration of temperature and humidity sensor, vision and voice the three perceptions, the IoT system can utilize command, a smart air conditioner could provide a vision, audition and other sensory organs (gustation, temperature control solution based on the number tactile sense, and emotional understanding) to of people and space layout. At a virtual conference, better serve users rather than just recognize objects the program can do camera auto-tracking and and do voice interaction. facial recognition as well as auto noise reduction There are some preliminary applications of according to the speaker’s voice and image data.
2. Convergence of Blockchain and IoT to as well as industrial transformation. According to Solve IoT Security and Trust Issues the “Worldwide Semiannual Blockchain Spending Blockchain is a leading-edge application of Guide” published by IDC in November 2019, the decentralized data storage, peer-to-peer network, United States is by far the biggest blockchain consensus protocol and cryptographic algorithms market, followed by Western Europe and China. in computer science technology. It is equipped with To apply blockchain, which is a virtual digital features such as decentralization, transparency, technology, to the real economy, the convergence of openness, autonomy, immutability and anonymity. IoT technology is inevitable. The current centralized Major countries around the globe place emphasis trust management mechanism of the IoT network on Blockchain. The Central Political Bureau of would benefit from a decentralized approach of the Communist Party of China held the 18th blockchain to resolve security and trust issues. workshop on progression and trends of blockchain It can be said that blockchain and IoT need and on October 24th, 2019. President Xi emphasized strengthen each other, the applications such as that blockchain is a core technology that leads to supply chain management, industrial network and innovation and boosts technology development IoT payment are role models of implementing virtual
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to reality to accelerate industry development. and authentication. Based on the cryptographic Data is the key to the convergence of blockchain technique and the secure algorithm of blockchain, and IoT, firsthand data source created from IoT and the digital identity authentication within the IoT blockchain is a trusted IoT data pool. At present, the environment becomes more efficient and secure. Internet of Things network is based on centralized Every digital identity of a user or a device will keep trust management data, and data privacy protection, receiving reliable authentication service after being traceability, security and credibility are all facing certified by a professional institute and added into challenges. Blockchain technology starts from the chain. replacing the traditional centralized data storage The last part is the trust of network collaboration. model to solve the problem of data being vulnerable At the current stage, IoT is majorly applied by to be attacked and tampered. At the same time, the telecom carriers and enterprise internal network, blockchain platform also provides data transactions and among networks, there are isolated data and data confirmation services. islands. It is difficult to establish an effective trust In addition, decentralized coordination between mechanism when it comes to collaborating among IoT devices enables future growth of IoT device multiple carriers and organizations. Yet features of accesses to provide “centralized services”, which blockchain such as distributed framework and equal would bring cost and capacity challenges to the participants will offer an opportunity to establish a fore. Now, all parties are exploring how decentralized low-cost trust mechanism to equally benefit from blockchain IoT (BoT) coordinately supports IoT data as a business asset. entities such as IoT server, gateway and terminal. With regard to the application of BoT, we notice By allocating one or more blockchain IoT nodes (BoT that not only conventional IoT fields, such as nodes) and decentralized applications (dAPP) on infrastructure of smart city (transportation, an IoT entity, the IoT entity is connected to the BoT municipal administration and intelligent utilities), nodes through dAPP to achieve coordination. intelligent manufacturing, environmental monitoring Besides, it achieves digital identity authentication and internet of vehicle are powered by blockchain and adds the identity to the chain in the IoT to enhance security and data reliability, but also world. Digital identity is a unique numeric code supply chain finance, payment and health care are that is condensed by real identity information of deeply penetrated by BoT application. a user and the device, for query, identification
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3. Digital Twin Utilizes IoT to Create a Virtual real world, then the digital twin is the process of Replica in the Real World digitalizing the real world. Digital twin refers to a virtual copy of the physical Although the concept of digital twin was introduced world by using sensor updates, physical models by Professor Michael Grieves of the University of and fleet history integrated with multi-science, Michigan in 2002, the technique has only been multiphysics, multiscale to simulate reality. It is applied on a small scale for a long time. To expand obvious that there are two sides to the perceptual the scope of digital twin applications, it must be world: the digital twin represents virtual and supported by real-world medium and massive simulation technology, while IoT stands for physical corresponding techniques. We discovered that with techniques. If IoT is the first step of perceiving the the gradual maturity of base layer complemental
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technique like IoT and corresponding techniques within the next three years. People in the industry such as cloud computing, big data, IoT and AI, in- keep positive attitude toward that digital twin would depth development and larger-scale application of leverage IoT medium to accomplish industry IoT digital twin have begun to accelerate. and digital transformation from 2020 to 2022. Digital twin has been selected as “Gartner Top 10 What digital twin can reinforce IoT, a base layer Strategic Technology Trends” for three consecutive complemental technique, is that it could establish years, revealing its huge potential. According to analysis and prediction of the whole picture based the Gartner survey in February 2019, among the on limited data and information by modeling and organizations that have already implemented IoT 13 simulating the real world in a virtual space. Digital % of respondents claim to already use digital twin twin has greatly improved the complexity and and 62% are either in the process of establishing operational efficiency of IoT management platform the technology. Over two-thirds of companies that and ecosystem, as well as increasing the efficiency have implemented IoT will have deployed digital twin of IoT device deployment.
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In terms of application, the digital twin concept is 4. Brain-computer Interface May Profoundly first applied in manufacturing and IoT application Change the Relationship between Human in manufacturing is also in a leading position. and Machine Hence, the best current practice of digital twin Brain-computer Interface is a pathway between and IoT applications is in the manufacturing the human brain and external devices such as industry, for example, product development and intelligent hardware and network, it enables signals design, intelligent manufacturing and additive from the brain to directly interact with a computer manufacturing. and composes a bidirectional closed-loop control. In addition to the manufacturing industry, the The brain sends a command to control an external management efficiency issue of urban governance device and the external device gives feedback to (intelligent campus, intelligent transportation and the brain, which allows the brain to adjust control intelligent city) and business services (marketing, strategy in real-time to maintain system stability. logistics and after-sales service) will be addressed There are four steps to achieve the consequence: accordingly. Especially in improving the overall signal collection, decoding, encoding and feedback. operational efficiency of managing three-dimensional There are two types of Brain-computer interface, urban space, digital twin city will gradually mature invasive and non-invasive, depending on how the with the establishment of basic IoT sensing networks information was collected. Invasive brain-computer and communication networks in urban space. Once interface implants electrode array into the brain by a real-time connection between the digital world and surgery to detect neuronal activity and encode the the real world has been established, the physical relevant information. Non-invasive brain-computer urban life cycle will be digitalized, modelized and interface uses an external device in contact with the visualized for the governor. Municipal administration, scalp to detect signals of the brain. In 2020, both transportation, security, public affairs, etc. will approaches have achieved major breakthroughs as be featured with timeliness of sensor monitoring, a result of the efforts that academia and technology interactivity of information transmission, scientificity companies have made. of development policies and intelligent control and Neuralink is the representative in the field of management. invasive brain-computer interface, and the company
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revealed the latest generation of brain-computer The ultimate goal of the brain-computer interface interface product: a coin-sized chip that can be is to enhance human capability. It is possible to implanted into the brain and a precision robot to integrate signals from human brain with IoT network surgically install the chip underneath the skull. The devices to achieve a new generation of Brain- chip can read brain activity and pulse, and also machine IoT (BMIoT) through a brain-machine transmit the data wirelessly. The surgical robot interface (BMI) whether it is an invasive or non- makes the implanting process much easier and invasive brain-computer interface. Human beings safer. might be able to interact with intelligent devices In the non-invasive brain-computer interface field, through their minds, that would tremendously BrainCo showcased the human brain intelligent alter the relationship among users, smart home, operating system (Brain OS) and two pre-research vehicle system and smartphones. Brain controlling products at Harvard University on August 27, 2020. everything will no longer be a scene in science There is no need to implant a chip. Participants fiction films. only put on a wearable device so it can collect and process electroencephalography (EEG) and 5. Quantum Technology Has the Potential electromyography (EMG). Regarding the two pre- to Profoundly Impact IoT in Terms of research products, one is to use brain wave imaging Computing Power and Security Encryption technology to restore the picture seen by the human But Has Greater Uncertainty eye or imagined in the brain, the other one is using On October 17th, 2020, The Central Political an EMG control system to collect EMG signals of Bureau of the Communist Party of China held the forearm muscle group to process and determine the 24th workshop on research and prospect of participant’s intention. quantum technology to emphasize the importance
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and urgency of quantum development and reinforce However, the commercialization of superconducting its strategic planning and system layout. quantum computers still has a long way to go. There are three aspects of quantum technology: It should be noted that although the computational quantum computing, quantum communication and speed of quantum computers is faster than quantum measurement. Among them, quantum classical computers theoretically, it is fundamentally communication exploits the quantum superposition different from classical computers in terms of logic state or quantum entanglement effect of microscopic and readout methods, thus specific algorithms are particles for information or key transmission, which needed to realize the logical operations. enables two main methods: quantum teleportation While the majority of the computational problems and quantum key distribution. Quantum computing have not had superior quantum algorithms than their is the most challenging goal of quantum technology, classical counterparts, theorists have developed and it has been deemed as the top point of the next efficient quantum algorithms for some specific generation of the information industry. problems, such as prime factor decomposition (Shor Quantum computing is the core development of algorithm), disordered search (Grover algorithm), and next-generation computation to improve computing solving special linear equations within logarithmic power when Moore’s Law is about to fail. Quantum complexity (HHL algorithm). computing uses a quantum qubit as a basic Particularly, the HHL algorithm not only satisfies the computing unit and uses physical properties such as computational requirements in AI such as fitting, quantum superposition states and entangled states inference and optimization but simply requires a to achieve an exponential increase in computing small-scale quantum computer with 50-100 qubits power. to demonstrate its supremacy. Hence, it has been To implement quantum computing, quantum considered as a key point to break through the computers and quantum algorithms are the bottleneck of AI computing power utilizing quantum two most important parts. In terms of quantum computing. computers, Google, IBM, Intel and other industrial At the current stage, the convergence of quantum companies are actively engaged in joint researches computing and IoT has not been studied much on key technologies with academic institutes, yet. The promising direction is leveraging with the main focus on superconducting quantum quantum computing to achieve the computational computing. acceleration of specific AIoT algorithms.
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4.3 The Widespread Adoption of the B2B Industrial Internet of Things (IIoT)
The Internet of Things (IoT) is a typical niche market with the feature of fragmentation. As an empowering technology, it almost has been tested and adopted in various industries. Different from the rapid development of the Consumer Internet of Things (CIoT), the IIoT is still exploring the large-scale application although it started earlier. The industry standards of Internet of things are not unified, and the integration, accuracy and cost performance of the overall solution need to be improved, which also restricts the popularization of IIoT to some extent. Generally speaking, on the one hand, there is an apparent negative correlation between economic values generated by the IoT and “population density” within the application scope. In these specific areas with "low population density", if markets are mature, general volume and price insensitive, the IIoT is easier to popularize. On the other hand, the widespread adoption of the IIoT in commerce is related to whether its clients have the willingness and ability to pay at the same time. As for clients’ demands such as compliance, risk avoidance, efficiency improvement and cost reduction, the IIoT is expected to play an important role in asset management and hedging. In summary, in the Chinese market, the willingness of paying for IoT services is based on demands in this order: compliance＞risk avoidance＞increased efficiency＞ cost reduction. The development path of applying new technologies in China is usually from serving governments(G), businesses(B) to customers(C). Industries such as civil affair management, energy (including electricity and fossil fuels), traffic-related fields (including vehicles, transportation and logistics), real estate, communications (including communication devices and telecommunications companies) have the stronger ability to pay.
1. The Negative Correlation Between the population within a relatively small territory (around Economic Values of the IIoT and “Population 30% of the territory based on relevant data). The Density”in Specific Areas remaining territory and 1% of the population are Common communication networks require high the important reason why clients are willing to pay. population density, but it is not the case for the Due to the low returns of investment, companies application of the IoT. Due to the low population are not willing to offer services to the remaining density in vast territories, clients always tend to use territory and the 1% of population with low prices. the IoT to reduce time and economic cost caused In China, governments and state-owned enterprises by traffic. Or they hope to realize self-service pay for services offered to these users. In theory, it operations to reduce business and labor costs by is a better solution to use the IoT to serve them. decreasing unstable influences from migration. Taking China as an example, common communication networks serve 99% of the
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Taking the smart water meter industry as an example meter reading in many regions including Shenzhen that has been rapidly promoted in recent years. are lower than that of full application of smart water According to calculation, the costs of manual water meters. There is a negative correlation between
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costs of manual water meter reading and population prevent the theft from their important assets and density. Instead, in some remote mountainous protect their IT systems. Costs caused by these areas with low population density, the IoT generates accidents are usually higher than those of using a more direct economic values. Taking the project of new technology or service. Also, these accidents “Internet Plus Village Water Supply”in Pengyang will have a significantly negative impact on the County in Ningxia as an example in 2018, it has career of the responsible person. built around 40,000 IoT testing devices through In the practical business environment, compliance three years, covering 7000 km of water supply and risk avoidance can be converted. Risk networks in the whole county. Finally, this project avoidance driven by negative incidents, will be has achieved a reduction of 50% in management, a required to convert into compliance when negative decline of 1.2 million yuan in annual costs of human impact becomes large enough. labor, a drop of 50% in operation and maintenance “Income increasing and expenditure costs, and a decrease in the county pipe network decreasing”and“cost reduction and efficiency leakage rate from 40% to 20%. improvement”can only been achieved after completing the application of the IoT, therefore, it 2. The Willingness of Paying for IoT takes a relatively high amount of time and energy Services: Compliance > Risk Avoidance > to persuade customers to accept the IoT. On Increased Efficiency > Cost Reduction the whole, clients in a mature, large and price In recent years, many IoT application cases take insensitive market, are more willing to use the IoT “cost reduction and efficiency improvement”and to increase revenue, decrease expenditure, and “income increasing and expenditure decreasing”as improve efficiency. As mentioned above, in low their marketing points. However, in practical population density areas or scenarios, the IoT is applications, the payment for compliance and risk more likely to play the role of "reducing costs and avoidance is likely to be generally higher than that increasing efficiency", especially the latter role. for cost reduction and efficiency improvement. According to actual orders, most of big companies Compliance includes direct or indirect compliance have urgent demands in risk avoidance and with government regulations and internal rules internal compliance and they prefer to pay for of organizations. It is easier to understand the the customized solutions in the current Chinese direct obedience. For example, some government market. It is possible to increase revenue, decrease agencies require smoke detectors to be internet- expenditure, and improve efficiency through linked. Also, in some big companies, only some customized products and services, or through senior staff have the access to designated servers. relatively standard industry solutions. As for the indirect obedience, it can be commonly seen that some companies in the industry manage 3. Several Fields of the Widespread themselves through some IoT technologies, and Commercial Application of the IoT in other companies have to follow the compliance. Vertical Markets Risk avoidance mainly includes liability hedging and From an abstract perspective, the application asset hedging. As for liability hedging, for example, fields of the IoT include asset management, remote shopping malls need to make sure that water and air management and predictive maintenance. are not poisonous and electric power and heating companies need to guarantee people’s safety when Asset Management people use their services. Generally speaking, these Assets consist of tangible and intangible accidents are often caused by external reasons. As possessions and resources that are important for asset hedging, for example, companies need to to the business development, including large-
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scale engineering equipment in construction, As for the actual payment capacity, industries such fleets of the logistics companies, pipelines of oil as government affair management, energy (including and gas companies, transmission lines of electric electricity and fossil fuels), traffic-related fields companies, server chips of operators rooms and (including vehicles, transportation and logistics), goods of retail companies. Almost all companies infrastructure and real estate, communications will invest a certain amount of human, material (including communication devices and operators) and financial resources in asset management, but have the stronger ability to pay and serve as through the IoT, they can achieve more efficient an important driving force in the innovation and inspections of safety and compliance, improve application of the IoT. management efficiency and reduce management expenses. Generally speaking, there appears to Government Affair Management be a close relation between the payment ability of As for smart government affair management, the customers and the prices of assets. commercial scale of internet-linked cameras has been developing fastest. According to Sunrise Remote Management Big Data, in 2019, the number of global security The objects of remote management include both cameras reached to 400 million, which is expected assets and personnel. In the movement scenario to be 550 million in 2020 and 800 million in 2021. is the remote management for personnel required As for intelligent fire protection, smoke alarms and in low population density areas is the remote need to be internet-linked. In May 2017, the Fire management for assets necessary. For example, it Department of the Ministry of Public Safety and is necessary for the logistics industry to use remote Security proposed that “If the automatic fire management of drivers to avoid driving fatigue and alarm system is installed, it shall be connected traffic accidents. Taking the IoT solutions to power with the remote monitoring system of urban fire distribution as an example, managing equipment protection”. In cities with relatively high GDP, there remotely with the IoT approach can accurately are other typical IoT projects such as intelligent locate malfunctions in the first time without requiring traffic (intelligent parking lots and smart traffic repairs. management), public utilities (intelligent lighting) and environmental surveillance. Predictive Maintenance The shutdown of important equipment can cause Energy huge economic losses to enterprises. Therefore, The energy field is one of the main forces to explore predicative maintenance technology has been used the large-scale application of the IoT, which is in these industries and scenarios for a long time by applied in almost all business links. With regard using relevant sensors, which aims at examining to the electricity generation, some companies the real-time performance and status of equipment has been trying to realize predictive maintenance and understanding the functions of equipment so by means of the IoT in recent years and several as to offer corresponding maintenance solutions projects concerning has been launched in 2020. As in time. In recent years, predicative maintenance for the electricity transmission, smart cameras have systems have been adopted in more fields apart been widely used in the power system, such as from aviation and rail traffic. real-time monitoring and alarm for pipeline leakage. As for the electricity consumption, it has been 4. Exploration of the Widespread showed that 490 million smart electricity meters Commercial Application by the IoT in have been installed in current electricity grids and Vertical Markets some of them can interact with the external devices.
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The new energy charging pile will also be equipped a long time. For example, predicative maintenance with the communication function, which will be the is typically used for airplane engines and the high- main force of application increment in the IoT in the speed railway. future. Freight is a typical example of the remote management application. Data shows that there are Traffic-related Fields more than 10 million freight vehicles and 30 million In the traffic-related fields, the IoT is typically applied transporters in China. The number of accidents in in asset management and remote management. the Chinese road freight industry is 3.7 per million Asset management focuses on managing the km, which is around 37 times that of the United operation status of transportation vehicles and States. With the application of the IoT, the traffic remote management focuses on monitoring and on the road can be monitored by ADAS cameras, providing services for drivers, together to achieve which can detect the dangerous driving behavior of the risk avoidance for both asset and personnel, drivers. In future, with the widespread use of V2X efficiency improvement, cost reduction, etc. Internet of vehicles(IoV), traffic-related fields will be The IoT has been used for asset management for the most potential market of the IoT.
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Infrastructure and Real Estate As for real estate construction, in 2018, the number The IoT has been applied in the infrastructure field of functional elevators in China reached to 6.2783 for many years. For example, there are 200 to million. More elevators have been linked to the IoT, 300 bridges in China equipped with IoT sensors to which has laid a foundation for businesses such as monitor their conditions, with costs ranging from 1 elevator media and advertisement, indoor delivery million to 10 million yuan. The Humen Pearl River by robots and elevator insurance. Meanwhile, the Bridge has attracted much attention this year. At the number of smart community has been 164,400 with beginning of its design, GPS displacement, strain 790 million urban population in China. In 2020, the real-time, long-term deformation, overload and other bidding and procurement of smart communities are monitoring systems have been added to monitor the gradually increasing with the joint promotion of local bridge safety. governments, developers and properties. In the
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field of commercial real estate, IoT companies offer industry has low profit rate, so it is relatively energy-saving solutions to keep winning clients. sensitive to prices. That means it is not easy to achieve a wide application of the IoT in a short Industry term. With the IoT, the retail companies can record In fact, In addition to the above fields, the IoT has customers’preference and create a data funnel been used most widely in the industrial field. The similar to online shopping, which depends on field hopes that the detection and control solutions optimizing the input-output ratio of products and based on the IoT can further strengthen predicative services of the IoT. maintenance to improve machine operation The IIoT is definitely valuable. Over the past several efficiency and reduce operation downtime, so as to years, the application of RFID and digital labels reduce costs and increase efficiency. have gained the real intelligentization in the retail However, startups in the IoT field usually get industry for the first time. revenues of around tens of millions yuan and the However, the wide application of the IIoT still faces growth rate of the annual revenues is 2-3 times. some challenges. There is a negative correlation Many enterprises are still in the loss, and a few between the cost efficiency of the IIoT and companies' income level is more than 100 million population density. The IIoT is not cost-effective in yuan. The Textile IoT has attracted lots of investment the areas with low population density and in this in recent years, but it is not sure the amount of case, governments and non-profit organizations return investors can get from their investment. will pay for IIoT services. In the unmanned or less humanized scenarios, the marketing points of Retail cost reduction and efficiency improvement are not The retail sector, being highly expected by the attractive to clients because low-cost human labor IoT, hope to improve the cost-effectiveness and is sufficient in labor markets under the background customer experience in stores by means of the of global migration. Therefore, IIoT companies IoT. Lots of large major chain supermarkets have need to discover more application scenarios with used digital labels. Although vending machines client’ willingness and capacity in payment into are popular as the new retail, few companies in consideration. the industry chain are making money. The retail
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as a result of their efforts. 4.5 Under the leadership of these leading companies, Industrial Internet the main forces of various subdivision fields also continuously participate in the transformation Platform Empowers process, playing a part as the precious “third pole” Manufacturing Upgrading in industrial Internet. The global industrial Internet platform market Overall Situation of Industrial Internet Platform continues to show rapid growth. According to In the past three decades, the global Internet MarketsandMarkets, the world’s second largest industry has been growing exponentially, giving market research institution, the global industrial rise to a number of tech giants with high market Internet platform was valued at over USD 4.36 value, such as Microsoft, Amazon, Facebook, billion in 2019. Driven by preferential policies Google, Alibaba, and Tencent. Currently, as and market forces that accelerate materializing traditional industrial manufacturing is plagued by application scenarios of industrial Internet platform, rising costs and diminishing margins which calls its market value is expected to reach USD 13.82 for urgent transformation of the entire industry, the billion in 2023, with a compound annual growth rate development of Internet is entering a new stage - of 33.4% from 2019 to 2023. the industrial Internet. Nevertheless, right now, industrial internet platform International giants led by GE, Siemens, SAP, PTC is still in the early stage of development, and it has have joined the race with different strategies, using a long way to go before it reaches maturity. their edges in technology and products to capture Such considerable market size and opportunities territory in the battle of industrial transformation. will definitely attract more players from various Chinese companies such as Haier, Sany Heavy industries. As the bond among industrial total Industry, China Aerospace Science and Industry factors, total value chain and total life cycle, how Corporation, Foxconn, Xuzhou Construction does industrial Internet coordinate industrial chains, Machinery Group are also taking actions to follow allocate resources, reduce costs, and predict future the trend, embarking on a new journey of industrial changes through insight? digitalization and intellectualization. Ten “cross- As a “new industrial base”, the industrial Internet industry and cross-sector” platforms have emerged platform is the top priority of the industrial Internet
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industry by connecting equipment and applications. upgrading of industrial manufacturing can never be According to the latest data of 2020 from China accomplished by a single enterprise alone, nor by Academy of Industrial Internet, by June 2020, a few enterprises together. For application in each China has over 70 industrial Internet platforms with industrial scenario, it requires the transformation industrial and regional influence, with 40 million sets and upgrading of the entire industrial ecosystem. of equipment connected to the network; the number of industrial APPs has exceeded 250,000; in total, Four Types of Participants in Industrial industrial Internet platforms have served nearly Internet 400,000 industrial enterprises. Home to many well-known industrial Internet At the same time, China’s “new infrastructure” platform providers, Europe, America and Asia are projects also add momentum to the development the focal areas for the development of industrial of industrial Internet, making it a popular field for Internet platforms. In general, there are four main innovation and entrepreneurship, and promoting types of participants, namely manufacturing its in-depth integration with various industries. enterprises, industrial equipment providers, So far, industrial Internet has been applied in industrial software and service providers and multiple industries such as home appliance and 3C, information and communication enterprises. automobile, petrochemical, iron and steel, clothing, In Europe and the United States, most industrial machinery, etc. New models and forms of business Internet platforms are developed by industrial are constantly coming up, including network- equipment providers and industrial software and based collaborative manufacturing, management service providers. and decision optimization, remote O&M, mass For example, industrial equipment providers customization, with the goal of cutting costs, mainly include GE, Honeywell, Cisco, ABB, improving efficiency and optimizing industrial chain. Siemens, Schneider Electric, and Rockwell, etc. When we trace its origin, we can find that the idea of GE created the Predix platform, and in 2018, it industrial Internet originally originated in the United expanded its digital business with launch of USD States, Germany and other western countries, 1.2 billion industrial Internet software company, where it is more often known as the Industrial setting Predix, asset management, manufacturing Internet of Things, and the connectivity of devices execution systems and other digital business as an and equipment is emphasized. independent division; during Hannover Messe 2016, What’s different is that in the Chinese context, Siemens launched the open IoT operating system “industrial Internet” has wider connotations. It MindSphere; ABB Group launched ABB Ability, an includes industrial mechanism and knowledge industrial IoT platform offering integrated solutions graph, focuses more on the service side of industry, for industry, electricity, transportation and other and sets the collaboration of industrial chains and vertical markets. the creation of industrial ecosystem as the goal. In terms of industrial software and service At present, it is thriving in China with the nation’s providers, major players include SAP, PTC, unique institutional advantages. Moreover, the Amazon and Microsoft. SAP’s Leonardo IoT is COVID-19 epidemic in 2020 has inspired more “a key and comprehensive technology enabler enterprises to explore new paths of promoting for industrial IoT and Industry 4.0 by facilitating digitalization, networking and intellectualization. digital transformation”, which allows its customers In addition, the complexity of the industrial Internet to collect information from machines, products, platform’s technology system, the diversity of supply chain, consumers and other sources; since application scenarios, and the variety of user 2013, through a series of strategic M&A, PTC has needs indicate that the transformation and gradually built up an end-to-end industrial Internet
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platform, integrating Axeda, ColdLight, Vuforia Inspur has created Yunzhou Industrial Internet, and Kepware and other products into ThingWorx with Inspur Cloud ERP and Quality Code as platform. its core competency. UFIDA developed Smart In China, however, nearly half of the local industrial Industrial Internet Platform in 2017 to help industrial internet platforms are developed by manufacturing enterprises achieve lean manufacturing and smart companies. According to China Academy of manufacturing. Information and Communication Technology and Among Chinese industrial equipment providers, other publicly available data, in 2018, 46% of Sany Heavy Industry incubated IRootech domestic industrial internet platform providers were Technology, the entity behind ROOTCLOUD manufacturing companies, 19% were industrial industrial IoT platform. China Aerospace Science equipment providers, 27% were industrial software and Industry Corporation founded CASI Cloud in and service providers, and the remaining 8% were 2015 as the division for industrial Internet platform, information and communication companies. which developed INDICS, an industrial Internet
Among industrial internet platforms developed by platform featuring cloud manufacturing. XCMG manufacturing enterprises, Haier’s COSMOPlat Information, a spin-off of Xuzhou Construction features the mass customization model, and the Machinery Group founded in 2014, independently platform completed two rounds of funding in 2020, developed the Hanyun Platform in 2016. raising tens of millions of RMB in each round. Meanwhile, information and communication Foxconn Industrial Internet Co.,Ltd., a subsidiary enterprises such as Huawei, Alibaba, Tencent, Tuya of Foxconn, introduced Fii Cloud. PCITC launched Smart are behind some of the industrial Internet ProMACE, an industrial Internet platform that platforms on the market. Tencent Cloud’s WeMake, expands the group’s business from petrochemical for instance, covers the whole business lifecycle and coal-based chemical to salt-based chemical, from research, production, supply, sales to service, fine chemical, biochemical and other segments. combines their own industrial know-how with that As for industrial software and service providers, of other partners within the ecosystem, and offers
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customized solutions for industrial enterprises. only when the platform is closely coupled with the Among industrial internet platforms developed by specific manufacturing process, can it generate manufacturing enterprises, Haier’s COSMOPlat more value and serve all aspects of industrial features the mass customization model, and the manufacturing. platform completed two rounds of funding in 2020, In general, manufacturing process can be divided raising tens of millions of RMB in each round. into two categories: discrete manufacturing and Foxconn Industrial Internet Co.,Ltd., a subsidiary process manufacturing. of Foxconn, introduced Fii Cloud. PCITC launched Discrete manufacturing, which mainly includes ProMACE, an industrial Internet platform that 3C home appliances, automobile transportation, expands the group’s business from petrochemical clothing manufacturing, etc., are all done at one and coal-based chemical to salt-based chemical, station before the next station is connected through fine chemical, biochemical and other segments. a series of interruptible processes to finally realize As for industrial software and service providers, the output of the product. Inspur has created Yunzhou Industrial Internet, In process manufacturing, such as the production with Inspur Cloud ERP and Quality Code as of iron and steel, petrochemicals, coal-based its core competency. UFIDA developed Smart chemicals, salt-based chemical, pharmaceutical, Industrial Internet Platform in 2017 to help industrial electricity, and cement, raw materials are subject enterprises achieve lean manufacturing and smart to a series of physical and chemical reactions and manufacturing. converted into finished product, and the process is Among Chinese industrial equipment providers, irreversible and continuous. Sany Heavy Industry incubated IRootech The application practice of industrial internet Technology, the entity behind ROOTCLOUD platforms in production process is mainly industrial IoT platform. China Aerospace Science concentrated in industries with higher level of and Industry Corporation founded CASI Cloud in underlying digital technology and more emphasis 2015 as the division for industrial Internet platform, on quality, energy efficiency and environmental which developed INDICS, an industrial Internet protection. Through effective management of platform featuring cloud manufacturing. XCMG various production factors including equipment, Information, a spin-off of Xuzhou Construction production lines, workshops, as well as various Machinery Group founded in 2014, independently functional departments, the on-site response time developed the Hanyun Platform in 2016. and productivity are improved, quality is raised, and Meanwhile, information and communication costs are reduced. enterprises such as Huawei, Alibaba, Tencent, Tuya Smart are behind some of the industrial Internet (1) Discrete Manufacturing platforms on the market. Tencent Cloud’s WeMake, At present, the application of industrial Internet for instance, covers the whole business lifecycle platform in discrete manufacturing industry is mainly from research, production, supply, sales to service, concentrated in vertical markets such as 3C home combines their own industrial know-how with that appliance, automobile, and food and beverage. of other partners within the ecosystem, and offers Industrial Internet platform is used to pool the customized solutions for industrial enterprises. resources of various players in the industrial chain and value chain, promote transformation Application Practice of Industrial Internet in business and innovation in business model, Platform optimize resource allocation, create synergy through Compared to the traditional Internet, industrial collaboration, and ensure the rapid update and Internet is more reliant on a particular industry, and iteration of products.
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manufacturing, parts and components, automation 3C Home Appliance and IoT with platforms developed by Siemens, China’s Midea, Haier, Hisense, Changhong, TCL, Bosch and ABB, so as to fully integrate and better Fotile, Gree and other Chinese enterprises have manage the data and businesses on the automobile successively become the “Smart Manufacturing industry chain and value chain. Comprehensive Pilot” Projects of the Ministry of Meanwhile, Chinese automakers such as SAIC, industry and Information Technology of China. Dongfeng and FAW have also entered into Among them, more enterprises have been selected partnership with platform providers such as XCMG for demonstration programs at provincial and Information, CASICloud, Inspur and UFIDA to municipal level. Meanwhile, based on extensive build platform-based ecosystem around leading expertise and rich experience in the appliance enterprises, linking upstream and downstream manufacturing industry, Haier, Midea and Siemens players, and actively exploring innovative have incubated their own industrial Internet application of industrial Internet platform in auto platforms respectively, which offer integrated manufacturing. solutions covering the whole process from user Volkswagen uses Siemens’ MindSphere platform interaction, module procurement, smart production, to connect and integrate the data from mechanical precision marketing, smart logistics, and smart equipment and production systems of 122 factories, services to end users’ smart life. and to improve and standardize production At present, Haier’s COSMOPlat has built 15 smart systems and processes based on the platform’s interconnected factories around the world, covering big data analysis. On July 9, 2020, Beijing New the production of air conditioners, refrigerators, Energy Automotive Co., Ltd. and Siemens signed washing machines, water heaters, dishwashers, a framework agreement for cooperation, joining range hoods and other products. Midea Group hands to build a high-end smart manufacturing established a subsidiary Midea Cloud as the entity base and smart innovation studio, and exploring for its industrial Internet platform M.Iot and IoT the application of industrial big data and cloud services. TCL set up Getech, providing external applications based on Siemens’ MindSphere mart manufacturing services. IoT platforms platform. specialized in smart home also began to set foot in industrial Internet. In the first half of 2020, Tuya (2) Process Manufacturing Smart launched an industrial Internet platform For the process manufacturing industry with large “Cloud Manufacturing” that is specially designed for production scale and heavy asset equipment, such the manufacturing industry, with the aim of helping as steel, petrochemical and so on, the industrial IoT factories to reduce failure rate of equipment, Internet platform offers equipment and product and raise yield and productivity. So far, the platform management services throughout the entire life has been adopted by over 5,000 manufacturing cycle and makes online status monitoring, fault enterprises. detection and diagnosis and predictive maintenance of industrial equipment and product status. Automobile Traffic Steel The automobile industry presents a scenario In recent years, application of industrial Internet where resource matching and collaboration involve platform in the steel industry has gradually more data and require more complex analysis. materialized. Siemens, Schneider Electric, IBM, Volkswagen, BMW, Toyota, Ford and other well- Microsoft and other platform providers have formed known international auto companies, have industry-specific knowledge base and model library, been combining their own advantages in auto and partially applied industrial Internet platform
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in single aspect such as equipment condition European and US’s enterprises have been leading monitoring and optimization, and fault detection the world in graphical modeling of thing model, and diagnosis. In China, HBIS, Baosteel and JISCO highly available and scalable architecture, machine have been actively experimenting with remote O&M learning modeling, new AR/VR with human-machine based on industrial Internet platform. By working interaction, etc., while China is still in want of with platform providers such as Inspur, Huawei breakthroughs in indigenous core technologies. and Bonc, they have preliminarily realized remote The gap in technological capability and efficiency monitoring, fault diagnosis and gained support in between enterprises from different parts of the other services. world is even wider when it comes to a particular In order to detect and report equipment failure scenario. in real-time and minimize downtime, JFE Steel The integrity of developer community and introduced the recovery support system to its ecosystem built by various platforms around the production lines in all six steel production bases core of industrial Internet also varies, so does the in China. Based on IBM’s Watson, the system training system for interdisciplinary talent. is specially designed for steel plant, enabling The development of industrial Internet platform maintenance personnel for quickly and effectively is iterative and incremental. It is also a long-term search for the previous cases and relevant process that requires constant and considerable information needed for recovery and speed up investment for both preliminary platform building repair. and later promotion. In China, expenditure for platform building is covered mainly by the enterprise Development Prospects of Industrial itself or government subsidies, and as a large Internet number of small and medium-sized enterprises Currently, industrial Internet is rapidly penetrating face financial pressure, the critical task of platform into various industry segments. Meanwhile, it building is far from accomplished. is noteworthy that industrial Internet platform is In terms of application, right now, industrial a complex with both industrial technology and Internet is mainly adopted for equipment condition information technology, and therefore building a monitoring. However, the core of the manufacturing platform requires solid support in basic technology. industry lies in the innovation of the value chain, As few companies reside at the intersection of key which takes shape along the product’s life cycle. technology and the targeted industry, collaboration Industrial Internet should be made full use of to with different platforms has become the dominant connect different links on the value chain, including trends. “research, production, supply, sales, and service”, For instance, ABB Ability works with Microsoft’s and to realize the fundamental business goals of Azure to leverage the latter’s capacity in cloud and improving quality, reducing cost, and increasing big data for cloud storage, centralized management efficiency. and rapid processing of ABB’s data in equipment In terms of business, platform enterprises should O&M. ABB Ability also adopts IBM Watson’s AI take into consideration not only the technology function to analyze real-time images captured in the evolution and product generalization, but also manufacturing process to identify defects. how to delve into the field based on the different The extensive participation of enterprises across the characteristics of vertical industries, and they also world has accelerated the development of the entire need to think how to build and promote a cross- industry and ecosystem of industrial Internet, but industry and cross-sector ecosystem, and whether the uneven quality of technological innovation has to convert to the business model of “software as a brought new problems. service”.
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With stronger foundation of equipment, production interdisciplinary talent. lines, factories and digital capability, leading As industrial Internet platform quickly evolves enterprises in various subdivisions are dominating from an abstract idea to materialized projects, the application scenarios of platforms, while innovation and competition around these platforms small and medium-sized enterprises are still will intensify. In 2021, based on actual demand, all exploring. As platforms grow rapidly and are used kinds of platform providers will promote ongoing in more industries and scenarios, the existing innovation in platform technology, functional academic qualifications and vocational education iteration and business model, and eventually, a system cannot meet the personnel demand from few will stand out as the leader, guiding the future platforms, and countries across the world will be development of the industry. confronted with the severe challenge of the lack of
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4.6 New Infrastructure Will Accelerate the Development of AIoT Industry
During the outbreak of COVID-19 pandemic which began in early 2020, new products and technologies, such as AI infrared temperature measurement equipment, smart positioning, smart mask and smart community have emerged rapidly. The demands for smart devices that are intelligent, contact-free, remote-controlled, and interconnected from the government, enterprises and consumers have been growing explosively. Obviously, under the New Normal, “new infrastructure” is going to become the mainstream of 2021.
1. “New Infrastructure” Will Transform the information transmission, software and IT services Technological Advances into Productivity increased by 13.2% year on year. The new forms In the past decade, China has made digital economy of business bucked the trend with growth, which as a national strategic priority by putting forward a shows that the digital infrastructure is urgently series of significant development plans including the needed to increase economic growth. Outline for the National IT Application Development On the March 4th, 2020, at a meeting of the Strategy, the National Information Technology Plan Standing Committee of the Political Bureau of the and the Guideline on Emerging Sectors of Strategic CPC Central Committee, decision-makers stressed Importance during the “13th Five-Year Plan”. The that the government will speed up the construction construction of new infrastructure, represented of major projects and infrastructure that have by 5G, IoT, industrial internet and new energy, has previously been planned, and will accelerate the been highlighted. From this year’s Report on the construction of new infrastructure projects related Work of the Government, the construction of new to 5G networks, data centers and AI. By that date, infrastructure is an important strategy to expand 13 provinces and regions, including Beijing, Hebei, domestic demand and promote accelerated Shanxi, Shanghai, Heilongjiang, Jiangsu and Fujian transformation of the economic growth model, published their 2020 investment list with plans for aiming to transform technological advances into prioritized projects, of which 8 provinces announced productivity, then into economic growth, so as to the planned investment budge, a total of 33.83 boost consumption, improve people’s livelihood and trillion yuan (about 4.85 trillion U.S. dollars.) adjust structure. At the press conference held on April 20, 2020, for The digital economy has become an important the first time, Wu Hao, the head of the department way to release the new economic energy, increase of high-tech industry of the National Development effective investment and stimulate new consumer and Reform Commission (NDRC), clarified the three demand. aspects of “new infrastructure” In the first quarter of 2020, the value added of The first aspect is information-based infrastructure
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on new generation information technology, such as IoT shall be used to meet the needs of most low- telecommunication infrastructure exemplified by speed scenarios, LTE-Cat1 (hereinafter referred 5G, IoT, industrial internet and satellite internet; new to as “Cat1”) shall be used to meet the needs of technological infrastructure exemplified by AI, cloud medium-speed networking of things and voice, and computing and blockchain; computing infrastructure 5G technology shall be used to meet the networking exemplified by data centers and intelligent needs of higher speed and low delay. computing centers. By the end of 2020, general coverage of NB- The second aspect is converged infrastructure, IoT networks in main urban areas of cities above referring to the deep application of technologies the county level and in-depth coverage in key including internet, big data and AI to support areas shall be realized; the number of mobile IoT the transformation and upgrading of traditional connections shall reach 1.2 billion; the convergence infrastructure, such as intelligent transportation of prices of NB-IoT modules and 2G modules infrastructure and smart energy infrastructure. shall be promoted, and new IoT terminals shall be The third aspect is innovation infrastructure directed to migrate to NB-IoT and Cat1; a group that supports scientific research, technology of NB-IoT application benchmarking projects development and product development and and NB-IoT application scenarios of million-level serves for the public good. It includes key connections shall be created as well. infrastructure projects for scientific technology, science and education and product innovation. 2. “New Infrastructure” Cannot Be Built With technological innovation and industrial Without the IoT transformation, the meaning of the new The seven areas of new infrastructure are 5G infrastructure will be broadening. networks, ultra-high voltage, inter-city transportation In China, in order to thoroughly implement the plan and inner-city rail systems, new energy vehicle of building the new infrastructure and speed up charging stations, big data centers, artificial the development of the mobile IoT, the Ministry of intelligence, and the industrial internet, all of which Industry and Information Technology (MIIT) issued cannot be developed without the IoT technology. Notice by the General Office of the Ministry of Among them, 5G-enabled IoT is expected be with Industry and Information Technology of Furthering low latency, high speed and connectivity. In this way, Advancing the Comprehensive Development of the the IoT could evolve together with the 5G network; Mobile Internet of Things (hereinafter referred to the deployment and operation of ultra-high voltage as the Notice), clarifying the requirements from the and new energy vehicle charging stations requires perspectives of network building, its scale, module the distributed IoT monitoring and management. As price, data migration and application development. for the railway system and big data centers, data According to the Notice, The evolution trend of collection, real-time monitoring and dispatch can the technical standards and industrial pattern of only be done on the interconnected IoT devices. global mobile IoT shall be accurately grasped, The AIoT (AI+IoT) is going to improve application the migration and network switching of 2G/3G layer technologies, perfect user experience and IoT business shall be promoted, an integrated increase efficiency in data collection and analysis. ecosystem of mobile IoT in which NB-IoT (narrow- The building of industrial internet industry platforms band IoT), 4G (including LTE-Cat1, i.e. 4G networks also relies on the “connectivity” of the IoT. Energy of Speed Category 1) and 5G develop in a and transportation infrastructure also needs the IoT coordinated manner shall be established, and on empowerment. the basis of deepening coverage of 4G network and accelerating the construction of 5G networks, NB-
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New infrastructure construction and goals
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5G network is a solid foundation of the development Express, successfully delivered valuable medical of “new infrastructure” and the IoT. The date, June supplies to doctors and nurses in Wuhan Jinyintan 6, 2020, is the first anniversary for the Ministry of Hospital with drones. Industry and Information Technology to issue 5G business licenses to 4 major operators in China. 3. “New Infrastructure” Boosts the According to Lu Chuncong, deputy director of the Development and Application of AIoT Information and Communications Administration of Some experts summarized that the demands and the MIIT, the basic telecommunications companies requirements of the “new infrastructure” would in China have built more than 250,000 5G base push the improvement of the IoT in several ways as stations, with over 36 million 5G users. By the follows: date of September 17th, the number of 5G base stations has exceeded 500,000 with approximately Continuous Improvement of AIoT 100 million devices connected to 5G networks. Capabilities China is expected to build more than 600,000 5G Improve the foundation network construction of base stations by the end of the year, covering cities 5G, industry-specialized network setting, MEC and above the prefecture level in the country. By the end other related capacities construction, full network of August, China has more than 110 million users control and the supply of 5G chip modules; improve having already signed up for 5G plans. the underlying infrastructure of the industrial The gradual rollout of 5G technology provides internet, including identify resolution platform, huge space for the AIoT industry to grow. Those Edge Network and industrial platform; improve the associated industries, including smart living, smart construction of data center or application platform; city, car networking, telemedicine, big data and improve the operation efficiency and data analysis smart factory will make smart devices omnipresent. ability combined with AI technology, and solve trust According to the statistics issued by the MIIT, by the problems and improve data security with block end of February, the number of IoT end users has chain. exceeded 1.04 billion, increasing by 15.54 million compared with the end of last year. Promote the Transformation of Traditional “5G+IoT” model played an important role in fighting Facilities and Development of New Ones by against the pandemic. With the 5G-enabled online AIoT healthcare system, hospitals across the country IoT can be applied to transform the traditional could provide medical services such as remote facilities. Smart city, smart healthcare, smart group consultations, radiology diagnosis remotely, transportation, smart park, smart agriculture, remote diagnosis, and fever consultation, allowing smart policing and smart retail requires intelligent medical experts in Beijing to give guidance on upgrading traditional infrastructure, fix the weak treating the patients to doctors in Wuhan “face to links in rail transportation and cold chain logistics; face” but with an actual distance of 1200 kilometers; strengthen weak areas in the industries of nuclear “5G+unmanned vehicles for helping with COVID power, UHV, charging stations, hydrogen fueling emergency”, adopting the information technologies station and lithium battery innovation; strengthen such as the IoT, machine learning, biometric the weak points in sewage and garbage treatment; identification and clouding, can be brought to key management of the old park and upgrade its places and units including stations, hospitals, system. As for developing new facilities, contact- schools and communities to disinfect the streets free supporting facilities such as drones, unmanned or provide healthcare services; China Electronics distribution system, unmanned factory, unmanned Technology Group Corporation, together with SF system in prevention and control of COVID-19,
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supporting facilities for the newly emerging have been founded. Many enterprises also set up industries such as photovoltaics, biomass energy, their own R&D centers to overcome the hurdles green heating, limiting IoT, develop chips, censors and networking modules. The favorable government policies on the Promote the Establishment of AIoT new infrastructure will provide more incentives for Educational Institutes and R&D Institutes companies to invest in research to a certain extent. Looking at all links on AIoT, from the practical At present, under the stimulation of the COVID-19, applications of the sensor, the chip to the IoT, and on the basis of increasingly innovative policies, and the convergence of IoT and AI, a lot of R&D technologies and business models, 2020 has institutes, educational institutes, innovative become the first year of IoT Era, and the market for organizations and centers for talent development AIoT also continues to grow.
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Comments 5 “Related to the Internet of Things (IoT), there are 1 significant advances that will enhance productivity, “This research will definitely provide a better stands of living and will open new avenues for understanding of the sector and its perspectives, business and interactions all over the world. I was discussing the most challenging issues of the industry, very impressed by the technology displayed by Tuya specifically in this critical moment in which everybody and developers will contribute to enhance the trade is wondering how the pandemic will affects the future of and commerce between countries. ” the world, including the application of new technologies Amb. Carlos Giralt Cabrales, Consul General of that is increasingly accelerating in our lives. ” Mexico(Guangzhou) Luis Diego Monsalve Hoyos, Ambassador of Columbia to China 6 “As the Representative of Singapore’s 2 manufacturing sector, the SMF is happy that Tuya “IoT security is valued by the consumer and now more is producing a White Paper on AloT which will than ever. The strength of the Alliance is drawn from enhance SMEs worldwide towards preparing for leading members like Tuya, who provide world class challenges and achieving sustainable growth in a security at the scale needed for the consumer and competitive environment. SMF looks forward to the commercial IoT industry. Regulations are coming a rewarding partnership with Tuya Smart and to to clear the noise out of the market but by working collaborate together to drive growth for businesses together now, ioXt and Tuya improve consumer worldwide.” confidence, increase adoption, and guide global Mr. Douglas Foo, President of Singapore regulators.” Manufacturing Federation. Brad Ree, CTO of ioXt 7 3 “As the Sino-EU Technology Innovation Cooperation “There is a new word that has been born for about platform, we are pleased to see that Tuya is taking 1-2 years, that is, AIoT is a combination of two core lead on the global AIoT ecosystem building. IoT is technologies: IoT and AI, many key developers are no longer a new word to us, however, how to build interested in developing products and services. the real connected ecosystem, integrate all those Collaboration with companies that have solutions different parties globally, and be intelligent is still are the choices - IoT and AI technologies to achieve something we are exploring. This White Paper on country development in all dimensions, such as talent Global AIoT Developers Ecosystem is no doubt and manpower skills enhancement, and development inspiring and insightful that we can find answers to of digital infrastructure.” some critical questions.” Niti Mekmok, President of Thailand IoT Association Athena Wang, Operation Director of ENRICH, Asia Pacific Region 4 “With the convergence of technologies, adding 8 intelligence to edge devices is the most logical step “Chile’s National Policy on Science, Technology, forward – APARA compliments Tuya Smart in taking Knowledge and Innovation intends to enhance the the lead to postulate the next chapter of Smart City scientific- technological ecosystem by adopting architecture.” advanced digital technologies. InvestChile Ms. Shanlynn Lee, APARA President welcomes top foreign AIoT companies, like Tuya
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Smart, whose purpose and solutions are aligned Trade Organization(Beijing) (JETRO) with our national aspiration. ” Juan Pablo Garnica, Investment Promotion Derictor 12 of Invest Chile “As China enters the digital era, the digitalization process across the country and in various industries 9 is in full swing, but it also faces many confusions “The Internet of Things (IoT) creates completely and problems. To solve these problems, enterprises new business potentials by networking products and society need to work together to create a of an increasingly smart nature. Whole industries suitable environment for development. Tuya is including mobility, health and manufacturing are taking the lead, innovating in the field of IoT, and being fundamentally altered. creating the right environment for the industry at the By enabling newly emerging business models and same time. This white paper not only introduces the the development of disruptive IoT solutions, Tuya detailed status of AIoT industry development, but Smart is a true global leader and shaper of the also analyzes the common problems and discusses ongoing digital transformation.” the ways to solve them, providing inspirational Lukas Huber, Deputy CEO & Executive Director guidance and practical suggestions for CIOs China; Greater Zurich Area AG Switzerland working on the front line. We look forward to the facts, perspectives, and working paths contributed 10 in this white paper becoming a magic bullet for all “This white paper illustrated the clear trends of IoT CEOs, CIOs, and CXOs on their way to innovation!” development and consequent massive opportunities Xingguo Zhang, COO of China Hospitality coming along with this new AIoT era. Sweden, Technology Alliance (CHTA) together with other Nordic countries, is the pioneer both concerning AIoT innovation capability and 13 market readiness. As the world leading player, Tuya “With the rapid development of AI and the IoT， Smart has already been active in Swedish market, as well as the integration of AIoT into various and playing a critical role in its transformation.” industries, this is an important change and Dr. Bin Zhu, Investment Director, Business Sweden opportunity for the fiercely competitive lighting industry, which will also provide more industrial 11 added value and development space for the lighting “Japan is currently accelerating its digitalization, industry caught in involution. The future has come, Connected Industry, and other areas, and we need to focus on the lighting industry, and various technology accelerators are being used actively embrace change. There is a poem: With the throughout Japan to promote the integration of wheel of history passing, there will always be a lush foreign companies, Japanese companies, and new green grass next to the grass.” Japanese R&D institutions, including in the AIoT Qidong Wen, Deputy Secretary of China Association field. Companies like Tuya are welcome in Japan of Lighting Industry to bring new energy and potential to the Japanese AIoT industry. The white paper provides a wealth of 14 information on usage scenarios, security, and unified “2021 White Paper on Global AI+IoT Developers standards that will be of great value to both Chinese Ecosystem presents the current status and and Japanese companies working to transform and development trends of the global AIoT market with upgrade their manufacturing industries.” a large amount of detailed data, provides specific Kyungho Jin, Investment Director of Japan External analysis and case studies for each major industry
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segment, and accurately describes the application Developers Ecosystem is a highly recommended features of the Zigbee Interoperability Standard book that clearly describes the development of the in door locks, lighting, electricians, and other industry and fully analyzes the current dilemma. scenarios.” With the push of various new technologies and Ruiyun Shang, representative of Zigbee Alliance policies, the industry will take a new leap forward, China let's wait and see.” Jincai Yang, Honorary Member of the European 15 Academy of Sciences, Arts and Humanities, “We believe that the future development trend of the President of Shenzhen Security Industry Association IoT industry is to move from the current fragmented and closed model to a borderless and open 19 ecological model. In the future, we hope to sincerely “The development of the AIoT industry requires cooperate with all partners on the Tuya platform a diversified, abundant and stable developer to build a more open and intelligent ecological ecosystem, a neutral and open development environment.” platform also required. Haier is willing to work with Chunlei Zhuo, General Manager of Consumer Eco- partners in the industry to build an interoperable Device BU, Lenovo China development ecosystem, create a seamless interactive all-scene smart home and a better future 16 together.” “In the AloT era, Tuya provides a stable, efficient, Ye Wang, Haier Smart Home Vice President and intelligent platform for smart homes in the Japanese real estate market. We believe that 20 together we can create a new era for Japan's smart “Bluetooth has always focused on providing industry.” developers with full-stack, fit-for-purpose wireless Taiko Ogawa, Chairman of the Board, Okura Co., solutions in all key areas, so as to enable simple Ltd. and secure device connectivity. We believe that only with a large, mature, and innovative development 17 ecosystem could ensure commercial availability of “It is expected that this white paper will not only connectivity in the future. We are looking forward to provide guidelines for technology transformation it with the whole industry together. ” and upgrading for enterprises, but also promote Lori Lee, Bluetooth SIG APAC Senior Marketing excellent AIoT projects so that more enterprises Manager will have a model to follow in their technological innovation and practice.” Hantao Ge, Chief Researcher of IoT Industry, Deputy Director of Strategic Planning and Research Department, Telecommunication Technology Labs, China Academy of Information and Communications Technology (CAICT)
18 “In the era of Internet of Everything, AI+IoT has brought infinite possibilities for industry development. 2021 White Paper on Global AIoT
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Producers Singapore Manufacturing Federation Tuya Smart, Gartner, Global Intelligent Business, ENRICH(Hangzhou) AI+IoT Business Vantage Thai IoT Association Wi-Fi Alliance Co-Producers Zhejiang Digital Economy Society Asia-Pacific AI Business Alliance, Intelligence Business Zigbee Alliance Academy Netherlands Foreign Investment Agency
Special Thanks to Editor in Chief Asia Pacific Assistive Robotics Association Eva Na Bluetooth SIG Broadband Capital Chief Editor Business Sweden Holmes Chen China Association of Lighting Industry China Chamber of Commerce for Mechanical and Deputy Editors Electrical Equipment Cindy Lee, Gloria Yuan, Jean Zhao China Household Electrical Appliances Association China Smart Home Industry Alliance Editorial Board Members Consulate General of Mexico in Guangzhou Alan Ren, Ann Marie Olivo-Shaw, Barry Guo, Doris CTTL Chen, Gagan Kohli, Geralt Kong, Jia Chaopeng, Julia Embassy of Columbia to China Soens, July Lee, Lauren Xia, Li Yike, Lisa Gu, Mona Greater Zurich Area AG Switzerland Xiong, Riva Huang, Tanya Tan, Teresa Tao, Wesley Wei Invest Chile ioXt Alliance Special Thanks to Japan External Trade Organization(Beijing) Hou Menglin, Hu Anlun, Jia Wanneng, Liu Jiwu, SGS Liu Yawen, Tang Jiaoli, Wang Han, Wang Hanqin, Shanghai Pudong Intelligent lighting Association Wangying, Wu Yinglei, Wu Yujie, Yang Qinghui, Yu Shenzhen Association of Internet of Things Weijing, Zheng Xiangwei, Zhou Junhao Shenzhen Security and Protection Industry Association
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About Us AIoT Business Vantage (ABV) reflects industry experts’ opinions on global artificial intelligence Tuya Smart Intro and the Internet of Things. We provide an in-depth Tuya Smart is a global Cloud Development assessment of the global AIoT market, including Platform and a leading AI+IoT Developer Platform business cases, new products and technologies, that connects the intelligent need of consumers, and value chain analysis. manufacturers, brands, OEMs, and retail chains. Global Intelligent Business is an industry media The platform provides developers with a one- and exchange platform focusing on Artificial stop AI and IoT PaaS-level solution that contains Intelligence and Internet of Things. It tracks the hardware development tools, global cloud services, frontier information of artificial intelligence, analyzes and smart business platform development, offering intelligent business cases, invites entrepreneurs comprehensive ecosystem empowerment from and investors to analyze industry trends, and technology to marketing channels to build the is committed to providing professional and world's leading IoT OS. comprehensive information and multi-channel By the end of October 2020, the Tuya IoT support for global intelligent business ecosystem. Development Platform served over 230,000 As the most in-depth professional media of No.1 developers around the world and generated over AIoT, Global Intelligent Business has attracted 81 million AI voice interactions daily. The "AI+IoT" the attention of more than 100,000 AIoT industry platform has smart-enabled more than 200,000 players and investors. Over 90% contents are products. Now, Powered by Tuya products can be original and have been read for more than 10 million found in more than 190 countries in over 100,000 times. It provides fresh, in-depth and informative online and offline sales channels globally. industry reports and observations, and pushes Tuya Smart: https://www.tuya.com/cn/ valuable information of global intelligent industry.
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