1. The concept and development history of Industrial Internet
The concept of the Industrial Internet has not been around for a long time. It can be traced back to the Industrial Internet white paper released by GE in 2012. GE defines the Industrial Internet in its white paper as "breaking the boundaries of intelligence and machines" (the original English text is Industrial Internet: Pushing the Boundaries of Minds and Machines), hoping to use the achievements of the industrial revolution and the Internet to promote the improvement of production efficiency. However, with the emergence of related industrial organizations such as IIC (Industrial Internet Consortium) in the United States and AII (Alliance of Industrial Internet) in China, the extension of this concept has gradually expanded.
The China Industrial Internet Research Institute gave an interpretation in the 20 questions on the innovation and development of the industrial Internet: "The industrial Internet is the product of the deep integration of the new generation of network information technology and the manufacturing industry, and is an important infrastructure for the realization of industrial digitalization, networking, and intelligent development. Through the comprehensive interconnection of people, machines, and things, and the comprehensive linking of all factors, the entire industry chain, and the entire value chain, it will promote the formation of a new industrial manufacturing and service system, and become a key support, an important approach, and a new ecology for the transformation and upgrading of the industrial economy. "
We believe that the definition of the concept of the Industrial Internet needs to start from its background or goals. It can be understood as the traditional industry using the Internet to achieve the improvement of traditional industrial efficiency or the reduction of costs. The various integrations between these processes can be broadly understood as industrial the Internet.
Figure 1: Industrial Internet Application Scenarios - Emergency Response and Knowledge Base
2. Industrial Internet industry map
According to the industrial logic of the Industrial Internet, its main architecture can be divided into network, platform and security parts. The network is to realize the collection and circulation of industrial data through technologies such as the Internet of Things and the Internet, and the platform is to process the obtained data to realize functions such as operation management optimization. This layer includes the application scenarios of the industrial Internet; The system's security protection system ensures the realization of industrial intelligence.
Figure 2: Industrial Internet industry map
If it is divided from the upstream and downstream of the industrial Internet as a whole, it can be divided into upstream hardware, midstream platform and downstream application scenarios. The upstream intelligent hardware equipment of the industry provides industrial big data collection support for the industrial Internet platform, the midstream industrial Internet platform provides digital solutions for industrial development and application based on data collection integration, calculation analysis and other processing, and the downstream application field provides landing scenarios to accelerate the digitalization process of the industrial Internet , to support the transformation, optimization and upgrading of enterprises.
Figure 3: Industrial Internet industry map
3. The industrial Internet market has a huge scale and a stable growth rate
In the early stage of industrial Internet development, the level of industrial digitization is an important factor affecting the scale structure of the industrial Internet market, and the low level of digitization of industrial equipment is one of the main factors affecting the low scale of the platform market. According to the "Industrial Internet Outlook Report (2015)" and "Industrial Internet Market Positioning Report (2015)" issued by Accenture, with the continuous research and development, innovation and optimization of industrial technologies, the global investment in the industrial Internet field will exceed US$500 billion in 2020 ; By 2030, the Industrial Internet will bring an increase of more than 15 trillion US dollars to the global economic aggregate.
In 2018, the market size of my country's industrial Internet industry reached 531.304 billion yuan, a year-on-year increase of 13.71%. According to the forecast of Qianzhan Industry Research Institute, the market size of my country's industrial Internet industry will exceed one trillion in 2023.
Figure 4: China's Industrial Internet Market Scale Forecast from 2019 to 2014 (100 million yuan)
4. 5G boosts the accelerated implementation of the Industrial Internet
The commercial use of 5G will promote the implementation of industrial Internet in more application scenarios. The basic part of the Industrial Internet is network issues, including delay and connection issues. The industrial Internet has a large number of connections and high requirements for latency, and the massive machine-type communication (mMTC) and high-reliability low-latency communication (uRLLC) in the three major application scenarios of 5G just fit it.
Figure 5: ZTE 5G Smart Factory Application Demonstration Scenario
5. Policies promote the development of the Industrial Internet
Since November 2017, when the State Council issued the "Guiding Opinions on Deepening the "Internet + Advanced Manufacturing Industry" and Developing the Industrial Internet" to March 2020, the Standing Committee of the Political Bureau of the CPC Central Committee held a meeting, proposing to focus on infrastructure construction at the technological end. Including 5G infrastructure, UHV, intercity high-speed railway and intercity rail transit, charging piles, big data center, artificial intelligence, industrial Internet and other seven "new infrastructure" sectors. Many departments in our country have issued more special policies to promote the development of the industrial Internet.
6. A-share Industrial Internet represents individual stocks
A-share industrial Internet representative companies mainly include Fii, UFIDA, Dongfang Guoxin, Baosight Software and Dingjie Software.