In terms of market size, according to the statistics of the total research network, the market size of China’s industrial Internet platform and solutions in 2022 is about 60.13 billion yuan, an increase of about 38.9%, and the compound growth rate of about 41.0% in 2020-2022, maintaining a rapid growth trend.

SDCS-CON-2A In terms of industry penetration rate, according to the statistical data of the Industrial Internet Platform Application Data Map (2021), the penetration rate of China’s industrial Internet platform in 2021 is about 17.50%, and the overall penetration rate is not high. According to the Ministry of Industry and Information Technology “14th Five-Year Plan” informatization and industrialization deep integration development Plan, by 2025 China’s industrial Internet platform penetration rate will reach 45%.

In terms of market space, the data of the China Statistical Yearbook (2023) show that the number of industrial enterprises above designated size in China is about 47200 in 2022, and the construction cost of industrial Internet platform per unit is 5 million yuan and the market penetration rate is 45%, which corresponds to the market space of over one trillion yuan in 2025.

Each of the four types of participants has its own strengths and weaknesses

SDCS-CON-2A The industrial Internet platform can be described as the perfect soil for the development of AI.

Because the industrial Internet platform connects tens of millions of devices and sensors, it can perceive, efficiently collect and summarize elements such as heterogeneous systems, operating environments, personnel information, and means of production in the cloud, integrate massive industrial data, and provide high-quality data sets for AI model training. At the same time, algorithms for specific application scenarios can form application modules, which are installed on the industrial Internet platform, and the computing power is selected by the client for private deployment, cloud deployment or hybrid deployment.

At present, the industrial Internet platform market participants mainly include traditional manufacturing manufacturers, industrial software manufacturers, ICT enterprises and Internet enterprises.

Starting from meeting their own digital transformation needs, traditional manufacturing manufacturers have accumulated a large amount of manufacturing practical experience and industry knowhow in the industry, have a deeper understanding of the application scenario of the industrial Internet platform, and have a higher market share in the industry. However, manufacturers with manufacturing roots lack Internet and cloud computing experience and rich customer base, which makes it difficult to achieve platform-based market expansion.

SDCS-CON-2A

For example, the root interconnection, which was born out of Sany Heavy Industry, is also on the list of the above-mentioned “double span” industrial Internet platforms of the Ministry of Industry and Information Technology, and Sany Heavy Industry is the main customer of the latter and its fifth largest shareholder. It is reported that Root interconnection has enabled Sany Heavy Industry Beijing pile machine factory, Sany Heavy Industry Changsha No. 18 factory a number of “lighthouse factory”. According to the listing materials previously submitted by Root Internet, from 2019 to 2021, the revenue of Root Internet was 152 million, 279 million, and 517 million yuan, respectively, with a three-year compound growth rate of 84.71%. However, due to large losses, Root Internet eventually withdrew its IPO application in 2023.

SDCS-CON-2A Industrial software manufacturers are similar to traditional manufacturing manufacturers, have mature industrial software and industry experience, but also have a certain customer base. The industry, such as Baoxin software, Yonyou Network, Zhongcong Technology, Dingjie Software, etc., belong to this list. Such manufacturers have industrial software products, accumulated industry experience when accumulating customer resources, and their product lines are relatively complete.

“We have both the industrial Internet platform and the application of various industrial software on the industrial interconnection platform, and we support private cloud deployment, hybrid cloud deployment, and public cloud deployment for smes.” An industrial software started industrial Internet platform manufacturer insider told the first financial, “For example, we in a city of safety and environmental protection win-win platform, the city thousands of small and medium-sized chemical enterprises safety and environmental protection into the city’s unified management (platform), is the use of our industrial Internet platform and our safety and environmental protection software.”

SDCS-CON-2A The advantages of ICT enterprises and Internet enterprises are large platforms, rich Internet resources, and cloud computing advantages, but they lack practical experience in complex industrial scenarios, such as Huawei, the three major operators, Tencent, and Ali.

At present, different types of platform vendors are seeking cooperation in the competition. For example, Huawei FusionPlant Industrial Internet platform has gathered more than 340,000 developers, and the main ecological partners include Changhong, SAP, Dassault, Hollysys, Yonyou Network, Dingjie Software, etc. Alibaba Cloud supET industrial Internet platform has gathered 238,000 developers, and the main ecological partners include Root Internet, Machinery Nine Yuan, Beike Industrial Research and so on.