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Deeply Entrenched in a Vertical Industry, Defining Advantageous Products, and Embracing the Ten-Billion-Level IoT Market

--SIMCom was awarded the “Star of IoT”; Wang Zhongxiang, the general manager shared the opportunities and threats brought to module manufacturers by the development of the IoT

 [Overview] On December 19th, 2017, at the 2017 Global IoT Summit, after close review by over 30 IoT experts and scholars and multiple levels of filtering, 6 “Stars of IoT” companies that stood out over many companies both upstream and downstream of the IoT industries were revealed. SIMCom Wireless Solutions Co., Ltd (Shanghai) as well as China Telecom, Huawei Technologies, iFlyTek and other prominent figures in the IoT industry were all presented with awards.

SIMCom Wireless Solutions Co., Ltd (Shanghai) was awarded “Star of IoT” at the Global IoT Summit

SIMCom, as the only module manufacturer among the awarded companies, is number one module manufacturer in terms of output worldwide, and has been deeply entrenched in the IoT industry for 15 years. Both in global and domestic markets, it has been lauded as the standard for the IoT industry.

IoT faces the first year of quick development, where industry and environment reintegrate

2017 is truly an important juncture for the quick development of the IoT. Based on the Ericsson market report, beginning in 2017, the IoT’s development has entered into a period of rapid upward movement, with global IoT connection devices reaching 16 billion in 2021, and completely surpassing mobile terminals in 2018. At the same time, IDC expressed that the IoT market possesses massive potential, and China is also an important area in IoT development; by 2020, the IoT market for the China region is estimated to reach RMB 2.4 trillion.

On the one hand, the IoT is entering a period of rapid development; on the other hand, the IoT is also in the early stages of reform and innovation. It faces massive changes in both industry ecology and capital environment. In 2017, there have also been many module manufacturers entering the market as well as mergers and acquisitions, and with IoT modules as the basis for the connection among objects, they are naturally an indispensable and important part of the chain.

DVBN & AsiaOTT reporters had the honor of participating in the live event, and were invited to SIMCom Wireless Solutions Co., Ltd (Shanghai) for an exclusive interview with the general manager, Ms. Wang Zhongxiang.

 

Capital is an important force in the changing industry, and the important elements of creating an IoT empire are already complete

Concerning the rapid development of the industry, the general manager Wang ZhongXiang appears rather calm. She believes that despite the very quick development of the industry, its vertical, scene-oriented trend has become very obvious. When the industry begins to blossom, no single manufacturer can be involved in every industry, but they must cover and be in-depth for mainstream industries, capturing the highest-level cases of the industry, setting up a good industry standard, and achieving improvements on cost control ability and operational delivery power. This is also a main reason for more and more clients to choose SIMCom.

Regarding the views on all levels of capital that followed the wave of development in the IoT, Ms. Wang’s opinions are even more active. Similar to the rapid development of the Internet, the preconditions for achieving explosive growth at some point in time for the IoT are also inseparable from the power of capital. Each of the 16 billion connected devices worldwide in 2021 cannot be separated from the support of module products. For IoT modules to reach the blossoming stage it is in today, the rapid iteration of products and expansion of markets are all inseparable from the support of big capital players; once elements such as policy, capital, technology and products are synchronized across the entire interest chain, the resulting impetus will be immeasurable. China is currently becoming a very active market for the IoT, and from the international market point of view, the key moment has also arrived for the Chinese team to make significant progress.

Ms. Wang expressed that SIMCom’s future will surely be based on expanding itself in large capital and big platforms, and grabbing this rare opportunity; 2018 is the beginning of a perfect combination of product, market and capital, and the IoT will enter into a period of rapid development.

Switching from traditional markets to the consumer market, car networking, smart homes, and smart security are the vertical industries for IoT to focus its development in

Since 2017 is a year of change for the IoT, when discussing the greatest differences that the IoT has brought in 2017, general manager Wang ZhongXiang expressed her belief that the most palpable feeling in 2017 is that of the advent of the age of consumer-level IoT. The IoT is not a new concept. Before 2017, SIMCOM was rooted in the industrial IoT, and was striving to be their industry standard. As national policies and operators entered in 2017, the traditional IoT that was rooted in a relatively narrow deep market was facing a new round of opportunities and challenges, and the challenge was how to face the appearance of the larger quantity of IoT consumer-level products. Ms. Wang admitted that, for a module manufacturer, this is definitely a very opportune time.

General manager Wang said, IoT products that began in the various vertical and in-depth industries have begun to draw nearer and nearer to consumers’ lives, and as the IoT grows more and more connected with people, one must consider the underlying ecology as well as how to manage and operate the equipment. This is a new challenge for module manufacturers. According to the reporter’s knowledge, SIMCom currently has real collaborations with consumer products such as smart trolley cases, smart wearable devices, smart robots, smart security/door lock and so on. The endless stream of creativity in the Internet has brought a deep level of activities to the IoT, while the largest underlying question is how to further implement solutions. SIMCom, while accumulating, has also collected enough industry solutions, and is helping to take advantage of consumer market opportunities in a timely fashion. For example, when the tens of millions level bicycle-sharing industry was exploding, SIMCom undertook providing for 70-80% of the industry’s module needs, buying precious time for the clients. Ms. Wang also expressed that the changing of module manufacturing must be done through deep-level collaboration from the perspective of defining the market and helping the industry. It should enact change from the closed-off role in the original traditional industry and re-define products retrospectively for the market, rather than target a market through a product; the implementation process for consumer products is exactly the opposite.

4G is still the mainstream choice of future markets, while 5G will be defined by the industry

Along with the gradual integration of the mobile internet with the IoT, the impact of 5G on the future consumer IoT market is clear. When discussing the development of 5G in the future, general manager Wang believes that 5G is clearly accelerating in response to the development of the IoT. SIMCom and Qualcomm, the leading global advocate for 5G standards, as well as operators are all paying close attention to the development direction of 5G, and are making active provisions and plans for it in product planning. However, from SIMCom’s years of experience with M2M and the current short-term trends, regardless of if it is B2B or B2C, the most important thing is to stabilize products. The IoT connects to hardware, and it is difficult to achieve leapfrog growth in traditional manufacturing. In the short term, the speed and stability of 4G will still be the prevailing trend. Many industry users are asking “what should we do with the arrival of 5G? How do we transform?” Ms. Wang believes that a precondition for transformation is good customer service. Starting from there, 4G and NB-IoT remain as mainstream applications, and will be compatible with a 5G network and based on vertical industry applications. There will be constant innovation, with 5G first appearing in consumer products, and after having successful cases on the consumer level, feedback will be reported to the vertical industries.

 [Summary] The market and ecology of the IoT industry are massive and possess huge market potential, but this consists of almost entirely deep-set “points”, which are unable to be formed into a comprehensive product line. If products are unstable and spread across scattered areas, then it is difficult for a company to continue down that path. How can they grasp market opportunity? General manager Wang hopes that in the next 2-3 years, the following generation of IoT will continue to assist users in the Internet and operations environment, while considering the feasibility and maintainability of solutions, while avoid working behind closed doors. 

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