As of the end of July 2024, the number of mobile IoT terminal users in China reached 2.547 billion households, accounting for 59% of the total number of mobile network terminal connections, and the development of mobile IoT has achieved significant results.
According to the Zhitong Finance APP, the Ministry of Industry and Information Technology recently issued the "Notice on Promoting the Development of Mobile IoT 'Internet of Everything'", which clarifies a series of measures to improve the supply level, innovation capability, and overall value of the mobile IoT industry. It strives to further improve the comprehensive ecological system of mobile IoT based on the coordinated development of 4G and 5G, pervasive internet of everything, and secure and reliable features, with the goal of breaking through 3.6 billion mobile IoT terminal connections by 2027.
Mobile IoT is a new type of information infrastructure that uses mobile communication technology and networks as carriers to achieve ubiquitous interconnection of people, machines, and things through multi-network collaboration. It is an important driving force for the digital transformation of the economy and society. As of the end of July 2024, the number of mobile IoT terminal users in China reached 2.547 billion households, accounting for 59% of the total number of mobile network terminal connections, and the development of mobile IoT has achieved significant results.
Based on the development pace of the industry and the current situation of mobile IoT applications in various industries, the notice has analyzed the development trends of mobile IoT and determined the development goals. By 2027, it aims to cultivate a number of application areas with a billion-level connections, support the construction of more than 5 mobile IoT industry clusters nationwide, and create more than 10 mobile IoT industry demonstration bases.
In recent years, the Chinese government has attached great importance to the development of the mobile IoT industry and has formulated a series of related policies to promote its progress. The report of the 20th National Congress of the Communist Party of China further pointed out the need to accelerate the development of the Internet of Things and the digital economy, and promote the deep integration of the digital economy and the real economy.
In 2022, the Ministry of Industry and Information Technology organized the collection of typical cases of mobile IoT applications in 2022, focusing on life smart applications in areas such as smart homes, connected cars, and wearable devices; digital applications in industries such as intelligent agriculture, smart factories, and smart healthcare; and intelligent governance applications in areas such as smart fire protection, environmental monitoring, and smart metering. It collected excellent cases based on four key directions: NB-IoT, 4G, 5G, and multi-network collaborative innovation applications, aiming to continuously improve the overall level of the mobile IoT network, chips, modules, platforms, and industry applications, and promote the comprehensive development of the mobile IoT application industry ecosystem.
In 2021, the Ministry of Industry and Information Technology and eight other departments jointly issued the "Three-Year Action Plan for the Construction of New Infrastructure for the Internet of Things (2021-2023)"; the Ministry of Industry and Information Technology organized the collection of excellent cases of mobile IoT applications, collecting excellent cases in the three directions of intelligent governance, digital industry, and intelligent life, with a total of 44 excellent cases released.
In recent years, the mobile internet of things market has achieved significant growth, driven by the digital transformation initiatives in industries such as smart meters, autos, and asset tracking. Mobile IoT connectivity has played an important role in improving productivity, streamlining operations, minimizing downtime, enhancing automation processes, and cost savings for the industry.
According to Counterpoint's estimate, the global mobile IoT installed base will exceed 6 billion by 2030, with growth primarily driven by industries such as utilities, automotive, industrial, retail, and healthcare adopting mobile IoT. GSMA (Global System for Mobile Communications Association) predicts that China's mobile IoT connections will reach 3.5 billion by 2030, accounting for about two-thirds of the global total.
Related concept stocks:
China Unicom (00762): China Unicom released its operational data for July 2024, with a cumulative total of 0.279 billion households using 5G plans and a cumulative total of 0.573 billion households with IoT device connections.
China Telecom (00728): China Telecom has built the country's first 3AZ Tianyi Cloud-native billion-level IoT platform. In 2023, Tianyi IoT independently developed the AIoT platform based on 3AZ cloud-native architecture, becoming the first nationwide AIoT platform capable of supporting large-scale IoT device connections, faultless switching of millions of devices, distributed high availability of data synchronization, and zero data loss.
China Mobile (00941): The company released its customer data for July 2024, with a net increase of 0.559 million customers in mobile business and 0.528 billion customers in the 5G network. In early August, AMTD International issued a research report maintaining a "buy" rating on China Mobile, citing the company's stable performance growth, increasing dividend payout ratio, and future benefits from the AI wave. It is estimated that the net income attributable to shareholders in 2024/2025/2026 will be 140.8/150.1/159.9 billion yuan, with a target price of HKD 86. China Mobile released its performance for the first half of 2024, with revenue reaching 546.7 billion yuan, a year-on-year increase of 3%; net income attributable to shareholders reached 80.2 billion yuan, a year-on-year increase of 5.3%; and a mid-term dividend of HKD 2.60 per share was distributed.