At present, traditional manufacturing enterprises are facing a range of challenges, including overcapacity, high operational costs, difficulties in quality control, and a weak position within the industrial supply chain. Whether these companies can seize the opportunities brought by the Industrial Internet will directly impact their survival and long-term growth. The 19th CPC National Congress report clearly emphasized the need to accelerate the development of advanced manufacturing industries and promote the deep integration of the Internet, big data, and artificial intelligence with the real economy. This has outlined a clear path for the transformation of manufacturing companies in the future.
The report also highlighted the importance of building a strong manufacturing nation and advancing the "Made in China 2025" initiative, alongside promoting the "Internet+" strategy. These policies aim to drive innovation and modernization across the manufacturing sector. On October 30, Premier Li Keqiang chaired a State Council meeting that reiterated the importance of implementing the 19th Party Congress spirit by focusing on supply-side structural reforms and accelerating the development of the Industrial Internet. The meeting adopted the "Guiding Opinions on Deepening Internet+ Advanced Manufacturing Industry to Develop Industrial Internet," which aims to revitalize the real economy and support the transformation and upgrading of traditional industries.
Today, the influence of the Industrial Internet is growing rapidly in China's manufacturing industry. Often referred to as the "oil of the future," the Industrial Internet is seen as the next big opportunity in the digital landscape. According to Zhang Qiliang, general manager of a leading group, while smart production lines may still be out of reach for many machinery manufacturers, integrating production lines into the Industrial Internet has already become a reality. This offers a new route for the transformation of the manufacturing sector.
What makes the Industrial Internet so valuable? According to Zhang, the platform enables effective connections between people, data, and machines, allowing for the integration and sharing of diverse industrial data. The interaction of this data can lead to new production models and open up new development opportunities for the manufacturing industry.
XCMG, a major manufacturer, equips its machinery with independently developed IoT hardware that records data throughout the entire lifecycle of the equipment. Their Xrea Industrial Internet of Things platform currently connects over 430,000 devices, including more than 6,000 types of equipment such as electric vehicles, logistics trucks, cranes, and excavators. The system transmits about 500 million data points daily, with projections reaching 900 terabytes by the end of 2017.
Through the platform, operators can monitor the performance of machinery across different regions, estimate local economic conditions, and track changes in national economic zones. By analyzing factors like machine workload, water temperature, hydraulic oil levels, and operational risks, the company can implement predictive maintenance. When a failure occurs, they can quickly analyze the data and dispatch the nearest service personnel, significantly improving after-sales service quality.
However, challenges remain. Currently, many Chinese machinery products are not interconnected, and domestic brands use different communication protocols, limiting their ability to share data. Additionally, most industrial Internet platforms focus on remote monitoring and maintenance, rather than extending into core areas like product design and manufacturing. In the future, efforts should be made to integrate these critical stages.
Network security is also a key concern when connecting traditional manufacturing systems to the Industrial Internet. As Zhang Qiliang pointed out, this could affect the safety of national infrastructure. Therefore, it's essential to protect not only network infrastructure but also other critical systems such as energy, electricity, and transportation.
With the global Internet of Things market expected to reach $2 trillion by 2020, the Industrial Internet is set to capture 22.5% of that market. Tech giants like Google and Baidu are already expanding into this space, developing smart devices and autonomous vehicles. Meanwhile, traditional manufacturers like Siemens and Haier have launched their own Industrial Internet platforms, such as MindSphere and COSMOPlat.
Zhang Qiliang noted that while the Industrial Internet presents new collaboration opportunities, there is a shortage of professionals who understand both the industrial and IT worlds. Many traditional manufacturers do not prioritize IT talent, which limits their ability to fully leverage the Industrial Internet. In contrast, internet companies can use their technological advantages to gain a competitive edge.
According to Accenture Consulting, once an industry becomes digitized, its digital capabilities become a key competitive factor, lowering the barriers for new entrants. In March, the State Council Development Research Center released a report titled "Learning from German Industry 4.0 to Promote the Transformation and Upgrade of China's Manufacturing Industry," encouraging internet companies to enter the industrial sector.
Zhang Qiliang emphasized that traditional manufacturing companies face issues like overcapacity, high costs, and weak supply chains. Whether they can adapt to the Industrial Internet will determine their future. To succeed, they must not only collaborate with large tech firms but also invest in IT talent, change their mindset, and take full advantage of the opportunities offered by the Industrial Internet.
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