Siemens and Alibaba Cloud eye Chinese IoT market

Siemens and Alibaba Cloud eye Chinese IoT market

Businesses across the APAC region have started todip their toes into AI and IoTto improve operations and stay competitive.

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Chinese industry will quickly become digitised in any event if not with German assistance, then with products made by other international competitors.

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According to research from technology research and advisory firm Ecosystm, China is expected to maintain its position as the worlds largest IoT market, beating forecasts for the US and Europe.

German industrial giant Siemens and cloud bigwig Alibaba Cloud have tied up to developindustrial internet of things (IoT)offerings for Chinas manufacturing industry.

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Simon Hu, Alibaba Clouds president, added that the partnership with Siemens will accelerate the adoption of IoT products and services that will create industry-wide breakthroughs and progress.

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By 2022, spending on IoT in the Asia-Pacific region will also grow at a compound annual growth rate of 7.4% to reach $177bn, accounting for almost half of worldwide spending. Manufacturing will be the largest industry segment globally, accounting for $63bn by that time.

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The Chinese government is also building an industrial park in Nanchang in Jiangxi province to help Chinas aerospace industry harnesssmart manufacturing technologiessuch as robotics, 3D printing and IoT.

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Amid a slowing economy and rising wages, China has been pulling out all the stops to modernise its industries through programmes that promote greater digitisation in cities such as Qingdao and Chongqing.

Apotential IoT powerhousebelieves its deep expertise in operational technology will give it a leg up over traditional IT rivals.

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Germany has been Chinas preferred partner in industrial digitisation, with its concept of Industry 4.0 serving as a guideline for the Chinese government, according to the Mercator Institute for China Studies.

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Siemens and Alibaba Cloud eye Chinese IoT market

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Machine learning can have a greater impact on peoples liveswhen applied to the industrial IoTthan in consumer applications, according to a machine learning expert at GE Digital.

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The two bigwigs will develop industrial internet of things offerings for Chinas manufacturing industries that are being digitised through various state-led initiatives

Germany has the advanced technology needed for Industry 4.0 and demand from China offers German sellers unique sales opportunities, it said. The time window is limited, though, as German firms are likely to be edged out as soon as Chinese companies close the technology gap.

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Joe Kaeser, president and CEO of Siemens, said his firms landmark deal with Alibaba Cloud will help Chinese manufacturers unlock the potential of the industrial IoT, which incorporatesmachine learningand big data technologies to harness sensor data,machine-to-machine(M2M) communications and automation.

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Siemens will make its MindSphere cloud-based IoT operating system available on Alibaba Cloud that Chinese manufacturers can use to improve operations from 2019. MindSphere supports a wide range of device and enterprise connectivity options, as well asadvanced analytics.

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