Gartner Research

Market Trends: Growing Consumer-Facing IoT Market in China

Published: 22 August 2017

ID: G00296397

Analyst(s): Roger Sheng , Peter Liu


The fast-growing consumer-facing IoT market in China is largely driven by product OEMs and service providers. Given the different consumer buying behavior and technical background, technology product management leaders need to develop localized product offerings for Chinese consumers.

Table Of Contents


Market Trend

  • Consumer IoT Applications Will Be a Huge Potential Market Driven by Suppliers in China
  • Business Model Innovation to Attract More Users
  • Leverage Mobile Payment and Create the Digital Business Opportunity
  • IoT Products for Chinese Consumers Should Be Designed for Non-Tech-Savvy Users
  • Kids and Elders Will Have Big Market Potential but Require Trustable Public Service
  • Addressing Safety and Privacy Concerns Are Important
  • Localized and Customized Products via Cooperation With Regional Service Providers
  • Artificial Intelligence (AI) Will Be Critical to Improve the Customer Experience
  • Natural-Language Human-Machine Interface Is Important but Faces More Obstacles in China

Contrarian View

  • If Consumers Don't Use IoT Features Actively, the IoT Business Will Still Be Unprofitable in China

Vendors to Watch

  • Xiaomi
  • Haier
  • Alibaba
  • Baidu

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