Accelerate the integration into thousands of industries, and the Internet of Things has entered a golden age.
Entering the earnings season, the third-quarter earnings reports of listed companies have been disclosed one after another. Affected by the big environment, many companies’ financial reports are slightly "dull", but there are also some bright spots.In 2021, more and more enterprises announced the growth rate of Internet of Things business in their financial reports, and regarded it as the new revenue pillar of the company.For example, Qualcomm mentioned in its financial report that the revenue of its Internet of Things division increased by 66% year-on-year in the fourth quarter of 2021, and nearly 60% of Silicon Labs’ business revenue came from the Internet of Things. NXP’s industrial and Internet of Things terminal market revenue increased by 18% year-on-year. PTC also mentioned in the report that its growth was mainly driven by the Internet of Things business, with a year-on-year increase of 50%.
The financial reports released by Internet of Things-related enterprises are also remarkable. In the financial report released this quarter by graffiti intelligence (NYSE: TUYA), a global IoT development platform, there are two data dimensions worthy of attention: First, the overall gross profit margin of the company increased by 8.2 percentage points year-on-year to 42.6%, hitting a single-season high and has achieved growth for five consecutive quarters; Second, the income from SaaS and other businesses was about 302% compared with the first three quarters of last year, with a rapid momentum.This means that graffiti products with higher value have been paid by the market, and the advantages of cloud service leader based on platform+software have gradually become prominent.
Graffiti Intelligence’s third quarter financial report data in 2021
In fact, "when can the Internet of Things really break out" was once constantly put forward and discussed. In 2017, a report released by Cisco pointed out that 60% of Internet of Things projects ended in failure. But now, as can be seen from the financial data of various companies, the situation has reversed.Enterprises began to get real return on investment from the Internet of Things project, and won the "fruit of success". At the macro level, the Internet of Things has become one of the key words in the new round of science and technology cycle.Not long ago, the Three-year Action Plan for New Infrastructure Construction of the Internet of Things (2021-2023) (hereinafter referred to as the Action Plan) jointly issued by the Ministry of Industry and Information Technology and the Network Information Office put forward 12 key tasks in four major actions, and made it clear that by the end of 2023, new infrastructure of the Internet of Things will be initially built in major cities in China, which has drawn a clear blueprint for the Internet of Things.
The Action Plan gives clear guidance from the aspects of technological innovation of the Internet of Things, industrial ecological construction, application promotion in key areas and safety management. For example, by strengthening policy guidance, coordinating technological innovation, breaking through key core technologies, and filling in the shortcomings of high-end sensors, Internet of Things chips and other industries; In the three major areas of social governance, industry application and people’s livelihood consumption, we will focus on promoting the large-scale deployment of the Internet of Things in 12 industries. It is particularly noteworthy that in the Action Plan, "Internet of Things Integration Application Development Action" is described as a separate section, which shows that the competent authorities are highly concerned about the integration of the Internet of Things and thousands of industries.
In fact, after years of continuous penetration, the Internet of Things technology has been gradually applied to many fields such as smart industry, smart agriculture, smart wine travel, smart pension, smart retail, smart energy, smart transportation and so on. For example, Cai He Street in Hangzhou, a pilot project of future communities in Zhejiang Province, is a typical case of smart communities. There are 36 old communities built in Cai He Street in Hangzhou in 1980s and 1990s, which once made the community residents frown. With the help of Internet of Things technology, these old communities, which have been built for nearly 40 years, have achieved a new look. Not only do the elderly living alone have a perfect care and safety management system, but the community residents have also lived an intelligent life of App calling elevators, access control and safe passage, and rapid vehicle access.
The Internet of Things has made life more convenient and turned the factory into a "smart factory". Hongshi Electric, a 45-year-old electrical accessories manufacturer, has been focusing on the traditional electrical market. With the advent of the intelligent wave, Hongshi Electric began to seek new changes with the help of the Internet of Things technology. Nowadays, in the production workshop of Hongshi Electric, automatic equipment has replaced manual monitoring, which has improved the monitoring efficiency by more than three times. By doodling Yunzhi to build PMS system, the number of abnormal production of Hongshi Electric has decreased by more than 50%, basically eliminating the mislabeling and material confusion.
When the application of the Internet of Things goes deep into all aspects of life, the demand and industrial structure of the Internet of Things industry are also quietly changing.On the one hand, after a long period of survival of the fittest and increased investment, the industry began to become centralized, the gap between the pioneers and the latecomers was widening, and the ecological advantages began to appear. On the other hand, as the Internet of Things enters the application landing stage, the demand of enterprises for fast delivery and easy-to-use Internet of Things solutions is also growing, which makes neutral and open platform companies such as graffiti intelligence welcome.Because these enterprises provide the ability to quickly develop, deploy and manage applications, so that Internet of Things developers do not have to consider the underlying infrastructure expansion, protocol docking, third-party system docking and other issues.
This is reflected in the financial report. The financial report of Graffiti Intelligence in the third quarter of 2021 shows that with the rich Connected by Tuya(CBT) device ecology and strong network effect, the SKUs supported by Graffiti Intelligence in the third quarter increased from 410,000 at the end of the second quarter to over 500,000. On the other hand, the number of registered developers of the platform has also continued to grow. As of the third quarter, graffiti intelligence has exceeded 440,000 developers.
The Internet of Things has been deployed and deeply applied in more industries, and its value in promoting the realization of the "double carbon" goal has begun to appear. The forecast of Internet of Things, edge computing and network technology in 2022 released by Forrester, a market consulting company, shows that edge and Internet of Things will be used more to reduce emissions. More and more enterprises begin to pay attention to reducing carbon emissions, and the application of edge computing and networking equipment can effectively monitor the environment, asset management and improve the efficiency of supply chain, making the production process more sustainable.
In fact, in the process of promoting the goal of "double carbon", from individual families to buildings, industries, parks and other scenes, the Internet of Things technology has long been an important means to achieve carbon monitoring and carbon verification.Fritz Werder, general manager of Graffiti Intelligence North America Headquarters, suggested in an interview with CNBC that smart homes based on Internet of Things technology can integrate different devices and analyze energy consumption and usage behavior, so as to better realize energy saving and consumption reduction.
Fritz Werder, General Manager of Graffiti Intelligence North America Headquarters
Graffiti Intelligence has already launched a smart energy solution, supported by the Internet of Things technology, based on rich hardware ecology, developer ecology and comprehensive energy management and control capabilities, providing hardware devices such as meters, sensors and controllers, comprehensive energy monitoring and operation and maintenance management tools for scenes such as homes, buildings, industries and parks, and realizing closed-loop management of power supply, power grid, load and energy storage, thereby improving energy production and utilization efficiency and reducing energy costs.
In addition, many enterprises have launched vertical Internet of Things solutions to promote the goal of "double carbon". For example, Hikvision released the "Intelligent Monitoring Platform for Solid Waste Life Cycle", which helps the ecological and environmental departments to intelligently manage all aspects of solid waste generation, collection, storage, transshipment and disposal with the help of technologies such as the Internet of Things, so as to reduce energy consumption. Lenovo Group announced that it will firmly implement the "3S" strategy of intelligent Internet of Things, intelligent infrastructure and industry intelligence, promote the intelligent upgrading of the industry, and achieve cost reduction and efficiency improvement.
The goal of "double carbon" has promoted the explosion of ESG concept with sustainable development as its core. ESG is regarded as an intangible asset of a company, which will enhance the business and social moral image of the enterprise, thus achieving long-term value growth. At present, the major ESG rating agencies in the world will consider how corporate carbon emissions or corporate governance risks affect their long-term values such as business model and cash flow when rating enterprises.This means that once listed companies are included in the ESG index, their sustainable development ability and long-term value will be recognized by the global capital market.
ESG has also been widely concerned by listed companies. In recent years, the number of companies that publicly disclose ESG information in financial reports is increasing rapidly.As an important starting point to achieve the goal of "double carbon", Internet of Things-related enterprises are the first to "pick the fruit". Graffiti Intelligence, Haier Zhijia, Changfei Optical Fiber and Legend Holdings were included in the FTSE Global Stock Index Series-China Index in September this year, including FTSE Large-cap Stock Index, FTSE Global Market Index (large and medium-sized), FTSE Total Market Index (large and medium-sized), FTSE Complete Total Market Index and emerging market ESG Low Carbon Select Index. This shows that enterprises that insist on long-term value and sustainable development are being valued by the capital market.
The Internet of Things is regarded as a scientific and technological revolution after the mobile Internet, and the epidemic situation has further catalyzed the outbreak of the Internet of Things. From the continuous innovation of Internet of Things technology, to the application in all walks of life, and then to the surge of ESG concept, we can realize that it belongs toThe era of the Internet of Things has indeed arrived. How to seize the opportunity of the times and catch the "high-speed train" of the Internet of Things is the top priority for enterprises and investors.