The Internet of Things (IoT) could deliver economic gains in China of up to $1.8 trillion in cumulative GDP by 2030, Accenture predicts.
But in a new report Accenture noted that the potential gains are at risk due to challenges in infrastructure, data policy and talent.
The report shows that based on current policy and investment trends, the IoT could add about $500 billion to China’s cumulative GDP by 2030. This would result in China’s GDP being 0.3% higher in that year compared with current projections.
By taking additional measures to improve its capacity to absorb IoT technologies and increase IoT investment, China could boost its annual GDP by 1.3% by 2030, cumulatively adding $1.8 trillion to the economy by that time.
The Accenture report noted that the manufacturing sector will benefit by $196 billion in its cumulative GDP contribution in the next 15 years, based on China’s current policy and investment trends.
But that could jump to $736 billion – a 276% increase as a result of the enhanced measures advocated by the report. Meanwhile, the public sector could see an increase in cumulative output from $61 billion to $217 billion.
A similar increase could be seen in the resources sector, with its contribution to cumulative GDP rising from $48 billion to $189 billion under enhanced measures, almost three times higher than under current conditions.
“Chinese business leaders and policymakers cannot assume that the country will automatically enjoy strong economic growth thanks to the IoT,” said Gong Li, chairman of Accenture Greater China.
“To make such an expansion possible, they must shift their attention away from the technology itself and toward the conditions that enable the technology to be widely adopted through all parts of the economy. The government’s ‘Made in China 2025’ initiative provides a strong basis, as the IoT will be most relevant to advanced and intelligent manufacturing.”