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The Internet of Things (IoT) is fundamentally different from the traditional Internet. While the Internet connects millions of people and helps reduce information asymmetry, the IoT builds upon this foundation to create a network of interconnected devices, expanding human understanding and overcoming limitations in time and space through intelligent computing.
In recent years, the IoT industry has seen a surge in major investments and acquisitions, both globally and domestically. For instance, Cisco acquired Jasper, a leading smart networking platform, for $1.4 billion. Cypress Semiconductor also made a significant move by purchasing Broadcom’s IoT division, which includes key technologies like Wi-Fi, Bluetooth, and ZigBee. Meanwhile, SoftBank paid a 43% premium—$32.2 billion—to acquire ARM, aiming to leverage its chip design expertise to drive the IoT's intelligent evolution. Even more recently, Broadcom's acquisition of Qualcomm highlights how tech giants are aggressively expanding their IoT footprints.
Tech giants like Google are integrating Android Things and Weave into a unified IoT platform, while Baidu focuses on car networking with its Carnet product. Alibaba and Midea are collaborating to innovate in smart homes. Traditional industries are also embracing IoT as a core driver for transformation, with companies like Schneider Electric launching EcoStruxure, an Industrial IoT platform that aligns with the trend of “industry integration and the future of things.â€
According to the IOT Nanolytical 2016 list of top 20 IoT companies, most were U.S.-based, reflecting the U.S.'s position as a global tech hub. Germany’s SAP and Siemens ranked second and third, highlighting the impact of Germany’s “Industry 4.0†strategy. Only one Chinese company, Huawei, was listed among the top 20.
One standout in the IoT space is Teslink, China’s largest city-level intelligent IoT platform. In November, it was selected by Gartner as one of the research partners for "Smart Building Networking Solutions." This recognition marks it as the only IoT company in the Asia-Pacific region to be included. Teslink has pioneered IoT applications beyond the living room, extending into buildings, shopping malls, communities, and urban management. Its model allows investors to fund hardware, software, and services, sharing energy savings with building owners instead of requiring upfront payments.
Another notable player is Shang Tang Technology, an AI unicorn that has built a strong foundation in deep learning. With over 120 PhDs specializing in AI, it has attracted significant investment, including Alibaba’s RMB 1.5 billion C-round funding. Shang Tang is positioned for a potential U.S. IPO and is known for its cutting-edge AI research and global recognition.
Shared bike companies like Mobike and OfO have driven IoT innovation, especially in communication modules, cloud platforms, and positioning technologies. Their success has spurred growth in related sectors, creating opportunities for IoT startups and manufacturers.
Hikvision, a leader in video surveillance, has evolved from analog cameras to intelligent IP cameras and now offers AI-powered solutions. From the “Falcon†video structuring server to the “Shenzhen†smart camera series, Hikvision continues to push the boundaries of AI and IoT integration.
Depth Technology, backed by major investors, is focused on deep learning and IoT sensing. It targets five core industries: financial security, urban safety, mobile AR, commercial IoT, and industrial robots. The company has raised over $460 million, becoming one of the most funded AI firms globally.
Other rapidly growing IoT companies include Gao Xinxing, which specializes in smart cities and public safety, and Yunzhi Cloud, a leader in voice recognition and AI services. New Shoreline, a Chinese chipmaker, has developed a groundbreaking 5G radio frequency chip, while Cambrian, a neural network processor startup, has made waves with its high-performance AI chips.
These companies represent the dynamic and evolving landscape of the IoT industry, where innovation, investment, and strategic partnerships continue to shape the future of connected technology.