ABI has added up the numbers and divided by its shoe size and multiplied by the age of its youngest child and worked out that China’s IoT market will grow more than five times in the next five years, exceeding $41 billion by 2020.

Dan Shey, VP and IoT practice director at ABI Research said that driving China's IoT numbers is the smart meter segment.

"It leads all other segments in both connections and revenues. In fact, by 2020, smart meter connections will exceed the next highest market segment in total connections by nearly 10 to 1."

Other major segments driving the China IoT market are home security and automation, OEM telematics, video surveillance, home appliances, aftermarket telematics and home monitoring.
Home monitoring is expected to become an important market in China as it attempts to care for its aging population, which will reach nearly 340 million people in 2020 for citizens age 55 and older.

"Data analytics revenues will generate the most IoT revenues in China. This statistic is reflective of the sheer volume of smart meter connections," Shey said.

This is indicative of the relative lack of revenues in both platform and professional services in the China market.

“Platform revenues are not as high due to, for example, a higher share of proprietary embedded telematics deployments, especially by domestic OEM brands. Professional services revenues are similarly not as high, not only due to fewer connections in the telematics segments, with a higher proportion of tethered solutions, but also because IT and consultancy services are not as mature a market segment as in some of the more developed world markets such as Japan, South Korea and the US," he wrote.