Policy-driven Industrial Internet is moving towards a 2.5 trillion market, with AI integration reshaping the digital economy landscape in manufacturing.

Event Background

On June 30, 2026, eight departments including China's Ministry of Industry and Information Technology jointly issued the "Implementation Opinions on Promoting High-Quality Development of Industrial Internet," setting clear quantitative targets for industrial internet development: by 2030, the core industry added value of the industrial internet should exceed 2.5 trillion yuan, deploy 50,000 industrial 5G private networks, create 5 international-level comprehensive platforms, and achieve full digital coverage of 207 industrial categories. Following the policy release, the A-share industrial internet sector erupted on July 1, with over ten stocks such as Huake Co., Ltd., Haichen Co., Ltd., and Tuosida hitting the daily limit, and International Composites saw a year-to-date increase of 567.86%.

This policy is not an isolated event but a deepening of China's "new industrialization" strategy. The previously proposed "three-step" blueprint for the industrial internet in 2017 has already overfulfilled the first step: by 2025, the core industry scale exceeded 1.6 trillion yuan, and 1,260 5G factories were built. Now, with technologies such as AI large models, 5G-A, and computing power networks maturing, the policy has entered a systematic promotion phase.

Digital Economy Analysis

User Growth and Platform Expansion

Industrial internet platforms are evolving from "device networking" to "full-element collaboration." The policy-driven "50,000 industrial 5G private networks" will connect massive industrial equipment to the platforms, bringing significant user (enterprise-side) growth. According to IDC data, the scale of China's industrial internet platform market exceeded 200 billion yuan in 2025, with a compound annual growth rate of 25% expected from 2026 to 2030. Under the policy targets, platform-based enterprises such as Haier COSMOPlat, Aerospace Cloud Network, and Rootcloud will directly benefit from network effects—more enterprises connecting means data accumulation and model optimization, forming a virtuous cycle.

Release of Data Value

In the past, industrial data was mostly used for monitoring and reporting, and its value was not fully tapped. The policy explicitly relies on the identification resolution system to break data silos, upgrading factory data from "collection" to a core element driving production optimization, flexible customization, and green manufacturing. The marketization of data elements will give rise to new data trading and governance models, similar to the "data monetization" logic in the consumer internet, but on a larger scale and with higher compliance requirements.

Business Model Observations

AI + Industrial Internet Model

The core highlight of the policy is the integration of "AI + Industrial Internet." Industrial large models and industrial intelligent agents have become new growth poles. Traditional industrial software (ERP, MES) vendors face AI reshaping: companies like Yonyou Network and Kingdee International need to embed AI into core business processes; tech giants like Huawei and Baidu leverage their AI platform advantages to cross borders and seize market share. Subscription models and pay-per-model-call models will replace one-time software licenses, increasing customer lifetime value.

Deepening of Platform Models

Industrial internet platforms are shifting from "project-based" to "Platform as a Service" (PaaS).Industrial internet platforms are shifting from a "project-based" model to "Platform as a Service" (PaaS). Companies represented by Baosight Software and Supcon Technology provide SaaS applications such as equipment management, energy optimization, and quality prediction through industrial internet platforms, resulting in high customer stickiness and strong renewal rates. Policy-driven 5G private network construction benefits communication equipment vendors (e.g., ZTE, FiberHome) and network integrators, with the latter transitioning from selling equipment to selling services, making their business model more sustainable.

Market Competition Analysis

Platform-Level Competition: Tech Giants vs. Traditional Industrial Software Vendors

The competitive landscape is divided into three tiers: The first tier consists of internet cloud providers such as Alibaba Cloud, Huawei Cloud, and Tencent Cloud, which leverage AI and computing power advantages to build "industrial brains." The second tier includes industrial software leaders like Baosight Software, Supcon Technology, and Dongfang Guoxin, who possess industry know-how. The third tier comprises numerous small and medium-sized digital solution providers. Policies will accelerate industry consolidation: companies with dual capabilities in "AI + industry knowledge," such as Nengke Technology and Rongzhi Daily Innovation, will benefit; service providers that solely offer hardware connectivity face elimination.## DigitalEcoNews Insight

The Industrial Internet is shifting from an "option" to a "must-have" for manufacturing survival. The key to the new eight-department policy is not the scale target, but the deep embedding of AI into core production processes—this means China's manufacturing digitalization has entered the "deep water zone." For enterprises, the business model will shift from "selling hardware" to "selling data services," and the value of platform network effects will be reassessed. Investors should focus on three types of companies: first, AI enterprises with core industrial large model technology; second, platform operators with industry data and scenario advantages; third, 5G/computing power infrastructure providers. Over the next five years, the Industrial Internet will reshape the underlying structure of China's digital economy, with influence far surpassing that of the consumer internet.