In recent years, the Ministry of Industry and Information Technology officially released the "Three-Year Guide for the Smart Sensor Industry (2017–2019)" (referred to as the "Guide"). This initiative was launched to support the broader China Manufacturing 2025 strategy. The preparation of the guide began in April 2016, and it was finally issued on November 20, 2017, marking a significant step in the development of smart sensor technology.
According to the "Guide," smart sensors are multi-element integrated circuits that can collect, process, exchange, and store information. These advanced devices combine sensor chips, communication modules, microprocessors, drivers, and software algorithms. As key components of modern information systems, they form the foundation for future technological advancements. With the rise of the Internet of Things, cloud computing, big data, and artificial intelligence, sensors have become a strategic focus for developed nations and global tech giants. In this context, China's sensor industry is at a critical juncture.
However, due to a late start, the sector faces challenges such as limited supply, weak innovation, an underdeveloped industrial ecosystem, and poor coordination between research, production, and application. Industry insiders from sectors like mobile phones and robotics have pointed out that domestic sensors remain insufficient, with most required components still relying heavily on imports.
The "Guide" outlines clear goals, aiming for a major breakthrough in the sensor industry by 2019. It forecasts that the smart sensor market will reach 26 billion yuan, with five companies achieving annual revenue over 1 billion yuan and 20 firms surpassing 100 million yuan. Additionally, the production capacity of MEMS (Micro-Electro-Mechanical Systems) process lines is expected to grow steadily. To drive progress, the Ministry has planned several initiatives: conducting core technology research, establishing a smart sensor innovation center to enhance technological capabilities, talent development, and process optimization, and launching industry chain upgrade projects to strengthen the overall ecosystem.
To support these efforts, the "Guide" also includes safeguard measures, such as utilizing existing fiscal funds, national IC industry investment funds, and local industry financing. It encourages private capital to enter the smart sensor sector and aims to boost support for its growth.
Despite these efforts, the market potential is much larger. According to previous estimates, the Chinese smart sensor market is expected to reach 96 billion yuan by 2019. If the domestic industry only reaches 26 billion yuan, that means 73% of the market will still depend on foreign imports. Clearly, the road ahead remains long, but with continued investment and innovation, the industry has the potential to grow significantly in the coming years.
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