Smart Campus Industry: Trends and Market Financing Prospects in 2023
abstract : The smart campus industry is booming in China, with a market size of over 50 billion yuan. The main drivers of growth are government policies, the increasing demand for education informatization, and the rising popularity of smart cities. The future of the smart campus industry is bright.
2023 Trends and Market Financing Prospects Analysis of the Smart Campus Industry
How is the investment prospect of the smart campus industry market? Currently, the international situation is profoundly complex, with the convergence of a century-long transformation and the century pandemic. The deep development of economic globalization, world multipolarity, social informatization, and cultural diversity provides great resilience and potential for the Chinese economy, which will drive the world economy.
How is the investment prospect of the smart campus industry market? Currently, the international situation is profoundly complex, with the convergence of a century-long transformation and the century pandemic. The deep development of economic globalization, world multipolarity, social informatization, and cultural diversity provides great resilience and potential for the Chinese economy, which will drive the world economy. Traditional smart campus systems mainly focus on the following aspects:
Intelligent library system: The intelligent library system can automate book borrowing and return, manage the library's collection, and provide intelligent queries, improving student efficiency in borrowing books and library management.
Intelligent canteen system: Through the intelligent canteen system, students can order and settle meals on their own, and the system provides intelligent management, improving dining efficiency and service quality.
Intelligent monitoring system: The intelligent monitoring system can monitor and manage the campus, including real-time monitoring, intelligent analysis, and intelligent warnings, improving campus security and management efficiency.
In conclusion, smart campuses utilize various intelligent devices and systems, and suitable equipment and systems can be selected based on different needs and scenarios to enhance the intelligence and informatization of campus management.
Currently, customer resources and partners are one of the barriers in the smart campus industry, and seeking cooperation is becoming a trend. Software and hardware companies cooperate with each other, and different system suppliers seek internal cooperation within the industry to achieve stronger alliances. The phenomenon of one dominant player gradually decreases. For example, Tencent has invested in platforms such as Yuantiku and New Oriental Online, while Yicejin jointly cooperates with electronic blackboard manufacturers. Strong alliances can optimize resource utilization, avoid resource waste and malicious competition, and are also a way to build barriers.
Analysis of the 2023 smart campus industry trends and market financing prospects
Smart campus construction has been undergoing for more than a decade, and "Internet + education" is receiving increasing attention, driven by government and corporate efforts. Building smart campuses has become an inevitable trend in campus development. Through the integration of technologies like the Internet of Things and artificial intelligence, the combination of hardware and software in schools can improve operational efficiency, teaching quality, and research level. Currently, smart campuses seem to be more technologically advanced.
The initial investment in smart campus construction is huge, and the associated risks increase accordingly. A mature school application software can cost millions or even billions, making it difficult for small companies to establish themselves. The scarcity of technical talents in the industry also poses challenges. Whoever possesses top talents will have the entrance ticket to building barriers, so major smart campus companies invest heavily in talent recruitment. For example, the emerging company Yicejin has invested nearly tens of millions in its technology team of 200 people. The investment by larger companies is even more apparent.
Currently, various schools in China are actively building smart campuses. As the penetration rate of smart campus construction increases, smart campuses in China will ride the wave of smart education and smart cities.
The main driver of investment in the smart campus industry is the government's education informatization construction policy. However, the government is also responding to the needs of the times by making policy decisions in line with the development trends. With continuous economic development and progress in human civilization, scientific and technological advances have been significant. To achieve sustainable social development, the development of education must be vigorously promoted. The construction of digital campuses has already achieved great success, and smart campuses are an inevitable trend for future development.
According to statistics from the Ministry of Education, there are currently over 2,000 universities in China. Assuming an average investment of about 3 million yuan per university in campus card projects, the theoretical market share has already exceeded 7 billion yuan based on the current number of universities. Currently, over 50% of campuses have not implemented campus cards, leaving a market space of over 3 billion yuan. In addition, there is a space of about 700-800 million yuan each year for campus card maintenance fees. It is understood that campus card systems usually need reconstruction or upgrades about every 5 years, so there is continuous growth potential in the campus card market.
Currently, the traditional campus ID card market is becoming mature. However, with the deepening of campus informatization construction and the introduction of the concepts of "digital campus" and "smart campus", there are many favorable factors driving the upgrade from M1 card to CPU card, the rapid rise of mobile payment, the widespread adoption of ID card systems in schools, the increasing functionality of ID card systems, the entry of mobile operators, and the increasing demand for energy saving and emission reduction in campuses. As a result, the future prospects of the campus ID card market are very broad.
Data shows that the market size of the smart campus industry in China is 33.362 billion yuan, and the market size of smart campuses in China has reached 56.389 billion yuan, with a compound annual growth rate of 14.02% over five years. It is estimated that by 2025, the market size of smart campuses in China will reach 91.498 billion yuan, approaching the hundred billion mark.
Currently, digital campuses have basically been realized in first-tier and second-tier cities in China, and digital campuses have also been widely implemented in third-tier and fourth-tier cities. Smart campuses are an upgrade of digital campuses. Currently, large-scale construction of smart campuses is starting in East China, North China, and central regions, but the coverage is still a small part of the country as a whole. The scale of smart campus construction in China will continue to expand, and the market demand is huge.
Jiangsu Province, Guangdong Province, Zhejiang Province, Fujian Province, Beijing, Shanghai, and other economically developed provinces and cities have taken the lead in the construction of smart campuses. The government has made significant financial investments in smart campuses, attracting many investors to invest in the smart campus industry. Each province and city that has issued development plans for smart campuses has a relatively long construction period, so the investment enthusiasm in the smart campus industry is likely to be maintained for at least three years.
Analysis of Profit Models in the Smart Campus Industry
There are two common profit models in the smart campus (education informatization) industry: traditional bidding models and C-end charging models. Smart campus is a general term for products in the education informatization industry. In terms of products and models, smart campuses still belong to the traditional bidding model, and C-end charging is a new profit model extended based on the Internet attributes of smart campus products. First, let us explain the two mainstream profit models of smart campuses (education informatization).
1. Traditional bidding model
Smart campus products mainly target public schools and realize intelligent management and teaching on campuses through the combination of information technology and the Internet of Things. Naturally, bidding with national units cannot be separated from the "Government Procurement Law". That is, companies provide smart campus products to schools through bidding, wait for project payment after acceptance, and the bidding model has a long time cycle and complex operation. If entrepreneurs without industry experience and certain personal connections undertake such projects, they may find it more difficult and require a certain amount of time accumulation.
2. C-end charging model
Smart campuses are product forms formed based on Internet technology, realizing the interchange and interaction between education bureaus, schools, parents, and children through information technology to achieve efficient campus management and teaching. Based on the Internet background, the C-end charging model of smart campuses has emerged in recent years. The common model is selling smart campus products to parents of students and achieving profitability through service and product charging. The C-end charging model has relatively low barriers compared to the traditional bidding model, with fast business expansion. However, there are certain barriers, such as changes in local policies that may hinder the promotion of C-end charging.
In the future, education informatization will upgrade the existing education network and campus network, and the new generation of education networks will inevitably become the basis for future education informatization. The Asia Education Network Quality Education Cloud Platform is a domestic education cloud platform that achieves integration of three networks and supports cross-platform use of the Internet, telecommunications network, and radio and television network, as well as full coverage of mobile messages from China Unicom, China Telecom, and China Mobile. Smart campuses are an important part of national informatization, and they have profound significance for transforming educational ideas and concepts, deepening education reform, improving the quality and efficiency of education, and cultivating innovative talents. They are an inevitable choice for achieving leapfrog development in education.