Editor's note: The third China International Import Expo Enterprise Alliance consists of 156 exhibitors, all of which are Fortune 500 companies or industry leading enterprises. They have established seven special committees at the CIIE across different sectors -- public health and epidemic prevention, dairy, industrial digital transformation, auto innovative development, smart supply chain, daily consumer products, and sports.

Nine sessions of activities, such as policy exchange conferences, roundtable talks, and subforums were held by the special committees at the CIIE, during which relevant industrial reports were published and the CIIE will share here to better serve our professional exhibitors and visitors.

The following article is about the report on the prospect of digitalization of the energy industry in China released by the Industrial Digital Transformation Special Committee.

The total investment that global enterprises will make in promoting the digitalization of the energy industry from 2018 to 2050 is estimated to be $38 trillion, and this will greatly boost the development of relevant sectors, according to a report released by the Industrial Digital Transformation Special Committee of the China International Import Expo Enterprise Alliance.

The market value of China's energy industry in 2020 is estimated at more than $940 billion, accounting for 7 percent of the nation's GDP. This figure is close to the combined value of the United States and Europe, which was estimated at $1.1 trillion this year, the report stated.

The digital transformation of the energy industry in China features diversified market players, different business models, strong research and development capacity, and government-led reforms, the report said.

Industry experts have observed that many players along the energy industrial chain, including smart energy producers, internet service providers and smart energy users, have released plans to promote the digitalization of the energy industry.

Seven business models, including power distribution management, system maintenance services, energy and derivative trade and data asset operation, have been observed in China. An ecosystem, which allows companies to crossover, is emerging, the report stated.

Over the last few years, the Chinese government has been reforming its energy industry with the aim of creating a new supervision system for energy internet and unlocking more market potential, according to the report.

Energy manufacturers and enterprises directly under the central government in China have been stepping up efforts in constructing facilities to promote digitalization. However, many of them are still at the nascent stage and have yet to create significant value.

The report pointed out that data quality will play a crucial role in promoting the digital transformation of the energy industry. The Chinese energy industry is also facing a particular challenge in effectively and accurately collecting, managing, analyzing and using data. Some companies' reluctance to invest in relevant systems and a lack of mechanisms to evaluate newly purchased systems are contributing to this challenge.

So far, new technologies such as cloud computing, big data analysis, internet of things, artificial intelligence, blockchain and quantum computing have been developed to support the digital transformation of the energy industry. Companies have to pay greater attention to innovation, smart asset management, business strategies, safe production and data security.

Governments have to provide more policy support, form more technology-focused associations, establish more information-sharing platforms, set more industrial standards and pay greater attention to intellectual property protection and data security to support the further development of energy industry.

The Industrial Digital Transformation Special Committee, comprising 30 companies including Dow, Baker Hughes, Johnson Controls, Emerson and Omron and Accenture, was established in August to promote communication and cooperation among enterprises. The report was prepared based on case studies of companies in Lianyungang, Taizhou and Suzhou of Jiangsu province, Taizhou of Zhejiang province, Meishan of Sichuan province, and Chongqing. 

By Tang Zhihao