Ingdan is a leading enterprise service platform, dedicated to trading IC and related products and providing services to AI and IoT sectors in China. Following a major business restructuring in 2019, we merged our chips sales on Cogobuy.com and on INGDAN.com AIoT services into our Ingdan Innovations, and merged our R&D and IoT product financing and corporate services, previously under INGDAN.com AIoT business services platform, into our Ingfin Services, forming a new “Ingdan Innovations + Ingfin Services” dual business model.
Ingdan Innovations leverages a network of over 50% of global IC suppliers including the world’s top 100 suppliers and the leading domestic chip companies. It also provides comprehensive and professional technology application solutions to upstream chip suppliers by promoting their products and technologies’ applications using its INGDAN.com and big data analysis capabilities. Meanwhile, Ingfin Services focus on developing proprietary products for different AIoT industries, including the Internet of Vehicles, smart homes, AI surveillance, etc. Ingfin Services will also seek investment opportunities in high-quality startups within our AIoT ecosystem, to improve our overall strategic position and generate investment income.
We are expected to directly benefit from China’s new infrastructure construction, especially in science and technology facilities includes, 5G infrastructure, data centers, AI, and the Internet segments. As at the end of 2019, over 100 countries/ regions in the world have launched investments in 5G networks, and 5G has become the centerpiece of China’s new infrastructure. A report published by the China Academy of Information and Communications Technology (“CAICT”) estimated that the accumulated investments in 5G network construction will reach RMB1.2 trillion in the next 5 years. At the same time, 5G network construction will encourage application investments and network transformations within the upstream and downstream players along the industry chain, as well as for different industries. CAICT forecasted that the investment scale of upgrading China’s existing network will reach RMB500 billion by 2025 while 5G network construction will also stimulate application investments worth RMB3.5 trillion in different industries. With 2020, being the starting year of the 5G era, 5G infrastructure is set to grow immensely with the support of various government policies. We believe this will create enormous market opportunities for our IC business.
Our business covers the entire 5G construction value chain, providing products such as communication chips, modules, antenna and radio frequency products, and more. Investments in 5G infrastructure will strongly boost our business, and our network gateway communications devices business is expected to grow significantly in 2020. Additionally, new infrastructure segments such as big data and cloud services, Industry of Internet, and AI are also expected to drive growth within the IC business in the future.
V2X has also been positioned to become a new growth driver. Since 2018, the growth rate of IoT devices worldwide has maintained a strong momentum, with over 7 billion connected devices and a growing penetration rate, according to a report published by China Economic Information Service. IoT applications such as V2X, smart city, Industrial IoT, and others, are rapidly becoming reality, of which V2X is regarded as the most prominent segment within 5G vertical industry applications. According to the China Society of Automotive Engineers, the sales for new V2X-enabled vehicles in China will reach the rate of 80% and 100% by 2025 and 2030 respectively, with an over RMB1 trillion market. According to the “5G Economic and Social Impact White Paper” published by CAICT, the Chinese V2X industry investment in communication devices and services will reach RMB12 billion by 2030. We are optimistic about the potential of V2X and have already developed and invested in the V2X market through Ingfin Services. We have also established a V2X value-chain alliance with chip manufacturers, module suppliers, and car manufacturers in order to prepare in advance for the commercialization of V2X.
Since 2019, we have successfully introduced various vehicle suppliers into Toyota’s supply chain certification system, which will help facilitate the adoption of Chinese smart car projects by globally leading companies. We had also made a strategic investment in Locoway Technology Holdings Limited, a service supplier specialized in in-depth research and development for automatic safe driving smart terminals, including Advanced Driver Assistance Systems (“ADAS”) and Driver Monitoring Systems (“DMS”) as well as providing hardware, software, and services for smart cars. We believe the investment will further enhance our position in the V2X market.
Well-positioned to offer more value-added services, we commenced our supply chain financing business in September 2014 whereby we earn interest income for providing certain financial services to third-party manufacturers, including provision of working capital financing programs. In December 2016, we extended our supply chain financing business and established a new business unit, IngFin Financing Services. With IngFin Financing Services business, we aim to increase investments in the big data based enterprise financing business, including loans for investment initiatives and other enterprise financing services. IngFin Financing Services is a good demonstration of our strength to generate new revenue stream by providing additional services based on existing platform.