China has allocated a special fund to support the development of the Internet of Things (IOT) industry. The total fund of 5 billion yuan is expected to support the industry for the coming five years, China Securities Journal reported Tuesday.

The fund has been set to support IOT in technology research and development, industrialization, application model, standard design, and public service.

The Ministry of Industry and Information Technology (MIIT) has approved funding for approximately 100 of the 600 companies that applied in May, the newspaper reported.

The IOT development plan for the 12th Five-Year period predicted that the industrial scale would reach 200 billion yuan ($31 billion). Systems, tests and examinations would account for 70 billion yuan; 60 billion yuan from chips, middleware, integrated modules and equipments; 60 billion yuan from project implements, service developing systems and maintenance; and 10 billion yuan would come from sensor production, according to experts.

The IOT development plan for the 12th Five-Year period is currently being reviewed by an expert panel and may be released as early as September after a minister conference, said sources at the technology bureau of MIIT.