China's internet of things (IoT) market was worth more than 1.19 trillion yuan ($174 billion) last year, according to a report released on Sept 13 by China Economic Information Service.

The Annual IoT Industry Development Report of China revealed that the national IoT market grew by an incredible 1 trillion yuan between 2009 and 2017, with over 25 percent compound annual growth during that period.

According to the report, the IoT market will continue to grow rapidly over the next few years, and is expected to hit 1.5 trillion yuan by the end of this year.

But Cao Wenzhong, vice-president of China Economic Information Service, said that there are still challenges ahead, during a press conference in Wuxi, Jiangsu province.

We need to see more investment in IoT research and development, with China actively participating in the process to set international standards, he said.