Localization and Substitution of Industrial Routers: Development Opportunities and Challenges in the Context of Information Technology Application Innovation
At a time when the wave of information technology application innovation (ITAI) is sweeping across the globe, industrial routers, as the core hub equipment of the industrial internet, are undergoing a crucial transformation from being "available" to "autonomous and controllable." Localization and substitution are not only an inevitable choice for technological iteration but also a strategic requirement for safeguarding national industrial security and promoting industrial upgrading. This article will analyze the opportunities and challenges of localization and substitution of industrial routers from dimensions such as policy drivers, technological breakthroughs, market landscapes, and product practices.
The core objective of the ITAI industry is to build a secure and trustworthy information technology system through autonomous and controllable technologies. In the industrial field, routers, as key nodes connecting devices and networks, have their localization and substitution directly related to industrial data sovereignty and supply chain security. In recent years, the state has promoted the comprehensive substitution of imported equipment in eight key areas, including party and government affairs, finance, and energy, through the "2+8+N" industry ITAI strategy. Taking 5G industrial routers as an example, their high-speed and low-latency characteristics are deeply integrated with the industrial internet. However, if their core chips rely on imports, they may face the risk of technological blockades. Therefore, localization and substitution are not only a policy requirement but also an inherent need for technological development.
The difficulty of localization and substitution lies in breaking the closed-loop ecosystem formed by foreign technological monopolies. Taking chips as an example, high-end photolithography machines, etching machines, and other equipment have long been monopolized by companies such as ASML in the Netherlands, resulting in domestic chip manufacturing processes lagging behind international levels. However, domestic companies are accelerating breakthroughs through the "project bidding and leading talent selection" mechanism: Companies such as Huawei HiSilicon and Unisoc have achieved mass production of 5G baseband chips, and operating systems such as UOS and Kylin OS have passed the Level 4 certification of the Ministry of Public Security's information security classification protection, forming an integrated ecosystem of "chips - operating systems - application software." This collaborative innovation model provides underlying support for the localization and substitution of industrial routers.
Traditional industrial routers need to adapt to harsh environments such as high temperatures and strong electromagnetic interference, while localized substitute products have achieved a performance leap on this basis. Taking the USR-G806w from Jinan USR IOT Technology Co., Ltd. as an example, it adopts a full-metal casing and an IP30 protection rating, supports wide-temperature operation from -20°C to +70°C, and is equipped with built-in hardware and software watchdogs and self-repair functions for faults, ensuring stable operation of the device when unattended. In terms of communication capabilities, the product integrates 4G LTE full Netcom, dual-band Wi-Fi, and dual Gigabit Ethernet ports, supporting automatic switching among the three major operators, and improving network stability by more than 30% compared to traditional devices.
The core value of localization and substitution of industrial routers lies in security and controllability. The USR-G806w builds an encrypted tunnel for data transmission through five-fold VPN encryption (PPTP, L2TP, IPSec, OpenVPN, GRE) and firewall functions such as IP black and white lists and port forwarding. Its support for SIM card PIN code locks and Wi-Fi hidden SSID functions can effectively prevent man-in-the-middle attacks. In addition, the device has a built-in "USR DM remote networking" function, enabling cross-regional device interconnection without a public network IP. Combined with the real-time monitoring and fault alarm functions of the USR Cloud platform, it forms an integrated "end-pipe-cloud" security system.
The diversity of industrial scenarios requires routers to have a high degree of customization capability. The USR-G806w supports industrial protocols such as Modbus and OPC UA and can be seamlessly connected to devices such as PLCs and sensors. Its open API interfaces and SNMP protocol allow users to conduct secondary development according to their needs. For example, in a large logistics warehouse, the device enables real-time positioning and scheduling of AGV trolleys through 4G networks and Wi-Fi relay functions, and a multi-network backup mechanism ensures task continuity. In a smart agriculture project, its wide-temperature design and IP protection rating ensure the long-term stable operation of the device in harsh environments such as rainy seasons and high temperatures.
According to data from China Industry Research Network, the size of China's router market reached $56.5 billion in 2024, with industrial routers accounting for more than 20%. Under the ITAI strategy, the demand for localized equipment in areas such as government, energy, and transportation has surged. For example, State Grid requires 100% autonomous controllability of core equipment by 2025, providing a broad market space for domestic industrial routers. In addition, the integration of new technologies such as 5G and edge computing with the industrial internet has spurred demand for high-performance routers, and domestic manufacturers can seize the initiative through technological iteration.
Despite the progress made in localization and substitution, challenges remain severe:
Ecological Barriers: There is a shortage of application software for domestic operating systems, and some industry software (such as industrial design EDA tools) still relies on imports, resulting in high user migration costs.
Performance Gap: The manufacturing process of high-end chips lags behind international levels, leading to insufficient performance of domestic routers in ultra-low-latency and high-concurrency scenarios.
User Perception: Some companies are concerned about the stability of domestic devices, especially in areas such as finance and healthcare that have extremely high requirements for business continuity, and have a low willingness to substitute.
In the future, localized industrial routers will develop in the direction of intelligence and integration. For example, by combining 5G SA standalone networking with AI algorithms, dynamic allocation of network bandwidth and fault prediction can be achieved. Through edge computing capabilities, data preprocessing can be completed locally, reducing the load on the cloud. The USR-G806w already has preliminary intelligent features. Its supported USR Cloud platform enables device status monitoring and remote firmware upgrades, and it is expected to integrate more AI functions in the future.
The ultimate goal of localization and substitution is to build an autonomous and controllable industrial ecosystem. Domestic manufacturers need to strengthen cooperation, such as Huawei Kunpeng Ecology and China Electronics PKS System, to break foreign technological monopolies through standard setting and joint research and development. At the same time, the government should increase investment in basic research to support the research and development of key equipment such as photolithography machines and etching machines, fundamentally solving the problem of "chokepoint" technologies.
With the advancement of the Belt and Road Initiative, domestic industrial routers can export ITAI solutions to developing countries. For example, the wide-temperature design and multi-network switching function of the USR-G806w make it highly suitable for areas with weak infrastructure such as Southeast Asia and Africa. By participating in the formulation of international standards (such as the internationalization of information security classification protection 2.0), the voice of Chinese brands in the global market can be enhanced.
The localization and substitution of industrial routers are a concrete practice of the ITAI strategy in the industrial field. Their significance lies not only in technological autonomy but also in building a secure and controllable industrial ecosystem. Despite the remaining challenges, the triple drivers of policy dividends, technological breakthroughs, and market demand are driving domestic manufacturers to transform from "substitutes" to "leaders." In the future, with the deep integration of technologies such as 5G and AI, localized industrial routers are expected to become the core infrastructure of the global industrial internet, providing solid support for the upgrading of China's manufacturing industry to China's intelligent manufacturing.
