China's car networking industry in 2024

Industry profile

1. Definition

Vehicle networking is based on vehicle Intranet, vehicle Internet and vehicle cloud network. According to agreed communication protocols and data interaction standards, vehicle-X (X: A large system network for wireless communication and information exchange between vehicles, roads, pedestrians and cloud platforms, etc., is an integrated network capable of realizing intelligent traffic management, intelligent dynamic information service and intelligent vehicle control, and is a typical application of Internet of Things technology in the field of traffic systems.

The Internet of vehicles mainly includes five types of elements: people, vehicles, roads, communications, and service platforms. "People" are road environment participants and vehicle networking service users; "Car" is the core of vehicle networking, mainly involving vehicle networking and intelligent systems; "Road" is one of the important external environments of the Internet of vehicles business, which mainly involves the related facilities of traffic informatization; "Communication" is the carrier of information interaction, opening up the information flow in the car, car, road and car cloud; "Service platform" is the business carrier and data carrier to realize the service capability of vehicle networking.

The development of vehicle networking technology and the continuous improvement of service capabilities, with the help of all-round connectivity and information interaction between people, vehicles, roads, and cloud platforms, has spawned a large number of new product applications. The narrow sense of vehicle networking application usually refers to the application of vehicle information service, that is, through the vehicle to integrate the owner with various service resources; The broad application of vehicle networking also includes traffic oriented safety and efficiency applications and collaborative service applications based on autonomous driving.

Car networking applications have different classification methods from different perspectives, which can be divided from the dimensions of networking technology, application objects and demand objects, but no matter which classification method is used, it involves information service applications with user experience as the core, automotive intelligent applications with vehicle driving as the core and intelligent transportation applications with collaboration as the core.

2, industry chain analysis: long industrial chain, involving a wide range of fields

The car networking industry ecosystem is complex, which makes the car networking industry form a long industrial chain, and the car networking industry chain spans the two major fields of service industry and manufacturing industry, mutual penetration, and cross-border integration is prominent.

Due to the strong cross-border penetration and integration of the car networking industry, its industrial chain composition is also different from the traditional upper, middle and downstream industrial chain composition, which can be analyzed in combination with the structure of the car networking system. The system structure of the Internet of vehicles includes three systems: "end, pipe and cloud", and the industry chain of the Internet of vehicles can be divided from these three system dimensions.

The "end" level is dominated by manufacturers, including vehicle manufacturers, automotive electronic system providers, component providers, in-car software providers, etc. The "management" level involves related manufacturers in the two major fields of manufacturing and service industry, mainly including equipment providers and communication service providers; The "cloud" layer is dominated by services, including software and data providers, public services, and industry service providers. Service layer enterprises mainly include four dimensional new, Seg navigation, Qianfang technology, etc. The platform layer is mainly the platform and operation link, the main enterprises include China Mobile, China Unicom, etc.; The application layer is classified according to function, security and test inspection enterprises mainly include Xinda Jiean, Huada Electronics, etc., high-precision positioning and map service enterprises include Amap, Big Dipper Star Com, four dimensional Map new and so on.

Industry development history: It is currently in the deep integration stage of 5G+ vehicle networking

China's car networking started in 2009. In 2009, SAIC General Motors named OnStar and officially introduced Onstar to China, taking the lead in the forward-looking exploration of car networking applications in China. According to the development of car networking technology, China's car networking market has experienced the introduction stage of car networking (support for remote calls), the mobile Internet stage (share mobile phone applications with cars), the car IVI stage (in-vehicle entertainment, around the center control screen), and the 5G+V2X stage.

At present, China's car networking industry is in a period of deep integration with 5G technology. With the evolution of automobiles from traditional means of transportation to the direction of intelligence, networking and electrification, the Internet of vehicles has become the most potential application of cross-border integration in the field of 5G transportation and automobiles, and has become an important development direction of China's strategic emerging industries, and is also the current interdisciplinary, cross-field, cross-industry management department of technology research and industrial development hotspot. In the future, with the maturity of 5G and V2X technologies, the car networking industry will open new markets.

Industry policy background: 5G vehicle networking is the ultimate application field of policy guidance

At present, the relevant policies of China's car networking are based on the integration layout and coordinated development of relevant technology fields. At present, China is mainly engaged in the application integration of vehicle networking and 5G technology to promote the faster realization of intelligence and digitalization in transportation, automotive and communications industries. The 5G Application "Sail" Action Plan (2021-2023) released in June 2021 and the Guiding Opinions on Expanding investment in strategic Emerging Industries to Cultivate and Expand New Growth Points and growth Poles released in September 2020 both make detailed plans for the future development goals of 5G vehicle networking. In addition, the current Chinese policy is based on the upgrading of vehicle-road and vehicle-vehicle collaborative technology to support intelligent transportation, improve driving safety and improve traffic efficiency. Therefore, the construction of vehicle networking pilot areas, roadside facilities and related network security standards system has also become an important topic.

Industry development status

1. Current situation of vehicle equipment: there are many kinds of products and rich technical types

As the vehicle receiving end of the whole system, OBU is one of the important components of the whole traffic system, the source of data and the end of information transmission. Car end hardware including controller, CAN card, global positioning system (GPS), inertial measurement unit (IMU), sensing sensors, etc., the current cost is high, and the price may be reduced after mass production. Hardware is the just need of intelligent driving cars, if the technology is mature, the vehicle without the relevant hardware will face the possibility of replacement. In addition to the software and hardware necessary for intelligent driving, the vehicle information system is also in the rising period of the industry, with low concentration and huge space for development. The vehicle information entertainment system mainly includes three main functions from its function, namely entertainment, connection and navigation, and is developing towards platform, which is the necessary carrier for realizing intelligent cars. With the continuous progress of smart car technology, cars can achieve functions such as controlling home air conditioning/curtains/lights/door locks, and various application software can be directly installed in the car, forming a car-mobile phone-home-service interconnection mode.

Among the technical routes with higher technical characteristics of the end-vehicle equipment, OTA remote upgrade is the technology with the highest application maturity, while high-level automatic driving L5 is the technology with the lowest application maturity and the most difficult breakthrough. Among the technical routes with low technical characteristics of end-vehicle equipment, V2X traffic lights and speed limit warning and automatic emergency call are the most mature technologies, while automatic parking in parking lots is the least mature technology.

2, vehicle demand status: car ownership to improve the Internet of vehicles to promote the rapid growth of intelligent networked vehicles

According to the Ministry of Public Security, in 2017, the number of motor vehicles in the country exceeded 300 million, and the number of cars exceeded 200 million. In 2020, China's car ownership surpassed that of the United States, becoming the largest country in the world with a single country's car ownership. In 2021, the number of motor vehicles increased further, reaching 395 million, of which 302 million were automobiles. By the end of 2022, the number of vehicles in the country was 319 million, an increase of 5.63 percent year-on-year.

Under the rapid development and penetration of vehicle networking technology, the development of intelligent connected vehicles has become a consensus, and the development environment for intelligent connected vehicles in China is becoming increasingly perfect. In the face of scientific and technological revolution and industrial change opportunities, independent high-end brands and new car-making enterprises have laid out intelligent connected automobile business, and have completed the layout in many links of the industrial chain. With the progress of intelligent network technology, the continuous iterative upgrading of products and the change of vehicle electronic and electrical architecture, a large number of Internet companies have flooded into the domestic market and cut into the field of intelligent network vehicles by cross-border cooperation. Saic, BAIC, Changan, GAC and other traditional car companies began to develop, test and launch intelligent network models. Some models have been equipped with L2 level intelligent driving assistance functions as standard, and intelligent networked vehicles have realized normal manned load testing and demonstration applications in many places across the country. From 2017 to 2021, the scale of China's intelligent connected automobile industry has grown rapidly, and the scale of China's intelligent connected automobile industry has exceeded 400 billion yuan in 2021, an increase of 53.1% year-on-year. Preliminary statistics by 2022, the scale of China's intelligent connected automobile industry will reach 597.5 billion yuan.

3, car networking market size: rapid growth rate

With the rapid development of 5G technology, users' willingness to pay for car networking functions will also increase. According to the data of CCID think tank, the growth of the short-term car networking market mainly relies on the number of new hardware and user value-added consumption, due to the promotion and application of 5G technology in 2020, the development of V2X technology and the improvement of user value-added payment, the market has ushered in explosive growth, with a growth rate of more than 60%. In 2022, the preliminary statistics of China's car networking market will exceed 130 billion yuan.

Industry competition pattern: the industry competition is more intense

From the perspective of the competitive echelon of China's car networking industry, the leading enterprises with strong strategic and technical strength in China include Ali, Huawei, Tencent and Baidu; Strong performers include Siwei Touxin, Neusoft Group, Gaoxin and Qianfang Technology and other enterprises; Competitors include traditional and Internet car makers such as Geely Holding and Chery Group.

From the perspective of market share, the current market share of software, data and service providers is small, of which the market share of 10 representative enterprises in 2022 is only about 10%. Leading enterprises in communication and cloud service providers and vehicle manufacturing have large scale advantages and wide layout fields, occupying a dominant position in the market and having a high market share, which is represented by Huawei, Tencent, BYD and other enterprises.

Industry development prospect and trend forecast

1. Development trend: towards the direction of systematization, intelligence and marketization

At present, the automobile industry has reached a consensus, low carbonization, information, intelligent become an important direction of future development, the production mode to the intelligent manufacturing system of interconnection and cooperation evolution, the service model will move towards the direction of information and sharing. The intelligent connected vehicle with distinctive cross-border integration characteristics is the most important innovation carrier in the process of transformation and upgrading of the automotive industry.

2, development prospects: car networking industry will grow rapidly

China's vehicle networking industry segments mainly include the vehicle end equipment market, roadside equipment market, cloud equipment market and operation service market. With the development of Chinese automobiles to intelligence and network connectivity, smart roadside devices are constantly laid on urban highways, expressways and intersections, cloud platforms, edge computing and communication operation technologies continue to break through, and the market space of China's car networking industry is broad. In 2028, China's car networking industry market will reach 244.8 billion US dollars, with a compound growth rate of 13% in 2023-2028.