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5G will detonate the in-vehicle communication market, and local chip and module manufacturers will accelerate the layout of the automotive field
As one of the relatively clear 5G industry application scenarios, the Internet of Vehicles is advancing in an orderly manner in terms of technological breakthroughs and commercial applications. The development of 5G will drive the explosion of the in-vehicle communication module market and increase the growth rate of the entire Internet of Vehicles.
As an emerging market, there are still many development opportunities in different segments of the Internet of Vehicles. The trend of intelligent networking will make automobiles a new mobile terminal. Demand for in-vehicle wireless communication chips and modules is improving, and its market application scenarios are highly certain and critical. Attracted by this segment, local communication chip and module manufacturers are accelerating their entry into the automotive field.
5G will detonate the in-vehicle communication market
In the first half of this year, the "Smart Vehicle Innovation Development Strategy" was officially released, emphasizing vehicle-road interaction, intelligent vehicles, and synergy with 5G construction. Under the background that the domestic 5G construction is fully rolled out and 5G is about to be commercialized, the construction of the Internet of Vehicles has also officially started, and the intelligence of road terminals and automobile terminals will be further improved.
The investment per kilometer for intelligent road construction is about 1 million yuan, including 600,000 car networking base stations and 400,000 road renovations. If calculated with nearly 150,000 kilometers of domestic expressways, there will be a 100 billion-level market for expressway renovation alone. scale.
In terms of automotive smart terminals, the market scale of automotive smart terminals with key systems and components such as positioning systems, on-board sensors, and communication modules is growing rapidly. According to the former Minister of Industry and Information Technology Miao Wei, by the end of 2020, the market size of China's intelligent networked vehicles can reach more than 100 billion yuan.
At the same time, the State Council also issued a few months ago its implementation opinions on further optimizing the business environment and better serving market entities. Judging from the content of the opinions, in order to realize the roadside test of the intelligent networked car, the communication module with stronger communication capability must be installed on the car side and the end-to-end communication standard must be established. , Service platforms, etc.
With the help of huge market size and policies, more and more companies are attracted to enter the related subdivisions of the Internet of Vehicles. After collecting statistics on the micro-network, it is found that there are already many listed companies that have laid out the Internet of Vehicles industry chain, which can be divided into two major categories according to the car terminal and road end. In terms of vehicle, it mainly involves modules, vehicle units, map navigation, and positioning. Core companies in such fields; on the roadside, there are mainly roadside units, antennas, edge computing servers, and transmission equipment.
From the above table, there are currently more than 20 listed companies in the Internet of Vehicles industry chain. Among them, module manufacturers are mainly Quectel, Guanghetong, and Youfang Technology. Chip manufacturers Aojie Technology and Unigroup Zhanrui also The listing counseling has been launched.
Local companies expand investment in communication chips and modules
In the Internet of Vehicles, the communication module is the key link between the vehicle perception layer and the network layer. The data generated by all the terminals of the Internet of Vehicle perception layer needs to be aggregated to the network layer through the wireless communication module, and then the car can be remotely controlled through the cloud management platform. The wireless communication module belongs to the underlying hardware link, which has considerable irreplaceability and maintains a one-to-one correspondence with the car networking terminal.
From the perspective of vehicle networking communication standards, part of the standard comes from DSRC led by the United States, and the other part is V2X based on cellular networks. An industry insider said to Jiwei, “From the evolution process of IoV communication, it can be found that related standards are developing in accordance with the process of 5G standards, and the IoV standards based on cellular networks are a gradual evolution and iterative process.”
In other words, the development of 5G will drive the explosion of the in-vehicle communication module market, which will speed up the development of the entire Internet of Vehicles. According to Strategy Analytics, the number of M2M connections will increase from 368 million in 2013 to 2.9 billion in 2022, with a compound annual growth rate of 23%. With the accelerated application of 5G technology in the industry, the network connection between vehicles, roads, and service platforms will be faster and more stable.
An investment banker told Jiwei.com, “Starting this year, the information we have learned shows that the number of connected cars in my country is still growing. This will further promote the accelerated development of the automotive pre-installation market. Rapid increase in volume after this year."
"Spring River Plumbing Duck Prophet". Companies that have been focusing on the field of communication modules can be the first to discover opportunities for in-vehicle communication modules from the aspects of policy, technological development, and market demand. Judging from the statistics on the industrial chain of Jiwei, Guanghetong, Quectel and other companies have already deployed communication modules and are willing to further expand their scale.
With the improvement of the vehicle networking communication ecosystem in recent years, Fibocom is actively deploying in-vehicle communication modules. According to the financial report, Fibocom has invested 204 million yuan in R&D expenses in 2019 for the car network and 5G market, and is the first to launch industry-leading LTE Cat.1, C-V2X and other wireless communication modules and 5G wireless communication module FG150 And FM150.
It is worth noting that Fibocom plans to acquire Sierra car front-mounted cellular module business with the help of a shareholding company not long ago to directly obtain international giant customers such as Volkswagen and PSA, becoming the first domestic company to enter the global Internet of Vehicles. Fibocom said that in the future, the company will focus more on the field of Internet of Vehicles and accelerate the globalization of Internet of Vehicles business.
In addition to Fibocom, Quectel is also accelerating the deployment of IoV communication modules. In 2019, Quectel launched a variety of products, such as the AG550Q series of automotive-grade 5G modules that support SA and NSA modes. Thanks to the diversified product layout, an insider of Quectel disclosed that “Quectel’s performance in the first quarter increased by 39.5%, and it has also established an R&D center in Foshan.”
In terms of in-vehicle products, the above-mentioned people said that Quectel's in-vehicle communication modules were already shipped last year. At present, it is mainly deployed in domestic auto companies and will be deployed globally in the future. Regarding the shipment volume of in-vehicle communication products, Jiwei learned from Quectel's 2019 annual report that last year there were not many shipments of in-vehicle communication modules. The reason is mainly related to the progress of the industry.
Although the overall shipment volume is small, the industry is highly certain and its development is accelerating. Quectel is also actively recruiting troops. According to the above-mentioned person, "Hefei's factory and Foshan's R&D center are hiring people. The investment in 5g is relatively large, and Cat.1 is also hiring people for future reserves."
The active layout of communication module manufacturers has driven the strong demand for upstream communication chips. At present, domestic companies such as Aojie Technology and Ziguang Zhanrui have deployed IoV communication chips.
Regarding the development prospects of communication modules and chips, investment bankers believe that “the domestic semiconductor industry is in a golden age, and the Internet of Vehicles is an emerging industry. There are still great opportunities in many segments. In other words, the biggest opportunity lies in the domestic new energy vehicles occupying market advantages. In the process of automotive intelligent networking, a large number of modules and chips are required. Moreover, the new energy customers served by these manufacturers have large shipments. Running in with car companies In the process, module manufacturers can better understand the needs of mainstream customers."
Industry insiders also said that 5G will drive the explosion of the communication module market and promote the rapid development of the car networking market. Communication module and chip manufacturers with a deep understanding of car-level products are expected to emerge from the car networking track and develop into The world's leading company in this segment.