Jiwei network news, "black box" on the car into the inevitable, a tens of billions of market space after the opening will be added to the development of the chip industry again.
EDR is mandatory worldwide
GB 7258–2017 "Technical Conditions for the Safety of Motor Vehicle Operation" National Standard No. 2 was issued, requiring that from January 1, 2022, newly produced passenger cars should be equipped with EDR (i.e. Event Data Recorder, automotive event data recording system). EDR is used to record the key data of the car's operation in the three stages before, during and after the collision, such as vehicle speed, collision acceleration, steering wheel steering angle, engine status and other important information.
With the continuous growth of the new energy vehicle market, non-man-made accidents such as accidental spontaneous combustion and loss of control of electric vehicles have occurred at home and abroad in recent years. Ordinary dashcams can no longer meet the amount of data collected for accident identification. Therefore, various countries around the world are accelerating the promotion of EDR as the standard for new energy vehicles, and some countries have long had regulatory requirements for this.
South Korea has been required to install EDR for cars including stock cars since December 2015; Europe requires mandatory installation of new cars in March 2022, and by March 2024, stock cars must also meet the requirements; the United States requires all domestic sales vehicles after September 2014 to be equipped with EDR, and 99% of new cars listed in 2019 have been equipped with EDR; Japan has independent standards, but it is not mandatory to install EDR.
In September 2017, China added the requirement that passenger cars should be equipped with an event data recording system (EDR) or an on-board video driving recording device in the technical conditions for the operation safety of motor vehicles, and in the same month, the National Standards Commission issued a mandatory national standard "Automotive Event Data Recording System" to formulate a plan; in November 2019, China's EDR standard (C-EDR) has been determined and is promoted in two stages; in December 2020, GB39732-2020 "Automotive Event Data Recording System" The national standard version was officially released, and the EDR was explained.
EDR drives the automotive semiconductor market
At present, Tesla's Model S, X, and 3 models are equipped with EDR. In the Chinese market, in addition to ABB and Lexus luxury cars equipped with EDR, a number of independent brands have been equipped with EDR equipment as standard in many models, such as Great Wall's Haval, Xiaopeng G3/P5, BYD Han EV, Weilai, Wuling Hongguang MINEV, etc.
Huaxi Securities pointed out in the research report that China's passenger car market has basically stabilized at about 20 million units in the past 5 years, assuming that with the rapid popularization of EDR, the price of equipment has fallen sharply, and the price is expected to stabilize at about 500 yuan, and the market space for EDR equipment is conservatively expected to be about 10 billion yuan.
The EDR hardware part mainly includes the main control chip MCU, power module, memory module and sensing module: the sensor is responsible for data acquisition (data includes vehicle speed, driver seat belt status, turn signal switch status, brake pedal position, etc.), the main control chip will analyze and compress the collected status information and write it to the storage unit, and receive and transmit real-time data through the automotive CAN data bus. When an accident occurs, the accident can be reconstructed by extracting the ECU parts and reading the relevant data in flash with the help of the EDR Data Reading Tool (CDR).
At present, the main supplier of CDR third-party tools is Bosch, and some OEMs have their own readout tools, the price is about 6000-7000 US dollars, and the software maintenance fee of about 1000 US dollars is also paid every year.
The research report pointed out that at present, there are not many companies that independently supply passenger car EDR hardware products by domestic manufacturers, and most manufacturers have layouts in the field of commercial vehicle EDR, such as Hongquan Internet of Things, Qiming Information, etc., but because the passenger car EDR adopts the front-loading mode, the safety and reliability requirements for vehicle specifications are high, and independent EDR manufacturers need a long verification cycle to enter the oem.
In addition, the new car-making forces have a strong research and development strength, EDR as the standard of new cars in the future will drive storage, backup power supply, sensors (mostly overseas suppliers), MCU (mostly overseas suppliers) demand increase, especially vehicle standard storage, backup power supply and so on belong to the new market.
Statista's data shows that in 2020, the global automotive semiconductor market size was about $38.5 billion, which was about 8% smaller than the previous year due to the global chip shortage. However, the market is expected to start growing in 2021 and is expected to exceed the size of about $55.5 billion by 2023.
Among them, MCU, automotive MCUs show a giant monopoly situation, Gartner statistics as of 2020 data show that the world's six major original factories - Renesas Electronics, NXP, Infineon, Texas Instruments, Microchip Technology, STMicroelectronics the total market share of 94.2%. However, the global lack of cores, as well as the Sino-US trade war and the new crown epidemic, has accelerated the domestic substitution of automotive MCUs in the Chinese automotive market, and domestic suppliers have ushered in a window of time and opportunity. Such as Xinwangwei, Gigabit Innovation, Yuntu, etc. have been laid out in terms of vehicle-grade MCU chips.
In terms of MEMS sensors, Huajing Industry Research Institute pointed out in the report that there is currently a lack of large enterprises engaged in the research and development and mass production of MEMS pressure sensors in China, and the market share of the global MEMS pressure sensor market is still mainly occupied by foreign manufacturers such as Bosch, Infineon, and STMicroelectronics. Domestic manufacturers in consumer electronics and other industries are expected to achieve breakthroughs through subdivision products, and there is a broad space for domestic substitution. In addition, enterprises in the field of professional wafer manufacturing and packaging have gradually increased their investment in MEMS business, and together with the company, they have developed the manufacturing and processing technology of the corresponding production links of MEMS products. The R&D and production system of China's MEMS industry has been continuously improved, providing a good development environment for the development of the domestic MEMS industry.
In terms of storage, ICInsights data shows that in the DRAM market, Samsung, Hynix and Micron monopolized about 95% of the global market share in the DRAM market. The DRAM industry is highly concentrated, showing a monopoly pattern, but specific to the field of automotive DRAM, after the acquisition of Beijing Silicon (ISSI), the domestic Beijing Jun is acquiring Beijing Silicon (ISSI), which has formed a "CPU + storage" dual leading pattern. In terms of vehicle regulation storage, Beijing Silicon Cheng ranks second in the world.
With the mandatory launch of EDR, this 10-billion-level potential market will push up the development of the automotive semiconductor industry. The implementation of this policy or the first step to improve the retention of vehicle accident data, for the future higher level of autonomous vehicles, EDR under certain restrictions also has the situation that vehicle data cannot be recorded. Therefore, the DSSAD (data storage system for automoted driving) that can identify others or drive autonomously will become an auxiliary system for EDR, or become another standard for future autonomous vehicles, and the related semiconductor industry will usher in development opportunities. (Proofreading/Sharon)