Abstract:At present, the development model of the mainland automobile market has shifted from a period of rapid growth to a period of structural transformation and upgrading. As an important basic support in the automotive industry, automotive electronics as a whole is growing rapidly under the combined effect of policy-driven, technology-led, environmentally friendly and consumption-driven, with a market size of 978.08 billion yuan in 2022 and a CAGR of 13.2% from 2015 to 2022.
1. Definitions and Classification
Automotive electronics is a general term for all electronic equipment and electronic components installed on the car, and it is an industry formed by the application of electronic information technology to the automotive field, and the electrification of auto parts has formed automotive electronic products. With the continuous maturity of the production technology of electronic components such as sensors, connectors, semiconductors, etc., related electronic components are used in the automotive industry, and the electronic equipment is deeply combined with the traditional automobile operation subsystem through system integration, that is, the so-called "electromechanical combination" of automotive electronic devices, which realizes the centralized control of module functions and forms a body electronic control system, which is an indispensable control unit to ensure that the car completes the basic driving function. At the same time, with the continuous development of electronic information technology, automobile manufacturers are gradually configuring radar, network equipment, navigation and other electronic devices in automobile production, continuously improving the degree of intelligence, informatization and entertainment of automobiles, and correspondingly producing on-board electronic systems. From a functional point of view, automotive electronics can be mainly divided into two categories: body electronic control system and on-board electronic system.
Second, industry policies
In June 2023, the Ministry of Industry and Information Technology issued the "Implementation Opinions on Improving the Reliability of the Manufacturing Industry", focusing on steer-by-wire, brake-by-wire, automatic shifting, electronic throttle, suspension system and other chassis-by-wire chassis systems, high-precision cameras, lidars, basic computing platforms, operating systems and other automatic driving systems, in-vehicle infotainment, in-vehicle monitoring, in-vehicle display and other intelligent cockpit systems, on-board networking terminals, Communication modules and other key components of the network. In December 2023, the National Development and Reform Commission issued the "Industrial Structure Adjustment Guidance Catalogue (2024 Edition)", which listed "automotive electronic control systems: engine control system, transmission control system (TCU), electronic stability control system (ESC), network bus control system, electronically controlled intelligent suspension, predictive cruise control system (PCC), LIN control generator, visual fuel-saving driving assistance system, etc." The introduction of a series of favorable policies has provided important guidance and assistance for the continuous optimization and upgrading of local enterprises' business, the continuous improvement of market competitiveness and the sustainable and healthy development of the automotive electronics industry in mainland China.
Third, the development process
The first transistor was invented in 1947 by William Shockley, and then electronics were introduced to the automotive industry in the 1970s, first in engine fuel injection control systems, which greatly improved fuel efficiency. Since then, innovation in the automotive industry has been driven by high-efficiency microprocessors, semiconductor switches, and sensors, and low-cost and high-reliability electronics have improved the comfort level of automobiles, and some safety systems are simply not possible without electronics. Automotive electronics are gradually replacing machinery, automotive electronic systems are becoming more and more complex, and modern automobiles are a product of a high degree of mechatronics. The automotive electronics industry has gone through four stages: initial stage, popularization stage, mature stage and rapid development.
Fourth, industry barriers
1. Customer authentication barriers
As the basic components of automobiles, stable product quality is crucial to the function and service life of the end product. Therefore, upstream production enterprises can obtain a series of strict qualification certifications before they can enter the supply chain system of downstream customers. In the field of automotive electronics, vehicle manufacturers have established a set of strict certification standards when selecting parts and components manufacturers. First of all, the supplier needs to go through a strict certification procedure to obtain the qualification to become a qualified supplier; secondly, the supplier needs to accept the assessment and evaluation of downstream customers on product quality, development ability, production capacity, financial status, etc., in order to pass the certification of downstream customers; finally, before the product is officially mass-produced and supplied, it also needs to go through a series of development processes such as new product mold opening, mold trial, and trial production. Due to the strict certification process and long cycle, the replacement cost is high, so once the supplier can pass the certification, in order to ensure the production and after-sales service in the product life cycle, downstream customers will establish a long-term and stable cooperative relationship with the supplier.
2. Production technical barriers
Automotive electronic products are widely used and have many categories, different models and different application scenarios have different requirements for product forms and functions, and the production of these products involves mold development, injection molding, stamping, winding, welding, assembly, automation control and other technologies. Automotive electronic products usually have to meet the special operating environment requirements such as high temperature and high pressure, and have relatively strict requirements for safety and reliability, so higher standards are put forward for the lean production technology of products;
3. Financial barriers
The automotive electronics industry is capital-intensive. Enterprises need to invest a lot of money in plant construction, procurement of advanced production equipment and R&D equipment, product and technology research and development, etc., in order to maintain the advanced nature of products and ensure the stability of quality. Therefore, new entrants in the automotive electronics industry face high financial barriers.
4. Talent barriers
With the rapid development of downstream industries and the rapid upgrading of products, automotive electronics manufacturers need a large number of experienced product research and development engineers, mold design engineers, automated production line design engineers, process engineers and quality management personnel. High-end talents in the industry are relatively scarce and professional talent teams need to spend a lot of time, material and financial resources to cultivate, so the long talent training cycle and the scarcity of high-quality technical talents also constitute a high barrier to entry in the industry.
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the industrial chain of the automotive electronics industry mainly includes suppliers of automotive electronic components, structural parts and printed circuit boards, etc., mainly supplying electronic components. Automotive electronic components mainly include resistors, inductors, capacitors, ICs, crystal oscillators, magnetic materials, etc., and structural parts mainly include die-castings, injection molded parts, connectors, seals, etc. Semiconductors are an important part of electronic components, and their industrial development has attracted much attention in recent years. From the perspective of the domestic market, the semiconductor industry is developing rapidly, the industrial scale and international competitiveness are gradually improving, and the leading domestic enterprises are gradually narrowing the gap with the international leading enterprises.
The midstream of the industrial chain is the automotive electronics industry, which mainly integrates upstream components, conducts R&D, design, production and sales of modular functions, and provides solutions for a certain function or a module. The downstream of the automotive electronics industry is mainly the vehicle manufacturing industry. Because automobiles need to go through a large number of tests in the production process, the quality and stability of products are relatively high, so automotive electronics companies and vehicle manufacturers usually maintain long-term cooperative relations, and customer stickiness is high.
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