Abstract: Under the overall trend of the Internet of Vehicles, the penetration rate of the Internet of Vehicles has risen rapidly, and the penetration rate has increased to promote the rapid rise of the global Internet of Vehicles market, and the technology enterprises with the innovative functions of the Internet of Vehicles and the technology enterprises that have mastered the design and development technology of software and hardware have begun to have the opportunity to cooperate with OEMs and their first-tier suppliers, and gradually join the Internet of Vehicles industry chain, these changes provide good development opportunities for the suppliers of the Internet of Vehicles intelligent terminals and vehicle intelligent modules. In 2022, the global Internet of Vehicles market will be about 162.9 billion US dollars, and in 2022, the size of China's Internet of Vehicles market will be about 53 billion US dollars.
1. Definitions and Classification
The Internet of Vehicles intelligent terminal industry refers to an industry that takes the vehicle as the core and connects the vehicle with the Internet, mobile communication networks, sensors and other devices through the Internet of Things technology to realize the collection, transmission, processing and application of vehicle information. This intelligent terminal can be a hardware device installed on the vehicle, or it can be a virtual terminal realized by software application, and its main functions include vehicle remote monitoring, vehicle positioning tracking, driving behavior analysis, vehicle diagnosis and maintenance, vehicle safety and anti-theft, etc. The intelligent terminal products of the Internet of Vehicles include the TBOX and eCall terminals of the Internet of Vehicles, which are used in the fields of automotive intelligent networking and vehicle safety.
Second, the business model
1. Hardware sales and customization services
Some companies make profits mainly by selling intelligent terminal hardware equipment, including on-board intelligent terminal equipment, sensors, data acquisition equipment, etc. These companies will provide standardized products, as well as customized solutions and services according to customer needs to meet the needs of different user groups.
2. Software subscription and data services
In the Internet of Vehicles intelligent terminal industry, software platform and data services are also one of the important business models. Companies generate revenue by providing software applications such as remote vehicle monitoring, driving behavior analysis, and vehicle diagnosis and maintenance, as well as data-based value-added services such as traffic condition prediction and vehicle insurance evaluation. Typically, these services are offered to users on a subscription basis or on a pay-as-you-go basis.
3. Platform operation and ecological construction
Some enterprises are committed to building platform-based services for Internet of Vehicles intelligent terminals, creating an open ecosystem by integrating various resources, attracting more partners and developers to join, and jointly promoting the development of the industry. These platforms provide open API interfaces, software and hardware development kits, data sharing and other services, as well as related ecosystem construction support, and derive benefits from them.
4. Data mining and advertising marketing
Some companies collect and analyze vehicle data, provide accurate user portraits and behavior analysis, and provide targeted advertising, precision marketing and other services for enterprises and advertisers to obtain revenue. This business model mainly relies on the ability to mine and analyze big data, as well as the protection of user privacy and data security.
5. Comprehensive solutions and service packages
There are also some companies that provide comprehensive Internet of Vehicles intelligent terminal solutions and service packages, including hardware equipment, software platforms, data services, technical support and other full set of services. This business model is typically tailored to corporate customers or specific industries to meet their specific business needs.
3. Industry policy
The national government has issued a series of plans and policies to support the development of the industry, which will help promote the vigorous development of the entire industrial chain of intelligent networked vehicles. In September 2022, the Ministry of Industry and Information Technology (MIIT) issued the Guidelines for the Construction of the National Internet of Vehicles Industry Standard System (Intelligent Connected Vehicles) (2022 Edition), which pointed out that by 2025, the system will form an intelligent networked vehicle standard system that can support the general functions of combined driving assistance and autonomous driving. By 2030, a standard system for intelligent networked vehicles that can support the coordinated development of single-vehicle intelligence and networked empowerment will be fully formed.
Fourth, industry barriers
1. Barriers to entry
In order to ensure the quality and safety of the whole vehicle, auto parts enterprises need to obtain IATF16949 quality management system certification to become a first-class supplier of the vehicle factory, meet the special technical standards proposed by the vehicle factory, and must pass the strict inspection and review procedures of the vehicle factory, involving the supplier's production process, quality management, business status and other aspects, the entire assessment usually needs to last one to two years. Due to the high barrier to entry and the long supplier switching cycle, automakers generally carry out long-term and stable cooperation after determining the parts supplier, and do not easily switch suppliers. Therefore, a series of access systems such as quality management system certification, qualification certification and assessment standards have formed industry barriers, which have restricted the entry of potential competitors to a large extent.
2. Technical barriers
The intelligent terminal products of the Internet of Vehicles are the products of the integration of automotive electronics technology and information and communication technology, which require suppliers to have deep accumulation in both the automotive industry and the communication industry. At the same time, the intelligent terminal products of the Internet of Vehicles are generally installed in the vehicle through the pre-installation mode, and the parts suppliers participate in the synchronous design and development of the vehicle architecture in the automotive design stage, customize the intelligent terminal products of the Internet of Vehicles for the model, and respond to various technical problems and development needs in R&D and production, which require suppliers to have a deep industry understanding and technical accumulation in automotive architecture design, parts manufacturing, etc. With the rapid development of the intelligent networked vehicle market, customers have higher and higher requirements for the development and mass production of customized and differentiated intelligent terminals of the Internet of Vehicles, and suppliers need to continuously improve their technical level, accumulate project experience, quickly respond to customers' changing requirements for new product development and design, and provide customers with more professional services in order to improve customer satisfaction. The corresponding technical reserves and development experience need to be accumulated for a long time, forming a high technical barrier.
3. Brand barriers
The quality of auto parts will not only affect the quality and service life of the whole vehicle, but also affect the comfort and experience of consumers, which in turn will affect the reputation of the OEM. When OEMs have new technical requirements for parts or need to develop new products on the basis of the original, they often give priority to stable brand parts suppliers. The first-mover enterprises in the industry can accumulate technical experience through development projects, maintain first-mover advantages in terms of technical level, product change, quality control, etc., continue to form technological precipitation, continuously build a high technical threshold, enhance customer stickiness, and further improve the difficulty of potential competitors to enter.
Fifth, the industrial chain
The Internet of Vehicles industry chain is mainly composed of seven modules: communication chips, communication modules, terminal equipment, vehicle manufacturers, smart highways, testing and verification, and operation services. At present, the industrial structure is basically formed, with the support of standards organizations, scientific research institutes and other relevant institutions, the Internet of Vehicles industry will take intelligent networked vehicles as the core, focus on urban roads for network deployment and technical optimization, and finally realize a safe and efficient vehicle-road collaboration system.
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