Industry depth! The article takes you to know in detail the market scale, competition pattern and development prospect of China car networking industry in 2022.

Major listed companies in domestic car networking industry:(002405)、(600718)、(002232)、(000851)、(300212)、(300020)、(002373)

Core data of this article:Market size, investment and financing amount and events, penetration rate, user size, and proportion of sub-sectors.

1. Overview of the car networking industry

— — definition

The Internet of Vehicles is a large-scale system network that carries out wireless communication and information exchange between vehicles and X (X: vehicles, roads, pedestrians and cloud platforms, etc.) based on the intranet, inter-vehicle network and vehicle cloud network, and is an integrated network that can realize intelligent traffic management, intelligent dynamics and intelligent control of vehicles. It is a typical application of Internet of Things technology in the field of transportation systems.

From the structural level, the vehicle networking system is a "end-pipe cloud" three-layer structure system: the first layer is the end system, the second layer is the pipe system, and the third layer is the cloud system.

From the perspective of application classification, the Internet of Vehicles can be divided from the perspectives of networking technology, application objects and demand objects. No matter which classification method, it basically involves information service applications with user experience as the core, intelligent automobile applications with vehicle driving as the core and collaborative applications.

2) Analysis of the industrial chain of the car networking industry: the industrial chain is long.

The composition of the ecosystem of the car networking industry is complex, which makes the car networking industry form a long industrial chain. The car networking industry chain spans the two major fields of service industry and manufacturing industry, permeating each other and featuring cross-border integration.

Due to the strong cross-border penetration and integration of the Internet of Vehicles industry, its industrial chain composition is also different from the traditional upstream, middle and downstream industrial chain composition. Therefore, the composition of the industrial chain of the Internet of Vehicles can be analyzed in combination with the structure of the Internet of Vehicles system. The system structure of the Internet of Vehicles includes three systems: end, management and cloud, and the industrial chain of the Internet of Vehicles can also be analyzed from these three angles.

At the "end" level, the role of manufacturing industry is the main role, including vehicle manufacturers, automotive electronic system providers, component providers, in-vehicle software providers, etc., such as, and Neusoft Group; At the management level, the roles of manufacturing and service industries are relatively balanced, mainly including equipment providers and communication service providers, such as, and; The "cloud" level is dominated by the service industry, including software and data providers, public services and industry service providers, such as NavInfo, and.

2. The development course of China car networking industry: At present, it is in the stage of deep integration of 5G+ car networking.

China’s car networking started in 2009. In 2009, SAIC-GM named OnStar Anjixing and officially introduced it to China, which took the lead in exploring the application of car networking in China.

According to the development of car networking technology, China’s car networking market has gone through the stages of car networking introduction (supporting long-distance calls), mobile Internet (sharing mobile phone applications with cars), car IVI (car entertainment, around the central control panel) and 5G+V2X.

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 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 it has become an important development direction of China’s strategic emerging industries, and it is also a hot spot of technical research and industrial development of interdisciplinary, cross-disciplinary and cross-industry management departments. In the future, with the development of 5G and V2X technologies, the car networking industry will open up new growth space.

3. China car networking industry policy background: 5G car networking is the ultimate application field for policy guidance.

At present, China’s car networking policies are based on the integrated layout and coordinated development of related technical fields. At present, China mainly integrates the application of Internet of Vehicles and 5G technology, with a view to realizing intelligence and digitalization in transportation, automobile and communication industries more quickly. Therefore, in recent two years, a large number of policies have been launched around 5G and Internet of Vehicles, such as the Action Plan for Sailing the Application of 5G (2021-2023) put forward in June 2021 and the Guiding Opinions on Expanding Investment in Strategic Emerging Industries and Cultivating New Growth Points put forward in September 2020.

In addition, at present, China’s policy is to upgrade the technology of vehicle-road and vehicle-vehicle coordination to support, improve driving safety and improve traffic efficiency. Therefore, the construction of vehicle networking pilot area, roadside facilities and related network security standard system has also become an important topic, which is the specific layout direction of relevant policies of vehicle networking in China at present.

4. Demand situation of the "end" level of the car networking industry in China: The rapid development of automotive electronics has boosted the technological upgrading of the car networking industry.

As one of the most important parts of the Internet of Vehicles, the field of automotive electronics has developed rapidly in the automotive industry in recent years, and has been regarded as another revolution in the development of automotive technology. This is mainly because the electronic product system accounts for about 40% of the automobile cost. In addition, 70% of the automotive innovation comes from the automotive electronics industry in the development of the automotive industry towards intelligence, electrification and comfort.

According to Statista data, the scale of China’s automotive electronics market has increased year by year from 2015 to 2020, and it has reached 815 billion yuan in 2020, up 10.14% year-on-year. The rapid expansion of the automotive electronics market will stimulate the technological progress and innovation of the automotive electronics industry, which will inevitably lead to the technological upgrading of the automotive networking industry, promote the scale expansion of the automotive networking industry, and finally achieve the big goal of intelligence.

5. Development of the application market of the car networking industry in China: The future market prospect of intelligent transportation and automobile industry is considerable.

Intelligent transportation. The first stage of ITS is around infrastructure construction, including the integration of hardware facilities and software systems in all aspects of land, water and air, among which the establishment of expressway toll collection system is very important. With the gradual completion of highway informatization, the problem of traffic congestion mainly comes from the fact that road construction can’t keep up with the growth of cars. Under the condition of limited road construction, the solution to traffic congestion mainly depends on the management and deployment of vehicles.

Therefore, at present, the development of intelligent transportation is changing to a vehicle-oriented management mode. In the future, intelligent transportation will establish an information system with vehicles as nodes, that is, vehicle networking.

According to the data released by the Association and Saiwen Transportation Network, from 2011 to 2019, the total scale of China’s intelligent transportation market increased from 42 billion yuan to 145.4 billion yuan. With the continuous promotion of the application of intelligent transportation in China, combined with the intelligent situation of various transportation sub-sectors, after preliminary estimation, the scale of China’s intelligent transportation market will exceed 160 billion yuan in 2020. The scale of ITS market is obviously on the rise, and the compound annual growth rate is close to 20%, so the future development prospect of ITS industry is very considerable.

Automobile industry. With the development of economy and the popularization of automobiles, the production and sales of automobiles are increasing year by year in China’s market. In 2020, the number of automobiles in China will reach 281 million, up 10.19% year-on-year.

As an important carrier of vehicle networking applications, the number of automobiles has steadily increased year by year, and the future market development is improving. In addition, under the background of the development of automobile intelligence and electrification, the demand for car networking is bound to rise steadily.

6. Analysis of the development status of China car networking industry.

— — The penetration rate of the car networking industry in China is increasing year by year, and the scale of car networking users is expanding.

With the development of intelligent transportation, the penetration rate of China’s car networking industry has increased year by year, and the scale of users has been expanding. According to the data of Yiou think tank, the penetration rate of China’s car networking industry was 24.9% in 2018, and the number of car networking users reached 59.76 million. In 2020, the penetration rate of the car networking industry in China has reached 48.8%, exceeding the penetration rate of the global car networking industry, and the number of car networking users is about 137.13 million.

2) Market scale of China car networking industry: The market scale is increasing year by year, reaching 163.7 billion yuan in 2020.

According to the data of Yiou think tank, the scale of China car networking market is growing rapidly. In 2015, the car networking market reached 44.2 billion yuan. After preliminary estimation, the car networking market reached 163.7 billion yuan in 2020, with a compound annual growth rate of 29.91%.

This is mainly because the Internet of Vehicles is the main application scenario of 5G in the fields of autonomous driving and intelligent networked vehicles. In recent years, the rapid development of 5G technology has injected a strong impetus into the development of the Internet of Vehicles industry. Driven by 5G, the potential market of the Internet of Vehicles is huge and needs to be further explored.

3) Investment and financing situation of the car networking industry in China: The policy rekindled the enthusiasm for capital investment and the scale reached a new high.

In recent years, the investment and financing of the car networking industry has fluctuated greatly. Generally speaking, it shows a trend of rising first, then falling and then rising. At the time of the rise of the concept of Internet of Vehicles, the investment enthusiasm of capital was great. In 2016, the number of investment events reached the highest, with 130; In 2018, the largest investment amount reached 79.334 billion yuan. Since 2018, the investment enthusiasm of the car networking industry has declined, mainly due to the significant impact of the epidemic on the transportation industry.

In 2021, with the intensive release of national and provincial policies on the car networking industry, the scale of investment and financing in the car networking industry reached a new high. By September 2021, the number of investments reached 63, with a total investment of 106.588 billion yuan, both exceeding the investment scale in 2020.

7. Analysis of the competition pattern of China car networking industry.

— — Regional competition pattern: focus on the Yangtze River Delta region

At present, there are more than 40 city-level vehicle networking pilot demonstrations, more than 20 smart road-vehicle collaborative pilot demonstration zones, as well as 5 national-level vehicle networking pilot zones and 2 provincial-level vehicle networking pilot zones. Including Jiangsu (Wuxi), Tianjin (Xiqing), Hunan (Changsha) and other national-level car networking pilot areas, and two provincial-level car networking pilot areas in Suzhou and Nanjing, Jiangsu Province. Therefore, the current car networking focuses on the Yangtze River Delta region, Tianjin, Chongqing and Hunan Province, among which the Yangtze River Delta region is the most important.

According to the requirements of the Ministry of Industry and Information Technology, the pilot area will deploy the cellular car networking C-V2X network on the scale of key expressways and urban roads, make a good overall connection with the development of 5G and smart cities, complete the transformation of the car networking function of traffic facilities in key areas and enhance the core system capabilities, and drive the scale deployment of the whole road network.

In terms of national pilot zone, Jiangsu (Wuxi) Vehicle Networking Pilot Zone is the first vehicle networking pilot zone established in China, which was established in September 2019. In June 2020, Tianjin (Xiqing) National Vehicle Networking Pilot Zone was unveiled, which is the second national vehicle networking pilot zone in China. In November 2020, Hunan (Changsha) National Vehicle Networking Pilot Zone was officially unveiled, which is the third national vehicle networking pilot zone in China. In January 2021, Chongqing (Liangjiang New District) was approved by the Ministry of Industry and Information Technology to create a national-level vehicle networking pilot zone, which is the fourth national-level vehicle networking pilot zone in China and the first in the west. In September 2020, the relevant departments of the three provinces and one city in the Yangtze River Delta signed a cooperation agreement to jointly build a national-level pilot area for vehicle networking in the Yangtze River Delta region.

In terms of provincial-level pilot zones, Jiangsu Vehicle Networking Pilot Zone was officially unveiled in Suzhou in October 2019, which means that Suzhou will create the first provincial-level vehicle networking pilot zone with Changshu City, Xiangcheng District and Industrial Park as the main body. In December 2020, the provincial-level car networking pilot area in Nanjing was completed.

2) Enterprise competition pattern: The competition is fierce, and Huawei ranks first for the time being.

The Internet of Vehicles is a huge project, with many market participants and different competitors in each field.

As a technology-intensive industry, the Internet of Vehicles industry is particularly important for enterprises in terms of technology upgrading and R&D innovation. Therefore, the number of industrial patent applications represents the layout of enterprises and the leading position of related technologies to a certain extent. According to the ranking of the number of patent applications of Wisdom Bud, the number of patent applications of Huawei, Botai and Qinggan ranked in the top three. Among them, Huawei has the largest number of patent applications, reaching 503. Therefore, at present, Huawei’s research and development of car networking related technologies is in a leading position.

It is worth mentioning that among the top ten companies in patent application, Internet companies Huawei, Tencent and Baidu, Shanghai Botai, a representative enterprise of networked terminals, and automobile manufacturers and Xpeng Motors all laid out the car networking industry.

According to the data from the Automotive Research Office, Huawei and Baidu rank among the top three in terms of business operation, future development and social responsibility. In addition, software and data providers Neusoft Group, Qianfang Technology, Siweituxin and others are all on the list.

On the whole, the main competitors in the car networking industry come from Internet companies, vehicle manufacturers, software and data service companies and representative enterprises of networked terminals. Enterprises cross-border intensive layout in the field of vehicle networking, and the competition is fierce. According to the comprehensive analysis of the ranking of Wisdom Bud and Sohu Auto Research Office, Huawei ranks first in the number of patent applications and value, and temporarily leads other competitors in the layout of the car networking industry.

8. The development prospect and trend forecast of the car networking industry in China.

— — Three Trends in the Development of Car Networking Industry in China

At present, the automobile industry has reached a consensus that low carbon, informationization and intelligence will become the important direction of future development, the production mode will evolve to an intelligent manufacturing system with interconnection and cooperation, and the service mode will show the trend of informationization and sharing. The intelligent networked automobile with distinctive cross-border integration characteristics is the most important innovation carrier in the transformation and upgrading of the automobile industry.

2) Prediction of penetration rate of China car networking industry: Entering the accelerated growth stage, the user scale will further grow.

In the next few years, China will still be a big country of automobile consumption in the world. With the development of intelligent transportation, the scale of China’s car networking users will also increase year by year, and the industry penetration rate will enter an accelerated growth stage. According to the forecast of Yiou think tank on the penetration rate of the car networking industry in China, it is predicted that the number of car networking users in China will exceed 460 million in 2026.

3) Market size forecast of China car networking industry: The market size of car networking is expected to exceed 800 billion yuan in 2026.

The advantages of the growing car networking industry in China are the large scale of the car market, the rapid upgrading of Internet technology and the developed communication industry. This has brought a steady stream of demand, technology and other positive effects to the development of the industry. Therefore, with the development advantages, the scale of China car networking market will continue to grow rapidly.

In the next few years, China will still be a big country of automobile consumption in the world. With the development of intelligent transportation, the scale of China’s car networking users will also increase year by year, and the industry penetration rate will enter an accelerated growth stage. After preliminary estimation, the market size of the Internet of Vehicles is expected to reach 800 billion yuan in 2026, and the average compound growth rate from 2021 to 2026 will reach 30.36%.

Please refer to Foresight Industry Research Institute for the source and analysis of the above data. At the same time, Foresight Industry Research Institute also provides solutions such as industrial big data, industrial research, industrial chain consultation, industrial atlas, industrial planning, park planning, industrial investment attraction, IPO fundraising feasibility study, IPO business and technology writing, IPO working paper consultation, etc.