CICC: Intelligent brings automotive electronics investment opportunities optimistic about the five sub-tracks

CICC: Intelligent brings automotive electronics investment opportunities optimistic about the five sub-tracks

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  CICC: Automotive Electronics Investment Opportunities Brought by Intelligence CICC Finishes Automotive Industry Entering Technology Transformation Deep Water Zone, A.

C.

E.

The trend of S (intelligent, networked, electrified, and shared) means that cars have become a carrier of multi-industry integration.

We believe that this round of the automotive industry revolution will be a process that is based on electrification and cooperates with cross-border development of energy, communications, transportation and other fields to ultimately reshape the industrial ecology.

We have sorted out the automotive electronics industry chain, and we are mainly optimistic about the five sub-tracks.

  Investment Summary The automotive industry enters the deepwater area of technological evolution, A.

C.

E.

The trend of S (intelligent, networked, electrified, and shared) means that cars have become a carrier of multi-industry integration.

We believe that this round of the automotive industry revolution will be a process that is based on 西安耍耍网 electrification and cooperates with cross-border development of energy, communications, transportation and other fields to ultimately reshape the industrial ecology.

In this process, we believe that the three power systems should not be used as a substitute for traditional powertrains, but that all vehicle components are converted to electronic and digital directions, bringing basic data; the electrical architecture is accelerating to land,The access network produces a synergy effect of “vehicle-road-cloud-network”.

  We have sorted out the main segments of automotive electronics, combined with market size and monopoly level, and entered the cloud to sort. We are relatively optimistic about the Chinese parts suppliers’ five major tracks of smart cockpit, sensors, thermal management, lights and steering systems.development of.
  From the technical level, automotive parts have developed from traditional mechanical products to intelligent products controlled by electronic information systems. At present, electronic technologies are used in powertrains, vehicle controls, chassis systems, and communications.Application has caused exhaust emissions, safety, comfort and entertainment have been improved.

However, the requirements of smart cars go further. Advanced sensors and new technologies such as artificial intelligence are needed to make cars have the ability to drive autonomously and gradually become smart mobile spaces and application terminals.

In essence, intelligent cars put forward all-electronic requirements for all powertrain systems, body control systems, driver assistance and cockpit systems, safety and comfort systems, and intelligent driving systems.

  Chart: Overview of the automotive electronics industry chain under the current distributed electrical architecture Source: Marklines, strategic analysis, CICC Research (click image to view high-resolution image) The electrical architecture is accelerating towards the centralized direction through the electronics of a large number of automotive componentsWith the advent of ADAS, autonomous driving, active safety and other functions, the number of electronic control units (ECUs) in cars will increase significantly.

However, the existing electronic diversified electrical and electronic architectures have problems such as rising costs, redundant operations, slow replacement speeds, and multiple user experiences.

  In order to solve the above problems, the future automotive electronic and electrical architecture will gradually move to the domain architecture, and the direction of central computing architecture will become the consensus of the industry.

Under the domain architecture, the body is divided into different domains, and each domain controller is responsible for processing data in that domain.

Under the central computing architecture, the central computing platform processes the entire vehicle data to achieve optimal decision-making, and the cloud server is also responsible for the storage and calculation of some data.

  Chart: Trends in the changes in the automotive electrical and electronic architecture Source: Bosch, CICC’s research department driven by intelligent connected vehicles, the size of the Chinese / global automotive electronics market will reach USD 131.6 / USD 47.6 billion in 2025 According to Strategy Analytics, IHS Based on the data of automobiles and other institutions, we calculate the market size of various fields according to the following formula: total market size = system unit price * (automobile output * system penetration rate).

  Chart: China’s automotive electronics market will nearly double from 2020-2025, CAGR2020-2025 is about 13.

5% Source: IHS, Strategic Analysis, CICC Research Research Chart: Global automotive electronics growth is slower than China, CAGR2020-2025 is about 5.

5% Source: IHS, Strategy Analytics, CICC Research Department’s value transfer from sub-components to systems and software. We divide the investment opportunities of automotive electronic circuit into current stage and five years later (under domain architecture and central computing architecture).).

  At this stage, due to consumer demand for safer, more environmentally friendly, and smarter cars, the development of automotive electronics is still dominated by the electronicization of sub-components; we believe that under the domain controller and central computing architecture,Systems and software will occupy a greater proportion in the automotive electronics investment track.

  Automotive electronic track under distributed architecture: It is recommended to pay attention to automotive chips. Under the distributed architecture of cockpit electronics and safety systems, there are many automotive electronic tracks.

We have selected 10 investment areas in the entire industry chain, namely the lighting system, braking system, steering system, transmission system in powertrain control module, and safety system in safety comfort module in vehicle and vehicle control modules., Thermal management, seats, sensors in smart driving modules, chips, cockpit electronics.

Among them, we artificially eliminated the power system, because the battery part is undoubtedly the most valuable, but we attribute it to electrochemistry more than automotive electronics.

  We classify the above 10 investment areas according to market size, degree of monopoly, and biological scores of entry doors (where the degree of interaction is scored in reverse order, taking into account that during the transformation of the industry, it is easier for Chinese companies on the track to take shape to accelerate penetration)A map of investment opportunities in the industrial chain, including chips, cockpit electronics, and thermal management.

  Chart: A map of investment opportunities in the automotive electronics industry chain under distributed control. It is recommended to focus on automotive chips, cockpit electronics and security systems. Source: CICC ‘s research department architecture and central computing architecture. Automotive electronics race track: Software investment value is significant.With the improvement of domain architecture and central computing, we have selected 6 investment areas in the entire industry chain, namely: chips, operating systems, application software, vehicle communication modules (OBU, T-Box), and drive test communication modules.(RSU), intelligent cockpit (center control screen, LCD dashboard, HUD).

  There are potential changes in the track investment opportunities under the domain structure, which are mainly reflected in the application value of automotive software.

At this stage, 85% of the value of first-class automobiles comes from hardware equipment or parts, and into automotive electronics under the domain architecture or central computing architecture, we judge that the value of software and content services has increased.

  We have scored the above 6 investment fields according to market size, degree of monopoly, and biological scores of entry doors to obtain a map of investment opportunities in the industry chain. Considering that after years of development of chips and smart cockpits, the degree of occupation in the domain architecture or central computing architecture is appropriatePromotion.
  Exhibit: A map of investment opportunities in the automotive electronics industry chain under domain control. The investment value of application software has significantly increased. Source: CICC’s research department.

  Source of the article This article is excerpted from: “New Energy and Intelligent Vehicle Series Report (IV): Intelligent Automotive Investment Opportunities” published on February 24, 2020. Wang Lei SAC Practice Certificate No .: S0080118040030 SFC CE Reference: BNN451 Li Lingyun SAC Practice Certificate Number: S0080517100001 SFC CE Reference: BMY306