ADAS uses a variety of sensors installed in the car to collect environmental data inside and outside the car for the first time and perform technical processing such as identification, detection, and tracking of static and dynamic objects. The active safety technology that enables the driver to perceive possible dangers in the fastest time to attract attention and improve safety.
According to the international standard, intelligent driving is divided into L1 to L2. The cars currently on the market are still in the first and second stages, that is, in the stage of intelligent assistance and partial automatic driving functions. ADAS, as the primary product of automotive intelligence, is expected to be the first to popularize.
From the perspective of competition, the global ADAS market is highly concentrated, and mainstream manufacturers are still traditional automotive Tier 1 suppliers. Among them, the top 5 companies, Continental, Delphi, Bosch, Aisin Seiki occupy the total market 68.24% of the share. However, the existing ADAS products cannot cope with most of the domestic characteristic traffic scenes, and the products are made by Autoliv, Bosch, Continental, Delphi, and Mobileye. Control and monopoly of parts suppliers. The unacceptable nature of foreign products is also reflected in the ADAS industry.
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Coupled with the overall cold in the Chinese auto market, OEMs are investing and deploying ADAS, hoping to get rid of the low sales volume in the cold winter. The intelligent ADAS products that can be seen and implemented will undoubtedly stimulate the excitement of mass consumption.
Foreign ADAS Products Are Not Satisfied
The reason why ADAS is gaining more favor is mainly that the ADAS system can perceive the surrounding environment with the help of sensors placed on the car body and issue warnings when the vehicle is in critical.
China's ADAS industry standards are converted from European and American standards, and these standards do not well reflect the characteristics of road traffic with local characteristics.
At present, the European and American standards only cover 46% of China's road scenes. ADAS products developed with European and American standards cannot well perceive the special domestic road scenes, and the countermeasures taken are also limited. As a result, some ADAS products can only be shelved because of the inapplicability of the scene.
Although foreign ADAS suppliers have accumulated many years of technology and experience, these capabilities are usually abroad. The relatively slow response speed of foreign ADAS suppliers has become the industry consensus.
In the traditional automobile era, even if the product is not so adaptable and the service response is slow, it is still within the scope of acceptance by the OEM.
However, with the advent of the new four modernizations in China, the OEM's ability to integrate intelligent systems is constantly improving. The OEM will need a lot of openness of the underlying data of the sensor during integration and simulation. But these data without exception are hidden in the black box of ADAS products. The openness of these data is often what foreign auto parts companies cannot and do not want to provide. This also makes the change and evolution of ADAS products of domestic OEMs subject to some constraints.
Domestic ADAS Startups Are More Flexible and Are Expected to Emerge Suddenly
The adversity of overseas ADAS products and the continuous advancement of intelligent driving have accelerated the penetration of ADAS products. However, the overseas ADAS products have shown inadequacy after entering China and have not shown strong advantages, which provides opportunities for domestic ADAS startups.
After several years of development, based on the understanding of domestic traffic scenarios, the continuous reduction of system costs, the continuous optimization of hardware configuration, and the development and iteration of software performance, some start-up companies have developed to a certain scale and have gradually come to product testing and volume.
As for the gap between startups and giants, there are two main dimensions to reflect. The first is the size, the cost advantage brought by the mass conference; the second is the hardware, which is relatively less difficult in terms of hardware development. After having the hardware, you need to do system integration and function. The function requires a lot of experience and data, including some mass production experience and functional safety.
Although international components develop early, start-up companies also have their competitive advantages, such as more flexible product design, localized development, and faster response.
Previously, most domestic ADAS players used foreign car-level chips to make ADAS solutions. Participants in the domestic passenger car chip market, including Horizon, Huawei, and Black Sesame, have the opportunity to join the market competition and develop together in the next 1-2 years.
Compulsory Installation by Laws Expand the Commercial Vehicle ADAS Market Space
The country requires the installation of ADAS systems. According to the instructions of the Ministry of Transport, starting from September 2020, LDW and FCW shall be mandatory for trucks with more than 18 tons; from May 2021, AEB shall be mandatory for trucks with more than 12 tons. The mandatory installation scope of LDW and FCW covers some heavy trucks, and AEB covers all heavy trucks. The implementation of the policy expands the ADAS market space.
Driven by factors such as policies, Internet cross-industry competition, and internal consumer demand, the penetration rate of ADAS will increase rapidly. The ADAS market has a huge space, which is estimated that the domestic ADAS market will reach 120 billion yuan by 2023. The current domestic ADAS market is about 20 billion yuan, with a compound growth rate of over 37% in the next five years.
People's expectations for car driving are rising, which drives the rapid development of the ADAS industry. As overseas ADAS shows certain geographical limitations, domestic ADAS is expected to emerge suddenly. Although the autonomous driving technology is not mature at this stage, breakthroughs in informatization and intelligent technology will continue to improve smart driving technology to enhance people's driving experience.
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