As the 5G era approaches, the car networking industry may usher in an outbreak. At present, China's car networking industry has entered a new stage of rapid development, technological innovation has become more active, new types of applications have flourished, and the scale of industries has continued to expand. At the same time, the industry also suffers from problems such as low penetration, complicated operations and profitability models.
As early as a few years ago, relevant government departments proposed to pay close attention to the revolutionary changes brought by the Internet to the automotive industry. Car networking brings a brand new "opportunity window" to the Chinese auto industry. In the face of this window of opportunity, more and more companies have been trying to catch the express train of the Internet of Vehicles in recent years. With the 5G era approaching, the car networking industry may usher in an outbreak. How will the motherboard and the new board company share this piece of cake?
At present, China's car networking industry has entered a new stage of rapid development, technological innovation has become more active, new types of applications have flourished, and the scale of industries has continued to expand. According to the Industry Research Institute of Forward-looking Industry, the analysis report of China's car networking industry market foresight and investment planning shows that the market for car networking in 2015 was US$5.04 billion (approximately RMB33 billion), and the market size is expected to reach US$33.82 billion by 2020 ( About RMB 220 billion yuan). The penetration rate of China's Internet of Vehicles increased from 4.8% in 16 years to 18.1% in 2020; the number of online-car users reached 44.1 million by 2020.
Multiple policies to promote the Internet of Cars on the right track
Following the State Council's successive announcements of "Made in China 2025" and "Guidance on Actively Promoting "Internet Plus" Action" in 2015, the car networking industry has become an important part of the "Made in China 2025" and "Internet +" development strategy. However, at present, the domestic car networking industry is very chaotic, and it is urgent to introduce relevant policy standards for standardized management.
Data show that as of the end of June this year, China’s car ownership reached 205 million vehicles and 328 million car drivers. With the increase in the number of car ownership, problems such as road congestion, environmental pollution, and lack of public utilities have become increasingly prominent. The emergence of the Internet of Vehicles has promoted the integration and upgrading of industries such as automobiles, transportation, and information and communication, and related industrial ecology and value. The reshaping of the chain system is of great significance.
Car networking industry development status
As the most promising application field in the Internet of Things, although it has experienced a long period of development, the development of the Internet of Vehicles has been relatively slow. Even with the support of national policies, it is difficult to develop rapidly because of many objective reasons.
The industry currently has these major problems: (1) Low penetration. Although there is a vast market space, due to the segregation of auto industry, the inconsistency of standards, and the lack of killer applications, etc., the penetration rate of Vehicular Network is always at a relatively low level, and it is relatively simple in function, and it cannot achieve intelligentization. level.
(2) The operating and profit model is complex. Diversification is a good thing, but if you lack an absolute core, diversity will become chaotic.
Challenges faced by the car networking industry
First, cross-departmental coordination needs to be continuously deepened, involving various departments such as the industrial and telecommunications, development and reform, public security, and transportation; second, the core technology needs to be broken through. The high-end links of high-end sensors, new automotive electronics, and on-vehicle operating systems are relatively weak in competitiveness, and technological accumulation still needs to be strengthened. Third, industrial development is facing challenges. The industrial areas such as ADAS, sensors, radar, and on-vehicle chips have a wide gap with foreign countries. It is necessary to make breakthroughs in key areas to narrow the gap and enhance industrial competitiveness. Fourth, there are hidden dangers in security issues. The safety protection system and safety management system for vehicle networking are still not perfect, and data security and personal information protection problems are outstanding. In particular, safety protection issues that affect driving control behaviors need to be reinforced.
What opportunities will 5G bring to the car networking industry?
The first is the issue of permeability. The emergence of 5G has solved the problem of speed and capacity of data transmission. Larger files can also be transmitted within a few seconds. The precision of on-board navigation will be greatly improved, and the penetration rate and penetration rate of on-board systems will also be improved. It can also reduce the traffic accident caused by the driver watching the mobile phone.
From the perspective of automatic driving operations, 5G also offers some new possibilities. At present, domestic 5G is forming a complete layout from research to application, and industry standards are gradually falling. The speed of China’s autonomous driving has been no less advanced than the mainstream countries in the world. We believe that the arrival of 5G will also be faster than we expected.
At present, China's car networking market has connected industries such as autos, travel, energy, logistics, and commercial real estate. This may be the biggest opportunity for society to have a positive impact in the next 20 years. It will create an economic scale of several trillion yuan.
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