Automotive electronics is a blue ocean, and the market for automotive connectors is huge

Smart cars will be tested on a large scale in 2017, and the market value will reach 42 billion U.S. dollars by 2025, and China will become the most popular market. We believe that 2016 will start the first year of smart driving, and 2018 will gradually realize commercialization. The entire automotive electronics industry is facing a change. The direction of smart driving as the main line will usher in 5 to 10 years of investment opportunities. Will cause a storm in the entire electronics, automotive and high-end manufacturing industries. The main reasons are: 1) innovation-driven technology companies such as Tesla, BAT, Huawei, etc.; 2) the arrival of the 5g era; 3) traditional car companies are facing competitive pressure; 4) human needs for environmental protection, safety and comfort increase. From the statistical data, the current development in the field of automotive electronics in the United States, Japan and Germany is relatively rapid and mature. There are a large number of Chinese companies, but the development time is relatively short, and they are in the stage of staking and emerging.

There is a blue ocean in automotive electronics, and the automotive industry continues to replace it with localization

Environmental protection, safety, and comfort are the core elements to promote the rapid development of automotive electronics. Automotive electronics, including the body and vehicle, need to be completed with different technologies, such as automotive safety systems, tire pressure monitoring systems, sensors, and ADAS. On the whole, automotive electronics presents several obvious characteristics: 1) 70% of automotive electronics innovations are products of automotive electronics or a combination with it; 2) automotive electronics costs continue to increase in the proportion of the entire vehicle, and it is expected to increase to 50% in 2020 %; 3) At present, the market size of low-end and medium-end models in China is larger than that of high-end models, and the electronic equipment equipped on traditional high-end vehicles is gradually popularized in low-end and medium-end vehicles; 4) Policies to promote the development of the automotive electronics industry are frequently introduced. The rapid rise of self-owned brand SUV vehicles, technological innovation, mergers and acquisitions, and joint ventures are the path to the localization of automotive electronics.

ADAS is the only way to realize intelligent driving

MIT Technology Review has identified autonomous driving as the top ten breakthrough technologies in 2016 and 2017. Chip giant Intel will acquire Israeli driver assistance system developer Mobileye for USD 15.3 billion. At present, the three chip giants Intel, Qualcomm and Nvidia have formed. They have many advantages in mobile computing, cloud computing and vision processing. , BMW, Ford, Tesla and other automakers. Due to the high technology and cost of ADAS, the penetration rate is not high in countries with more developed industries such as Europe, America and Japan. It is mainly assembled in luxury cars such as Mercedes-Benz and BMW. The future implementation of ADAS will be the fusion of three sensors. Tesla released the Autopilot2.0 system, starting from the perception layer and decision-making layer, "hardware + chip" upgrade, this year will launch a new model Model3. We expect that in the future, chip, algorithm manufacturers, the Internet, and traditional car companies will deploy ADAS in a cooperative manner.