Abstract: Automotive electronics industry,It is expected to be another big development opportunity at the whole industry chain level after home appliances, PCs and mobile phones. The difference is that ①Its constituent products have higher added value(High stability/high speed/high precision/low power consumption, etc.),②The synergy effect of its industrial chain is more obvious(participants link traditional industries and IT industries),③Its increase/stock market is broader.(For the first time, industrial attributes were used to define electronic products, with traditional car companies and IT giants stepping in),④Its strategic significance is more prominent(The threshold effect is more pronounced as the industry matures),For the first time in the automotive electronics team market, Anxin Securities has brought huge and rich investment opportunities from the "7-level in-depth analysis" of the industrial development dividend!In 2007, Apple cut into the mobile phone industry, led the era of smart phones with the release of iphone, became the leader of smart phones, redefined the mobile phone industry, accelerated penetration of intelligent driving and new energy vehicles, and the entry of leading international enterprises is also expected to open the prelude to the automotive electronics industry.

cross-cycle properties of automotive electronics,On the surface, it relies on the improvement of automobile electronic rate and the rise of new energy vehicles. The deep level lies in the fact that in the continuous innovation to meet the massive multi-dimensional demand, the software/hardware orders are released at an overspeed and the added value is stable or improved. At the same time, its pillar industry attribute determines that it is easier to promote import substitution and realize regional coordination and catch-up in the industrial chain with the comprehensive support of policies and capital,From a new perspective, we will analyze the investment opportunities in depth at the "7 levels", namely, the network layer, the communication layer, the computing layer, the sensing layer, the chip layer, the energy layer, the physical layer, etc., and take an overview of the strategic investment opportunities for collaboration in various industries from the higher-level perspective of electronic control systems and on-board electronic and electrical systems!

From the perspective of automobile development history, automobile electronics has become the most important supporting foundation of automobile control system, and automobile electrification has become the symbol of automobile industry revolution,With the maturity of new energy vehicles, driverless, and on-board information system technologies, the future automotive industry will develop in the direction of intelligence, networking and deep electronics.We judge that the current automotive electronics has entered a new round of technological innovation cycle, automotive electronics penetration and the value of a single vehicle will be greatly improved, the market space of more than trillion. The domestic market will play an important role in the new round of automotive electronic technology revolution and help the domestic industry chain related companies grow rapidly.

Revolutionary innovation and massive high-value demand, through networking/electronic information/new energy/new materials and other dimensions, including but not limited:Intelligent driving "wind and water", Internet enterprises "subversive" cut in. Internet manufacturers use "soft power" such as artificial intelligence and high-precision maps as the core to launch driverless solutions, which will achieve "subversion" from "soft" to "car". The development of technologies such as driverless and car networking drives the overall upgrading of the industry. Manufacturers continue to invest in research and development, and endogenous acceleration industry mergers and acquisitions continue. Driven by new technologies, the overall upgrading of the industry; The domestic automobile market is growing at a high speed, the value of single-vehicle electronic systems is continuously increasing, and the volume and price of the automobile electronic market are rising. Some sub-sectors such as ADAS will achieve ultra-high growth in the Telematics. In the 5G era, new communication technologies need to be proposed, commercial planning is gradually clear, cloud, tube and end three-tier architecture, operators, equipment manufacturers and vehicle manufacturers are involved in many ways; The higher-order automatic driving needs to generate more sensor demand, the number of millimeter wave radar and cameras is rising sharply, lidar is gradually applied, CMOS image sensors, lenses, motors, flexible circuit boards and other major devices are upgraded again, the industry concentration is still high, and the threshold is high, the verification cycle is long, and domestic manufacturers have gradually broken through in sub-sectors and can build a more stable competitive landscape.

ADAS is the prelude to unmanned driving and the core of the market at this stage. While driverless continues to grab the headlines, ADAS, an advanced driver assistance system, has quietly set off a wave of change, fundamentally changing the handling and user experience of traditional cars. The redundancy and fault tolerance characteristics of automatic driving require more sensors for higher-level automatic driving. According to our industrial chain research, 2018-2019 is the global stage of L2 automatic driving. From 2020, domestic and foreign countries will officially enter the stage of L3 automatic driving. The cross-integration of sensors will greatly increase the demand to ensure the safety of driving as much as possible.

Investment advice:

Electronic industry:Weir shares, Shanghai Electric shares, Shunlu Electronics, Jingwang Electronics, Dongshan Precision, Lixun Precision, etc;

Automotive industry:Desai Xiwei, Junsheng Electronics, Baolong Technology, StarYu, Top Group, Huayuan Automobile, etc;

Computer Industry:Siwei Tuxin, Qianfang Technology, Zhongke Chuangda, Zhonghai Da, Geer Software, etc;

Communication industry:ZTE, Sobed, etc;

Machinery industry:Kelai Electromechanical, Crack Shares, etc.

Risk Warning: Macroeconomics is lower than expected, demand is lower than expected, localization process is lower than expected, new energy vehicle industry chain is lower than expected, etc.

Automotive electronics: intelligent, networked, integrated unstoppable

1.1. Basic concepts of automotive electronics

Automotive electronics is the general term for automotive electronic control systems and on-board electronic and electrical systems. Among them, automotive electronic control systems include engine electronic systems, chassis electronic systems, driving assistance systems, and body electronic systems. On-board electronic and electrical systems include safety and comfort systems and infotainment The network connection system, among the six major systems, the infotainment and network connection system, and the automatic driving system have the fastest technical iteration, automotive electronics is already a revolution in the development of modern automotive technology.

1.2. Automotive electronics industry policy continued to catalyze

Since 2017, the national level has issued intensive policies on the top-level design of automotive electronics, and has put forward action plans or development strategies for the vehicle networking industry and the intelligent automobile industry. Among them, the "Vehicle Networking (Intelligent Networked Automobile) Industry Development Action Plan" issued at the end of 2018 clearly points out that the penetration rate of vehicle networking users will reach more than 30% by 2020, and the loading rate of new car driving assistance system (L2) will reach more than 30%, the new car assembly rate of the networked vehicle information service terminal reaches more than 60% of the action target at the application service level. On February 28, 2019, Minister of Communications Li Xiaopeng said that he would strengthen inter-ministerial coordination and establish an inter-departmental collaborative working mechanism with relevant ministries and commissions, and strive to issue guidance on the development of autonomous driving at the national level. The successive introduction of automotive electronics heavyweight policies continue to catalyze the development of the industry, especially the development of autonomous driving is expected to usher in a new era of development under the escort of the policy.

1.3. Automotive Electronics Industry Trends-Network Layer to See Intelligent Networking

Intelligent automotive electronics.The increasing maturity of sensor technology, computer technology, network technology and the widespread use of automobiles have made modern automobile technology more intelligent, and the intelligent coordination and interaction between "people, vehicles, and the environment" have become more frequent. The intelligence of the automobile control system is embodied in the ability to actively assist the driver in real-time perception, judgment, decision-making, and control execution. The acquisition of "perception ability" depends on the driving environment information provided by sensors and the Internet. The electronic control unit processes sensor signals through algorithm software, Analyze and judge the driver's action intention, analyze the vehicle's own state and driving environment, and finally issue control instructions. The execution layer assists the driver in controlling the car according to the controller's instructions. The trend of automotive electronic intelligence is particularly prominent in the automatic driving system.

Automotive electronics networking.The continuous application of more and more electronic systems in automobiles promotes the increasingly powerful functions of automotive electronic technology, and at the same time, it also leads to the increasing complexity of automotive electronic systems. The sharing of data communication between on-board electronic devices and the coordination of functions between various systems Become more important. The bus technology is used to connect various electronic control units, smart sensors, and smart instrument lights in the car to form an internal local area network of the car. Each sub-processor runs independently to control and improve the performance of a certain aspect of the car, and at the same time provide data for other electronic devices. Service to realize the sharing of information resources among various systems. The rapid development of automotive network bus technology is expected to achieve rapid exchange of data and high reliability, further reduce costs, networking in the vehicle information entertainment and network system is widely used, such as HUD relying on the vehicle information system to share the navigation information in the front window imaging.

Automotive electronics integration.A single electromechanical integrated system can not meet the needs of the development of automotive electronic technology, and the integration of systems and systems has gradually been put on the agenda. Based on the network foundation, the integrated control system refers to the network communication through the bus to realize the information sharing of sensors and systems, and the coordination and optimization of each subsystem through the controller, so as to ensure the safety and stability of the vehicle. In addition to enhancing the performance of the system, the integration of automotive electronics can also achieve the purpose of reducing the total cost of the system. Take the collision avoidance system ACC as an example. ACC is based on the integration of ESC and EPS. The ACC system integrates imaging system technology to identify traffic lanes. Radar or other types of sensors are used to detect the distance between its own vehicle and surrounding vehicles or objects. High-intensity emergency braking capability to prevent collisions.

The intelligent, networked and integrated automotive electronics promote the increasing demand for key components such as sensors and the gradual popularization of key technologies of data bus technology.The intelligence of automotive electronics has promoted the increasing number and types of high-precision, high-reliability, and low-cost sensors it needs, and its performance requires it to have a strong ability to resist external electromagnetic interference, in harsh conditions of use Can still maintain high precision. On the other hand, bus transmission technology can reduce the number of wiring harnesses and wiring harness volume, the use of general-purpose sensors can achieve the purpose of data sharing, and the system function can be changed through system software. Many advantages make its application in automobiles more mature. In addition, the Intelligent Transportation System (ITS) has also begun to be put into application. It relies on satellite communications, mobile communications, and computer technology to realize the "3C" integration of computers, communications and consumer electronic products, and to develop and apply in-vehicle electronic products, including vehicles Positioning, autonomous navigation, wireless communication, voice recognition, electronic collision avoidance products, vehicle-road communication, and multimedia vehicle terminals.

1.4. Automotive electronics industry scale-global sharing trillion feast.

In recent years, the total global automobile production has shown a slow growth trend. According to the latest OICA data, the global passenger car production in 2017 was about 73.46 million, up 1.9 percent from the same period last year. Affected by the high sales base caused by the imminent withdrawal of the purchase tax in 2017 and the macroeconomic downturn in 2018, according to the China Automobile Association, China's automobile production in 2018 was about 23.52 million, down 5.2 percent from the same period last year. Despite the slowdown in downstream vehicle growth, the base is still large, providing a strong demand base for the automotive electronics industry.

The proportion of automotive electronics costs to vehicle costs is gradually rising.With the continuous penetration of automatic driving system, infotainment and network connection system components in vehicle models, the proportion of automotive electronics cost in the total vehicle cost has increased. According to vehicle models, new energy vehicles lead traditional fuel vehicles, and luxury vehicles give priority to low-end vehicles. According to the statistics of furious vehicles, the current electronic costs of compact vehicles, medium and high-end vehicles, hybrid vehicles and pure electric vehicles account for 15%, 28%, 47% and 65% respectively.

The rapid development of automotive electronics, global sharing trillion feast.With the gradual expansion of the application of electronic appliances in the automotive industry, according to the Gestapo Automotive Research Institute, the global automotive electronics market will continue to grow at a compound growth rate of 6.7 from 2017 to 2022, and the global market is expected to reach 2 trillion by 2022, while the domestic market is close to trillion.

1.5. Automotive electronics industry chain-foreign investment led

The automotive electronics industry chain is mainly composed of three levels: the upstream is electronic components, the midstream is system integrators, and the downstream is vehicle manufacturers, of which the upstream includes Tier2 and Tier3, of which Tier2 manufacturers are responsible for providing automotive electronics related core chips and other discrete devices, mainly including IC design manufacturers such as NXP, Freescale, Infineon, Resa Semiconductor and other discrete component manufacturers such as automotive high-power diode manufacturers, tier3 rear-end factory provides contract manufacturing and sealing services for Tier2 manufacturers, including TSMC, Global Foudries, etc. Tier1, a system integrator for mid-stream automotive electronics, mainly designs, produces and sells modular functions of automotive electronics, including Bosch, Continental, Delphi, Japan Electric Equipment and other companies. Downstream is the complete vehicle factory (OEM) and maintenance factory (AM).

Compared with consumer electronics, automotive electronics for high safety requirements, the industry has TS 16969, ISO 26262, AEC Q100 and other certification standards, the certification cycle is longer, manufacturers to enter the vehicle factory supporting system about 2 to 3 years of certification cycle. At present, the automotive electronics industry chain is mainly in the hands of several large foreign manufacturers, and the industry concentration is high. With the gradual penetration of information technology and consumer electronics applications, the traditional automotive industry may face new industries such as mobile Internet and consumer electronics. Impact.

2.ADAS is coming quickly, and the intelligent cockpit is gradually approaching.

2.1. Sensor cross-fusion, ADAS applications are increasingly rich.

The redundancy and fault tolerance characteristics of automatic driving require more sensors for higher-level automatic driving.According to our industry research, 2018-2019 is the stage of entering L2 level automatic driving worldwide, and it is expected that L3 level automatic driving will be officially entered at home and abroad from 2020 onwards, L2-L3 marking the formal transfer of the operation right of the car from human drivers to the driverless system, and the requirements for redundancy and fault tolerance of the driverless system have been qualitatively improved. In terms of the number of sensors, the number of millimeter-wave radars will increase from about 3 in L2 to more than 6, and the number of cameras will also increase from 1 to more than 4, and even start to assemble lidars. Entering the L4/L5 level, the number of sensors will also rise, millimeter wave radar is expected to reach more than 10, cameras will double to more than 8, lidar may be added with the rapid decline in costs. In short, high-end automatic driving will require more and more sensors to ensure the safety of driving as much as possible.

The on-board camera is the visual sensor of the ADAS system and can be applied to multiple scenarios such as parking assistance and driving assistance.Vehicle-mounted cameras mainly include monocular cameras, binocular cameras, wide-angle cameras, etc. At present, the full set of ADAS functions for unmanned driving requires at least 6 cameras, namely 1 front-view camera, 1 rear-view camera and 4 surround-view cameras. Generally, the rear view camera is a standard sensor of low-level ADAS system, which is matched with ultrasonic radar and is mainly used for low-speed parking assistance. The side view camera is usually 2 wide-angle cameras, which are usually used for BSD and electronic rearview mirror. However, the Chinese law currently does not allow the use of electronic rearview mirror. The surround view camera is generally 4 wide-angle cameras. The main application scenarios are 360 surround view and panoramic parking, it is mainly used to form a complete panoramic image by splicing the images of four cameras. The front-view camera is usually one, and the binocular effect is significantly better than monocular. At present, it is mainly used for driving auxiliary systems such as FCW and TSR. In the future, with the refinement of algorithms, ADAS systems such as ACC and AEB can also be realized in cooperation with millimeter wave radar.

Automotive radar systems can be divided into three sub-categories: short-range (SRR), medium-range (MRR), and long-range (LRR). Each has different applications. Long-range (more than 100 meters) is usually used for forward collision avoidance, while short-and medium-range (within 100 meters) are used for blind spot detection, parking assist systems, pre-collision warnings, lane departure warnings or Stop-and-go emergency systems.

Millimeter-wave radar is mainly used for ranging and is often used in driving assistance systems such as ACC and AEB.Millimeter-wave radar is divided into short-range detection (SRR) and long-range detection (LRR). Usually, car companies will install a millimeter-wave radar on the front of the car to detect obstacles in front during driving. The general detection distance is 150 In high-speed driving, the adaptive cruise system (ACC) is the most popular ADAS system for drivers, which greatly reduces the driving intensity of drivers. The two millimeter wave radars located in the front of the vehicle body are usually SRR for short-range detection. Their main function is Emergency Automatic Braking (AEB), which helps to greatly reduce traffic safety accidents. At present, the European Union has mandated standard equipment. The China Automobile Center has released a detailed test and scoring scheme for the 2018 version of C- NCAP (China New Car Evaluation Regulations), incorporating AEB into the active safety score, which is expected to accelerate the penetration rate of AEB in China.

Automatic parking requires multi-sensor fusion of cameras and ultrasonic radar, or even millimeter-wave radar.Automatic parking assistance relies on the scanning and positioning of cameras and radars. Compared with traditional reversing images and reversing radars, automatic parking assistance has a higher degree of intelligence. Generally, ultrasonic radar or millimeter wave radar is used to identify the parking space, and the camera detects the parking space. After the electronic control unit models the car and the surrounding environment, it controls the steering wheel, accelerator pedal, brake and other actuators to realize automatic parking and warehousing.

2.2. Intelligent cockpit, embryonic form

Under the background of automobile intelligent network connection, human-computer interaction has increasingly become the theme of automobile electronic development. The single central control screen and mechanical instruments of the traditional cockpit cannot meet the increasingly huge demand for driving information. Therefore, digital and integrated cockpit electronic technology has become the development trend. As the entrance of human-computer interaction, cockpit electronics has become the next change point in the industry. The evolution of cockpit electronics has accelerated the embryonic form of intelligent cockpit.

The intelligent cockpit is the digitalization, liquid crystal and integration of the traditional cockpit.The intelligent cockpit is a complete system composed of different cockpit electronics. It includes on-board infotainment system, streaming media central rearview mirror, head-up display system HUD, full LCD instrument and car networking module. Compared with the traditional cockpit, the intelligent cockpit digitizes and liquid crystals the hardware such as central control, rearview mirror and instrument panel, and incorporates HMI multi-screens such as head-up display HUD and rear seat display screen, and the bottom layer is embedded with applications such as operating system, vehicle networking service, content software, ADAS system, etc. to meet the increasing demand for human-computer interaction.

The intelligent cockpit is in the multi-screen integration stage and will move towards intelligent driving integration in the future.The integration of intelligent cockpit can be divided into three stages: 1) single cockpit electronics, which is mainly composed of central control platform and only provides multimedia entertainment functions; 2) system integration of central control platform and instrument panel, which is mainly composed of LCD instrument panel, central control large screen, HUD, rear seat entertainment, etc., can realize intelligent interaction, vehicle management and other functions; 3) intelligent driving integration, mainly composed of control system and execution system, the automatic driving function can be realized. It is currently in the second stage of popularization. According to Visteon, a one-core multi-screen central control platform integration will be formed in 2023.

The smart cockpit of the future can be seen from the 2019 CES exhibition.Mercedes-Benz, BMW, Toyota, Baiteng and other car companies all exhibited models equipped with new concept intelligent cockpits at the CES exhibition in January 2019. Among them, Mercedes-Benz has released a new CLA model. The full LCD central control screen with double 10.25-inch large screens is equipped with a new MBUX human-computer interaction system. This MBUX has learning ability and can provide conversational intelligence using speech to meaning and natural language understanding in 23 languages. The Vision iNEXT model displayed by BMW is equipped with two screens, one large and one small, and is expected to go on sale in 2021, when BMW will join hands with Alibaba to integrate and launch the Tmall Genie intelligent voice assistant. Toyota ACES concept cabin is equipped with a unique "body and posture detection system" with strong perception ability. It uses cameras and seat sensors to detect the passenger's eye position, body size and posture so that the seat and seat belt can be automatically adjusted. If the driver is drowsy, it can also use music and vibration to help the driver stay awake. Byton's first BYTON M-Byte is expected to be mass-produced by the end of 19 years. Byton's multi-screen integration is its biggest highlight. 48 shared full screens display vehicle and driving information as well as rich communication, entertainment and other contents in a very intuitive way.

The intelligent cockpit is equipped with more components than the traditional cockpit, and the market space is significantly improved.The traditional cockpit only includes mechanical instrument panels and on-board infotainment systems, while the intelligent cockpit includes major components such as full LCD instrument panels, on-board infotainment systems, HUD, voice interaction, and streaming media rearview mirrors. The value of a single vehicle has doubled. The expansion of the market is good for industry participants.

The main participants in the smart cockpit include auto parts giants, electronics companies and Internet companies.Foreign giant parts companies that have grown up with foreign automakers have deep technical deposits and are closely related to automakers. They are important participants in smart cockpits, including Visteon, Continental, Bosch, etc. Electronic enterprises have a place in the cockpit electronics market due to their core software technology and through industrial chain integration, including Gale, Alpine, Pioneer and so on. Internet companies are latecomers. With their software and big data resources, they have a unique advantage in promoting human-computer interconnection, including Baidu, Google, Alibaba, etc.

With the modular and integrated development of the intelligent cockpit, the advantages of the future parts giants may gradually become prominent.The modularization and integration of the intelligent cockpit test the supplier's ability to integrate hardware and software. At present, foreign parts and components know more about automobiles than electronic enterprises and Internet companies, have a closer relationship with the main engine factory, and have a stronger hardware foundation. At present, the parts and components giants are investing heavily in research and development, believing that the future parts giants may have more competitive advantages.

2.2.1. In-vehicle infotainment system, the core of the intelligent cockpit

car infotainment system history:The car infotainment system has developed from the first generation of cassette and radio to the fourth generation of integrated car infotainment system, which has undergone three changes:The screen has grown from scratch, and the size has grown from small to large; the connection with the outside world is becoming more and more diversified; human-computer interaction is becoming more and more intelligent.The fourth-generation integrated in-vehicle infotainment system has been able to realize a series of applications including three-dimensional navigation, real-time road conditions, network TV, assisted driving, fault detection, vehicle information, mobile office, wireless communication, online-based entertainment functions and TSP services. It embodies the level of automobile intelligence, electronics and interconnection.

In-vehicle infotainment system industry chain: In-vehicle infotainment system is mainly composed of software, hardware and services,Most of the participants in application software (content services) and operating systems are application software service providers for smartphones and computers, while the participants in hardware are auto parts companies, and the participants in system integration include both vehicle manufacturers and auto parts companies.

The upstream of the on-board infotainment system is mainly composed of chips, printed circuit boards, display screen modules and exterior plastic parts. The suppliers of mid-stream auto parts purchase components from above to do hardware integration to form terminal products. Therefore, the core competitiveness at the hardware level is mainly reflected in the R & D design and reliability of the manufacturing process of the terminal vehicle factory, and the core competitiveness of the software is mainly in the processing capacity of the chip. At present, Intel and Qualcomm are leaders in the field of processing chips. In the car networking part, TSP platform occupies the core position in the industrial chain, integrating and supervising the service content forward, and there are two ways to provide services backward-the car factory determines the brand (Dongfeng Nissan, BYD) and TSP (Anji Star, etc.) to operate independently.

Development trend: In-vehicle infotainment system continues to penetrate and expand, value-added services increase profit points.1) According to Huayi Automotive Technology, the domestic penetration rate of in-vehicle infotainment system in 2018 is 60%, and the remaining 40% is still in the CD/DCD stage. With the further penetration of in-vehicle infotainment system, the industry space is expected to continue to expand. 2) Car networking including content services, communication services and TSP services has become the theme of development. More and more Internet enterprises such as Baidu Carlife, Ali YunOS and Tencent MyCar have entered. Cars will become the next mobile terminal. With the increase of users and the expansion of value-added services, the profit margin of the industrial chain is expected to further expand.

Global more than 100 billion, the industry space further growth.According to Visteon, the global market space for in-vehicle infotainment systems (including displays) in 2018 is $19.6 billion, or $130 billion. In the future, with the increase of penetration rate, multi-screen, large-screen and functional diversification, the industry space will continue to grow further, is expected to 2023 global market space up to $24.2 billion, equivalent to $160 billion.

Market participants and competitive landscape: foreign investment led, independent development.

Foreign component giants and electronics companies lead the global market.In-vehicle infotainment systems can be mainly divided into parts cars and electronics companies. The former includes Bosch, Delphi, Continental, and Denso. The main advantage is that it has closer ties with vehicle manufacturers by virtue of other parts businesses. The latter's main advantage lies in the industry chain. Integration capabilities, the current global market space for in-vehicle infotainment systems is mainly occupied by the two.

Judging from the global competition pattern, according to the company's annual report, the revenue of Harman, Aixin Seiki, Gele and Visteon's on-board infotainment systems is US $31.0, US $15.1, US $12.1 and US $0.98 billion respectively, corresponding to a market space of US $196, with market share of 15.8, 7.7, US $6.2 and US $5.0 respectively. The other giants have no revenue breakdown data for the on-board infotainment systems.

Joint ventures and independent suppliers carve up domestic space.The top three independent suppliers engaged in the front-mounted on-board infotainment system business are Huayang Group, Hangsheng Electronics and Desai Xiwei respectively. As Hangsheng Electronics is a non-listed company and has no public on-board information management system data, the revenue scale of Huayang Group and Desai Xiwei's on-board infotainment system in 2018 is 2.47 billion yuan and 3.5 billion yuan respectively, with the corresponding market share of 32.5 billion market space being 7.6 and 10.7 respectively. In addition, foreign-funded enterprises such as Visteon, Mainland China and Gele have established joint ventures in China, and some joint ventures led by Visteon are deeply bound to domestic mainframe plants, occupying a large share.

2.2.2. Gradual LCD of automobile instrument panel

With the rapid development of integration and digital control technology, automobile instrument is no longer a simple original that provides speed and vehicle speed. It can display more important information and even issue warnings, providing car owners with more diversified choices and personalization. Driving experience.

Full LCD instrument panel is the future development trend.The development of automobile instrument panels has roughly gone through three stages. Early regular instruments include speedometer, tachometer, oil pressure gauge, water level gauge, fuel gauge, charging gauge, etc., and the number of indicator lights is often as many as dozens. Then there is the electric instrument panel, which feeds back driving information more and more timely and iterates on display technology, from vacuum fluorescent display (VFD) to liquid crystal display (LCD) to small-size thin film transistor display (TFT). Visual visualization is continuously improved and user perception is significantly improved. The full LCD automotive instrument is a networked and intelligent instrument. It uses a screen to replace the most representative parts of the existing instrument panel such as pointers and numbers. It can not only display the basic information of the vehicle, but also display navigation maps, Multimedia and other functions, even turbine pressure, throttle opening, braking force and other information, easier to connect with the network, peripherals and other applications, the full LCD instrument panel is by far the most advanced automotive instrument, and it is also the future development direction and trend.

As a regulatory instrument, the instrument panel has higher requirements in software and hardware. On February 2, 2019, the draft of the automotive industry standard ''Automotive LCD Instrument'' organized and formulated by the instrument sub-standard committee was released., Performance and other aspects make clear requirements to regulate the dashboard market, especially the developing full LCD dashboard market.

At present, the penetration rate of full LCD instrument panels is relatively low, about 9% in 2018, mainly concentrated in luxury cars and new energy vehicles. With the continuous penetration of full LCD instrument panels into low-end models in the traditional car market and the volume of sales of new energy passenger cars, it is expected that the penetration rate of full LCD instrument panels will continue to increase.

The market size is $8 billion in 2018 and is expected to reach $9.7 billion in 2020.According to Visteon, the market size of instrument panel in 2018 is about US $8 billion. With the popularization of full LCD instrument, the penetration rate is expected to continue to increase and drive the sales volume growth. The penetration of full LCD instrument panel into low-end models will push its price down. Overall, the market size CAGR in 2018-2023 is about 9.5, the market size in 2020 will be US $9.7 billion, and the market size in 2023 will reach US $12.6 billion.

Foreign giants divide up 80% of the global market share.Compared with the central control platform, the competition pattern of automobile instruments is relatively concentrated. The top five suppliers account for about 80% of the market. Among them, the German mainland, Aisin Precision, Japan Electric Installation, Visteon of the United States and Bosch of Germany account for 25%, 17%, 15%, 15% and 8% respectively. In addition, Johnson Automation, Yazaki General Industry, Marilli and other companies in the automobile market are also involved.

Domestic LCD dashboard suppliers to Desai Siwei and other companies as a representative, currently in the front of the market mainly supporting independent brands, a few enterprises have some exports. Similar to the central control screen, HUD and other products, the development of new energy passenger cars in emerging markets has led to the release of LCD dashboard products from independent suppliers, with joint venture brands such as mainland and Visteon occupying a major share of the domestic traditional car market.

2.2.3. HUD penetration is expected to continue to improve.

HUD is head-up display, which is the abbreviation of Heads Up Display. It is a flight auxiliary instrument widely used in aircraft at present to reduce the frequency of drivers looking down at instruments, avoid attention interruption and loss of state awareness. At a time when the size of the large-size central control screen is highly sought after, the on-board display has created a potential safety hazard to distract the driver's attention. The on-board HUD came into being, which first appeared in the late 1980 s. Then in 2001 and 2004, GM and BMW respectively introduced color HUD. With the gradual maturity of technology, HUD has been widely used in luxury cars and some daily family cars are also loaded.

HUD is mainly divided into four types, namely AR-HUD(Augmented Reality-HUD: augmented reality head-up display), W-HUD(windshield-HUD), C- HUD(Combiner HUD), A- HUD(Aftermarket HUD), the current mainstream HUD is mainly W-HUD, C- HUD.

The penetration rate in 2018 is about 6.7, and the market space is about 6 billion yuan.According to Visteon, global HUD shipments were about 5 million units in 2018, and considering that global passenger car sales were about 74 million in 2018, the current HUD penetration rate in the global passenger car market is about 6.7 percent. Since the average price of a single set is around US $180 (equivalent to about RMB 1200, the market size in 2018 is about US $0.9 billion (equivalent to about RMB 6 billion). With the subsequent increase in penetration, the market size is expected to reach $2 billion by 2022, at least double the current market size.

Foreign giants ahead of the layout, domestic suppliers in the entrepreneurial stage.HUD is the intelligent cockpit back-end landing link, the current penetration rate is still low, but the development potential is greater. Aisin Seiko, the German mainland, Japan Electric, the United States Visteon, Germany Bosch and other enterprises have long been laid out, and almost carved up the global market share, of which the market share is 55%, 18%, 16%, 3% and 3%, respectively. In addition, giants such as Hyundai Mobis have also received HUD orders from Chinese vehicle manufacturers. It is expected that major players such as central control screens and LCD dashboards will pour into the market one after another, and the fierce competition will intensify in the future.

The domestic HUD start-up wave began around 2013. At present, the main participants include Huayang Group, Jiangsu Zejing, Future (Beijing) Black Technology, Jinglong Ruixin, Yanshi Technology, Dianshi Innovation, Lejia Technology, Jingtu Technology, etc. According to high-tech intelligent vehicles, among the domestic independent brand models to be launched from 2019 to 2020, Geely, GAC, Chang 'an, Great Wall and other independent brands will be equipped with HUD on models with a price of more than 100,000 or so. It is expected that the HUD business of independent suppliers will usher in a high-speed development opportunity.

2.2.4. Streaming media central rearview mirror is still in its infancy

Streaming media, or streaming media, refers to the same time that the media provider transmits media on the network, and the user is constantly receiving and watching or listening to the transmitted media. Different from the traditional rearview mirror, the streaming media rearview mirror uses a screen instead of a mirror, and the rear image of the car is projected onto the display screen through the camera, and the rearview mirror product is played in digital format.

History of the development of rear-view mirrors.The early rearview mirror was simple and crude, with a plastic shell including lenses. In order to avoid glare from the rearview mirror, anti-glare function was superimposed. Later, electronic compass, altitude and vehicle climbing angle indication were added. Then around 2015, streaming media central rearview mirror appeared, and a high-definition waterproof external rearview camera was used to shoot the rear situation and feed it back to the rearview mirror. At the CES2018 exhibition, the streaming media central rearview mirror exhibited by Gentex, the originator of the streaming media rearview mirror, even adopted pupil recognition technology and used the infrared camera above the rearview mirror to recognize the driver's pupil to identify whether the owner is driving and retrieve the information in the car. At the same time, fatigue detection technology has been developed. The intelligence of the rearview mirror is at a stage of rapid development.

The advantages of streaming media rearview mirror compared with traditional rearview mirror:1) The camera is placed behind the car, and the shooting range is not affected by the car, thus solving the problem of blocking the sight line of the rear row, rear window and C- pillar; 2) Increase the rear view field by more than three times through the wide-angle lens, and the original view field is not deformed; 3) Eliminate glare when the light is strongly changing; 4) The rear view effect is excellent at night and can still provide a good view in bad weather.

The streaming media central rearview mirror is still in its infancy and the penetration rate is very low.In 2015, Cadillac CT6 took the lead in carrying the streaming media central rearview mirror supplied by Gentex, making the streaming media central rearview mirror in the car a reality. Subsequently, the streaming media central rearview mirror began to appear on BMW I8Mirrorless and McLaren 675LT JVCKENWOOD concept cars. In 2017, Great Wall WEY VV7 became the first independent brand to use streaming media central rearview mirror. Due to the lack of industry standards and relevant regulatory mechanisms, the driver's vision adaptability needs to the need to be cultivated, as a result, the front-mounted penetration rate of the streaming media central rearview mirror is relatively limited.

Founded in 1974, Gentex is the world's leading company in auto-dimming rearview mirrors and the originator of streaming media central rearview mirrors. Currently, the car brands that have established cooperation with Gentex in streaming media rearview mirror business include Toyota, Subaru, Nissan, Cadillac and Jaguar Land Rover. At present, the front-mounted streaming media central rearview mirrors of domestic models are mainly imported, and domestic manufacturers are mainly concentrated in the rear-mounted market. There are more than 30 mainstream brands. These brands focus on intelligent products, and the more competitive ones include Lingdu and Jidu., Ren Wyou, Eye of Heaven, Khalid, Kashida, Covey, Zhuo Pai, 360, Xiaoyi, etc.

3.7-level in-depth analysis-an overview of the automotive electronics investment framework.

3.1. Network layer-look at the trend of intelligent networking.

Take Tesla as an example to see the evolutionary direction of smart cars.Since the first Model S was born in 2012, Tesla has been one of the car factories with the strongest "sense of science and technology" in the hearts of the car people. Its iconic automatic driving system "Autopilot" is the benchmark of the world's commercial automatic driving technology. The outstanding networking experience brought by the design of the central control large screen car machine and OTA (online update) has also become the standard for many car factories to follow. We take Tesla as an example to interpret the new intelligent direction of "future" cars.

Intelligent innovation direction-automatic driving.Tesla introduced autopilot through a software update in October 2015, which mainly includes two functions: active cruise control (TACC) and automatic cruise control (Autosteer). The former mode will allow the vehicle to drive automatically at the speed set by the driver. When the vehicle in front is detected, it will automatically slow down to maintain a suitable distance; the latter mode uses cameras and lidars to detect road signs and vehicles in front. Tesla can automatically drive in the middle of the road. Although the industry still has many doubts about Tesla's ability to over-promote autonomous driving in the media, it is undeniable that the introduction of autonomous driving systems has indeed significantly improved the safety of cars. According to the analysis of the U.S. Traffic Safety Administration, from 2014 to 2016, all Tesla Model S and Model X equipped with automatic driving function found that the average number of car accidents causing airbag pop-up has decreased from 1.3 per 1 million miles to 0.8 per 1 million miles after the installation of automatic driving. The number of car accidents has been reduced by nearly 40%.

Intelligent innovation direction-human-computer interface upgrade (HMI).Tesla was the first manufacturer to create a large-screen central control, leading the style of large-screen design. Model S is the first model to use a 17-inch large screen, replacing the traditional physical buttons. Once launched, it can be said to be eye-catching. Compared with the button-type interaction of traditional cars, the touch-type human-computer interaction design of the central control large screen makes the overall sense of technology of the car rise in a straight line. After Tesla, we have also observed that more and more car factories have begun to introduce new human-computer interaction technologies such as voice control, gesture recognition and touch screens to enhance users' driving pleasure or operating experience during driving, and improve user experience.

The direction of networking innovation-OTA technology gives cars the ability to evolve continuously and iteratively.Tesla's remote OTA technology allows the car terminal to continue to evolve. If a device does not have its own ability to upgrade and iterate, we do not think it is a real smart device, and most of the current cars do not have the ability to automatically update after sales. Tesla is so far the only car factory that can achieve OTA(Over-the-Air Technolog, remote upgrade technology). Through OTA networking, Tesla can make every car in the life cycle like a smart phone can complete system updates, add new features and improve performance. It is worth noting that Tesla's OTA technology is not only limited to Infotainment (entertainment system) software updates, but also can directly realize safety and vehicle control updates, such as Autopilot system version updates, brake performance improvement, etc. We believe that one of the important trends in the "future" car is the "software-defined" car, which will become the standard of the "future" car through the iterative update of the software and the ability to maintain continuous evolution.

Under Tesla's catfish effect, traditional car companies are accelerating the industry trend of embracing intelligent networking.Tesla's strong performance in the consumer market allows traditional car companies to see the direction of future development. In the era of intelligent networking, in order not to be eliminated, automobile enterprises are trying their best to make their products intelligent and networked. Almost all traditional car companies regard car networking as the main direction-this is considered to be a bigger outlet than new energy. On the other hand, the new car-making forces represented by Weilai Automobile and Xiaopeng Automobile regard "intelligent networking" as the core advantage to widen the gap with traditional car companies. Driven by both old and new forces, the smart car industry is ushering in the best era. According to the forecast of Ai Media Consulting and Sadie Consulting, the penetration rate of domestic Internet cars and ADAS products is expected to continue to rise in the future.

3.2. Communication layer-car networking technology route is clear, the industrial chain is mature, 5G empowerment is worth looking forward.

The Internet of Vehicles was first proposed in 2010 (China Internet of Things Conference). It has been developed for nearly 10 years. The ultimate goal is to realize unmanned driving and intelligent transportation. The means is the combination of on-board driving assistance system (ADAS: laser radar, millimeter wave radar, camera visual recognition, ultrasonic wave, etc.) and communication technology, I .e. bicycle intelligence and networking.Among them, networking is the V2X(Vehicle To Everything) emphasized in communication, that is, the interconnection of vehicles, vehicles and vehicles, vehicles and people, vehicles and roads, and vehicles and networks.

3.2.1. Communication technology: C- V2X stands out, 4G LTE-V is ready to go, 5G NR-V dawn is now

From the perspective of communication technology, a new communication technology needs to be proposed for the special scenario of V2X.The reasons are:(1) In the vehicle scenario, the relative moving speed between vehicles is as high as 500 km/h, and the occlusion and channel environment are more complicated, which brings more significant Doppler frequency expansion and rapid channel change. (2) In order to improve driving safety during vehicle driving, direct communication between vehicles puts forward higher requirements for high reliability and low delay.

At present, the international mainstream V2X technologies include dedicated short-range communication technology (DSRC) and cellular communication technology (C-V2X).Among them, DSRC is formulated by IEEE, which is a communication technology strongly advocated by the United States policy; C- V2X is formulated by 3GPP and is formed based on the evolution of cellular network communication technology. From the perspective of technology maturity and commercial rhythm, the C- V2X development prospects are broader in the context of 5G large bandwidth and low latency.

The development of C- V2X standards has been steadily advanced, and commercial planning has been gradually clarified.3GPP officially released the LTE-V2X R14 standard in 2017, officially completed supporting the LTE-V2X enhancement (LTE-eV2X)R15 standard in June 2018, and announced the start of research to support the R16 standard for 5G-V2X. According to the C- V2X development progress, 5GAA is expected to C- V2X commercial deployment in 2020. At present, the entire C- V2X industry chain such as chip manufacturers, module manufacturers, car factories, etc. have planned the commercial deployment of C- V2X products, and the relevant roadmap plans have been entered into the 5GAA organization.

Broadly speaking, according to the different communication technologies used, the vehicle networking has mainly gone through two stages: 2G/3G/4G cellular wireless network and C- V2X. At present, the vehicle networking has entered a C- V2X stage of development. In a narrow sense, in C- V2X stage, according to the difference of basic wireless networks, it can be specifically divided into 4G-based LTE-V/V2X and 5G-based NR-V2X:

(1) The first stage: 2G/3G/4G cellular wireless network, which is mainly manifested as in-vehicle information service,That is, the car company is equipped with a vehicle terminal embedded with a communication module in the car, so that the vehicle has the most basic communication capabilities. Because car companies have a certain say in cost control and car function equipment, it is the leading force at this stage.

(2) The second stage: C- V2X, this stage marks the beginning of the automobile's entry into the era of intelligent networking,That is, with bicycle intelligence, automatic driving and intelligent traffic functions can be realized.

• LTE-V/V2X-based intelligent network phase (vehicle network cloud collaboration). The application scenarios mainly include traffic safety (emergency braking warning, abnormal vehicle warning, intersection collision warning, road dangerous situation warning, vulnerable traffic participant warning, etc.) and traffic efficiency (speed guidance based on signal lights, green wave belt, front congestion warning, emergency vehicle signal priority, etc.).
• The 5G-based smart travel phase.5G networks can provide end-to-end latency as low as 1ms and peak rates as high as 10Gbps through innovative technologies such as network slicing to achieve autonomous driving. The main application scenarios of 5G vehicle networking include remote control driving (Tele-Operated Driving,TOD), high-density vehicle formation driving, and fast collaborative lane change assistance. Among them, TOD refers to the remote driving control system with the help of 5G high-performance network, which transmits the vehicle scene to the control room through in-car cameras and sensors, and the driver remotely controls the car. In June 2017, China Mobile and SAIC Shanghai jointly completed China's first 5G remote driving demonstration.

For the deployment of 5G-V2X, Uu technology tests are planned to start in 2019 to verify the support capability of 5G network for some typical service scenarios of eV2X (mainly for large bandwidth scenarios), and to formulate technical standards with low delay and high reliability. Technical tests of low-delay and high-reliability application scenarios will begin in 2021 to verify network performance for typical applications such as automatic driving. Therefore, 5G-V2X scale commercial time is expected to be after 2021.

3.2.2. Communication industry chain: three-tier architecture of cloud, management and end, with the participation of operators, equipment manufacturers and vehicle manufacturers.

From the perspective of communication network architecture, the Internet of Vehicles mainly includes three levels of cloud --- tube --- end. The cloud has a central system, the pipe side is the communication network, and the end side is the on-board unit OBU and the roadside unit RSU. The white paper "Research on the Development of China's Internet of Vehicles Industry" predicts that by 2020, the market size of the global Internet of Vehicles V2X will exceed 614 billion yuan, of which the Chinese market will reach 200 billion yuan.

End: OEMs dominate the front-loading market, with operators and TSPs leading the demand for rear-loading.

In order to realize the networking of automobiles, terminals (OBU,On Board Unit) with embedded communication modules must be assembled in the automobile. According to the configuration before or after the automobile leaves the factory, they can be divided into two types: front-mounted and rear-mounted. Communication modules meeting the standards of mobile communication (C-V2X) and satellite communication (GPS, Beidou, etc.) are the key components in the upstream of the automobile terminal industry chain. In addition, the road side unit (RSU) for signal transmission and reception and the road side service unit (RSS) for information collection are essential.

The front-mounted equipment of the car terminal is commonly known as T-Box(Telematics BOX), that is, the on-board Microsoft system. It relies on technologies such as wireless communication, satellite communication (GPS/Beidou) and CAN bus integration to provide road traffic information, navigation information, long-distance vehicle diagnosis, vehicle networking remote control and Internet services to car owners. It can communicate with the back-end system/mobile phone APP to realize vehicle information display and control of mobile phone APP. Due to the installation of cars before they leave the factory, the vehicle factory is the main force T-BOX the penetration rate of the industry.

At present, domestic T-BOX suppliers mainly have high emerging (ZTE IOT), Neusoft, Luchang Technology and Desai Siwei, etc., foreign countries mainly have Bosch, Harman and Denso. With the continuous maturity of domestic T-BOX technology, the quality and performance of domestic vehicle T-BOX products will gradually improve. At present, it has occupied most of the domestic market share, and is expected to enter the international market under the trend of domestic substitution in the future.

The back-end equipment of the automobile terminal is represented by OBD(On-Board Diagnosis Vehicle Self-Diagnosis System), which is used to monitor the operating status of the engine and the working status of the exhaust gas aftertreatment system. UBI(Usage Based Insurance) for the insurance industry has also begun to be widely used. Operators and TSP(Telematics Service Provider) service providers are the main demanders in the aftermarket. Operators charge service fees through "terminal traffic" packaged sales. In the future, OBD and other products are expected to usher in greater development driven by the transformation of the operator's profit model.

The foreign OBD market is better than the domestic market in terms of business model, technology maturity and industrial competition environment. Due to the relatively low threshold of technology and customers, there are many participants in the OBD market in China. We believe that, on the one hand, OBD service providers in overseas markets are expected to obtain higher product gross profit. On the other hand, with the continuous upgrading of the profit model dominated by operators and auto insurance service providers in the domestic market, the industry maturity is expected to be benchmarked Overseas, to achieve an increase in concentration.

Overall, the front loading market space is slightly higher than the rear loading market, but the difference is not big. According to IHS statistics, the domestic sales volume of front-loading terminals in 2018 was about 5 million units, and the sales volume of rear-loading was more than 4.5 million units. From the perspective of industrial chain maturity and competitive landscape, we are optimistic about the development space of the front-loading market driven by both policy and demand. According to the regulations on the Management of New Energy vehicle manufacturers and Product access issued by the Ministry of Industry and Information Technology, all newly produced new energy vehicles will be equipped with on-board control units from January 1, 2017, and for the new energy vehicle products that have been sold, vehicle enterprises shall provide free upgrade services for vehicle terminals, communication protocols and other related monitoring systems in accordance with national standards. With the gradual penetration of the Internet of Vehicles and the real-time demand of new energy vehicle companies for vehicle battery and vehicle status information, Zuosi Production and Research Data pointed out that the global T-box market is expected to reach a market size of US $1.5 billion in 2020, with a compound annual growth rate. About 50%, the industry prospect is very good.

The communication module is the key component of the upstream of the vehicle terminal, and the cost accounts for about 20-30%. We believe that although the value of the vehicle-level communication module is much lower than the terminal, but the company with integrated manufacturing capabilities has a comparative advantage in product stability and mass production capacity. Under the background of pressure on downstream automobile sales and increased market concentration of vehicle terminals, companies with module and terminal industry chain production capacity are expected to occupy a higher share in the domestic Red Sea market.

Tube: LTE-V spectrum falls to the ground, 5G NR-V waits for flowers to bloom.

TubeThat is, a communication network suitable for automobile communication. Due to the scarcity of frequency band resources, in China, the Ministry of Industry and Information Technology has no committee to divide the frequency band. From October 18 to 21, 2018, the "World Intelligent Network Automobile Conference" was held in Beijing. At the closing ceremony of the conference on October 21, the Ministry of Industry and Information Technology issued the "Regulations on the Use of 5905-5925MHz Frequency Band for Direct Connected Communication of Vehicles (Intelligent Connected Vehicles)". A total of 20MHz dedicated frequencies in the 5905-5925MHz band are planned for the LTE-V2X of vehicle networking direct communication technology.

At present, Europe, the United States, Japan and South Korea have been in the vicinity of 5900MHz for V2X divided spectrum resources, China's Ministry of Industry and Information Technology determined in the 5905-5925MHz band development of vehicle networking, is conducive to the V2X global industrial chain cooperation and coordination. At the same time, the planned frequency band reached 20MHz, much higher than Europe, America, Japan and South Korea, reflecting China's determination to vigorously develop the car networking industry.

Cloud: the central system of car networking, mastering the core value

CloudThat is, the cloud center system. At present, the global Internet manufacturers and equipment giants are widely involved in this field. Domestically, as early as 2014, Baidu, Ali, and Tencent began to lay out the Internet of Vehicles industry, and now they all have their own products. Baidu has DuerOS system and Apollo plan, Ali has AliOS system and Zebra Zhixing, Tencent has AI in car.

The types of car networking software service products are roughly divided into four categories: car-machine mobile phone interconnection solutions, Linux-based operating systems, car networking platform infrastructure and car operating systems.

• Car and mobile phone interconnection solutions: Tencent's car and mobile phone interconnection APP, Baidu Carlife, Siwei Tuxin Wlink, Bosch mySpin, etc., as well as corresponding foreign manufacturers such as Apple Carplay, Google Android Auto, Microsoft Windows in the Car, etc;
• Linux-based operating system: including Tencent car ROM, small OS and Ali's zebra system.
• Vehicle networking platform infrastructure: vehicle service platform launched by major equipment manufacturers;
• Car operating system: The former car operating system is mainly based on BlackBerry QNX, followed by Linux and Windows.

3.2.3. 5G and car networking: MEC edge computing for low latency, autonomous driving just around the corner

5G has three application scenarios: eMBB (enhanced mobile broadband), mMTC (massive Internet of Things connection) and URLLC (low latency and high reliability communication). Among them, the typical business model of low latency and high reliability application scenarios is the Internet of Vehicles. Because 5G solves the problem of high 4G latency well, the response time is reduced from 50 milliseconds to 1-3 milliseconds, which increases the response speed by a full 50 times. After the 5G network is mature and commercial, the Internet of Vehicles has achieved leapfrog development.

In order to realize the function of low latency, 5G presents a significant intergenerational upgrade in two aspects: wireless and transport layer transmission network architecture and BBU baseband processing unit. (1) Flat transmission network architecture. The 4G era transmission network architecture is pyramidal, because optical transmission equipment and fiber optic cables will cause delay, 5G era core network sinking, the establishment of more transmission nodes and edge data centers, to achieve flat network structure has become an inevitable choice. (2)BBU split into CU/DU two-level architecture. The CU is responsible for processing non-real-time protocols and services, and the DU is responsible for processing real-time services.

MEC technology in the 5G era provides users with a low-latency, high-bandwidth network environment and high computing power, large storage, and personalized service capabilities by deploying platform-based network nodes at the edge of the network. For the application scenario of vehicle networking, on the one hand, compared with the service mode of traditional Uu mode communication connection center cloud, deploying V2X server on MEC can reduce the load pressure of network and center cloud, and at the same time provide scene functions such as red light running warning, pedestrian collision warning, traffic light-based vehicle speed guidance with lower delay;

On the other hand, the use of MEC can achieve V2I2V communication, while providing more reliable network transmission to ensure that meet the low delay requirements, to achieve forward collision warning, intersection collision warning and other scene functions. In addition, the MEC-based network environment has powerful computing, storage and transmission resources, and with roadside intelligent devices, it has the ability to organize and coordinate a large number of traffic elements quickly and accurately, which can further expand the supported application scenarios, such as vehicle perception sharing, road condition recognition and comprehensive analysis at intersections, real-time distribution of high-precision maps, and large-scale vehicle collaborative scheduling.

At the MWC 2019 Mobile World Congress just concluded in early March 2019, China Mobile and China Unicom both released the edge computing MEC action plan, business platform and related white papers. We believe that operators have great motivation to advance MEC. (1) In the 5G era, a large amount of data will be generated, and it is estimated that more than 50% of the data will need to be analyzed, processed and stored at the edge of the network. (2) New business processing with high bandwidth and low latency in the 5G era needs to occur at the edge of the network. (3) In the 5G era, operators advocate the separation of network control surface and business surface architecture, thus changing the business model of only doing pipeline but not business in the 4G era.

In terms of industry chain, in addition to operators, communication equipment manufacturers, server companies, chip companies, software service companies and content providers will all participate in the construction of edge data centers. At the MWC 2019, Inspur Information and ZTE have released mature edge computing server products.