Technical article

Forecast

Government departments in Wuhan and Chongqing have recently introduced pilot policies for autonomous driving unmanned operations and awarded Baidu the country's first full-vehicle unmanned demonstration operation qualification, which is a significant milestone in the commercialization of autonomous driving in China. As we all know, autonomous driving not only tests the "vehicle" itself but also has high requirements for "roads, clouds, networks" and other aspects, which is far beyond the network construction that cannot support internet access while driving.

The rapid development of the 5G industry and the autonomous driving industry will drive the rapid growth of the Internet of Vehicles (IoV) market scale. According to data from the China Commercial Industry Research Institute, the average annual compound growth rate of China's telecommunications sector is expected to be 29.95% from 2017 to 2020, and the telecommunications market scale will reach 277.1 billion yuan in 2022. Qianzhan Research Institute predicts that with the annual growth of the user scale, the IoV market scale is expected to reach 800 billion yuan by 2026.

New Opportunities

With the expansion of the IoV market scale, network transformer enterprises have found new market value-added points. For example, network transformer enterprises such as Mingpu Guangci and Jingweida have increased their investment in new-type network transformers in recent years.

In response to a recent investor question, Mingpu Guangci stated that its communication magnetic components revenue reached 1.253 billion yuan in 2021, accounting for 56.01% of the company's total revenue. Driven by telecommunications, the requirements for high-speed transmission and stability of in-vehicle networks have become extremely stringent, thus putting forward demands for high frequency, low loss, and stability for traditional network transformers. On the basis of repeatedly upgrading traditional network transformer products, Mingpu Guangci's chip-type network transformers have now officially replaced traditional ones for mass supply. Moreover, Mingpu Guangci has recently launched automotive-grade network transformers. These products support applications in various automotive technologies. In addition, they are designed to operate in a temperature range of -40 to 125°C, with functions such as signal filtering and isolation, as well as high reliability, meeting the quality requirements of AEC-Q200 for automotive products.

To address the shortcomings of traditional network transformers, such as large footprint, high labor costs, and long delivery cycles, Jingweida has independently developed a new type of split network transformer. It is reported that Jingweida began deploying the production of split network transformers in 2020 and has now achieved automated mass production. Earlier, the chairman of Jingweida stated that the company has become a professional network transformer enterprise and is expected to provide high-speed data transmission equipment, EMC equipment, energy conversion equipment, and other products to the telecommunications market in the future.

Future

Not only network transformers for information transmission, but also automotive-grade inductors are seeing increasing market demand with the development of intelligent vehicles. Shun Electronics, as a domestic magnetic component enterprise that laid out in the fields of new energy vehicles and intelligent vehicles in the early stage, its automotive electronics-related products cover automotive battery management systems, autonomous driving systems, telecommunications, and other areas. However, it should be noted that the supply chain of the traditional automotive market is basically stable, and numerous magnetic component enterprises have entered the domestic automotive electronics field. At present, China is at the forefront of the world in the fields of new energy vehicles and autonomous driving, which is a good opportunity to reshape the automotive industry chain. Under the trend of the times, it remains to be seen how domestic magnetic component enterprises will respond.