Telematics Equipment (Global Market)
2024: DY-Technologies builds automotive electronics plant in Moscow
At the end of August 2024, it became known that Di Vai Technologies (DY-Technologies) had built a plant for the production of automotive electronics at the Alabushevo site of the Technopolice Moscow special economic zone (SEZ). The company will produce multifunctional navigation devices, DVRs and other equipment for a wide range of vehicles. Read more here.
2023
Global auto chip sales growth to $67.44 billion
At the end of 2023, the global market for semiconductor chips for the automotive industry reached $67.44 billion. In the future, a rapid increase in costs is expected against the background of digitalization of the industry and the introduction of intelligent technologies. This is stated in the IDC study, the results of which were published on May 29, 2023.
Analysts point to growing demand in various segments of the automotive market. These are chips for high-performance computing (HPC), image processing units (IPUs), radar and lidar sensors for autopilot systems. In addition, the demand for products for advanced driver assistance systems (ADAS) is increasing. The development of the industry is also facilitated by the electrification and formation of the so-called Internet of Vehicles (IoV) - an ecosystem that is expected to help implement the concept of smart cars. The technological advances being introduced improve road safety, as well as contribute to the emergence of qualitatively new interactive services.
New environmental standards and government support programs, primarily in China, Europe and North America, further encourage the transition to fully electric and hybrid vehicles. As a result, the need for semiconductor chips for on-board automotive systems increases. This trend, as noted by IDC, opens up unprecedented opportunities for semiconductor manufacturers who continue to invest in technological innovation and capacity expansion.
The study says that from 2020 to 2027, the CAGR (compound percentage CAGR) in the global automotive chip market will be about 12%. As a result, by the end of this period, costs can reach approximately $88.28 billion. ADAS systems will remain one of the largest segments. In addition, semiconductor chips will be in demand by developers of digital instrument panels, on-board infotainment complexes and electrified power plants. These categories will account for approximately two-thirds of the total automotive chip market in 2027.
 | Among the many applications of semiconductor chips in cars, autonomous driving systems and smart cabins show the highest growth rates. By 2027, they will occupy more than 50% of the total cost, "says Adela Guo, director of research for IDC in the Asia-Pacific region. |  |
The IDC study also notes that the growth of the market in question will be facilitated by the further expansion of the 5G mobile infrastructure. Fifth-generation networks that provide high data rates and low latency are seen as one of the key elements of autopilot platforms. 5G services will improve the reliability of self-driving systems thanks to the ability to transfer critical data in real time. In addition, 5G technology opens up additional opportunities in terms of organizing entertainment on the road. Companies from the automotive sector are actively introducing artificial intelligence tools, which creates the need for additional computing power, and therefore in the corresponding hardware platforms. In general, as noted by the authors of the study, the introduction of advanced semiconductor chips will contribute to the transformation of the automotive industry.[1]
Mishustin allocated 15 billion rubles for the localization of automotive electronics
On November 30, 2023, the Government of the Russian Federation announced the allocation of 15 billion rubles for the development of the domestic automotive industry. In particular, the funds will go to the production of automotive electronics.
As the press service of the Cabinet of Ministers clarifies, these funds will be sent to the Industrial Development Fund. Subsidies will be used to finance at least 10 projects, including the organization of serial production of an anti-lock braking system and passive safety elements, the Cabinet said in a statement.
| | The solution will increase the pace of development and manufacture of components. At the same time, you need to keep the final cost of domestic cars under control. The President emphasized the need to look at the validity of these prices, - said Prime Minister Mikhail Mishustin (his words are quoted in the Telegram channel of the Cabinet). | |
Commenting on the allocation of 15 billion rubles for the development of the automotive industry, the government noted that the authorities continue to support enterprises in conditions of external restrictions, including against the background of logistical difficulties with the supply of foreign spare parts.
At the end of November 2023, Mishustin also announced amendments to the federal law on industrial policy. The changes are planned to be adopted to "more actively stimulate engineering activities, as well as work in the field of industrial design." According to him, such a solution "will help create not only reliable and modern models of machines, but also any other complex equipment that both people and business need."
At a cabinet meeting on November 30, 2023, Mikhail Mishustin said that it was Russia necessary to localize the production of the maximum possible number of components for cars and monitor the final cost of domestic cars.[2]
The Ministry of Industry and Trade of the Russian Federation toughens requirements to localization of automobile electronics
On October 9, 2023, it became known that the Ministry of Industry and Trade of the Russian Federation is tightening localization requirements under the 719th decree for automotive electronics. We are talking, in particular, about the electronic control units (ECU) of the engine.
According to the Kommersant newspaper, after Bosch left the Russian market due to the current geopolitical situation, the most popular EBUs among automakers are Itelma products. For them, concerns score 150 points - 75 points each for surface installation of components on a printed circuit board, as well as software development and obtaining rights to design documentation.
In the new version of the rules for assembly and rights to software and design documentation, you can get 200 points, which "increases the attractiveness" of using Russian ECUs. At the same time, changes will come into force from 2026: automakers will need to use Russian components (microcircuits, printed circuit boards, etc.), for which additional points are awarded. Otherwise, points for operations already performed are reduced: from 2026 - to 100 points instead of 200, from 2028 - to 75 points. Access to state support and the amount of waste collection returned depends on the points scored. Thus, if companies do not use domestic components, they risk losing points, which will entail a reduction in the amount of funds returned.
The Ministry of Industry and Trade says that the initiative is a mechanism for "motivating and stimulating the localization of automakers, EBU manufacturers and microelectronics." However, some market participants believe that the automotive industry "is charged with financial responsibility (in the form of non-return of waste collection) for the creation of a component industry." If the requirements are tightened, it will be more profitable for automakers to purchase Chinese components, while the lost utilization fee will lead to higher prices for end buyers of vehicles.[3]
The Ministry of Industry and Trade introduces a point system for assessing the "fatherland" of auto electronics
On April 11, 2023, it became known about the decision of the Ministry of Industry and Trade to introduce a point system for assessing the level of localization of auto electronics production. This was reported by RBC with reference to changes in government decree No. 719 of July 17, 2015. The authenticity of the document was confirmed by a representative of the department.
According to the amendments, from 2024, auto electronics manufacturers will have to have all the necessary rights to technical and design documentation and software. It is also assumed that they will conduct research, development (R&D) and all technological operations in Russia. From 2026, they will have to use Russian electronic components in the design.
The document says that the fulfillment of the requirements will allow the implementation of the import substitution policy and ensure the production of automotive, agricultural and construction and road equipment. The deputy head of the Ministry Vasily Shpak of Industry and Trade said that with the help of such measures, the government RUSSIAN FEDERATION expects to achieve independence from foreign components for ground, transport as well as ensure the production of auto electronics and its components in Russia.
According to Mikhail Burmistrov, general director of INFOLine-Analytics, manufacturers of car kits by April 2023 "are in dire need of state support."
| | In fact, the production potential of the Russian automotive industry has decreased significantly. Even if part of the capacities of international companies are bought out, the level of localization that was before their departure will be achieved, if not impossible, then it is extremely difficult. In addition, the ruble exchange rate is now weakening, and the costs of Russian manufacturers are increasing, because logistics is becoming more expensive, there are a number of difficulties with the supply of certain components that relate to high-tech products, that is, you need to build some more complex schemes, Burmistrov argues.[4] | |
The government decided to attach Russian chips in cars
The Russian government, together with participants in the domestic microelectronics market, are discussing a strategy for the development of design centers, which, in connection with the sanctions, have lost the opportunity to produce modern chips at foreign enterprises. One of the promising solutions is the creation of chips for cars. This became known on February 13, 2023. Read more here.
2022: The Ministry of Industry and Trade estimated the share of Russian automotive electronics at 20%
In 2022, the share of domestic manufacturers of electronic products for the automotive industry in the Russian market doubled - to 20% from 10% in 2021. This was reported to the Ministry of Industry and Trade on April 11, 2023.
| | The data received from the Consortium of Enterprises in the Field of Automotive Electronic Devices and Telematics allow us to confidently talk about high rates of import substitution and deepening localization, despite the temporary reduction in the production of final equipment, the press service of the department told Interfax. | |
As stated in the ministry, in 2022, Russian manufacturers of auto electronics exceeded the planned values for revenue growth, despite a significant drop in the market. At the same time, the Ministry of Industry and Trade did not announce specific figures. The department noted that by April 2023, Russia has all the necessary capacities for the serial production of the necessary components.
The shortage of auto electronics has become one of the reasons for curbing production in the automotive industry in 2021. In 2022, electronics was included in the list of goods for the supply of which Western countries imposed sanctions in the Russian Federation.
As noted in the Ministry of Industry and Trade, by April 2023, the Ministry of Industry and Trade, together with FSUE NAMI and the Consortium of Enterprises in the Field of Automotive Electronic Devices and Telematics, developed the first domestic GOST in the field of auto electronics.
| | It contains basic terms that anchor and describe the structure of products in the field of automotive electronics. This is a step towards the further formation of a system of requirements and the unification of products on the auto electronics market, "a representative of the ministry told the news agency.[5] | |
2021
Sales of car cameras in the world reached $6.8 billion
In 2021, sales of car cameras in the world reached $6.8 billion. The data was presented by ResearchAndMarkets in late February 2022.
Technological developments in the automotive industry suggest a shift from vehicle productivity and efficiency to safety and convenience, the study noted. Increasing consumer awareness and increased government mandates related to active safety are driving demand for driver assistance applications such as Lane Departure Warning (LDW), Lane Retention System (LKA), Rear Parking Assistance System, and Blind Spot Detection System (BSD). Thus, the increasing adoption of camera-based applications in vehicles is likely to boost demand for car cameras by 2026.
The greater reliance on heavy commercial vehicles has prompted lawmakers to create safer and less exhausting driving conditions by standardizing more camera-based features. For example, the European Union (EU) has mandated the detection and warning of vulnerable road users, especially for trucks and buses. Accidents involving trucks can be fatal and cause loss of life, as well as cause economic damage if they occur on a significant scale. These vehicles play a key role in supporting economic activity. An intelligent speed-dial assistance system will become the standard for all vehicles, including trucks, in Europe from 2022.
The Asia Pacific automotive camera market is expected to grow at the fastest rate during the forecast period. The growing population and government policies driving industrial growth have made the Asia-Pacific an ideal location for car manufacturers to house their businesses. These factors helped make Asia Pacific the largest automotive market with growing sales and production. The growth in the region can be attributed to high levels of car production and increased use of advanced electronics in Japan, South Korea and China.
Automotive Camera Market Drivers:
- Government initiatives to implement vehicle safety tools in economically developed countries;
- Increasing demand for safety and driving comfort features;
- Penetration of convenient camera-based features in luxury cars.
Restraining factors:
- High cost of implementation of multi-chamber systems;
- Unable to transfer captured data.
Opportunities:
- More active development of autonomous systems;
- Rising demand for electric vehicles;
- Increased use of cameras by OEMs for new applications.
Problems:
- Limitations in real-time image processing in all-round viewing systems;
- Lack of assistive technology in developing countries.
Research Institute of Electronic Technology entered the market for the development of chips for cars
In July 2021, the Research Institute of Electronic Technology announced the entry into the market of chip development for the automotive industry. To do this, the institution received an appropriate certificate for compliance of products with international quality standards, which applies to microcontrollers. At the same time, certification of other products is planned in the future. Read more here.
Russian manufacturers of Era-Glonass modules are sorely lacking chips
In early March 2021, it became known about the acute shortage of chips faced by Russian manufacturers of Era-Glonass modules. A similar shortage is observed in terms of the supply of microcircuits for tachographs, instrument control panels, engine control units, body electronics and multimedia systems, said Aleksei Belyaev, head of the Association of European Businesses (AEB) committee on auto components. Read more here.
2020
Data from smart cars increasingly used as evidence in criminal cases
Data of the "smart" ones cars are increasingly being used as evidence in criminal cases. This became known on December 29, 2020.
The lax safety standards of these cars are a real treasure trove for law enforcement.
On June 26, 2017, the body of an elderly car mechanic Ronald French, who was killed with particular cruelty, was found in a corn field in Kalamazoo County, Michigan. For more than two years, the police could not collect enough evidence to identify the suspect, until one of the detectives leading the investigation learned about the growing popularity of the field of forensic science - the collection and analysis of data stored on the on-board computers of cars.
According to NBC News journalists, who managed to get acquainted with police documents, investigators extracted data from the computer system of French's black 2016 Chevrolet Silverado pickup truck and found an audio recording of someone else's voice in them. As shown by the timestamps of the audio recording, at the alleged time of the murder, an unknown person used the voice control system to turn on the radio.
Subsequently, it was established that the voice belonged to French's assistant Joshua Wessel - he was identified by the suspect's relatives, including his wife. Thus, the audio recording became the key evidence that made it possible to recreate the movements of Wessel and the last hours of French's life. As a result, the suspect was arrested.
Over the past few years, forensic scientists have realized that cars, especially the latest models, are a real treasure trove of digital evidence. Their on-board computers generate and, store data by which you can easily determine where the car was and what the passengers were doing. You can set everything from location, speed and acceleration, to the time of opening and closing doors. In addition, if smartphone you were connected to the car's infotainment system, you can determine whether calls were made and text messages were sent, as well as find out the search history Internet in and voice commands.
During the investigation using data obtained from cars, law enforcement officers are interested in two sources. The first is a telematic system or so-called "black box," which stores navigation data, information about speed, acceleration and deceleration, as well as more detailed evidence, such as the time the headlights are turned on, doors are opened, safety belts and air cushions are used.
The second data source is an infotainment system that records recent destinations, call logs, contact lists, text messages, emails, images, videos, Internet search history, voice commands and social networks. It can also track phones connected to a car via a USB cable or Bluetooth, and all apps installed on the device.
The totality of this data allows investigators to recreate the trip of the vehicle and get a picture of the behavior of the driver and passengers. In a criminal investigation, the sequence of opening doors and fastening seat belts can indicate, for example, that the suspect has an accomplice.
However, human rights activists do not share the joy of forensic experts. In their opinion, insufficient data protection poses a threat to user security. According to the founder of the non-profit organization Privacy4Cars Andrea Amico, collecting data from cars can be useful not only for solving crimes, but also for committing them. As an example, Amiko told a case in Australia when a man pursued his ex-girlfriend using an app connected to her high-tech Land Rover and sending him operational information about her movements. The application also allowed a man to remotely start and stop a car, open and close windows[6].
Volkswagen says severe shortage of chips for cars
In mid-December 2020, Volkswagen warned of a violation of the supply chain for electronic parts for cars. The German automaker said it was facing a slowdown in increased production due to a massive supply shortage, which is caused by a shortage of semiconductor components for automotive electronics. This is due to the recovery of global automotive markets after a decline in sales during the COVID-19 coronavirus pandemic.
Volkswagen said semiconductor manufacturers have reoriented production to consumer electronics during the worst decline in sales due to the pandemic.
The company said in a statement:
| | However, car markets have now recovered significantly and the industry, including Volkswagen Group, is facing a shortage of necessary electronic components. | |
The shortage of semiconductors is expected to have an impact on manufacturing at factories in China, Europe, as well as North America in the first quarter of 2021. The production adjustment will have an impact on the production of Volkswagen, Audi, Skoda and Seat models based on the VW Group MQB platform. Volkswagen's plant in the German city of Wolfsburg is among the group's factories hardest hit by the shortage.
The head of the Volkswagen procurement department, Murat Axel, noted that the company is doing everything possible to minimize production losses and ensure that normal deliveries to customers can be resumed as quickly as possible.
A sharp decline in car sales began to be observed during the first wave of restrictions amid the spread of COVID-19. Car sales in Europe in the first 11 months of 2020 decreased by 25.5% compared to the same period in 2019.[7]
Electronics accounts for 40% of car manufacturing costs (Deloitte)
At the end of April 2020, Deloitte published the results of a study of the semiconductor market. One of the areas of this work was the study of the situation in the segment of automotive chips and electronics.
According to experts, in 2020, electronics accounts for approximately 40% of vehicle production costs, compared to 27% in 2010 and 18% in 2000. At the same time, the total cost of semiconductor components (microcontrollers, sensors, cameras, memory modules, etc.) used in one machine in 2020 reached $475 against $150 at the beginning of the 21st century.
The growing adoption of electronics and chips in cars is facilitated by large-scale electrification (hybrids plus clean electric vehicles) of power plants and the creation of more advanced autonomous movement systems, as well as the expansion of the communication capabilities of machines through the connection of V2X and 5G technologies .
Level 2.0 and 2.5 unmanned control systems use an average of about six sensors. These include ultrasonic sensors, radars and all-round cameras. To implement the third level, that is, with a plug autopilot, as, for example, on the Audi A8, about 13 sensors are needed; fourth - 29, and maximum fifth - 32 sensors. These include thermal cameras, optical rangefinders and laser inertial navigation systems.
In addition, the growing use of electronics in cars is associated with the improvement of infotainment systems and security technologies. First of all, this applies to the so-called Connected Car, which receive new functions over the wireless Internet and exchange data through cloud services, the report says.
Analysts also give statistics according to which in 2004 less than 20% of cars in the world were equipped with a stabilization system and about 1% with tire pressure sensors. By 2017, the situation had changed dramatically and the indicators were as follows: 100% and more than 80%, respectively. The share of cars with airbags during this time increased from 20% to 90%, with blind spot monitoring sensors in mirrors - from 0% to 40%.
By 2020, cars have much more sophisticated systems on board. These include adaptive cruise control, automatically dimming mirrors, entertainment systems and keyless access. In addition, fuel saving features have become more common: deactivation of cylinders, start-stop systems, as well as hybrid or all-electric power plants, the researchers note.
Another factor affecting the increase in the number of chips and electronic systems in cars is related to safety. Increasingly, you can hear that machines can be hacked. Automakers are aware of this, so they are striving to protect their products with better software and hardware systems. The situation is complicated by the lack of a unified policy in this direction and cybersecurity standards, according to Deloitte.
In 2020, a new leader appeared in the automotive semiconductor solutions market thanks to the closure of the merger of Infineon Technologies and Cypress Semiconductor in April. In 2018, Infineon sold chips for automotive electronics worth $4.2 billion, which corresponds to 9.9% of the total market. This is the second indicator after NXP, which earned $4.5 billion (10.8%).
Cypress ranked 14th in this ranking with annual revenues of $808 million and a market share of 1.9%. Thus, adding up the shares of Infineon and Cypress, it turns out 11.8%, which is superior to the result of Infineon.[8]
2017: Automotive Chips Market Size - $35.7 Billion (Digitimes Research)
On March 29, 2018, the analytical company Digitimes Research released the results of a study of the global market for automotive semiconductor solutions. Their sales in 2017 rose to $35.7 billion c $32.2 billion a year earlier.
According to experts, most of the sales of chips used cars in 2017 fell on the products of four companies: (NXP Semiconductors Holland), Renesas Electronics (), Japan () Infineon Technologies Germany and (). They STMicroelectronics France focused on several segments, such as automotive communications and sensors, as well as power supply systems.
In the category of communications solutions, analysts note the collaboration of NXP Semiconductors and STMicroelectronics, which jointly develop V2X (vehicle-to-everything) technologies based on dedicated short-range networks (DSRC). The V2X concept involves the network interaction of a vehicle with something - with other machines, road infrastructure or pedestrians.
In the sensor segment, manufacturers have focused on 77 GHz radar sensors to expand the capabilities of ADAS (Advanced Driver Assistance Systems) driver assistance systems.
As for energy systems, the gradual abandonment of internal combustion engines by automakers in favor of electric motors will be accompanied by an increase in power output and the complexity of power systems. This, in turn, will lead to changes in the field of semiconductor materials and chipset architectures, according to a study by Digitimes Research.
According to analysts, in 2018, the global market for chips intended for automotive electronics will grow to $40 billion, that is, 11% compared to 2017.[9]
Notes
- ↑ IDC: Global Automotive Semiconductor Market Revenue to Surpass $8.5 Billion by 2027
- ↑ An additional 15 billion rubles will be allocated for the development of the automotive industry
- ↑ Cars are Russified in detail
- ↑ and media/11/04/2023/643418b19a79474f46631891 The Ministry of Industry and Trade will change the criteria for recognizing auto electronics as Russian
- ↑ The share of domestic production of auto electronics in the Russian Federation increased to 20%
- ↑ , etc. Data from "smart" cars is increasingly used as evidence in criminal cases
- ↑ Growing Demand for Semiconductors May Hinder Volkswagen Production
- ↑ Semiconductors – the Next Wave Opportunities and winning strategies for semiconductor companies
- ↑ Automotive IC market to top US$40 billion in 2018, says Digitimes Research
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