According to Huajin Securities' comparative analysis of the hardware configuration of ADS1.0 and ADS2.0, the number of Huawei smart frame hardware has become more complex, and the amount of radar has tended to decrease, including lidar, millimeter-wave radar, and cameras, and the total cost has decreased.
The reduction in the number of lidars is a core reason for the reduction in the total cost of hardware
In the intelligent driving hardware system, lidar used to account for a large proportion of the cost of intelligent driving hardware in the whole vehicle due to its complex technology and high production process requirements. For example, the lidar equipped with some high-end models in the early days may cost tens of thousands of yuan, which makes the cost of intelligent driving hardware remain high, which has become one of the important factors restricting the large-scale popularization of intelligent driving. Lidar involves advanced technology in many fields such as optics, machinery, electronics, etc., and its core components such as lasers and detectors have long relied on imports or a few suppliers, and the industrial supporting facilities are not perfect, resulting in limited supply, which further pushes up the cost and makes it highlight its core position in the hardware cost.
According to Huajin Securities, although the use of lidar in Huawei's intelligent driving has been reduced, the hardware has been upgraded. Huajin Securities pointed out that ADS1.0 uses Huawei's self-developed 96-line lidar, while ADS2.0 uses the equivalent 126-line RoboSense M1 radar or 192-line (the highest number of lines in the industry's automotive-grade mass production) lidar according to different models, and ADS3.0 is expected to use self-developed 192-line lidar, which continues to improve in resolution and refresh frequency.
Lidar competition pattern: high concentration, domestic manufacturers dominate
With the rapid development of China's new energy vehicle industry, the domestic lidar competition pattern has also changed. Before 2021, the domestic lidar market was mainly dominated by foreign manufacturers, such as Velodyne, Valeo, etc.; By the end of 2021, with the successive release and delivery of models equipped with domestic lidar, the market share of domestic manufacturers has increased rapidly. According to Huajin Securities, the total market share of the four domestic manufacturers, Hesai Technology, RoboSense, Huawei Technologies and Seyond, exceeds 97%. In 2023, Chinese lidar companies will account for 84% of the global market share. The top three companies in the global automotive lidar market share are all Chinese manufacturers, among which Hesai Technology has a market share of 37%, ranking first. RoboSense has a 21% market share; Seyond has a 19% market share. In addition, Huawei ranks fifth with a 6% market share, and DJI Livo ranks seventh with a 1% market share.
Figure: LiDAR competition landscape (Source: Huajin Securities)
Millimeter-wave radar: Reducing the use of traditional radar and exploring the use of 4D products
With the advancement of technology, the performance of new millimeter-wave radars continues to improve, and a single radar can achieve a wider range of detection and more accurate perception, thereby reducing the need for multiple traditional radars. For example, some new millimeter-wave radars have expanded the detection range and angle by optimizing the antenna design and signal processing algorithms, so that areas that would otherwise require multiple radars to cover can now be completed with a smaller number of radars.
According to Huajin Securities, 4D millimeter-wave radar has added 1D altitude information compared with traditional millimeter-wave radar, which can realize the imaging function similar to lidar, and the industry is currently actively exploring the use of 4D millimeter-wave radar. For example, Huawei debuted its self-developed high-precision 4D millimeter-wave radar, which increases the detection range by 35% to 280 m compared with traditional radars, and supports parking mode, increasing the vertical field of view by three times to 60°C.
Millimeter-wave radar competitive landscape
International players account for the majority of the global millimeter-wave radar market, especially the forward radar market. According to data from the Gasgoo Automotive Research Institute, about 70% of the former radar market is occupied by foreign companies such as Bosch and Continental. International companies have strong integration capabilities in the upstream and downstream of the millimeter-wave radar industry chain, and have established long-term and stable cooperative relations with chip suppliers and automobile manufacturers, which can better control the supply chain, ensure product supply and quality, and occupy a favorable position in market competition.
The domestic Cheng-Tech, Sensortech Intelligent Technology and other enterprises have made important breakthroughs in corner radar technology, and their products are close to the international advanced level in terms of ranging and accuracy, which can meet the requirements of automobile manufacturers for corner radar to achieve blind spot monitoring (BSD), lane change assistance (LCA) and other functions.
With its low production cost and high-cost performance, domestic angle radar has certain advantages in market competition. Domestic enterprises can take advantage of the relatively complete domestic electronics industry supply chain to reduce the cost of raw material procurement and manufacturing, and provide more competitive products for automobile manufacturers.
Related:
Huawei Intelligent Driving Solution Market Analysis Report (1)
