Autonomous Driving Domain Controller Market Research: Project Sunlight

Autonomous Driving Domain Controller
Market Research
Project Sunlight
Frost & Sullivan

Aug, 2023
© 2023 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
1
Agenda
1 Introduction of the Research
2 Overview of Global and China Automotive Market
3 Overview of Global and China Autonomous Driving Vehicle Market
4 Overview of Global and China Autonomous Driving Domain Controller Market
5 Competitive Landscape of Autonomous Driving Domain Controller Market
6 Overview of Global and China Front Camera Module Market
7 Appendix
2
Project Scope
Scope
◼ The project scope is defined as follows:
• Historical Year: 2019-2021

Research
Period • Base Year: 2022
• Forecast Year: 2023E-2027E, 2030E
Geographic • Global
Scope
• China
Industry • Autonomous Driving (AD) Domain Controller

Scope • Autonomous Driving (AD) Front Camera Module
3
Limitations
◼ Source of Information
➢ Interviews with industry experts and ➢ The study took 2021 as the base year and 2022-
competitors will be conducted on a best- 2026,2030 as the forecast period. However, as the
effort basis to collect information in aiding point of this study being 2022, some of the figures
in-depth analysis for this report. of 2022 may not be available at the moment from
public statistical sources. Frost & Sullivan will use
➢ Frost & Sullivan will not be responsible
the latest information available (e.g. 2021) or make
for any information gaps where
projections based on historical trends.
Interviewees have refused to disclose
confidential data or figures.
➢ Under circumstances where information is

Official not available, Frost & Sullivan in-house
Statistical analysis will be leveraged using
sources
appropriate models and indicators to
arrive at an estimate.
Market
indicators for
modeling
➢ Source of information will be
stated in the right hand
Industry
Expert corner at the bottom on
Interview each slide for easy
reference.
4
Agenda
5 Competitive Landscape of Autonomous Driving Domain Controller
7 Appendix
5
Overview of Global and China Automotive Market
Global Passenger Vehicle Sales Volume, by Power Type, 2019-2030E
• ICE(Internal Combustion Engine) vehicles still account for the largest share in the global passenger vehicle market. The sales
volume of ICE vehicles dropped from 68.0 million in 2019 to 58.6 million in 2022, mainly caused by the increasing penetration of
NEVs(New Energy Vehcile). It is forecasted to decrease at a CAGR of -9.8% from 2022 to 2026 to reach 38.7 million in 2026. In
2030, the figure is estimated to further decrease to 25.5 million units.
• The past several years have witnessed a growth of NEVs, which grew from 2.1 million in 2019 to 10.1 million in 2022 at a CAGR
of 69.6%. The NEV segment is still estimated to grow driven by increasing popularity at a CAGR of 37.1% from 2022 to 2026 and
reach 51.8 million units in 2030.
Global Passenger Vehicle Sales Volume, by Power Type

Unit：Millions CAGR 2019-2022 2022-2026E 2026E-2030E
NEV 69.6% 37.1% 9.8%
NEV
ICE -4.9% -9.8% -9.9%
ICE
Total -0.7% 2.0% 1.0%
75.1 75.8 76.6 77.4

70.1 71.4 72.9 74.3
68.7 70.0
2.1 63.6
59.3 10.1 14.4
6.2 20.6 27.3
3.0 35.6 39.6 44.0 48.9 51.8
68.0
56.3 57.4 58.6 55.6 50.9 45.6
38.7 35.5 31.8 27.7 25.5
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: Industry Association, Frost & Sullivan
6
Global New Energy Passenger Vehicle Sales Volume, 2019-2030E
• The uses of new energy, intelligent control system and telematics have become the most notable trends in the global
automobile industry.
• Accordingly, the global sales volume of NEVs grew from 2.1 million units in 2019 with a penetration rate of 3.0% to 10.1 million
units in 2022 with a penetration rate of 14.7%. In the forecast period, global NEV sales are expected to grow at a CAGR of
37.1% from 2022 to 2026. The increasing momentum is estimated to continue, and the global NEV penetration rate is expected
to reach 52.7% in 2027 and 67.0% in 2030, with a sales volume of 39.6 million and 51.8 million, respectively.
Global New Energy Passenger Vehicle Sales Volume

Unit：Millions NEV Penetration Rate
CAGR 2019-2022 2022-2026E 2026E-2030E

55 51.8
NEV 69.6% 37.1% 9.8%
50 48.9
45 44.0
39.6
40
35.6
35
30 27.3
63.8% 67.0%
25 58.0%
20.6 52.7%
20 47.9%
14.4 37.5%
15 28.8%
10.1 20.6%
10 6.2
14.7%
9.7%
5 2.1 3.0% 3.0 5.0%
0
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
7
China Passenger Vehicle Sales Volume, by Power Type, 2019-2030E
• In China, ICE vehicles also account for the largest share in the passenger vehicle market. The sales volume of ICE vehicles
dropped from 20.4 million in 2019 to 17.0 million in 2022 at a CAGR of -5.8%, mainly caused by the increasing number of
vehicle in use and the COVID-19 pandemic. It is forecasted to decrease at a CAGR of -12.3% from 2022 to 2026 to reach 10.1
million in 2026 with the penetration of NEVs increasing continuously.
• NEVs increased significantly in the past several years in China, with the sales volume grew from 1.1 million in 2019 to 6.5
million in 2022 at a CAGR of 83.4%. It is estimated to further grow at a CAGR of 23.4% from 2022 to 2026 and reach 15.2
million in 2026, and 20.6 million in 2030.
China Passenger Vehicle Sales Volume, by Power Type

NEV NEV 83.4% 23.4% 7.9%

ICE ICE -5.8% -12.3% -11.9%
Total 3.2% 1.7% 1.4%
25.6 26.0 26.4 26.7
24.3 24.8 25.3
23.6 23.8
21.4 21.5
20.2
1.1 6.5
1.2 3.3 8.7 11.0 13.3 15.2 17.0 18.4 19.6 20.6
20.4 18.9 18.1 17.0 15.1 13.2 11.5 10.1 8.7 7.6 6.8 6.1
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
8
China New Energy Passenger Vehicle Sales Volume, 2019-2030E
• Due to the change of customer preference, government supports, competitiveness products provided by OEMs, China has
become the largest NEV market. The total sales volume of new energy passenger vehicles in China reached 6.5 million units
with the penetration rate of 27.8% in 2022 comparing to 1.1 million units in 2019 with a penetration rate of 4.9%.
• With further policy support and technological development, consumer preference for NEVs is expected to grow, hence the NEV
sales penetration is expected to rapidly climb from 27.8% in 2022 to 60.1% in 2026, and China’s market will represent the most
sizable long-term market opportunity globally for NEV stakeholders.
China New Energy Passenger Vehicle Sales Volume

Unit：Millions NEV Penetration Rate
CAGR 2019-2022 2022-2026E 2026E-2030E

22 20.6
NEV 83.4% 23.4% 7.9% 19.6
20
18.4
18 17.0
16 15.2
14 13.3
74.3% 77.3%
12 11.0 70.8%
66.1%
10 60.1%
8.7 53.7%
8 45.5%
6.5 36.7%
6 27.8%
4 3.3
2 1.1 4.9% 1.2 6.2%
15.5%
0
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
9
Definition of New Energy Vehicles
• New energy vehicles(NEV) refer to vehicles powered by non-conventional vehicle fuel as a power source or the use of
conventional fuel based on the new vehicle power plant, with integration of vehicle power control and drive technology. New
energy vehicles include battery electric vehicles(BEV) and plug-in hybrid electric vehicles(PHEV). BEV can only be powered
by battery, while PHEV can be powered by battery, fuel engine and both. Compared with conventional energy vehicles, the
number of auto parts in NEVs is largely reduced, and the battery, electromotor and electric control are the three core parts of
NEVs.
• A BEV is powered by batteries only with propulsion solely produced by electric motors, and results in zero tailpipe emission. A
PHEV is propelled by both internal combustion engine and electric motors, with energy supplied from fuel and batteries, which
can be charged via external power supply.
Classification Definition Representative Model
A battery electric vehicle generally refers to the pure electric vehicle, that is, only the
battery provides energy supply, and only the electromotor provides power to drive the
BEV Tesla - Model X, Y, S
vehicle forward. This type of vehicle can achieve complete zero emissions in the
driving process. BMW - iX3
Mercedes Benz – EQC
ICONIQ Seven
NIO - ES6, ES8,EC6, ET7
Unlike BEV, the batteries for a plug-in hybrid electric vehicle can be charged by a plug.
Energy supply is provided by both batteries and fuel. The power supply is provided
both by the fuel engine and electromotor. The extended-range electric vehicle (EREV)
PHEV
is also a type of PHEV. It is effectively an all-electric vehicle, with all the motive power
provided by an electric motor, but with a small ICE present to generate additional
electric power. BMW - X5, 5 Series
Mercedes Benz - E class
Note: FCEV is not participate in statistics since it has not entered the stage of mass production. Source: Frost & Sullivan
10
Market Drivers and Trends of Automotive Market(1/2)
• Today’s economies are going through a great change, triggered by the rising of emerging markets and new technologies.
Digitization, increasing automation and new business models have revolutionized other industries including automotive market.
These forces are giving rise to four technology-driven trends in the automotive sector: electrification, intelligence, connectivity
and shared mobility.
• Electrification is to replace technologies and systems that run on fossil fuels with power batteries, as so to reduce pollution and
achieve low-carbon economic development. Intelligent vehicles add advanced sensors, controllers, actuators and other
software on the basis of traditional vehicles, and achieve intelligent information exchange with people, vehicles and roads. It
enables vehicles to perceive complex environment, perform intelligent decision-making and system control functions, further
achieving the autonomous driving. Connectivity refers to technologies that enable vehicles to achieve the wireless
communication and information exchange with people, other cars, roads, clouds, etc. Meanwhile, the concept of sharing
economy has penetrated into the automotive industry. New business models have emerged, including online ride-hailing,
pooled ridesharing with strangers, time-sharing car rental, etc. With the rising penetration of new market trends, the entire auto
industry is undergoing rapid transformation and reshaping.
Trends
Refers to technologies that replace systems that run on fossil fuels with power batteries, as so to reduce
Electrification
pollution and achieve low-carbon economic development.
Refers to technology enables vehicles to perceive complex environments, perform intelligent decision-
Intelligence
making and system control functions, further realizing the autonomous driving.
Refers to large system networks enable vehicles to achieve the wireless communication and information
Connectivity
exchange with X (people, cars, roads, clouds, etc.)
Refers to the evolution of business models involves online ride-hailing, traditional taxi services, as well
Shared Mobility
as Robotaxi in future.
Source: Frost & Sullivan
11
Industry Chain of ICE Vehicle
Raw Material Support

Auto Parts Manufacturers Auto Manufacturers
Suppliers Services
Auto Parts Assembly Service Market

Metal
Combustion Engine Repair and
Maintenance
Steel
Transmission and Steering
System
Car Modification
Plastic
Suspension and Braking System
Glass Car Sharing
Electrical Parts
Leather
Car Pooling
Body Parts
Rubber
Second-hand Car
Others Interior Others Trade
• The value chain of ICE vehicle encompasses participants of raw material suppliers, auto parts manufacturers, and auto manufacturers. The raw material suppliers
provides general materials to auto parts manufacturers, such as metals, steel and plastic, etc. The components and parts of ICE vehicle include combustion engine,
transmission and steering parts, suspension and steering parts, electrical parts, chassis, interior, body parts and others. The auto manufacturers will assembly all the
parts and sell cars to customers through distributors and dealers. In addition, there are also car leasing, car sharing, and car pooling companies that participate in the
service market to provide support services.
12
Industry Chain of New Energy Vehicle
Raw Material Auto Parts Emerging Startups & Auto Support

Suppliers Manufacturers Manufacturers Services
Auto Parts Service Market
Metal Steel Electrical & Traditional Emerging Repair and Maintenance

Body Parts Manufacturers Startups
Electronics
Car Car
Sharing Pooling
Plastic Glass Interior Chassis
Power Service
System
Others R&D Design Battery
Leather Rubber
Leasing
Electric Power System Marketing Production
Battery
Others Recycling
Motor Controller
Battery
Battery Pack Swap
BEV PHEV
Electric Motors Power
Battery Materials Mobile
HEV REEV
Charging Piles
Charging Equipment
• The value chain of NEV encompasses participants of raw material suppliers, auto parts manufacturers, emerging startups and traditional auto manufacturers. The
raw material suppliers are generally classified into two types. One type of suppliers provides general materials to auto parts manufacturers, such as metals and
plastic, etc., and the other type of suppliers provides battery materials to battery manufacturers. Different from ICE vehicle, NEV has an electric power system,
including motor controller, battery pack and electric motors. Besides auto parts and battery manufacturers, charging equipment manufacturers are also engaged to
provide charging equipment to charging infrastructure companies, auto manufacturers, or emerging startups. In the complex auto market that includes both technical
factors and non-technical factors, manufacturers of NEV and emerging startups are the leading power to guide the market by applying new business models, new
power service system, or innovative strategy of marketing mix in order to develop an electrified transportation system in China. In addition, there are also some
power service companies, car leasing, car sharing, and car pooling companies that participate in the service market to provide support services.
13
Agenda
7 Appendix
14
Overview of Global and China Autonomous Driving Vehicle Market
Autonomous Driving Definition and Classification (1/3)
• SAE classified vehicle automation into six levels based on the extent of human intervention and the scope of the driving
scenario. The concept of level 2+ is not defined by SAE, but it is a commonly accepted and recognized terminology in the
automotive industry. In 2022, the penetration rate of level 2+ autonomous driving passenger vehicles was approximately 6%,
calculated by dividing the number of newly sold level 2+ autonomous driving passenger vehicles by the total number of newly
sold passenger vehicles for the same year. The table below illustrates the six levels of autonomous driving as defined by the
SAE, from level 0 (no driving automation) to level 5 (full driving automation).
Driver Required Driverless
L2 + : technologies that enable vehicles to

realize functions that beyond basic L2 features.
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Driver Support Features Automated Driving Features
Provide steering Provide steering

Limited to OR AND brake / Can drive the vehicle under limited conditions Can drive the
providing warnings
brake / acceleration acceleration and will not operate unless all required vehicle under all
and momentary
support to the support conditions are met. conditions
assistance driver to the driver
Example Features
◼ Automatic ◼ Local driverless

emergency ◼ Lane centering ◼ Lane centering taxi ◼ Same as level 4
braking OR AND ◼ Traffic jam ◼ Pedals / steering but feature can
◼ Blind spot ◼ Adaptive cruise ◼ Adaptive cruise chauffeur wheel may or drive
warning control control at the may not be everywhere in
◼ Lane departure same time installed all conditions
warning
Fully Commercialized Not Mass Commercialized

Source: SAE, Frost & Sullivan
15
• According to SAE, dynamic driving task (DDT) is defined as “all of the real-time operational and tactical functions required to operate a
vehicle in on-road traffic.”; operational design domain (ODD) refers to “the specific conditions under which a given driving automation
system or feature thereof is designed to function, including, but not limited to, driving modes.”. The basis of SAE level classification derives
from a variety of factors related to the DDT and the limitations brought on by an ODD. Notably, the levels are bunched into two groups, with
the driver performing part or all of the DDT (Levels 0, 1, and 2) and the ADS(Automated Driving System) performing the entire DDT
regardless of whether it is limited to an ODD (Levels 3, 4, and 5).
DDT
ODD
Sustained lateral OEDR DDT (Operation
SAE Level Narrative Definition and longitudinal (Object and fallback al Design
vehicle motion Event Detection Domain)
control and Response)
Driver performs part or all of the DDT(dynamic driving task)
No The performance by the driver of the entire DDT, even when enhanced by active Driver Driver Driver N/A
0
Automation safety systems.
The sustained and ODD-specific execution by a driving automation system of

Driver either the lateral or the longitudinal vehicle motion control subtask of the DDT (but Driver and
1 Driver Driver Limited
Assistance not both simultaneously) with the expectation that the driver performs the System
remainder of the DDT.
The sustained and ODD-specific execution by a driving automation system of

Partial
both the lateral and longitudinal vehicle motion control subtasks of the DDT with
2 Driving System Driver Driver Limited
the expectation that the driver completes the OEDR subtask and supervises the
Automation
driving automation system.
Automated driving system (“system”) performs the entire DDT (while engaged) Fallback-
The sustained and ODD-specific performance by an automated driving system ready user
Conditional (“system”) performs the entire DDT (while engaged) (becomes
System System Limited
3 Driving ) of the entire DDT with the expectation that the DDT fallback-ready user is the driver
Automation receptive to ADS-issued requests to intervene, as well as to DDT performance- during
relevant system failures in other vehicle systems, and will respond appropriately. fallback)
High The sustained and ODD-specific performance by an ADS of the entire DDT and
4 Driving DDT fallback without any expectation that a user will respond to a request to System System System Limited
Automation intervene.
Full The sustained and unconditional (i.e., not ODD-specific) performance by an

5 Driving automated driving system of the entire DDT and DDT fallback without any System System System Unlimited
Automation expectation that a user will respond to a request to intervene.
Source: SAE, Frost & Sullivan

16
• Autonomous driving refers to the technology that allows a vehicle to operate automatically without the intervention of a human
driver through perception, decision-making, and execution. An autonomous driving solution encompasses various components
such as sensors (cameras, radar, and LiDARs), domain controllers, front camera modules, automotive grade chips, algorithms,
simulation tools, and any other hardware or software that supports the achievement of autonomous driving. A complete
autonomous driving solution is an integration of multiple subsystems, which can be provided by different suppliers. In many cases,
OEMs also contribute to the autonomous driving solution by developing their own application algorithms.
• Typically, autonomous driving systems that can achieve level 1 and level 2 (covering level 2+) driving automation are classified as
advanced driving assistance systems (ADASs), while systems that can achieve level 3 through level 5 driving automation are
classified as automated driving systems (ADSs). Currently, ADAS is the most advanced autonomous driving solution widely
available in passenger vehicles sold today, while ADS solutions have not been commercialized in passenger vehicles in large
scale. Global autonomous driving industry is in the process of moving from level 2 to level 3 automation. With the advancing
technology, automotive industry has widely adopted the terminology of level 2+ to distinguish their advanced technologies and
functions from the basic level 2 function. A typical basic level 2 function is a combination of Adaptive Cruise Control (ACC) and
Lane Centering Control (LCC), which helps vehicles dynamically maintain a safe following distance and keeps the vehicles
centered in the lane at the same time. An example of an level 2+ function is Automated Lane Change (ALC), which actively
detects vehicles in the blind spot and, when clear, performs a lane change movement at the driver’s request. A more advanced
function of level 2+ is Navigation on Autopilot (NoA), which provides “navigation-assisted driving” in complex road environments,
allowing the vehicle to autonomously drive to the destination as requested by the driver. Currently, the mass-produced
autonomous driving solutions available are primarily for level 2 autonomous driving, including level 2+. Nevertheless, there is a
significant focus on high-level autonomous driving in the automotive industry, and major governments are actively promoting the
development of level 3 and above autonomous technology. In China, several pilot commercial programs are underway in cities
such as Beijing, Shanghai, Guangzhou, Shenzhen, and more, to allow OEMs and autonomous driving solution providers to test
and operate level 3 and above autonomous driving vehicles. As a result, there are level 3 and above autonomous driving
solutions available in the market and they have been integrated into vehicles participating in these pilot programs, but in a very
small scale.
17
Autonomous Driving Industry Chain
Upstream Midstream Downstream

Hardware and Software Providers AD Vehicle Providers End Products and Customers
Hardware End Product Customers

Autonomous
Camera MM Radar DCU/MCU Driving Solution
Providers
ADAS Private Car
Vehicle Users
LiDAR Ultrasonic Chip RoboTaxi

Radar
Shared
Mobility
Others Company
Automotive
Manufacturers RoboTruck
(OEM)
Software
Logistic
Robobus Company
HD Map V2X Software
Algorithm
Others
Robo-X Others
The realization of self-driving car functions requires the participation of multiple parties such as hardware suppliers, software developers, vehicle manufacturers, and logistics/travel
service providers, and the overall industrial chain is relatively large. The upstream of the industry chain is the basic software/hardware suppliers, including sensors(i.e. camera, MM
radar, LiDAR, ultrasonic radar), chip, DCU, HD Map and etc. The rise of autonomous driving has brought development opportunities for Chinese automotive manufacturers. Domestic
suppliers who deeply involve in the intelligence upgrading of Chinese OEMs and have better computing power and algorithm will gain the advantage over competitors. Midstream
participants include autonomous driving solution providers and OEMs. There are multiple cooperation models between OEMs and autonomous driving solution providers: (1) Solution
providers provide autonomous driving kits including software to OEM. (2) Solution providers directly purchase vehicles from OEMs, then modify the vehicles and integrate
autonomous driving software and hardware, and sell them to downstream customers. (3) The solution providers are closely partnered with the OEM, jointly develop autonomous
vehicles. The downstream of the industry chain is the specific purchaser of autonomous vehicles and the corresponding end application scenarios. The application scenarios of
autonomous driving are extensive, covering all subdivision scenarios of traveling, logistics and engineering.
18
Global and China Autonomous Driving Vehicle Sales Volume
• At present, the Autonomous Driving market is mainly dominated by level 2 (covering level 2+ and level 2++) automation. High-
level autonomous driving solutions, such as L4 and L5 automation, have not been commercialized in large scale. In the future,
with the development of autonomous driving technologies, high-level autonomous driving vehicles featuring L4 and L5
automation will also be equipped with AD domain controllers, which will further promote the growth of AD domain controller
market.
• Under the trends of vehicle electrification, intelligence and connectivity, the autonomous driving market is expected to maintain
high-speed growth in the future. According to Frost & Sullivan, 17.7 million autonomous driving passenger vehicles were sold
globally in 2022, representing a penetration rate of 25.8% which is expected to increase to 56.8% by 2026. Being in a leading
position in autonomous driving, China has seen rapid growth in this market. The sale volume of autonomous driving
passenger vehicles in China is expected to grow from 7.4 million units in 2022 to 18.6 million units in 2026.
Global and China Autonomous Driving Passenger Vehicle Sales Volume
80 Global 38.6% 24.3% 9.4%
China
70 China 50.3% 25.7% 7.4%
Global 60.6
60 56.9
52.9
50 47.9
42.2
40 35.7
30.0
30 23.5 23.6 24.7
20.9 22.4
17.7 16.1 18.6
20 13.4
11.3 10.5
10 6.7 7.9 7.4
2.2 2.7 3.8
0
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
China 10.2% 13.5% 17.6% 31.5% 44.1% 55.2% 65.1% 73.5% 81.7% 86.1% 89.2% 92.7%
Penetration Rate
Global 9.5% 13.4% 17.7% 25.8% 33.5% 42.0% 49.0% 56.8% 63.8% 69.7% 74.3% 78.3%
Penetration Rate
Note: Autonomous Driving Passenger Vehicle refers to vehicles featuring L2 to L5 automation, which have the need for AD domain controller.
19
Overview of Global Autonomous Driving Market
Market Drivers and Trends of Autonomous Driving Vehicle Market
Certainty of automotive electrification.

With higher control accuracy, lower latency, and more comprehensive redundant systems, electric vehicles
have become the best carrier for AD functions. The industry consensus on automotive electrification provides a
substantial basis for developing AD technology. The certainty of rising penetration rate of electric vehicles will
continuous to drive the growth of the AD vehicle markets.
High recognition of AD function

AD functions can enhance vehicle safety and provide better user-experience. Vehicle models equipped ADAS
functions are more attractive to consumers. At same time, OEMs are also actively investing in the development
of ADAS functions to offer consumers with more competitive products. Stimulated by both supply and demand,
the AD vehicle sales market is experiencing a rapid growth.
Continuous falling of hardware costs

Benefiting from the scale effect and technology advancement, the cost of sensors, such as cameras and lidars,
continues to decline, which support the ADAS functions to be available for low-price vehicle models. Such trend
is expected to continue in the future, which will further drive the ADAS vehicles to be more affordable and
popularized.
Supports from favorable policies

Major governments around the world have issued supportive policies aimed at promoting the development of
the AD technology. In Intelligent Vehicle Innovation and Development Strategy, the Chinese government put
forward the goal of building an intelligent vehicle powerhouse, and deployed tasks around intelligent vehicle
technology innovation, industrial ecology, vehicle infrastructure, regulations, and network security related to AD
vehicles.
20
Market Drivers and Trends of Autonomous Driving Vehicle Market
Advancement in software and hardware lays the foundation for realization of autonomous driving.
The autonomous driving vehicle senses the vehicle state and external environment through the support of
multiple sensors, such as lidar, camera, radar, GPS, IMU, etc., while the processing of the sheer volume of data
requires high-performance computing systems. Benefited by the advancement and availability of automotive-
grade sensors and chipsets in recent years, autonomous driving technology can leverage a multi-layered sensor
approach with advanced software algorithms to achieve perception, prediction, planning, and control of vehicles
in a more precise and comprehensive manner.
In-depth industrial collaboration encourages the commercialization of autonomous driving.

Autonomous driving realization is on the back of deep integration of software and hardware that requires in-
depth collaborations among companies. For instance, through deeply collaborating with OEM, technology
companies can implant autonomous driving hardware and software at the vehicle design and production phase
instead of modifying a produced vehicle, thus effectively improving the reliability and reducing the cost of the
vehicle integration. Through establishing industrial partnerships, leading players will show the first-mover
advantages of the commercial deployment of autonomous driving vehicles.
21
Challenges Faced by Autonomous Driving Vehicle Market
High-level autonomous driving technology still needs to be developed.

Safety first is the core concept of autonomous driving. The current autonomous driving technology still has great
room for improvement in software and. Driving instability occurs from time to time, and can not guarantee 100%
effective identification. The solution of the long tail scenarios will become the biggest difficulty of the
autonomous driving technology. Facing all kinds of unexpected conditions and dealing with complex road
conditions, such as extreme weather, irregular road conditions, and complex intersections with mixed traffic, the
autonomous driving needs to respond quickly.
The development of autonomous driving will be affected by regulatory restrictions; relevant policies and
regulations need to be improved.
The autonomous driving is still in the early stage of development and still has unpredictable risks. Therefore, the
government departments need to make certain restrictions on its test. On the other hand, the relevant supporting
policies and regulation still lags behind the development of technology. At present, the mechanism for
determining the responsibilities of intelligent driving traffic accidents has not yet been fully formed.
The construction of road infrastructure and the development of supply chain have not yet met the needs
of the industry.
In addition to the iteration of technologies, the commercialization of autonomous driving also needs to
strengthen the infrastructure construction of communication end, road end, cloud end, etc., so as to form a
Intelligent Vehicle Infrastructure Cooperative Systems. On the other hand, the development of intelligent driving
has changed the traditional industrial chain, and the R&D of supporting components still has long way to go.
Relatively low consumer acceptance of high-level autonomous driving, like Robotaxi
In the context of immature technology and policy constraints, the market awareness and acceptance of L4/L5
autonomous driving are generally low. Due to the fact that the high-level autonomous driving technology has not
been verified on a large scale and there are reports of traffic accidents of autonomous driving from time to time,
people still have concerns about the safety of autonomous driving , especially for driverless vehicles.
22
Entry Barriers and Core Competitiveness of Autonomous Driving Vehicle Market
The computing platform can be the core element of autonomous driving.

Traditional distributed E/ E architecture with drawbacks of complex layout, low communication efficiency and
difficulty to upgrade, can no longer meet the needs of modern intelligent vehicles. Nowadays, the automotive
E/E architecture has gradually transformed from decentralized to centralized, which increase the demand for AD
domain controller. The core technology of AD domain controller would be chips, which determines the
computing power of AD computing platform.
Efficient data closed-loop helps improve algorithm so as to further enhance competitiveness.

For the development of autonomous driving, data plays a vital role, and runs through the life cycle of research
and development, production, testing and operation. Efficient collection and utilization of data and improving the
speed of data cycle are the key points of the entire autonomous driving technology iteration. Vehicle enterprises
need to establish efficient data processing flow, simulate and generate corresponding test scenarios, so as to
apply them to the mass production vehicles.
Customer resources can be an entry barrier of the autonomous driving industry. The domestic suppliers
that deeply bind with the leading OEMs would have advantages and benefit from the rise of automotive
intelligence trend.
OEMs have established a strict supplier assessment mechanism and need a long certification time, so customer
resources have become one of the entry barriers for autonomous driving industry.
At present, the competition pattern of the automotive industry is being restructured. On one hand, the rise of
automotive intelligence has brought development opportunities to Chinese automotive manufacturers; on the
other hand, intelligence leads to new supply chain demand, like DCU and LiDAR. Therefore, this situation is
beneficial to domestic suppliers that have deeply involved in the intelligence upgrading of Chinese OEMs.
23
Global Autonomous Driving Policy and Regulation (1/2)
Policy Issue time Country Department Main contents

Occupant Protection Updates the occupant protection Federal Motor Vehicle Safety Standards to
Safety Standards for account for vehicles that do not have the traditional manual controls associated with a
2022.3 U.S. NHTSA
Vehicles Without Driving human driver and assures the same high level of occupant crash protection is
Controls maintained for passengers of vehicles equipped with automated driving systems
Prohibits the operation of certain new autonomous vehicles that are not
SB-500: Autonomous zero-emission vehicles, as defined. Prohibits the Department of Motor Vehicles from
2021.9 U.S. California Senate
vehicles: zero emissions commencing rulemaking for the adoption of regulations implementing this provision
until a specified date.
The legislation will allow driverless vehicles on public roads by 2022, laying
out a path for companies to deploy robot taxis and delivery services in the country at
Revise the Road Traffic
scale. While autonomous testing is currently permitted in Germany, this would allow
Law and Compulsory
German operations of driverless vehicles without a human safety operator behind the wheel.
Insurance Law- 2021.05 German
Bundestag The bill specifically looks at vehicles with Level 4 autonomy. Level 4 autonomy is a
Autonomous Driving
designation by the Society of Automobile Engineers (SAE) that means the computer
Law
handles all the driving in certain conditions or environments. In Germany, these
vehicles will be limited to geographic areas.
The generation has been adopted but not yet published. L4-class fully
driverless cars are allowed to appear on German public roads in 2022 without having
German Federal
to equip them with drivers or safety guards. First of all, self-driving cars must drive in
Draft autopilot law 2021.05 German Council (adopted
designated areas of German public roads and remain remotely ready to take over at
but not published)
all times. Secondly, if the self-driving company carries on the commercial operation,
must purchase the corresponding liability insurance.
HB 2813 passes codifying much of Executive Order 2018 into state law. It
Establishes a regulatory framework for the operation of autonomous vehicles in
HB 2813 2021.3 U.S. Arizona Senate Establishes a regulatory framework for the operation of autonomous vehicles in
Arizona, such as allows a fully autonomous vehicle to operate on public roads without
a driver.
Building upon the principles stated in AV 4.0, the Automated Vehicles
Automated Vehicles Department of Comprehensive Plan defines three goals to achieve USDOT's vision for Automated
2021.1 U.S.
Comprehensive Plan Transportation Driving Systems (ADS), including Promote Collaboration and Transparency,
Modernize the Regulatory Environment, Prepare the Transportation System.
Decision Authorizing
The decision approved Deployment of Drivered Autonomous Vehicles and
Deployment of Drivered California Public
Driverless Autonomous Vehicles Passenger Service. And permit approved
And Driverless 2020.11 U.S. Utilities
companies to offer autonomous ride services and autonomous ride-sharing services
Autonomous Vehicle Commission
for a fee.
Passenger Service
24
Global Autonomous Driving Policy and Regulation (2/2)
Policy Issue time Country Department Main contents

Ensuring American AV 4.0 details 10 U.S. Government principles to protect users and
Department of
Leadership in communities, promote efficient markets, and to facilitate coordinated efforts to ensure
Transportation,
Automated Vehicle a standardized Federal approach to American leadership in AVs. It also presents
2020.1 U.S. National Science
Technologies ongoing Administration efforts supporting AV technology growth and leadership, as
& Technology
(Automated Vehicles well as opportunities for collaboration including Federal investments in the AV sector
Council
4.0) and resources for AV sector innovators.
Specific guidelines for L3 autonomous driving, lane keeping for L3
Ministry of Land, autonomous driving, monitoring of drivers in emergencies, automatic deceleration
Autonomous driving
2020 Korea Infrastructure and when humans do not take over, activation of emergency braking signals, etc.; In
safety standards
Transport emergency situations such as highway exits and road construction ahead, the human
driver will be prompted to take over 15 seconds in advance.
proposed that if the driver can quickly resume manual driving, he/she can
The Japanese use the mobile phone or watch the on-board TV during the automatic driving process,
Road Traffic Act 2020 Japan
Cabinet which is regarded as the legal on-road right granted by the L3 level autonomous
vehicles by the state.
H.R. 3388 would clarify the federal role in regulating vehicles that can drive
without a person controlling the vehicle. Those vehicles are defined in the bill as
H.R.3388: SELF DRIVE House of Highly Automated Vehicles (HAVs). The bill would require the National Highway
2017.7 U.S.
Act Representatives Traffic Safety Administration (NHSTA) to complete several rulemakings, establish an
advisory council on HAVs, and create a publicly available database about
manufacturers that receive exemptions from current law.
"Road Traffic Law" and The laws include traffic accidents during autonomous driving in the
the Japanese
the "Road Transport 2017 Japan compensation items of auto insurance, in response to the attribution issue of liability
government
Vehicle Law" for accidents caused by autonomous vehicles.
25
China Autonomous Driving Policy and Regulation (1/2)
Policy Issue time Department Main contents
The Ministry of Industry and Information Technology and the Ministry of Public Security
Notice on Carrying out the Pilot
select qualified vehicle manufacturers and intelligent networked vehicles equipped with
Work of Intelligent Connected
2022.11 MIIT autonomous driving engineering and mass production conditions to carry out access pilot; For the
Vehicle Access and On-road
intelligent connected vehicles that have passed the access pilot, they will be carried out test driving
Communication
in the restricted public road area of the pilot city
On the premise of ensuring transportation safety, it is encouraged to use AD vehicles to

Transportation Safety Service engage in bus transport business in scenarios such as closed rapid bus transit systems, use AD
Ministry of
Guide of Autonomous Driving 2022.08 vehicles to engage in taxi transport business in scenarios with simple traffic conditions and
Transport
Vehicles relatively controllable conditions, and use AD vehicles to engage in road cargo transport business
in scenarios such as point-to-point trunk highway transportation and relatively closed roads.
Detailed Implementation Rules for

Beijing Standardize the commercial Robotaxi services from the aspects of application review,
the Pilot Management of the
Autonomous pilot management, network data security, service supervision and violation management, etc.
Commercialization of Autonomous
2021.12 Driving Under the premise of ensuring the principle of fair competition in the market, enterprises can adopt
Driving Travel Services in the Pilot
Demonstration a market-based pricing mechanism, and only start to experience charging services on the premise
Zone of the Beijing Intelligent
Zone Work Office of clarifying the charging principles, payment methods and other information to passengers.
Connected Vehicle Policy
It aim to adhere to the development of autonomous driving technology, promote the
revolution of vehicle-side intelligence, road-side intelligence and travel, and accelerate the
Beijing's "14th Five-Year Plan" People's
transformation of traditional vehicles to intelligent network connection. Build a high-level
period advanced industry 2021.8 Government of
autonomous driving demonstration area, making breakthroughs in key areas such as sensors,
development plan Beijing
chips, and operating systems; encourage fully-verified autonomous vehicles to take the lead in trial
operation and commercial operation services in policy-leading areas.
Promote the construction of highly automated driving (L3+ and above) demonstration
Shanghai Implementation Plan for
People's zones, and build a national-level intelligent vehicle innovation and development platform.
Accelerating the Development of
2021.2 Government of Significantly reduce the comprehensive cost of autonomous driving testing, and accelerate the
New Energy Vehicle Industry
Shanghai implementation of demonstration projects in typical scenarios such as robotruck, robotaxi services,
(2021-2025)
driverless sweepers for elevated roads, and autonomous parking in parking lots.
26
China Autonomous Driving Policy and Regulation (2/2)
Policy Issue time Department Main contents
It proposed, by 2025, positive progress will be made in autonomous driving technology,

Guiding Opinions on Promoting and important breakthroughs will be made in key technologies such as road infrastructure
the Development and Application intelligence and vehicle-road coordination, as well as in product development and testing; a
2020.12 MOT
of Autonomous Driving number of key standards for autonomous driving will be introduced; Achieve a number of national-
Technology in Road Traffic level autonomous driving test bases and pilot projects, as well as, large-scale applications in some
scenarios to promote the industrialization of autonomous driving technology.
It proposed, by 2025, the technological innovation, industrial ecology, infrastructure,

regulatory standards, product supervision and network security systems of Chinese standard smart
Intelligent vehicle innovation and NDRC, MOST, cars will be basically formed. Realize the large-scale production of intelligent vehicles with
2020.2
development strategy MIIT conditional automatic driving, and realize the market application of intelligent vehicles with high-
level automatic driving in specific environments. Looking forward to 2035 to 2050, China intelligent
vehicle system will be fully completed and more perfect.
It proposed, by 2020, the assembly rate of new cars with DA (driving assistance), PA
(partially autonomous driving), and CA (conditional autonomous driving) systems will exceed 50%,
Medium and long-term
NDRC, MOST, and the assembly rate of connected driving assistance systems will reach 10%, meeting the
development plan for the 2017.4
MIIT requirements for the construction of smart transportation cities. By 2025, the DA, PA, CA new car
automotive industry
assembly rate will reach 80%, of which the PA and CA class new car assembly rate will reach
25%, and highly and fully autonomous vehicles will begin to enter the market.
27
Agenda
7 Appendix
28
Overview of Global and China AD Domain Controller Market
Electrical/Electronic Architecture Development
• E/EA(Electrical/Electronic Architecture) refers to the solution integrating electronics hardware, network communications,
software applications and wiring that controls vehicle functions in the areas of vehicle control, body and security, infotainment,
active safety, and other comfort, convenience, and connectivity functionality. Advanced EEA can effectively reduce the overall
mass of the vehicle, reduce the cost of R&D, shorten the development period, and ensure the performance of the vehicle.
• With the advancing of electrification and intelligence, the functions of automotives have become more feature-rich, resulting in
increasing electronic components, and the more complex interaction among electronic components. Traditional distributed EEA
with drawbacks of complex layout, low communication efficiency and hard to upgrade, can no longer meet the needs of modern
intelligent vehicles. Today, the domain centralized EEA with domain controllers as the core has begun to develop rapidly.
Distributed (Traditional) Domain Centralized (Developing)
Central Gateway Central Gateway

ECU
DCU
ECU
Each control system The integration of

• Large usage of ECU • Low usage of ECU and wire
uses a separate ECUs. decentralized ECUs
• Large usage of wire harness harness
The increase and into more powerful
• Low communication efficiency • High communication
upgrade of intelligent domain controllers to
• Hard to iterate and upgrade efficiency
functions mainly depend control each functional
• Complex layout • Easy to iterate & upgrade
on the accumulation of area in a more central
• High solution cost • Clear layout and low cost
the number of ECUs. manner.
Note: 1. ECU: Electronic Control Unit; 2. DCU: Domain Control Unit
29
Definition and Classification of Functional Domains
• The appearance of the domain controller is an important symbol of the evolution of the automotive E/E architecture from the
ECU distributed E/E architecture to the domain centralized E/E architecture.
• Leading OEMs and Tier-1 suppliers divided E/E architecture into several different domains according to their own design
concepts. Typically E/E architecture is categorized into five specific domains based on functions, which are Autonomous
Driving Domain, Cockpit Domain, Powertrain Domain, Chassis Domain, and Body Domain, and they all have corresponding
domain controllers performing as cores.
• Autonomous driving domain controller and cockpit domain controller are the main focus of the competition in the context of the
rapidly growing intelligent vehicle market, due to the high user perception, high user acceptance, and high added value of
autonomous driving and intelligent cockpit. Controllers in body domain, chassis domain, and power domain are currently in
the early stage of large-scale development and mass production.
Autonomous Driving
Cockpit Domain Power Domain Chassis Domain Body Domain
Domain
Enables vehicles to Control the display Used for the Responsible for Integrates functions
have the capabilities of panel, control screen, optimization and control transmission system, such as BCM, PEPS,
multi-sensor fusion, head-up display system, of the powertrain, and driving system, steering TPMS, and Gateway,
positioning, path visual perception, voice also has functions such system and braking and can also expand to
planning, decision- interaction and other as electrical intelligent system, suspension functions such as seat
making control, image functions to realize the fault diagnosis, and other vehicle lateral, adjustment, rearview
recognition, and data intelligence of the intelligent power saving, longitudinal control mirror control, and air
processing. cockpit and bus communication. functions. conditioning control, etc.
30
Overview of Global and China AD Solution Market
Definition and Role of Autonomous driving Solutions
• In automotive applications, a domain controller is a computing platform that controls a set of vehicle functions related to a domain. A domain
controller is comprised of Main control processor, operating system and application software and algorithms.
• Autonomous driving functions are generally realized by the process of perception, decision and execution. Autonomous driving (AD) domain
controller is connected to different sensors surrounding the vehicle, such as cameras, radar and LiDAR, performing as the central brain in
autonomous driving domain that fuses and processes data from sensors to make driving decisions and send decisive results to executive
system in place of human drivers.
• High level autonomous driving above level 3 can only be achieved with AD domain controllers. Currently, AD domain controllers are mainly
equipped on vehicles with level 2 (particularly level 2+ and level 2++) driving automation, primarily because (i) solutions with lower costs, such
as intelligent front cameras, are preferred by OEMs to achieve level 1 and basic level 2 driving automation; and (ii) ADS solutions, which can
achieve level 3 to level 5 autonomous driving, have not been commercialized in passenger vehicles in large scale.
Perception Decision Execution
Trajectory Prediction
Trajectory Planning
Environment Steering System
Data Fusion
Trajectory Tracking
Route Planning
Vehicle Motion Powertrain
Early Warning System

Driver Braking System
Exception Handling
Safety Control
Camera, mmWave Radar,
LiDAR, Ultrasonic Sensors Autonomous driving solutions
Select Providers(1) Select Providers
Software Solutions Hardware & Software Chassis, Powertrain
Integrated Solutions
Providers(1)
Traditional Tier-1 Suppliers
Note:
1. Include perception and execution hardware providers. 31
Development and Commercialization Cycle
• Automotive-grade component development and procurement cycles typically last longer than a year. For instance, it typically takes
a provider of autonomous driving solutions, such as the one who offers intelligent front cameras and AD domain controllers, 12 to
24 months to develop products and solutions that can meet OEM specifications for a particular vehicle model.
• AD Domain controllers integrate hardware components such as main control chips, as well as software components including
operating systems, middleware, and application algorithms. Furthermore, domain controllers provide abundant interface resources
to handle sensor data input, processing, fusion, and intelligent driving planning, control, and decision-making.
• The development cycle for a domain controller solution spans 12-24 months and involves phases such as technology review and
concept proof, product design and development, product verification and validation, and mass deployment. The development time
for an AD domain controller is also greatly influenced by specific customer requirements and can vary significantly. Overall, the long
development cycle of domain controller solutions makes it difficult for OEMs to easily switch to a new supplier for their autonomous
driving domain controllers.
Mass production
Product verification &
validation.
• 5-10 month
Product design
& development
• 3-6 month
Technology Review &
Concept proof
• 4-8 month
Development and Commercialization Cycle = 12-24 months
32
Value Chain for Industry Overview Use
Upstream (Tier-2 Supplier) Midstream (Tier-1 Supplier) Downstream (OEMs)
AD Domain Automotive
Component Provider
Controller Provider Manufacturer
SoC PCB Hardware Integration

NEVs
Mechanical Middleware Development
MCU
Parts
Algorithm Development ICE Vehicles
Software Others
System Integration
* SoC: System on Chip; MCU: Microcontroller Unit; PCB: Printed Circuit Board; OS: Operation System
• Upstream mainly includes: (1) hardware providers, mainly supply SoC, MCU, PCB and other hardware, of which SoC is the
most important and the most valuable part that closely related to the performance of an AD Domain Controller; Software
providers, mainly supply OS, and sometimes middleware and other software related products and services, which related to
the reasonable allocation of hardware resources to ensure the orderly implementation of various intelligent functions.
• Midstream includes AD domain controller solution providers who organically integrated the necessary software and hardware
to form AD domain controllers based on the deep understanding of clients’ needs and the balances of cost and performance.
Solution providers are required to have ability to comprehensively understand the technology of software, hardware, function
security, information security, automotive E/E architecture and autonomous driving. With growing software technical
capability, leading AD domain controller providers also self-develop their middleware and application algorithm.
• Downstream includes Automotive Manufacturers (OEM) in both passenger and commercial vehicle sectors. OEM are now
actively push ahead the domain centralized E/E architecture, which increase the demands for AD Domain Controller
Solutions. Some of the OEMs also self-develop their own Algorithm Development.
33
Overview of Global and China AD Provider Market
Value Chain and Major Players
Hardware and Software Providers AD Solution Providers Automotive Manufacturers
Mobileye, NVIDIA, Texas Domestic Suppliers Passenger Vehicles

SoC Instruments, Horizon Robotics,
Hardware
Black Sesame, HI-SILICON
MCU NXP, Infineon, Renesas
WUS Printed Circuit,

PCB
OLYMPIC, Kinwong
OS International Suppliers
Software
QNX, Linux
Commercial Vehicles
EB, Vector, TATA, Mentor,

Middleware ETAS, KPIT,
* SoC: System on Chip; MCU: Microcontroller Unit; PCB: Printed Circuit Board; OS: Operation System
• Upstream mainly includes: (1) hardware providers, mainly supply SoC, MCU, PCB and other hardware, of which SoC is the most important
and the most valuable part that closely related to the performance of an AD Domain Controller; Software providers, mainly supply OS, and
sometimes middleware and other software related products and services, which related to the reasonable allocation of hardware resources
to ensure the orderly implementation of various intelligent functions.
• Midstream includes AD solution providers who organically integrated the necessary software and hardware to form AD solutions based on
the deep understanding of clients’ needs and the balances of cost and performance. Solution providers are required to have ability to
comprehensively understand the technology of software, hardware, function security, information security, automotive E/E architecture and
autonomous driving. With growing software technical capability, leading AD solution providers also self-develop their middleware and
application algorithm.
• Downstream includes Automotive Manufacturers (OEM) in both passenger and commercial vehicle sectors. OEM are now actively push
ahead the domain centralized E/E architecture, which increase the demands for AD Domain Controller Solutions. Some of the OEMs also
self-develop their own Algorithm Development.
34
Cost Structure and Future Trend
Cost Structure of AD domain controller • AD Domain controllers have a wide range of prices,
depending on their performance. High-end controllers are
priced at about RMB 8k-30k, mid-end priced at about RMB
3k-8k, and low-end priced at about RMB 1-3k.
20-40%
• AD Domain controllers cost and price highly dependent on
the select of SoCs and the corresponding computing power.
AD Domain Controller Price Overview

Company Controller SoC
60-80% Tesla / FSD x2

Hardware
NIO / Orin x4
Software
IPU02 TDA4 x1
• The AD domain controller is a complex system comprising both IPU03 Xavier x1
hardware and software. Generally, the software contributes to 20- Desay SV
40% of the overall cost of an AD domain controller, while the IPU04 Orin x2
hardware includes SoCs, MCUs, PCBs, resistors, capacitors, and IPU04 J5 x1
structural parts, accounting for approximately 60-80% of the total cost.
• Among them, SoCs are the most valuable component and have a Supervision EyeQ5 x 2
great impact on the performance of an AD domain controller. iMotion
IDC Mid TDA4 x 1
Generally, SoCs account for 20%-40% of the overall cost of an AD
domain controller. Due to technological advancements and increased FreeTech ADC20 TDA4+J3
production scale, the cost of AD domain controllers is expected to
decrease over time. Hongjing Drive ADCU J3
• The price of the SoC varies greatly, with computing power measured
in Tera Operations per Second (“TOPS”) being the most important Technomous iECU1.5 TDA4 x 2
factor. The cost of SoC has reduced dramatically due to technological
advancements and economies of scale, from RMB60 to RMB120 per HiRain
ADCU EyeQ4 x 1
TOPS in 2019 to RMB20 to RMB65 per TOPS in 2022. Technologies
35
Global AD Domain Controller Market Size and Penetration Rate
• The AD domain controller manages and controls a vehicle's autonomous driving functions in a centralized manner, enhancing
its capabilities and upgradeability. Given the increasing importance of autonomous driving, the AD domain controller solution
has rapidly advanced over the past two years. As of 2022, the global market size for AD domain controllers reached 16.5
billion RMB, with new vehicle equipped AD domain controller penetration rates reaching 2.6%.
• The majority of OEMs are currently engaged in a strong effort to promote the transformation of automotive electrical and
electronic architectures, actively deploying AD domain controllers to replace traditional distributed autonomous driving
solutions. The AD domain controller solution has become the cornerstone of platform development strategies for most
automotive manufacturers, propelling AD domain controllers to become standard hardware for autonomous driving in the
foreseeable future. Projections indicate that the global market size of AD domain controllers will expand significantly, reaching
115.4 billion RMB with a penetration rate of 23.8% by 2026, and 236.9 billion RMB with a penetration rate of 62.7% by 2030.
Global AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle
350 62.7% 70
Market Size 56.5%
60
300 Penetration Rate 48.0%
50
250 CAGR 2019-2022 2022-2026E 2026E-2030E 36.0% 236.9
221.8 40
Market Size 211.2% 62.6% 19.7% 198.1
200 23.8% 30
Unit：billion RMB 164.4
150 14.2% 20
7.2% 115.4
1.7% 2.6% 3.6% 10
100 0.1% 0.9%
77.6
0
44.5
50 26.2 -10
8.9 16.5
0.5 4.6
0 -20
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Note: The penetration rate is calculated by dividing the number of newly sold passenger vehicles equipped with an AD
domain controller by the total number of newly sold passenger vehicles for the same year. Source: Frost & Sullivan
36
China AD Domain Controller Market Size and Penetration Rate
• There is a notable preference for autonomous driving technology among Chinese consumers, which has driven the explosive
growth of China's autonomous driving vehicle sales market in recent years. China has taken the lead globally in the scale of
autonomous driving domain controller deployment. Numerous Chinese OEMs have accelerated the transformation of
automotive electrical and electronic architectures in recent years by deploying autonomous driving solutions based on AD
domain controllers. In 2022, the market size of China's AD domain controllers had increased to 9.8 billion RMB, representing a
CAGR of 341% from 2019 to 2022 and a penetration rate of 4.5%.
• With advancements in AD domain controller technology, the diversification of related solutions, and cost reductions, AD
domain controller solutions are expected to accelerate their penetration into mid-to-low-end car models. The growth in sales of
autonomous driving models will further promote the development of the AD domain controller market. Consequently, the AD
domain controller market will continue to maintain robust growth momentum in the coming years. It is projected that the market
size of China's autonomous driving domain controllers will reach 64.5 billion RMB and 124.0 billion RMB, with penetration
rates of 35% and 72.8%, respectively, by 2026 and 2030.
China AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle
180 72.8% 80
Market Size 68.3%
160 60.9% 70
Penetration Rate
140 60
CAGR 2019-2022 2022-2026E 2026E-2030E 48.0% 124.0
Market Size 341.0% 60.1% 17.8% 115.1 50
120
35.0% 105.9
40
100 91.5
23.2% 30
80 Unit：billion RMB
13.2% 64.5 20
60 7.5%
2.5% 4.5% 46.1 10
0.0% 0.8%
40 27.6 0
20 16.7
9.8 -10
0.1 1.4 5.0
0 -20
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
37
China AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle, Breakdown
by Third-party and OEM
China AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle,
Breakdown by Third-party and OEM
Third-party provider OEM Penetration rate of AD domain controller
180 72.8% 80
68.3%
160 70
60.9%
CAGR 2019-2022 2022-2026E 2026E-2030E
60
140 Third-party 505.9% 88.4% 23.9%
48.0% 124.0
OEM 303.7% 37.5% 4.0% 50
120 115.1
35.0% 105.9
Unit：billion RMB 40
100 91.5
23.2% 30
80 96.5
13.2% 64.5 87.8 20
78.4
60 7.5% 63.9
2.5% 4.5% 46.1 10
0.0% 0.8%
40 41.0
27.6 26.1 0
20 16.7 13.6
9.8 -10
0.1 1.4 5.0 6.8 20.0 23.5 27.6 27.5 27.3 27.5
0.0 0.2 0.8 3.3 9.8 14.0
0 0.1 1.3 4.2 6.6 -20
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Note:
1. Third-party providers refer to independent companies that specialize in offering AD domain controller solutions, who do not engage in
automotive manufacturing operations and have no affiliation with OEMs.
2. OEM refers to automakers who undertake the in-house development of AD domain controllers, and outsource the manufacturing
process to external contractors.
3. Penetration rate of AD domain controllers is calculated by dividing the number of newly sold passenger vehicles equipped with an AD
domain controller by the total number of newly sold passenger vehicles for the same year.
38
China AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle, Breakdown
by Level of Autonomous Driving
China AD Domain Controller Market Size and Penetration Rate for Passenger Vehicle,
Breakdown by Level of Autonomous Driving
Level 2 Level 3 and above
CAGR 2019-2022 2022-2026E 2026E-2030E

Level 2 348.4% 55.5% 10.2%
124.0
Level 3 and above 23.7% 405.5% 53.5% 115.1
105.9
Unit：billion RMB 91.5
84.8
64.5 84.2
78.9
68.8
46.1
27.6 57.4
16.7 42.5
9.8 39.2
5.0 27.2 27.0 31.0
0.1 1.4 16.6 0.0 22.7
0.0 0.0 0.0 9.8 0.0 7.1
0.1 1.4 5.0 0.5 3.6
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
39
Market Drivers of AD Domain Controller (1/2)
Sustained growth of autonomous driving vehicle sales market
• The automotive intelligentization has become the most important trend in the automotive industry, and the development of the AD domain
controller market is highly consistent with autonomous driving vehicle sales market. Thanks to automotive electrification, technology
advancements, cost reductions, and consumer preferences, global sales of L2 vehicles are rapidly increasing. A centralized electronic and
electrical architecture based on the domain controller for autonomous driving is crucial for the implementation and iterative upgrade of
autonomous driving features, so OEMs are actively deploying relevant solutions, leading to a rapid increase in the penetration rate of
autonomous driving models equipped with AD domain controllers and a rapid expansion of the AD domain controllers market. In addition,
the automotive industry has made significant progress in L4 autonomous driving technology. The future commercialization of such
technology is expected to bring new growth opportunities for both the autonomous driving vehicle market and the AD domain controller
market. Overall, the certainty of rapid development in the autonomous driving vehicle market has become a solid foundation for the
sustained expansion of the AD domain controller market.
Transformation of automotive Electrical/Electronic Architecture
• Advanced electronic and electrical architecture is an essential prerequisite for OEMs to maintain their competitive edge in the field of
intelligent mobility. Pursuing the goal of intelligent vehicle development has prompted OEMs to focus on the transformation and upgrade of
automotive electronic and electrical architecture from a distributed to a domain-centralized system. This shift has become a strategic
priority for the industry, as domain controllers offer numerous advantages over traditional distributed ECUs, including reduced overall
vehicle cost, decreased wiring complexity, lighter weight, lower software development complexity, and improved vehicle verification cycles.
In addition, domain controllers provide powerful OTA capabilities, which have become increasingly important in the context of the
widespread adoption of autonomous driving technology. As the popularity of autonomous driving technology continues to grow, the
development and deployment of autonomous driving domain controller solutions have become pivotal in achieving the transformation of
automotive electronic and electrical architecture and realizing high-performance autonomous driving functions. This has resulted in
significant incremental value potential for domain controller-related hardware and software. Over the next two years, an increasing number
of domain controller solutions and centralized architecture models are expected to be launched, further supporting the rapid expansion of
the autonomous driving domain controller market. As such, autonomous driving domain controllers are likely to become standard
configurations for intelligent vehicles in the future, driving the continued explosive growth of domain controller shipments.
40
Market Drivers of AD Domain Controller (1/2)
Development of L2+ and L2++ autonomous driving feature
• The true sense of L3 autonomous driving functionality has not to be achieved, however, an increasing number of OEMs are actively
striving to develop autonomous driving features that close to L3 capabilities, especially for high-end vehicle models. One such feature is
Navigation on Autopilot (NOA), which is being developed in an accelerated manner and can provide "navigation-assisted driving"
functionality in complex road environments, enabling the vehicle to autonomously drive to the destination. In the past one to two years,
several OEMs have released highway NOA features and have also announced plans to launch urban NOA features that support driving in
more complex urban road environments. Such advanced autonomous driving features necessitate AD domain controllers with powerful
built-in hardware and software, which in turn leads to increased value and price. In the future, to enhance the competitiveness of their
products, OEMs will continue to introduce vehicles equipped with advanced L2 autonomous driving features (such as L2+ and L2++). This
will further drive the continuous increase in shipments of high-performance and high-value AD domain controllers, and promote the further
expansion of the AD domain controller market.
Technological advancement and cost reduction of SoC
• SoC, the autonomous driving chip, is the most essential hardware in the AD domain controller, and its performance determines to some
extent the maximum performance that the domain controller can achieve, as well as the complexity of intelligent information processing
and computation that the vehicle can handle. Computing power refers to the SoC's ability to process data in a unit of time. Domain
controllers equipped with high-computing chips are often capable of undertaking more complex autonomous driving tasks, such as NOA
features. In recent years, international and domestic chip designers and manufacturers have increased their investment in the
development of SoCs. The computing power of SoCs has continued to increase, and their computing power has increased from less than
10 TOPS to over 100 TOPS, providing a hardware basis to support the realization of powerful AD domain controllers. Additionally, as SoC
technology improves and production scales expand, the unit cost of computing power is continuously decreasing. Furthermore, as the
number of SoC suppliers in the market continues to rise, the range of chip solutions available for AD domain controller manufacturers and
OEMs to choose from is continuously expanding. Domain controller solutions using different chip schemes can meet the needs of different
vehicle models. Therefore, AD domain controllers are continuously covering different price ranges and different autonomous driving
function requirements, which accelerates the market adoption of AD domain controllers.
41
Development Trends of AD Domain Controller (1/2)
• AD domain controller is a complex system that integrates a series of software and hardware. Traditionally,
The development of the controller involves deep binding of software and hardware, resulting in relatively
high development costs. Software-hardware decoupling refers to reducing the binding relationship between
software and hardware to the lowest level. After software-hardware decoupling, the AD domain controller
hardware will become more standardized and universal, and software and algorithms will no longer be
constrained by hardware, which expands the operational space. Therefore, it improves the adaptability of
Software-hardware AD domain control solutions for different feature requirements and different vehicle models, effectively
decoupling reducing development costs and improving development efficiency. The entire automotive industry is
advocating and promoting the transformation from integrated development of software and hardware to
decoupled development, in order to achieve rapid development and deployment and iteration of AD domain
controllers across vehicle models. The software-hardware decoupling of the AD domain controller has
become a significant feature in the industry, which also puts higher requirements on the software
development technology and capabilities of AD domain controller solution providers.
• Autonomous driving functions generally comprise two parts: driving and parking. In the traditional separate
mode, driving and parking are managed by two independent controllers. The driving controllers can only
call the chips and sensors for driving, such as front cameras and millimeter-wave radar, while the parking
controllers can only call the chips and sensors for parking, such as fisheye cameras and ultrasonic radar.
When one system is running, the hardware of the other system is idle, resulting in wastage of resources. In
contrast to the traditional separate development mode, the advent of driving and parking integrated domain
Driving & parking controllers enables a systematic integration of driving and parking controllers, which brings several benefits.
integration (1) Deep sensor reuse: during parking, in addition to the surround-view camera and ultrasonic radar
participating in perception, the cameras and millimeter-wave radars in the driving function can also
participate in collaborative work, thereby improving the performance of the parking function, and vice versa;
(2) Development and iteration efficiency enhancement: this solution eliminates the need to independently
develop basic software and hardware for driving and parking, thereby improving the development and
iteration efficiency of the functions. (3) Cost reduction: optimizing controller hardware costs and length of
vehicle wiring, and reducing the overall vehicle cost. With these advantages, the driving and parking
integrated domain controllers are rapidly gaining popularity in autonomous driving vehicles.
42
Development Trends of AD Domain Controller (2/2)
• The integration level of domain controllers for autonomous driving has been continuously increasing. The
current mainstream solution for domain controllers integrates 2-4 SoCs and an MCU (Microcontroller Unit)
as auxiliary support. Multiple SoCs offer greater computational power and redundancy capabilities, which
are essential for implementing advanced and complex autonomous driving functions. Additionally, the MCU
provides a higher level of safety, which is necessary for safety-critical autonomous driving functions and
scenarios. With the rapid development of SoC technology, especially in terms of computational power and
High integration safety level, a single SoC can now accommodate software algorithms for sensor fusion, path planning,
decision-making, and control. Moreover, the MCU-related functional modules can be integrated into the
SoC, enabling the deployment of a single SoC domain controller solution for integrated autonomous driving
functions such as driving and parking. Compared to the multi-SoC solution with an external MCU, the single
SoC with a built-in MCU module solution offers cost advantages and is conducive to promoting AD domain
controller-based autonomous driving functions in mid-to-low-end vehicle models. It is expected that in the
future, controller manufacturers will continue to introduce diversified single SoC-based AD domain
controller solutions to cater to the growing demand for cost-effective autonomous driving technology.
• With the continuous advancement of automotive electrical and electronic architecture, the integration of
different functional domains through cross-domain collaboration has emerged as a new target in the
development of intelligent vehicles. The integration of intelligent cockpit and autonomous driving domains
has become the next focal point in advancing automotive intelligence. An intelligent cockpit denotes an in-
Cockpit & vehicle system that caters to personalized user needs by employing smart features like displays, audio
systems, and seats. It serves as a crucial communication link between the vehicle, driver, and passengers,
autonomous and enhances driving experiences by providing a comfortable and interactive environment. The integration
driving of cockpit and autonomous driving domains refers to the cross-domain fusion of hardware and software to
integration create a cockpit and autonomous driving integrated domain controller. This solution effectively lowers costs,
enhances computational power utilization, and improves communication efficiency. With ongoing
improvements in automotive electrical and electronic architecture, the integration of vehicle intelligence
continues to progress, and the cockpit and autonomous driving integration domain controller solution has
become a significant developmental direction for OEMs and domain controller providers.
43
Entry Barriers of AD Domain Controller
• Developing a domain controller is a highly complex system engineering endeavor that requires
expertise across multiple disciplines. In hardware, it necessitates a deep understanding of various
chips and automotive functions. In software, proficiency in diverse operating systems, middleware,
functional safety, information security, and other specialized domains is essential. Moreover,
mass production experience and comprehensive understanding of OEM’s needs also set up the
Technical Capability industry threshold. However, assembling a proficient team with comprehensive knowledge and
experience can be challenging for new entrants, and any deficiency can adversely impact their
market competitiveness.
• The software and hardware development process of an AD domain controller is intricate,

demanding, and time-consuming. With competition in the automotive sales market becoming
increasingly cutthroat, OEMs are aggressively shortening the domain controller development
cycle. To keep pace, domain controller providers must possess a robust service mindset,
technical proficiency, development experience, and adeptness in resource allocation to quickly
Service Capability resolve issues during the development process. However, new players may face difficulty
establishing this comprehensive capability, placing them at a disadvantage in attracting clients.
• Autonomous driving technology is a fundamental value proposition of intelligent vehicles, with

significant impact on driving experience and safety performance. Domain controllers, as a core
component of the autonomous driving system, have garnered high attention from OEMs.
Furthermore, their development necessitates close technical collaboration between OEMs and
suppliers. Once an OEM selects a designated domain controller supplier for a specific vehicle
model, they are unlikely to switch suppliers easily. As a result, it is currently challenging for new
Customer Relationship
players to displace existing suppliers for a particular vehicle model.
44
Agenda
7 Appendix
45
Competitive Landscape of AD Domain Controller
Ranking of AD Domain Controller Market Participants in 2022, by Revenue of AD domain
controller products
Ranking Entity Company Name Market share
1 OEM Tesla2 (特斯拉) 51.7%
2 Third-party Desay SV (德赛西威) 14.8%
3 OEM NIO3 (蔚来) 14.2%
4 Third-party iMotion (知行科技) 8.6%
5 Third-party Hongjing Drive (宏景智驾) 2.3%
6 Third-party Technomous (创时智驾) 1.6%
7 Third-party FreeTech (福瑞泰克) 1.4%
8 Third-party HiRain Technologies (经纬恒润) 0.8%
9 Third-party Bosch (博世) 0.7%
10 Third-party Continental AG (大陆) 0.5%
11 Third-party Aptiv (安波福) 0.5%
Others 2.7%
Total 100.0%
Note:
1. Revenue refers to sales revenue generated in China from AD domain controller products in 2022.
2. Tesla, an automotive manufacturer, independently developed domain controller products and commissioned Quanta Computer (广达电脑) and
PEGATRON(和硕) to manufacture.
3. NIO, an automotive manufacturer, independently developed domain controller products and commissioned Flextronics (伟创立) to manufacture.
4. These companies’ AD domain controllers can be used in level 2 (including level 2+ and level 2++) autonomous driving solutions, and all
competitors are developing autonomous driving solutions of level 3 and beyond.
46
Competitive Landscape of AD Domain Controller
Ranking of Major Market Players in 2022, by Revenue of AD domain controller products
Ranking AD Domain Controller Providers1 Market Share
1 Desay SV (德赛西威) 44.6%
2 iMotion (知行科技) 26.2%
3 Hongjing Drive (宏景智驾) 7.1%
4 Technomous (创时智驾) 4.9%
5 FreeTech (福瑞泰克) 4.3%
6 HiRain Technologies (经纬恒润) 2.5%
7 Bosch (博世) 2.2%
8 Continental AG (大陆) 1.5%
9 Aptiv (安波福) 1.5%
Others 5.2%
Total 100.0%
Note:
1. AD Domain Controller Providers refer to independent companies that specialize in offering AD domain controller solutions, who do not engage
in automotive manufacturing operations and have no affiliation with OEMs.
47
Agenda
7 Appendix
48
Project Scope
Overview of Global and China Front Camera Module Market
Sensors Mainly Used for Autonomous Driving
• From a theoretical perspective, the autonomous driving system which consists of sensors, controllers and actuators, simulates
human driving mode, and corresponds to three functional modules, namely perception, decision-making and execution.
• The sensors on the perception of autonomous driving typically include LiDARs, cameras, MMW (Milli Meter Wave) radars and
ultrasonic radars.
• With continued advancements in sensor technologies especially LiDAR, autonomous driving technologies will be developed
faster and achieve mass production quickly.
LiDAR Camera
LiDAR
Camera
Perception
MMW radar Ultrasonic Radar
MMW radar
Autonomous Ultrasonic radar

Driving
Algorithm Algorithm Computing Platform
Decision-
Making Computing
Platform
Brake/Turn/ ABS ASR

Execution Accelerator
49
Introduction of Main Sensors
LiDAR
• LiDAR is a system that emits laser beams to detect targets. LiDAR transmits a detection signal (laser beam) to the target, and then
compare the received signal (target echo) from the target with the transmitted signal. The relevant information of the target such as
range reflectivity velocity can be obtained directly. The wavelength used by LiDAR is between 250nm and 11μm. Since the laser
beam has a small divergence angle and good coherence, LiDAR can achieve a high resolution and has a unique advantage for
detecting small objects.
Camera
• And as primary sensors in visual image processing systems, cameras are common used in autonomous driving systems. However,
cameras cannot directly measure velocity and depth, which are essential for perception. To break this limitation, the OEMs and
Tier-1 suppliers have developed many additional components and algorithms which bring increasing costs, and such algorithms
sometimes can cause errors which maya miss the objects. Another problem with cameras is its sensitiveness to ambient light
interference. Cameras only accept external visible light information, so when the environment gets too dark or too bright the
cameras may fail in recognizing external objects.
MMW radar
• MMW radar was used in the military field, and gradually spread to the automotive with the decrease of cost. The advantages of
millimeter wave radar are small size, light weight, long detection range, strong obstacle recognition ability, night work ability and
strong adaptability to bad weather. At present, millimeter-wave radars used in vehicles are mainly divided into 24GHZ, 60GHZand
77GHZ, among which 77GHZ millimeter-wave radars have better performance and smaller size.
Ultrasonic radar
• Ultrasonic radar measures the distance by calculating the time between the emitting and receiving of ultrasonic waves. Ultrasonic
radar has a low cost, a detection range of 0.1-3 meters, and high accuracy. Therefore, it is mainly used for low-speed and close-
range functions such as parking assistance and blind spot monitoring in autonomous driving.
50
Comparison among Main Sensors
Camera LiDAR MMW radar Ultrasonic radar
Maximum Detection Range
Precision
Light Disturbance
Weather Disturbance
(Snowy & Rainy)
Cost
• Depth information • 3D Vision • Difficult to • Not applicable at
through deep distinguish the size high speed
Depth Information
learning algorithm and shape of
objects
• Low cost • Direct range • Small size • Low price
• Mature hardware measurement • Strong anti- • Simple ranging
Advantages technology • High resolution interference ability method
• High range accuracy
• Fast response speed
• Rely on light • Affected by bad • Low precision • Low resolution
conditions weather • Low resolution • Easy to be affected
• Easily affected by • High cost • False alarm by environment
Disadvantages
bad weather • Complicated • Small detection
• Rely on algorithm production process range
like deep learning
Notes: High Medium-high Medium Low Source: Frost & Sullivan
51
Definition of Front Camera Module
• The Front Camera Module, installed in the front of a vehicle, integrates camera lens, processors and software algorithms,
which enables the vehicle to identify road conditions and simultaneously transmit the data collected from identification to
processors to analyze the data and navigate the vehicle in accordance with the analysis results.
• According to the different installation positions, camera sensors can be divided into front view camera, round view camera, rear
view camera, side view camera and built-in camera. The Front Camera Front monitors the traffic ahead, enabling the car to
maintain a safe and legal speed, stay in its lane, keep its distance with vehicles ahead and react to emergencies. The Front
Camera Module mainly covers functions including Autonomous Emergency Braking (AEB), Adaptive Cruise Control (ACC),
Lane Departure Warning System (LDWS) , Forward Collision Warning (FCW) and etc.
Classification of Autonomous Driving Camera
Installation
Camera Type Function
Position
Autonomous Emergency Braking、
Adaptive Cruise Control、Lane
Front Camera Monocular/Binocular
Departure Warning System 、
Forward Collision Warning
Surround view parking assist

Round-view Camera Wild-angle
Vehicle backup camera

Rear-view Camera Wild-angle
Blind spot detection

Side-view Camera General angle
Driver fatigue monitor、Emotion

Built-in Camera Wild-angle recognition
52
Main Differences between AD Domain Controller and Front Camera Module
Main Differences between AD Domain Controller and Front Camera Module
AD Domain Controller Front Camera Module
An AD domain controller is connected with

multiple sensors in the vehicle (including A front camera module is equipped with one or
Sensors
cameras, ultrasonic sensors, radar, multiple camera module
etc.)
Target Vehicle Mid- to high-end vehicle with L2+ or beyond Entry-level vehicle with level 1 or basic level 2
Model autonomous driving functions autonomous driving functions
Cover the functions of front camera module, and Limited autonomous driving function coverage,
can also achieve other functions such as typically including Adaptive Cruise Control (ACC),
Functions
Navigate on Autopilot(NoA), and Home-zone Lane Centering Control (LCC), and Autonomous
Parking Assistance (HPA) Emergency Braking (AEB)
53
Global and China Front Camera Module Market Size, by Revenue
• Driven by the increasing penetration rate of autonomous driving L2 vehicles, the market size of front camera module is
expected to grow in recent years. According to Frost & Sullivan, the global market size increased from 8.7 billion RMB in 2019
to 15.7 billion RMB in 2022, with a CAGR of 21.6%. In China, the Front Camera Module market grew from 2.9 billion RMB in
2019 to 6.3 billion RMB in 2022 with a CAGR of 30.0%.
• With numerous advantages offered by AD domain controller and cost reduction of it in the future, we expect AD domain
controller will gradually take the place of Front Camera Module, and the market of Front Camera Module will reach its peak in
2025 and then shrink. The global market size is expected to reach 23.6 billion RMB by 2025, and decrease to 6.6 billion RMB
by 2030. In China, the market would reach 9.6 billion RMB by 2025, and decrease to 2.5 billion RMB by 2030.
Global and China Front Camera Module Market Size and Penetration Rate
CAGR 2019-2022 2022-2026E 2026E-2030E
Unit：Billion RMB
Global 21.6% 9.1% -26.3%
China China 30.0% 8.6% -27.0%
Global
23.3 23.6
22.3
19.9
17.7
15.7
12.7
11.1
8.7 8.9 9.7 9.6 8.8 9.2
8.4
6.3 6.9 6.6
3.5 4.6
2.9 3.1 3.3 2.5
2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
China 10.2% 12.7% 15.1% 27.0% 36.6% 41.9% 41.3% 37.2% 29.3% 19.5% 13.7% 10.4%
Penetration Rate
Global 9.4% 12.5% 16.0% 23.1% 29.3% 34.3% 34.5% 32.1% 25.5% 18.4% 13.2% 9.5%
Penetration Rate
54
Market Drivers and Trends of Front Camera Module Market
The increasing penetration rate of autonomous driving L2 will promote the development of Front
Camera Module.
According to Frost & Sullivan, in China, 7.4 million passenger vehicles equipped ADAS functions(L2/L3) were
sold in 2022 representing a penetration rate of 31.5%. The sales volume of ADAS vehicles in China is expected
to reach 18.2 million by 2026 with a penetration rate of 72.2%, and will further increase to 22.2 million by 2030
with a penetration rate of 83.2%. As Front Camera Module is the key sensor of AD Level 2 vehicles, there is still
much room for the market to grow.
Adding intelligent functions is favorable from both the consumer side and manufacturer side.
Adding intelligent features (such as intelligent front cameras) to a vehicle is, on the one hand, more in line with
consumer demand for safety and intelligence, and, on the other hand, can result in a higher score in the relevant
vehicle tests (such as the C-NCAP) for OEMs. Therefore, we believe intelligent front cameras, as one of the
most cost-effective safety assistance tools, have the potential to become the primary choice for OEMs to include
in their vehicle models in the future.
Front Camera Module can replace the combination of 1V1R so as to reduce the cost of system.
The Lateral Control and Longitudinal Control Function of Level 2 can be achieved mainly by MM Radars and
cameras. The mainstream combination is 1V1R, which represents one camera (1V) and one MM Radar (1R).
However, some companies have developed Front Camera Module product with strong capability of algorithm
which can replace the front MM Radar (1R), and therefore reduce the cost of system.
Front Camera Module with dual cameras and multi cameras becomes more popular in the market.
The Front Camera Module is gradually transforming from single camera to two or even three cameras. Products
with two cameras can achieve detection of distance, which is impossible for only one camera to achieve, and
wider field of view. Companies which adopt camera system as main perception system, like Tesla, would use
products with three cameras.
55
Agenda
7 Appendix
56
Appendix A
Glossary(1/3)
Technical Terms Definition

“ACC” adaptive cruise control
“AD domain controller(s)” autonomous driving domain controller(s)
“AD” autonomous driving
“ADAS” advanced driver assistance systems, or advanced driver assistance system, referring to electronic
systems developed to automate, adapt, and enhance vehicle systems for safety and better driving,
normally featuring level 1 and level 2 driving automation on a vehicle supporting human Drivers
“ADCU” autonomous driving control unit, serving as an intelligent computing platform for applications to the
autonomous driving, responsible for collecting environmental perception signals, and carrying
visual image processing, fusion algorithm, path planning and control decision making
“ADS” automated driving systems, referring to the hardware and software that are collectively capable of
performing the entire dynamic driving task on a sustained basis, regardless of whether it is limited
to a specific operational design domain, used specifically to describe a level 3 through level 5
driving automation system
“AEB” automatic emergency braking
“APA” automatic parking assistance
“BEV” battery electric vehicles
“domain controller(s)” a computer that controls a set of vehicle functions related to a specific area, or domain. Functional
domains that require a domain controller are typically compute-intensive and connect to a large
number of input and output devices. Examples of relevant domains include autonomous driving,
cockpit, powertrain, chassis and body
“ECUs” electronic control units, embedded systems in automotive electronics that controls one or more of
the electrical systems or subsystems in a car or other motor vehicle
57
Appendix A
Glossary(2/3)

“ELK” emergency lane keeping
“ESS” emergency steering assistance
“FCW” forward collision warning
“Fish-Eye Camera(s)” or camera(s) with fisheye lens which produces strong visual distortion to create a wide panoramic or
“fisheye camera(s)” hemispherical image
“GPUs” graphics processing units, designed to manipulate and alter memory to accelerate the creation of
images in a frame buffer intended for output to a display device
“Highway NoA” navigate on autopilot on highways
“HPV” home-zone parking assist
“IC(s)” integrated circuit chip(s)
“ICC” intelligent cruise control
“LCC” lane centering control
“LDW” lane departure warning
“letter of nomination” the confirmation sent out by OEMs as a commitment to form formal cooperative relationships. The
companies that receive letters of nomination are qualified to join the OEMs’ supply chains
because they have been selected as the designated suppliers for a specific component
“LiDAR” light detection and ranging, a method for determining ranges by targeting an object or a surface
with a laser and measuring the time for the reflected light to return to the receiver
“MCUs” microcontroller units, (a) small computers on a single IC containing a processor core, memory and
programmable input and output
58
Appendix A
Glossary(3/3)

“middleware” software that acts as a bridge between an operating system or database and applications,
especially on a Network
“NEV(s)” new energy passenger vehicles, comprising of battery electrics vehicles, plug-in hybrid electric
vehicles (including EREV) and fuel cell vehicles
“NoA” navigate on autopilot
“OEM(s)” automotive original equipment manufacturer(s) (automotive manufacturer(s))
“OS” operating systems
“OTA” over-the-air
“PCB” printed circuit board
“point-to-point assisted driving represents navigation assistance while driving from one location to another, including entering
navigation” and exiting parking lots, urban areas, and highways. As a result, it has autonomous driving
functions for both high-speed driving and low-speed parking scenarios
“RPA” remote parking assistance
“SoC(s)” systems-on-chip(s), (a) programmable IC(s) that integrates CPU, memory interfaces, on-chip
input/output devices, input/output interfaces, and secondary storage interfaces, often alongside
other components such as radio modems and a graphics processing unit, all on a single substrate
or microchip
“TSR” traffic sign recognition
“Urban NoA” navigate on autopilot in urban areas
“USS” the ultrasonic sensor system
“vehicle verification cycles” include algorithm test, software test, vehicle test, function verification, connector test and selection,
etc.
59
Appendix B
1. The size of autonomous driving market, including software and hardware for passenger and commercial vehicles as well as
robotaxi services, is expected to reach more than RMB1,100 billion and RMB3,100 billion in China and global, respectively, in 2035.
2. iMotion is one of the first companies in the industry to achieve large-scale commercialization in China for autonomous driving
solutions.
3. Under the trends of vehicle electrification, intelligence and connectivity, the autonomous driving market in China is expected to
maintain significant growth momentum in the future.
4. China is the world’s largest passenger vehicle market in terms of sales volume in 2022.
5. Currently, ADAS is the most advanced autonomous driving solution widely available in passenger vehicles sold today, while ADS
solutions have not been commercialized in passenger vehicles in large scale.
6. NoA is one of the most advanced driver assistance functions commercialized in the automotive industry.
7. To ensure the stability of the supply of autonomous driving solutions and products, OEMs often maintain stable and long-term
cooperative relationships with its autonomous driving solution providers with respect to a specific vehicle model, and vice versa.
8. It is also an industry norm for autonomous driving solution providers to derive a substantial portion of its revenue from its major
customer(s), especially in the early stage of such companies, when they have relatively limited product categories due to limited
resources and capability devoted to R&D and market expansion.
9. In October 2020, the number of OEMs which launched premium BEV models was relatively limited among the entire vehicle market.
10. The typical lifecycle of a vehicle model (from the launch date to the discontinuation of sales) ranges from approximately five to six
years, based on its sales performance.
11. Considering the high costs and barriers for replacing autonomous driving solution providers, it is an industry practice that, during
the lifecycle of an existing vehicle model, unless there are major quality defects, or major disputes between the OEMs and
autonomous driving solution providers, the existing autonomous driving solution providers of a specific model will generally not be
replaced by the OEMs.
12. Due to the early development of autonomous driving technology, there are a limited number of autonomous driving SoC providers
in the market, thus the autonomous driving SoC market is highly concentrated.
13. The autonomous driving sector is a technology-intensive industry, in which only suppliers with strong R&D capabilities,
accumulated know-how and experience can capture market share among fierce competition.
14. The autonomous driving industry is still at its early stage of development.
15. The insurance coverage of iMotion is in accordance with the commercial practices in the industries in which the company operates.
16. In 2022, ZEEKR 001 ranked the second in premium BEV in China in terms of sales volume and is the only Chinese premium pure
electric model in the monthly 10k units sales club.
17. In 2022, Chery ranked the second in terms of volume of vehicle exports among Chinese OEMs.
60

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Autonomous Driving Domain Controller

Frost & Sullivan

1 Introduction of the Research

2 Overview of Global and China Automotive Market

3 Overview of Global and China Autonomous Driving Vehicle Market

4 Overview of Global and China Autonomous Driving Domain Controller Market

5 Competitive Landscape of Autonomous Driving Domain Controller Market

6 Overview of Global and China Front Camera Module Market

◼ The project scope is defined as follows:

• Historical Year: 2019-2021

• Forecast Year: 2023E-2027E, 2030E

Industry • Autonomous Driving (AD) Domain Controller

➢ Under circumstances where information is

1 Introduction of the Research

2 Overview of Global and China Automotive Market

3 Overview of Global and China Autonomous Driving Vehicle Market

4 Overview of Global and China Autonomous Driving Domain Controller Market

5 Competitive Landscape of Autonomous Driving Domain Controller

6 Overview of Global and China Front Camera Module Market

Global Passenger Vehicle Sales Volume, by Power Type

75.1 75.8 76.6 77.4

Global New Energy Passenger Vehicle Sales Volume

CAGR 2019-2022 2022-2026E 2026E-2030E

China Passenger Vehicle Sales Volume, by Power Type

NEV NEV 83.4% 23.4% 7.9%

China New Energy Passenger Vehicle Sales Volume

CAGR 2019-2022 2022-2026E 2026E-2030E

Classification Definition Representative Model

Raw Material Support

Auto Parts Assembly Service Market

Source: Frost & Sullivan

Raw Material Auto Parts Emerging Startups & Auto Support

Auto Parts Service Market

Metal Steel Electrical & Traditional Emerging Repair and Maintenance

Source: Frost & Sullivan

1 Introduction of the Research

2 Overview of Global and China Automotive Market

3 Overview of Global and China Autonomous Driving Vehicle Market

4 Overview of Global and China Autonomous Driving Domain Controller Market

5 Competitive Landscape of Autonomous Driving Domain Controller

6 Overview of Global and China Front Camera Module Market

Driver Required Driverless

L2 + : technologies that enable vehicles to

Level 0 Level 1 Level 2 Level 3 Level 4 Level 5

Driver Support Features Automated Driving Features

Provide steering Provide steering

◼ Automatic ◼ Local driverless

Fully Commercialized Not Mass Commercialized

Driver performs part or all of the DDT(dynamic driving task)

The sustained and ODD-specific execution by a driving automation system of

The sustained and ODD-specific execution by a driving automation system of

Full The sustained and unconditional (i.e., not ODD-specific) performance by an

Source: SAE, Frost & Sullivan

Upstream Midstream Downstream

Hardware End Product Customers

LiDAR Ultrasonic Chip RoboTaxi

Certainty of automotive electrification.