Explosive Growth of 5G Intelligent Cockpits in China: Nearly Quadrupled Year-on-Year in 2023

According to data monitored by the Institute of Advanced Automotive Intelligence (China), in the period from January to June 2023, the delivery of 5G intelligent cockpits with front-end 5G integration (including optional installations) in the #Chinese market (excluding imports and exports) reached 631,800 units, representing a remarkable year-on-year growth of 370.09%.

Simultaneously, the integration of 5G technology with in-car intelligent hardware is expected to further enhance features such as voice interaction and in-car entertainment, thereby significantly elevating the overall driving and passenger experience. The deployment of 5G technology is particularly prominent in the realm of new energy / electric vehicles.

The data from the first half of this year underscores the prevalence of 5G integration in new energy vehicle models, accounting for nearly 90% of the total new vehicle deliveries with 5G integration. In contrast, conventional internal combustion engine vehicles continue to rely predominantly on 4G technology.

In terms of adoption rates, the overall market's standard-equipped 5G intelligent cockpit integration rate stands at 6.80%. However, the integration rate for new energy vehicle models equipped with 5G intelligent cockpits has already reached 18.95%.

As the penetration of new energy vehicle models continues to rise, the market for 5G intelligent cockpits and the underlying 5G in-vehicle communication chip/module market are undergoing a significant transformation. New players are entering the field, disrupting the former dominance of a few major companies like Qualcomm , Huawei , and Quectel in the 3G/4G market.

For instance, earlier this year, Guangzhou Automobile Group Co., Ltd. (GAC) announced the mass production development of the 5G V-Box (an in-car communication terminal platform project), which will be the first to feature ZTE's automotive-grade 5G module. The first model equipped with this module is expected to enter mass production in 2024.

In this collaborative endeavor, ZTE Corporation will provide the domestically pioneered automotive-grade 5G R16 ZM9300 module, built upon a fully self-developed chip platform. Prior to this, ZTE had also engaged in project collaborations with multiple automakers such as SAIC and FAW.

Emerging as another new entrant in the in-car communication market, 翱捷科技（ASR Microelectronics） began with a 4G focus and aims to compete with #Qualcomm by leveraging its capabilities in segmented market product planning, cost-effectiveness, and efficient local support.

Up to now, 翱捷科技（ASR Microelectronics） has expanded its presence in both front-end and after-market in-car communication segments, entered the supply chain for in-car communication modules of companies like Quectel , YOFOTO IoT, and #GOSUNM. The company has initiated large-scale production for various models, including Changan Automobile LUMIN, JMC E200, Chery Jetour, Shaanxi Auto, and Dongfeng Commercial.

Regarding the 5G arena, ASR Microelectronics announced in October 2022 that, under the guidance of the IMT-2020 (5G), it had successfully completed 5G R17 RedCap laboratory testing in collaboration with Ericsson .

Likewise, MeiG Smart Wireless Solutions , a supplier already leading the market in the field of in-car 5G intelligent modules, foresees these years as a transition period from 4G to 5G. It anticipates a rise in the deployment of 5G products.

Public information confirms that MeiG Smart Technology's 5G in-car intelligent modules have already been massively produced on BYD's DiLink 4.0 and DiLink 5.0 platforms, covering popular models such as the Han, Tang, Song, DENZA, and Dolphin.

Moreover, earlier this year, MeiG Smart Technology formally unveiled its new generation 5G automotive-grade C-V2X module, MA922/MA925, supporting the 3GPP R16 standard and boasting a maximum computational power of 20K DMIPS.

From the market trends perspective, this year is witnessing the commencement of a new era in the diversification of 5G product lines in the in-car communication industry. Key developments include 5G R16, R17 RedCap, and 5G SoC.

Among these, 5G R16 demonstrates substantial improvements and enhancements over the first-generation 5G in-car modules in terms of transmission speed, low latency, high reliability, C-V2X PC5 direct communication capabilities, positioning services, high computational power, and security.

Considering that the cost of 5G in-car modules remains relatively high, R17 RedCap is positioned as a potential mainstay product to rapidly reduce costs in the subsequent phase. Many manufacturers have already conducted verifications of 5G RedCap for vehicular applications.

For instance, Shanghai Unicom, in collaboration with Huawei and Baidu Apollo, achieved the world's first 5G RedCap field deployment experiment station verification based on the 3GPP R17 standard. Test results indicate that RedCap fulfills the demands for wideband uplink in vehicular networking scenarios.

As the most prominent technology in the 5G R17 version, RedCap is designed for mid-to-high-speed IoT scenarios. While its rate is lower than eMBB, it surpasses low-power wide-area networks like NB-IoT and eMTC.

Of crucial significance, RedCap significantly reduces terminal chip and module costs by minimizing radio spectrum bandwidth occupation, receiver antennas, and layers. Consequently, mass-produced module prices can be on par with 4G technology.

This implies that the cost factors impeding the continuous improvement of 5G integration rates in vehicles can be partially resolved, particularly for vehicles priced below 250,000 RMB (USD 35,000). In this particular segment, which accounts for more than 50% of the annual new vehicle deliveries, this breakthrough holds substantial promise.

Furthermore, another driving factor for 5G stems from the upgrade in overall vehicle electronic architecture. Presently, various automotive manufacturers are driving the implementation of centralized electronic and electrical architectures, achieving vertical integration of vehicle-cloud synergy and deep cross-domain integration horizontally.

In this context, 5G+V2X in-vehicle networked terminals (and even integrated gateways) have become mainstream configurations. These are built on CP+Autosar+SOA software architecture and support high-precision positioning, integrated inertial navigation, and gigabit Ethernet, among others. They also facilitate #FOTA upgrades, enabling remote firmware updates.

In summary, the automotive communication industry is entering a new phase of diversification in its 5G product line this year. This development is particularly influenced by the growing prevalence of 5G R16, R17 RedCap, and 5G SoC technologies.