With the announcement of the list of 20 pilot cities, projects across the country will gradually begin to open bids and begin construction. The curtain has been raised on the large-scale construction of the car-road-cloud integration, and the industry is about to enter a period of rapid development.
As smart transportation continues to evolve, FMT News learned that Huaxin Securities recently released a research report stating that car-road-cloud has the advantages of low unit and marginal costs, strong perception capabilities, and high intelligence, and can make up for the shortcomings of single-car intelligence in perception, data, and computing power.
The main viewpoints of Huaxin Securities are as follows:
Car-road-cloud driving integrates the key transportation elements of "people, vehicles, roads, and clouds" on the basis of single-vehicle intelligent driving, leveraging C-V2X and 4G/5G communication technologies. It can meet the application needs of different levels of autonomous vehicles, realize the optimal development of both autonomous vehicles and overall traffic. Car-road-cloud and single-vehicle intelligence complement each other and jointly promote the development of autonomous driving.
Car-road-cloud integration is based on single-vehicle intelligent driving and uses C-V2X and 4G/5G communication technologies to organically connect key transportation elements such as "people, vehicles, roads, and clouds", forming a full-range and coordinated collaboration between vehicles, roads, and cloud and human elements. It can meet the application needs of different levels of autonomous vehicles, realizing the optimal development of both autonomous vehicles and overall traffic. Car-road-cloud and single-vehicle intelligence complement each other and jointly promote the development of autonomous driving.
Policy resonance and industry development of car-road-cloud are becoming clearer. Recent car-road-cloud policies issued in China have proposed the construction of a batch of urban-level application pilot projects that focus on the development goals of car-road-cloud, and promote the digitization and upgrading of highway and waterway traffic infrastructure.
On the policy side, several car-road-cloud policies have been recently issued in China in support of building city-level pilot projects for car-road-cloud application. Industry-wise, after going through three development stages including national-level test demonstration areas, pilot zones, and Double-smart cities, China's car-road-cloud has achieved a breakthrough from the "dot" to the "surface", and application scenarios have become increasingly enriched.
After going through three development stages including national-level test demonstration areas, pilot zones, and Double-Smart cities, China's car-road-cloud has achieved a breakthrough from the "dot" to the "surface", and application scenarios have become increasingly enriched.
Car-road-cloud development is still dominated by the government and state-owned enterprises, and the business model is undergoing initial exploration. Applications such as unmanned taxis and smart buses are constantly emerging. Recently, the development of RoboTaxi has become a market hotspot, which may accelerate the commercialization of unmanned taxis. After the Beijing car-road-cloud integration project worth 994 million yuan on May 31, 2024, Fuzhou, Erdos, Changzhou and other places have successively followed suit, and the announcement of the list of 20 intelligent networked car-road-cloud integration pilot cities has been issued. The curtain of large-scale construction of car-road-cloud has been raised, and the industry is expected to usher in a period of rapid development.
The car-road-cloud industry chain is wide-ranging, with a market space of trillions of yuan. According to the Intelligent Networked Vehicle Innovation Center and other joint releases of the Intelligent Networked Vehicle "Car-Road-Cloud Integration" Scale Construction and Application Reference Guide, car-road-cloud construction focuses on three parts: on-board terminals, road-side infrastructure, and cloud control platforms. Huaxin Securities pointed out that the current installation of on-board terminals depends mainly on consumer demand and vehicle manufacturer supply, while the government-led construction is for road-side and cloud-side equipment. The market space for car-road-cloud urban smart roadside infrastructure is approximately 40.47 billion yuan, and that for the smart roadside infrastructure of expressways is estimated neutral to be 13.27 billion yuan, while the cloud-side market space is 29.581 billion yuan.
The car-road-cloud industry chain is widely distributed. According to the Intelligent Networked Vehicle Innovation Center and other joint releases of the Intelligent Networked Vehicle "Car-Road-Cloud Integration" Scale Construction and Application Reference Guide, car-road-cloud construction focuses on three parts: on-board terminals, road-side infrastructure, and cloud control platforms. Huaxin Securities pointed out that the current installation of on-board terminals depends mainly on consumer demand and vehicle manufacturer supply, while the government-led construction is for road-side and cloud-side equipment. The market space for car-road-cloud urban smart roadside infrastructure is approximately 40.47 billion yuan, and that for the smart roadside infrastructure of expressways is estimated neutral to be 13.27 billion yuan, while the cloud-side market space is 29.581 billion yuan.
With the announcement of the list of 20 pilot cities, projects across the country will gradually begin to open bids and begin construction. The curtain has been raised on the large-scale construction of the car-road-cloud integration, and the industry is about to enter a period of rapid development. We maintain a "buy" rating for the industry, and recommend investing in on-board terminals, road-side infrastructure, and cloud control. We suggest paying attention to Shenzhen Genvict Technology Co. Ltd. (002869.SZ), VanJee Technology Co. Ltd. (300552.SZ), China TransInfo Technology Co. Ltd. (002373.SZ), Tongxingbao Co. Ltd. (301339.SZ), Cloudwise Inc. (873806.BJ), and Hanxin Technologies Group Inc. (837092.BJ).
Risks include policy execution, intensifying industry competition, delays in project implementation, and risks associated with technical research and development and the implementation of related products and services.