Intelligent Transportation Vehicles Brings in a Thousand Billion Business Opportunities

Recently, the Ministry of Transport announced the "12th Five-Year Plan for the Development of Highway Waterway Transportation Informatization" (hereinafter referred to as the "Planning"). According to the objectives of the “Planning”, in the future, the monitoring coverage of important sections of important road sections of the main highway network in China and the inland river route will be over 70%, and the monitoring coverage of key business transportation equipment will reach 100%. In addition, the basic and strategic database of the core, secondary and provincial highways, waterways, ports, operating vehicles, and ships will be built 100%.

It is reported that in January this year, relevant sources of the Ministry of Industry and Information Technology revealed that the investment demand for the car networking platform has exceeded 10 billion yuan. Industry insiders frankly stated that if the concept of car networking was introduced last year to open up the application market for IoT technology, then the emphasis on road and waterway informationization in the “Planning” is expected to expand the market space of the Internet of Things at least ten times, reaching thousands. Billion.

With favorable policies, the "Planning" issued by the intelligent traffic-oriented industry informatization pioneer requires specific policies, and all parties should increase investment in informationization funds in the transportation sector through multiple channels. In particular, it emphasized that the Ministry of Transport will grant financial assistance to major information technology projects, pilot demonstration projects, and extension projects, and give an inclination to the western region, and local governments should guarantee the implementation of supporting funds. Actively introduce market mechanisms, absorb social forces to participate in the development of transportation informatization, and promote the industrialization of information services.

Compared with the “Eleventh Five-Year Plan” traffic informatization plan that was promulgated in 2006, the “Plan” has defined more numerical indicators. In terms of monitoring of transport equipment, the "Plan" proposed that the monitoring coverage rate of key business transportation equipment should reach 100%, and a preliminary information monitoring system for the dynamic operation of the passenger and freight transport market for highway waterways should be established. "Plan" proposes that the average coverage rate of the national expressway ETC (electronic toll collection system) has been raised from 15% to 60%, the number of ETC lanes has been increased from the current 1,300 to more than 6,000, and the number of ETC users has increased from 500,000 to 500. Ten thousand, will relieve traffic congestion at the toll gate at that time.

In the specific implementation process, “Planning” requires the strengthening of the integrated application of new technologies such as the Internet of Things, cloud computing, mass storage, high-speed transmission, second-generation satellite navigation, and remote sensing telemetry, and strives to expand its application and innovative applications. Major breakthroughs have been made in the model and application level, and the transformation and promotion of results have been accelerated to improve the level of industry information technology.

The 12th Five-Year Transportation Informatization will advance toward the goal of intelligent transportation. Intelligent transportation will use the Internet of Things technology to be aware of and interact with the characteristics of the transportation, to promote the refinement of traffic management, the comprehensive service of the industry, and the humanization of travel experience. Promote the development of a safe, smooth, convenient, efficient, and green transportation industry, realize the transformation of the transportation industry from traditional industries to modern service industries, and further promote the upgrading of information manufacturing and information services.

Longitudinal extension, the application of in-vehicle networking information has attracted attention in accordance with China's "National Medium and Long-Term Scientific and Technological Development Plan Outline (2006-2020)" content, intelligent transportation will become the subject of the future development of domestic transportation industry, and car networking It is a typical application under the intelligent traffic framework.

At the China International Internet of Things Conference held in Wuxi, Jiangsu last October, the car networking project has already been listed as an important project of China's major special project. If last year's concept of car networking opened the application market for IoT technology, then the emphasis on road and waterway informationization in the "Planning" is expected to expand the market space of the Internet of Things at least ten times. This provides tremendous room for the development of the industry.

With the support of policies, the application of the Internet of Things in the transportation sector has continued to deepen, and the entire industry chain has been thriving with favorable policies. The development of the Internet of Vehicles has strung a long industrial chain that covers auto parts manufacturers, chip manufacturers, software providers, solution providers, and network providers.

The industry believes that the advent of the Internet of Vehicles will not only further promote the automotive industry, such as auto manufacturing and automotive services, but also bring opportunities for industrial upgrading in areas such as mobile communications. On the one hand, Vehicular Communications will prompt the automotive industry to shift from hardware sales to new modes of service and content binding. On the other hand, Vehicular Connectivity will enable telecom operators and content service providers to quickly locate high-end customer groups and provide products and services. In addition, the country’s requirement for new energy vehicles “must have remote monitoring capabilities” also allows the vehicle networking to span two strategic emerging industries.

Industry take-off, improvement of standards and business models are key According to recent research data from CCID Consulting, the scale of China's automotive electronics market is expected to reach 240 billion yuan in 2011. With the inclusion of new energy vehicles in the seven strategic emerging industries that the country has accelerated to foster and develop, it is expected that the growth potential of the automotive electronics industry will be further released. Obviously, automotive electronics has become a new growth point for the electronics manufacturing industry, providing new development opportunities for China's electronics manufacturing special equipment manufacturers. According to the speed of development of China's current automotive industry, it is expected that the number of cars will exceed 200 million by 2020, and car networking faces an explosive opportunity for the whole industry.

Although the outlook for the car networking is infinitely bright, but from the current situation, the road to development is very tortuous. According to the estimation of the chief analyst of iSuppli automotive research, only 15% of the car networking service providers are currently available to the world. Profit, even by 2013, this proportion will not exceed half.

For the development of car networking, Zhang Xixun, director of customer solutions at Nokia Siemens Networks, said in an interview with the media recently that the car networking industry wants to generate huge commercial returns, and it should have at least three core conditions: first, standards, only national standards. Sexual standards, car networking is possible to achieve industrialization; followed by investment; the third is to have organizational security, this opportunity to be relatively successful will be great. In fact, in the final analysis, it is the issue of policies, standards, and business models.

In this regard, the introduction of the "Code" has solved the worries of the development of the car network from the policy level. In terms of standards, it is reported that at present, China's Internet of Things standard system has formed a preliminary framework, a number of standard proposals submitted to the International Organization for Standardization have been adopted, and the standardization of the Internet of Things has made positive progress. Not only the standards of the Internet of Things, but also the standards for new applications such as cloud computing and software information services mentioned in the "Planning" are constantly improving.

In the business model of operation, according to industry insiders, the so-called “Internet of Vehicles” products and services currently entering the market are all auto manufacturers paying for end-users, usually from one to three years, and will automatically renew their contracts after they expire. The service is still unknown.

Car networking services that are one step ahead are undoubtedly the touchstone for the development of the entire industry. However, if they cannot find a matching business model, even if the management and technical issues are solved in the future, the car networking industry will become difficult to survive. Therefore, an innovative business model is urgently needed. Find profit points.

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