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HUD has finally become popular, highlighting the explosive potential of domestic suppliers.
Time of issue:
2021-09-14
For many years, HUD (Head-Up Display) has been in a lukewarm state in the automotive industry due to limited demand, despite combining intelligent safety with a cool appearance. With the acceleration of the commercialization of autonomous driving, HUD, as an important window for ADAS human-machine interaction, is gradually being valued by car manufacturers and related supply chains due to its safety advantages. Especially in the past two years, the market penetration of related products has rapidly increased, and the models equipped have gradually extended from high-end to mid-range. The booming market has prompted domestic and foreign car manufacturers and technology providers to intensify their layouts.
A chain reaction begins, and HUD welcomes a window period.
Data shows that since 2016, the installation volume of front-mounted HUDs in domestic passenger cars has been continuously rising. The growth rate surged in 2020, with a cumulative shipment volume reaching 765,000 units, a year-on-year increase of over 100%. In the first half of this year, the supporting data was upgraded again, reaching 503,200 units, with market penetration increasing to 5%.
"Driven by the wave of smart cars, the chain reaction of HUD is gradually starting. Currently, it is just the beginning, and there will be a leap in development later on," said Zhang Huanyu, assistant general manager of Huayang Multimedia Electronics Co., Ltd., a well-known domestic HUD supplier, in an interview with Gaishi Automotive.
1. As a window for ADAS human-machine interaction, HUD can present driving assistance information, enhancing driving safety and comfort, providing drivers with a better application experience.
2. To enhance market competitiveness, car manufacturers are placing more emphasis on autonomous driving and smart cockpits, especially domestic brand car manufacturers, which have been quick and forceful in their transformation actions under the promotion and support of the national intelligent network development strategy in recent years, with bolder and more avant-garde product innovation and applications. For example, Great Wall Motors has basically made HUD a standard configuration, and brands like Geely and FAW Hongqi have also equipped it in new models.
Haval Shenshou configuration.25-inch HUD (Image source: Great Wall Motors)
3. Breakthroughs in HUD technology have significantly improved display effects.
4. With technological upgrades, the supporting prices of HUDs have gradually decreased, and the cost-effectiveness has been steadily improved.
Driven by multiple factors, the Gaishi Automotive Research Institute predicts that by 2025, the penetration rate of HUD products in domestic passenger cars will approach 40%, with the scale of front-mounted installations exceeding 9 million units.
Supply chain accelerates layout, highlighting the explosive power of independent brands.
Previously, the front-mounted HUD market was basically monopolized by foreign giants such as Japan's Seiko, Germany's Continental, Japan's Denso, and Visteon, with a highly concentrated competitive landscape where the top five companies held over 95% of the market share.In the past three years, with the accelerated commercialization of domestic intelligent driving technology, many independent brand suppliers have begun to emerge, showing significant explosive power, such as Huayang, Future Black Technology, Crystal Optoelectronics, and Ruisi Huachuang, among which Huayang has the strongest overall strength.
According to data from the High-tech Automotive Research Institute,In the first half of 2021, in terms of market share of W-HUD suppliers (based on insurance volume statistics), Japan's Seiko, Denso, and Huayang ranked in the top three, with Huayang showing significant market share growth.On August 13, Huayang Group (002906.SZ) stated on the investor interaction platform that its HUD products have been mass-produced in several models of Great Wall Motors and Dongfeng Nissan's Qichen Star, and the company continues to expand new customers, having secured new projects from Great Wall, Changan, GAC, BAIC, Chery, and Vietnam's VINFAST this year.
Ranking of domestic W-HUD suppliers' market share (based on insurance volume statistics)
(Image source: High-tech Automotive Research Institute)
Regarding the reasons for Huayang's rapid growth, Gaishi Automotive summarized based on Zhang Huanyu's interview information as follows:
First, the company is proactive and has made early technological reserves. Data shows that Huayang Group started the HUD project as early as 2012. It has now formed a HUD R&D technical team covering multiple disciplines, including optics, software, structure, and electronics, with products covering C-HUD, W-HUD, and AR-HUD, and has mature solutions.
Huayang HUD product roadmap.
Secondly, Huayang Group's over 20 years of accumulation in the automotive industry has provided it with rich customer resources and mature upstream supply chain resources. In addition, good reputation and the scale effect of other product lines enable the company to respond quickly to market demand for HUDs, whether the demand is high or low.
Furthermore, in terms of manufacturing, Huayang has its own industrial automation division (which has now become an independent Huayang Intelligent Technology Co., Ltd., a wholly-owned subsidiary of Huayang Multimedia). This division not only serves Huayang internally but also provides mature automation production and logistics solutions for other companies and industries. With this advantage, Huayang can quickly coordinate and set up relevant production lines to respond to the rapid growth of HUD market demand.
Opportunities are always reserved for those who are prepared. It is precisely due to early reserves in technology, supply chain, and production that when the HUD market opportunity arises, Huayang can seize the chance and show rapid growth. Especially at this stage, the R&D cycle of models is shortened, and the speed of updates and iterations is accelerated, which places high demands on suppliers' responsiveness and reaction speed, which is also one of Huayang's core advantages.
AR-HUD becomes a new growth point in the HUD market.
Since 2021, many car manufacturers have announced the configuration of AR-HUD products in new cars, including the Mercedes-Benz S-Class, Audi Q4 e-tron, Volkswagen ID series, as well as FAW Hongqi E-HS9 and Great Wall Mocha. Additionally, it is reported that GAC, Changan, and Chery are also planning to equip AR-HUD.
Volkswagen ID.4 X's AR-HUD (Image source: SAIC Volkswagen)
"Domestic and foreign manufacturers are basically at the same starting line in the R&D and promotion of AR-HUD, so the technological gap is very small," Zhang Huanyu stated.
However, in the face of the upcoming market opportunities, Zhang Huanyu emphasized that AR-HUD still faces certain technical challenges, with some parameters posing certain risks, such as sunlight interference. "Since AR-HUD involves safety issues, we will closely communicate with clients during cooperation and provide candid advice, offering reliable products to minimize risks."
Overall, driven by the upgrading of consumer demand and the trend of smart connected vehicles, both W-HUD and AR-HUD, whether from international component giants or local excellent suppliers, face tremendous opportunities and market space. However, as mentioned above, safety is the greatest value of HUD technology, so while we are excited about the market's prosperity, we must also think about how to achieve continuous breakthroughs in technology to maximize driving safety.
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