Thanks to technological progress, increased demand, policy support and the development of the new energy vehicle market, my country’s ICV (Intelligent Connected Vehicle) market has expanded rapidly. The data shows that in 2020, the global sales of intelligent connected vehicles will be 42.66 million, and the sales in the Chinese market will account for 16%. With the convenience brought to users by intelligent connected vehicles such as ADAS, parking assistance and other practical functions, the consumption desire of the public is further stimulated. It is expected that the sales volume of intelligent connected vehicles in my country will account for 20.8% of the global sales volume of intelligent connected vehicles in 2023. %.
Like traditional cars, ICVs also require adequate and comprehensive simulation and field testing to ensure their safety and reliability for commercialization and mass production.The intelligent networked vehicle test, verification and evaluation solution tests and evaluates the perception, decision-making and execution behaviors of the intelligent driving system in different scenarios, and achieves stable performance through multi-dimensional and multi-angle testing and verification of the intelligent driving system Confidence level, to judge the level of intelligent driving technology of the equipment.
Recently, Beijing Saimu Technology, a domestic technology-driven company focusing on independent innovation of simulation technology, submitted an application for listing on the Hong Kong stock market. According to the prospectus, Saimu Technology is the fourth largest market participant in ICV simulation testing tools and platforms in China, and also the largest Chinese market participant in this market.
Nearly 3 billion test market driven by intelligent driving
According to the types of products and services, ICV testing, verification and evaluation solutions mainly include: ICV simulation testing tools and platforms; ICV data platforms; simulation testing services; road testing services (closed field testing and open road testing); and others.Simulation testing is one of the most important parts of this, and data shows that from 2021,ICV simulation test tools and platformshas occupied the entireICV Testing, Validation and Evaluation Solutionshalf of the market.
According to the test objectives, the simulation test can verify the intelligent driving function and safety level of ICV products (especially L3 and above automatic driving products) through various in-the-loop (XiL) tests such as models, software, hardware, vehicles and drivers. In addition to local governments, automakers and other testing, verification and evaluation agencies are also willing to build their own simulation testing capabilities and purchase related systems.
Compared with traditional internal combustion engine vehicles, the structure of electric vehicles is more suitable for carrying more advanced intelligent driving technology.At present, driven by factors such as the development of intelligent driving technology and the continuous increase in the penetration rate of domestic intelligent connected vehicles, the market size of China’s intelligent connected vehicle testing, verification and evaluation solution industry in terms of revenue has grown steadily. 1.2 billion to about 2.8 billion in 2022.As consumers’ awareness of ICV continues to increase, automakers pay more attention to high-level (L3 and above) smart connectivity and smart driving technologies to gain more competitive advantages, thereby stimulating ICV testing, verification and evaluation solutions program needs.
With the acceleration of the commercialization of L3 and above autonomous driving technologies, the ICV test and evaluation solution market has a good market prospect.According to Frost & Sullivan, it is estimated that by 20twenty threeyear,The market size of China’s ICV test, verification and evaluation solution industry will further increase to approximately RMB3600 million yuan from 2022will present annual compoundRapid growth of about 33.9%.
In addition to the accelerated development of the ICV industry, continuous innovation and changing market regulatory norms have also become the main driving force for China’s ICV test, verification and evaluation solution industry.
In 2019, the United Nations issued a “multi-pillar method” consisting of simulation tests, closed field tests and open road tests, and it has been widely recognized around the world. The European Union, the United States, China and Japan have adopted the “multi-pillar approach” as a guiding document for ICV testing, verification and evaluation.
ICV testing, verification and evaluation are the key to ensure the safe operation, wide application and commercialization of ICV. This kind of technology is also a strategic technology that China urgently needs.In recent years, the Chinese government has issued a series of policies to lay a solid foundation for the rapid and sustainable development of China’s ICV test, verification and evaluation solution industry.
On December 30, 2022, the China Automotive Technology and Research Center released the basic “Technical Regulations for China’s Intelligent Networked Vehicles”, which aims to establish a high-standard, professional and objective vehicle intelligent network performance evaluation method to support my country’s intelligent networked vehicles. The rapid development of automobile technology and industry has enhanced the international competitiveness of my country’s automobile industry. With the continuous improvement of intelligent driving technology and the introduction of unified national access standards, more mass-produced intelligent connection software and systems will need to pass ICV simulation and road tests before entering the market, which will stimulate the expansion of the industry.
Local ICV test supplier for local automakers
China is one of the world’s largest auto production markets. With the acceleration of the R&D process of ICV and intelligent driving technology, the demand for ICV simulation and road testing is increasing. It is of great significance for Chinese market participants to achieve independent research and development to gain competitiveness in the global market.
Currently, there are increasing domestic alternatives in the field of intelligent driving solutions including ICV testing, verification and evaluation products. In addition, the price and time costs involved in purchasing, installing, maintaining and upgrading overseas purchased tools (especially tools with customized functions) are usually high; In terms of software user habits and other aspects, the compatibility of foreign simulation test software is poor; concerns about data security and personal privacy of foreign products and services; the new crown epidemic and geopolitics have led to increased uncertainty in cooperation with overseas suppliers, and it is necessary to reduce Due to various reasons such as dependence on overseas suppliers, more and more Chinese automakers tend to choose domestic suppliers to provide the same ICV test-related products and services as international market participants, and the competition among domestic market participants is becoming increasingly fierce.
Saimu Technology was established in 2014 and started to operate ICV testing related business in 2018. According to Qichacha, Saimu Technology completed three rounds of financing in May 2020, September 2021, and June 2022. Investors include Hubble Investment, Cornerstone Fund, CITIC Securities, Zhongjun Financial Holdings, etc. As of the completion of the latest round of financing, the valuation of Saime Technology reached 2.332 billion yuan.
At present, the market demand for high-confidence domestic ICV simulation test tools and platforms and advanced ICV data platforms is increasing. The “multi-pillar method” of ICV testing has been widely recognized by the ICV industry. In order to seize such opportunities, Saime Technology has launched products and services including ICV simulation test tools and platforms, ICV data platforms, and ICV tests on open roads and closed venues.
And the world’s first simulation test, verification and evaluation tool chain that has obtained ISO 26262 ASIL D certification – Sim Pro, Safety Pro, one of the few safety analysis tools in the world that can support SOTIF analysis, cloud-based high-performance ICV simulation test The solutions constitute the unique technical advantages of Saimu Technology, making it a leading market player that can provide one-stop ICV testing, verification and evaluation solutions in China.
In 2021, the market size of ICV simulation testing tools and platforms in China will reach RMB 1 billion. In terms of revenue in 2021, the top five market players contributed approximately 36.7% of the entire ICV simulation test tools and platform market in China. Among them, the fourth-ranked Saime Technology is the only Chinese company among the top five market participants, with a market share of 5.9%. The first, second, third, and fifth market participants are from Germany, the Netherlands, the United States, and France respectively, which cannot meet the needs of the domestic ICV downstream market for self-built test platforms, and have also made SIMTECH, China’s largest ICV simulation test tools and platform suppliers.
Upstream and downstream cooperation promotes ICV industrial upgrading
According to the prospectus, from 2019 to 2021, Saimu Technology’s operating income will be 8.066 million yuan, 71.203 million yuan, and 107 million yuan respectively, and the revenue growth rate will be 782.8% and 50.1% respectively. Technology revenue reached 6.4 million yuan, an increase of approximately 11 times compared to the first half of 2021. At the same time, in each financial cycle, the revenue structure of Saime Technology has also shifted from relying on single businesses such as ICV testing and services, ICV simulation testing tools and platforms to a diversified development pattern supported by simulation testing tools and platforms, and ICV data platforms.
Screenshot from the prospectus of Saimu Technology
However, since China’s ICV testing, verification and evaluation solution industry is still in the initial stage of development, the number of customers of market participants is relatively limited, resulting in a high concentration of large customers of Seim Technology – from 2019 to the first half of 2022, Seme The revenue from the top five customers accounted for 96.5%, 100.0%, 93.4% and 88.5% of the total revenue respectively. Moreover, currently only a few state-owned enterprises and large private enterprises can afford large-scale ICV platform construction projects. In 2020 and 2021, the revenue of Saimu Technology from local governments and state-owned enterprises will account for 95.9% and 95.9% of total revenue respectively. 78.3%.
Looking forward to the future, two new trends will emerge in the industry: First, ICV testing, verification and evaluation solution providers will further cooperate closely with upstream and downstream participants in the industry chain, strengthen independent research and development, accelerate the upgrading of the ICV industry, and gradually build ICV testing and verification And evaluation of the whole process comprehensive service closed loop. The second is that the demand for cloud-based ICV testing, verification and evaluation solutions will continue to increase. With the help of cloud-based ICV testing, verification and evaluation solutions, downstream customers can conduct a large number of simulation tests in a faster way and on a larger scale through parallel and accelerated computing, thereby solving the problem of non-cloud-based simulation testing solutions in testing and verifying intelligent driving. Solutions are limited by lower speed and efficiency.Both of these two trends will help reduce the cost of enterprise testing, increase the penetration rate of ICV testing, verification and evaluation solutions, and enable services to reach more enterprises with testing needs other than the government and state-owned enterprises.
