The automotive industry is experiencing a remarkable transformation as we enter an era characterized by intelligent driving systems, which heralds significant opportunities for various technological sectors, particularly the automotive CMOS Image Sensors (CIS) marketAccording to interviews conducted by Shanghai Securities Journal, industry experts report a robust upward trajectory for the domestic automotive CIS market this year, driven by a convergence of factors reinforcing their growth.

One of the primary catalysts for this growth is the implementation of the “Two New” policies by the Chinese governmentThese initiatives are aimed at expanding the reach of advanced technologies in the automotive sector, particularly those tied to artificial intelligence (AI). The impact of these policies is readily apparent, as evidenced by the resurgence in the consumer electronics market that has traditionally serviced smartphones and other devicesKey players in CIS chip manufacturing are ramping up their orders, reflecting renewed optimism in the sector.

Leading companies in the CIS market have already begun to capitalize on the benefits of this industry recoveryNotable firms such as Weir Group and SmartSens Technology are already witnessing steady growth in their business performances since the second half of 2024, affirming the positive trajectory of the market.

The democratization of intelligent driving technology is shaping a new growth narrative for the CIS domainThis initiative aims to extend high-end autonomous driving functionalities, which were once sanctioned exclusively for premium vehicles, to a broader spectrum of models at varying price pointsSuch infrastructural advancements are critical for the widespread adoption of autonomous driving technologies, capable of enhancing road safety and traffic management.

This year, numerous automotive manufacturers have boldly proclaimed their commitment to integrating smart driving features within models priced at 100,000 yuan (approximately $14,000). A case in point is BYD, which, on February 10, launched its “God’s Eye” feature across 21 smart vehicle models, pushing the boundaries of model pricing down to 69,800 yuan

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This strategic pricing significantly undercuts prevailing consumer expectations of smart features in the automotive spaceThe “God’s Eye” system encompasses varied configurations, including high-level laser versions and a “triple front view” that integrates multiple types of sensors and cameras for enhanced situational awareness.

Industry veterans, such as Zhu Yulong, founder of Zheneng Automotive, provide insights into the current technological landscapeHe notes that while the laser radar technical trajectory largely targets vehicles priced at 200,000 yuan and above, the visual technology pathway is geared towards more middle-market models, notably in the 100,000 to 150,000 yuan range, which rely heavily on camera systems without the inclusion of laser radarThis shift offers insight into the broader market dynamics, particularly considering that approximately 80% of China's annual sales, averaging around 30 million passenger vehicles, fall below the 200,000 yuan markThe anticipated proliferation of smart driving in more affordable models promises to broaden consumer access to these sophisticated technologies, simultaneously invigorating demand within the CIS sector.

Statistic forecasts underscore the growth potential within the automotive CIS marketAccording to Sigmaintell, global CIS shipments are projected to grow from 289 million units in 2020 to 354 million by 2023, posting an annual compound growth rate of 7.03%. Projections indicate that by 2029, the market could reach nearly 700 million units, reflecting an even more substantial compound annual growth rate of 13.46%. The pre-installed market is expected to see a significant leap in shipments, with around 248 million units anticipated just for the year 2023, and projected continual growth of over 15% annually for the next five to six years.

As governmental policies championing smart technologies take effect, leading CIS firms are strategically positioned to benefit

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Companies such as Weir Group, SmartSens Technology, and others have reported considerable gains, as disclosed in updates on interactive investor platformsFor instance, Weir Group revealed that it achieved sales of 103 million automotive CIS units globally in 2023, surpassing competitors like ON Semiconductor to secure the top position in the marketThe company has effectively diversified its CMOS sensor applications, extending into consumer electronics, industrial applications, and even high-tech sectors like robotics.

SmartSens Technology, during a recent investor briefing, also expressed optimism for 2024, with sharp upticks expected for products designed for intelligent driving applicationsOther players like Gekewei have made strides in the aftermarket sector while simultaneously pushing for innovations tailored to the pre-installed segmentAdditionally, Fuhang Microelectronics has reported considerable growth in cars equipped with intelligent driving features, anticipating this sector to become a principal source of revenue moving forward.

On the policy front, a recent announcement from five governmental departments, including the Ministry of Commerce, has initiated a broader subsidy scheme that now encompasses consumer electronics such as smartphones, tablets, and smart wearablesThe program outlines specific categories and amounts eligible for support, which the market has welcomed with enthusiasm.

As we venture further into 2024, it is evident from various reports that numerous CIS manufacturers have already begun to see the fruits of a recovering consumer market, coinciding with a surge in demand for intelligent driving technologiesResults indicative of positive growth projections are emergingFor example, Weir Group expects a staggering net profit of between 3.155 billion and 3.355 billion yuan in 2024, marking an increase of nearly 468%-504% year-on-year, driven by ongoing growth in their product adoption within high-end smartphone segments and the automotive market.

Similarly, SmartSens anticipates its net profit will catapult by over 2,500% in 2024, thanks to flourishing customer demand across emerging fields such as smart security and automotive electronics

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