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The Era Of Electronic License Plates Has Come, What Are The Investment Opportunities In The Trillion-class Industrial Market?
May 28, 2018

The era of electronic license plates has come, what are the investment opportunities in the trillion-class industrial market?


The General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the National Standardization Administration approved the release of six national standards for the electronic identification of motor vehicles, which will be formally implemented on July 1, 2018. It shows that China's intelligent transportation will enter the initial phase of the transition. In 2018, China's auto electronic license plate opens a new era, we can know about the electronic license plate first.


 A small RFID chip will wear a "second-generation ID card" - an electronic license plate, it can realize the accurate identification of vehicle identities, dynamic collection of vehicle information, and mass collection of traffic information. Automotive license plates are getting much closer to our lives. The existence of deck cars will also become history.


At the end of last year, six national standards for motor vehicle electronic marking were issued and will be formally implemented on July 1, 2018, it is becoming a vane for the upcoming popularity of electronic license plates. The "Technical Conditions for the Operational Safety of Motor Vehicles" (GB7258-2017), which was implemented on January 1, 2018, stipulates that the newly-launched motor vehicles in 2018 should reserve microwave windows at locations where the front windshield does not affect the driving vision to ensure the automobiles electronic identification installation and reading.


As far as we know, Tianjin, Beijing, Wuxi, Shenzhen and other cities have already started trials, mainly including large and medium-sized cars, taxis, school buses etc., while the national promotion is officially starting from 2018, which will open a new era of electronic license plates. The industry believes that this shows that China's intelligent transportation will enter the start-up phase of the transition.


National standard support, electronic license plate accelerated landing

According to market data, by 2020, one fifth of global vehicles will have some form of wireless network connectivity. It is estimated that the total number of connections in the connected car market will grow at a compound annual growth rate of 31%, from 182 million in 2015 to 693 million in 2020. The data shows that the number of vehicles in China reached 217 million in 2017, an increase of 23.04 million compared with 2016, an increase of 11.85%. According to the growth rate, it is expected that China’s vehicle ownership will reach 250 million in 2020


At the beginning of 2016, the first batch of electronic license plates conforming to the national standard were launched in Wuxi for demonstration applications for freight vehicles and distributed 100,000 copies. In February of the same year, Shenzhen initiated the pilot application of electronic license plates, mainly covering heavy goods vehicles, dump trucks, school buses etc. Eight key vehicles were issued 200,000 copies. In May of the same year, Beijing held a consultation meeting on proposals for fog and haze governance. The electronic license plate was used as a physical basis for identifying vehicle information and deductions during the collection process of congestion charges, and was used in traffic congestion charging programs. In the promotion, in 2017, Tianjin installed more than 3,600 hazardous vehicle transporters with electronic license plates to explore new models for the management and service of hazardous chemicals transportation vehicles based on electronic license plates. According to industry insiders, the current testing and pilot work is progressing steadily. The pace of pilot city applications in 2018 will be further accelerated and will be gradually implemented.


Motor vehicle electronic identification (electronic license plate) is a second-generation ID card of an automobile. It is an ultra-high frequency RFID card corresponding to the physical number plate of a car suspension. It stores information such as license plate numbers in radio frequency tags, and can be used automatically, non-contact and not the parking lot is used to complete vehicle identification and monitoring, to achieve classified collection of traffic information, accurate acquisition, mass and dynamic acquisition, and also features such as tamper-proof, anti-counterfeit and anti-multiplexing. This is an extension of RFID technology in the field of smart transportation. 


E-plate system 

 

The electronic license plate is formulated and promoted by the Ministry of Public Security, and is used to identify the true identity of the vehicle in China. It will co-exist with the number plate of the vehicle, and the legal effect is equivalent to the number plate of the vehicle. Compared with ETC, electronic license plates have ten different points, as shown in the table.


The difference between E-plate and ETC


Technological Innovation, Opportunities for Startups

In many areas, the concept of “+” is proposed. In fact, it is simply based on the advantages of all parties to form a “closed loop” system from investment, construction, and operation. "Motor Vehicle Electronics Logo+" covers everything from public safety, traffic management, environmental protection and parking access to a series of automotive post-market industries. Its coverage rate will have a late-stage advantage. Once the scale is popularized, the follow-up "motor vehicle electronic identification Ecology will be a blue ocean.


There are also many companies dedicated to the development of automotive electronic identification system platforms, such as the well-known Yi Hua Lu, Jin Yi Technology, and Gao Xinxing. With data lake as its main body, Yihua recorded the development of large transportation, safety, and health services, integrated online and offline services, and became the main provider of government social services. Its electronic license plate reading and writing equipment passed the public security Department of traffic safety product quality supervision and inspection center inspection. Jin Yi is the core equipment and solution provider for smart transportation and the Internet of Things. It strives to build a cloud networking platform for vehicles to provide end-to-end solutions, products and services for governments, operating units and end users. Gao Xinxing took a systematic integrator's role and made full use of the advantages of the Internet of Things technology to create a platform for "Smart City Operators." The company acquired ZTE Zhilian at the end of 2017 and will accelerate the development of the electronic license plate business.


With the continuous growth of the national economy and the continuous advancement of urbanization, family car consumption has grown rapidly. According to statistics from the Ministry of Public Security, by the end of 2017, the number of motor vehicles in China had reached 310 million, of which 217 million were automobiles; and 385 million were motorists, among which 342 million were motorists. In 2017, 33.52 million motor vehicles were newly registered in the public security traffic management department, of which 28.13 million new registrations were registered, a record high. The rapid increase in the number of motor vehicles has brought severe challenges to social management and social security, and has also spawned changes and innovations in vehicle management technology.


7 cities have more than 3 million cars ownership

In 2017, the country’s vehicle ownership amounted to 217 million vehicles, an increase of 23.04 million vehicles or 11.85% over the year. The proportion of motor vehicles in motor vehicles has continued to increase. The proportion in the last five years has increased from 54.93% to 70.17%, which has become the main constituent of motor vehicles. In terms of vehicle type, the number of passenger cars is 185 million, of which 170 million are small and micro passenger cars (private cars) registered in the name of individuals, accounting for 91.89% of the passenger cars, and the number of loaded passenger cars is 23.41millions of new registrations totaled 3.1 million, the highest level in history. In terms of distribution, there are 53 cities in the country with more than one million cars, over 2 million in 24 cities and over 3 million in 7 cities, namely Beijing, Chengdu, Chongqing, Shanghai, Suzhou, Shenzhen and Zhengzhou. 


I think everybody should have had this experience: driving a car to a certain place, to the destination but not finding a parking lot; finding a parking lot, finding a parking space in a circle for a few laps inside; finally finding a parking space When I left, I forgot where to park the car. I found the car was ready to leave. The artificial fee window at the parking lot exit lined up the long queue.... The technology of electronic vehicle identification (electronic license plate) may make these problems that plague motorists forever. Become the past.


A credit card-sized card is the so-called "electronic license plate", which is equivalent to the vehicle's "electronic ID card". It has an embedded UHF radio frequency identification chip. The chip has strong tamper protection and cannot be easily removed or copied. . Using RFID high-precision identification, high-accuracy acquisition, and high-sensitivity technical features, an electronic vehicle license plate RFID tag carrying basic vehicle information is installed on a motor vehicle, and the vehicle passes through a section equipped with an authorized RFID reader. At the time, the data on the electronic license plate is collected or written, and the data is uploaded to the server, finally achieving various intelligent management and applications. The principle is to store the license plate number and other information in the radio frequency tag, and to complete the vehicle's identification and monitoring automatically, without contact, without stopping. This application is based on the extension of IoT Passive Radio Frequency Identification (RFID) in the field of smart transportation. It is formulated and promoted by the Ministry of Public Security and is used for authentic identification of vehicles across the country.


Tera-scale industry battle is about to break out

In the vision of the future industry, the automotive electronics identification card shop is a road of information, which is followed by a huge industry. Through the platform of automotive electronic identification, we can cooperate with public security patrols, parking lots, refueling, car washing and other units, and bind bank cards, credit cards and online payment tools to provide electronic law enforcement, parking fees, smart parking, smart car washing, etc. Service, a small card will bring trillion-scale industry scale, and the market battle around this trillion-class industry is about to fully erupt.


In addition to the gradual increase of the market size with the penetration rate, the first phase of the calculation (the market size of 2020 billion in 2020), the second phase (the market size of 27 billion in 2022), and the third phase (before 2025). In terms of specific models, we think that two passengers and one dangerous operating vehicle will be popularized first, followed by private cars, and operating vehicles account for less than 10% of the total car ownership. This is also a relatively slow promotion of market scale in the early stage and will enter after 2~3 years. One of the reasons for the outbreak growth period.


After understanding some basic conditions, we will come to you to find out which companies in the listed companies are involved in the electronic license plate:


Yi Hualu: The company’s first license plate for electronic vehicles landed. On May 21st, Tianjin International Tendering Co., Ltd. announced the successful bid for the pilot project of the first phase of the Tianjin Automotive Electronic Marking Project (the first phase of the traffic management project). Yi Hualu and Tianjin Zhonghuan System Engineering Co., Ltd. jointly became the winning bidder for the project. The total amount was 30.46 million yuan, of which Yihualu won the bid of 16.7956 million yuan. The bidder of this transaction is the Tianjin Traffic Management Bureau. The project content mainly includes the construction of electronic identification fixed reading and writing equipment, mobile base stations, card issuance services and platform construction. This is the first time that the company has won the bid for the electronic license plate business, which marks a new beginning of the domestic electronic identification market. It is of extraordinary significance to the company and the intelligent transportation industry. The application of electronic license plates is the trend of the times and can provide an effective solution for car networking. In 2018, it will become the first year of market launch. At the same time, the newly-manufactured motor vehicles in 2018 have all mandated to leave a microwave window for the electronic license plate at the front windshield location.


The company has obvious first-mover advantage in the field of electronic license plates. The company participated in the research and development of the automotive electronics identification technology of the Ministry of Public Security, assisted the relevant national departments in drafting and formulating the national standards for automotive electronic identification. In 2018, the company's self-developed automotive electronic sign reading and writing device has passed the inspection and certification of the Ministry of Public Security Traffic Safety Product Quality Supervision and Inspection Center. At the same time, it has a comprehensive and mature solution in the field of automotive electronic signage. It also owns the Tianjin National Games. The scale of the application of the event. The piloting of the project in the Tianjin area will help the company to form a good demonstration effect in the Beijing-Tianjin-Hebei market and accumulate valuable experience for the follow-up automotive electronic identification projects.


Gao Xinxing: ZTE's ZTE has nearly 400 patented technologies and provides a full range of RFID serialized products as well as intelligent transportation and electronic license plate series solutions. It is currently a full range of domestic products, with a good platform to support the manufacturers, supporting the entire industrial chain process with implementation on the ground, its products have been applied in a number of cities including Chongqing, Nanjing, Xiamen, Lanzhou, and Shenzhen, with a national market share of more than 80% and industry-leading strength. With the development of electronic license plates, Gao Xinxing is expected to combine the advantages of Zhongxing Zhilian with its safe city project experience and undertake the overall project of pilot cities for electronic license plates. In addition, the company's three-dimensional cloud defense products demonstrate the improvement of soft power, and in the future, it is expected to expand in the platform + application layer of the vertical field of electronic vehicle license plates and other vehicle networking.


ZTE Zhilian is one of the drafters of this national standard. According to the data from the National Standards Committee, the national standard for electronic license plates was drafted by eight companies. Among them, the number of standards drafted by ZTE’s shares was the first to make an important contribution to the introduction of standards.


ZTE Zhilian has extensive project experience from product to application. As mentioned before in Chongqing's RFID project, all products are provided by ZTE Smart Alliance. In addition, ZTE's pilot RFID electronic license plate products have been piloted in 6 to 7 provinces and cities including Tianjin, Suzhou, Lanzhou and Yinchuan, and has accumulated rich project experience, laying a solid foundation for its nationwide business expansion. We expect that Zhongxing Zhanlian, as a leading company in the field of electronic license plates, is expected to fully benefit from the development of the industry and its performance is flexible enough.


Jin Yi Technology: As one of the drafting units of national standards for automotive electronic identification, it was one of the earliest companies to commit to the automotive electronic identification business. As the main participant in the development of national standards for automotive electronic identification, Jin Yi Technology participated in the drafting and development of standards for testing, piloting a number of tasks. In the pilots of Wuxi, Shenzhen and Beijing-Tianjin-Hebei organized by the Ministry of Public Security, Jinyi Technology participated in the pilot work in Wuxi and Shenzhen and has unique experience in project landing.


The era of electronic license plates has come. What are the investment opportunities in the trillion-class industrial market?


With its deep accumulation in the field of RFID, Jin Yi Technology has continued to make rapid progress in the automotive electronics identification business segment. Following the launch of the first-generation automotive electronic identification core equipment that complies with national standards, and participating in and passing previous product testing organized by the Ministry of Public Security Traffic Management Scientific Research Institute to provide core equipment for the first batch of automotive electronic marking pilot cities (Wuxi, Shenzhen), Jin Yi Technology continues to launch the second generation of automotive electronic identification reading and writing equipment, and successfully passed the national standard certification testing, leading the wave of technology upgrades of the new generation of reader devices.


The intelligent traffic management enterprise based on automotive electronic identification has shown a bright future. Jinyi Technology will continue to leverage its R&D and technical strengths. With a deep understanding of automotive electronic signs, profound radio frequency communication technology reserves, a complete supply chain security system, and reliable quality. The management means and the full cycle of product and service that the customers are enamoured of help the full development of the automotive electronic identification.


Thousands of science and technology: The companies participated in the preparation of the "Motor Vehicle Electronic Indicating Equipment Installation Specification." The company has its own research and development of electronic license plate related products, in the future will actively participate in the new promotion of the city pilot. Foreign investment in the establishment of Beijing Thousands of vehicles Chess Technology Co., Ltd. - plans to set up its own capital of 20 million Beijing Thousands of car letter Technology Co., Ltd. (referred to as "thousands of car letter"), to further expand the field of electronic license plate business.


Suzhou Keda: Kodak acquired 40% equity of instinct and increased its capital. Instinct was one of the earliest companies to enter the electronic sign development and application of motor vehicles in China, and it was also the first to participate in the electronic vehicle identification test of the Traffic Management Institute of the Ministry of Public Security. By the end of 2017, Instron Technologies has 43 authorized patents, 8 software copyrights and 7 trademark rights. Its products include a full range of RFID products, electronic license plate base station readers, and all products cover all three technologies in the field of RFID. Standards: "ISO18000-6C International Standard", "GB/T29768-2013 National General Standard", "Specific Standard for Automotive Electronic Marking". This signing will further increase the instinct's financial strength and help instinct develop in the smart transportation industry.


As a founding member of the National Standard for Motor Vehicle Electronic Marking, instinct technology has always been at the forefront of the development of the industry. The company’s first batch of motor vehicle electronic identification reader/writer products passed various limit tests organized by the Ministry of Public Security over the years, and was successfully applied to the first national pilot project and the first commercialization project, earning users and market recognition with excellent quality. The first batch of commercial electronic sign commercialization projects for motor vehicles built with the company's products has been officially put into operation.


Jingwei Electric Material: The new product developed for the US electronic license plate has entered the low-volume supply phase in the first quarter.





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