HUD: head up and driving safety. We believe that the acceleration of HUD will help drive intelligently, greatly improve driving safety by reducing the frequency of drivers looking down at the instrument, and bring drivers a new driving experience through interaction with multiple information sources.
The three generations of HUD technologies have changed. W-hud (windshield HUD) is the mainstream of the market, and arhud (augmented reality HUD) is emerging. Originated in the aviation field, HUD has regained its vitality in the automotive field in recent years. From the first generation c-hud (combiner HUD) to w-hud, and then to ar-hud integrated with augmented reality, HUD imaging quality has been continuously optimized, the amount of information has been continuously increased, and the sense of science and technology has been greatly enhanced. At present, w-hud is the mainstream in the market, and ar-hud accelerates the landing and mass production.
HUD industrial chain: Chinese suppliers continue to make efforts. Judging from the market share of Chinese w / ar-hud suppliers in 2021, Japan Denso, Foryou Corporation(002906) and Yili electronics ranked the top three, accounting for 39.37%, 16.18% and 16.01% respectively. Chinese suppliers rushed into the top three, breaking the monopoly situation of Japan Seiki, continental and Japan Denso CR3 accounting for 80% in 2020. The market share of Chinese manufacturers was only 15.11% in 2020 and rapidly increased to 36% in 2021.
HUD penetration rate increases and ar-hud carrying capacity node is coming. At present, the front loading output of HUD is mainly w-hud. W-hud gradually infiltrates from optional configuration to standard configuration, and AR also begins to land on a large scale. In 2021, the number of passenger cars equipped with HUD in the Chinese market was 1.1672 million, with a year-on-year increase of more than 50%. The penetration rate rapidly increased from 1.84% in 2019 to 5.72% in 2021. In China’s ar-hud segment, the carrying capacity of ar-hud front loading exceeded 50000 in 2021, and the mass production node is coming.
Market space estimation: in 2025, the global front mounted HUD market will reach 84 billion yuan. We predict that with the development of technology, the cultivation of user habits and the support of the general trend of automobile intellectualization, the penetration rates of w-hud and ar-hud will reach 27% and 18% respectively in 2025. With the increase of scale effect, the single vehicle value of w-hud and ar-hud will be 1329 yuan and 2392 yuan respectively in 2025. Therefore, we predict that in 2025, the size of China’s front-end HUD market will reach 19.9 billion yuan and the global HUD market will reach 84 billion yuan.
Industrial chain investment opportunities: Foryou Corporation(002906) , the leading enterprise of HUD in China Foryou Corporation(002906) since 2012, HUD industry has been laid out. The company’s HUD product line has Great Wall Motor Company Limited(601633) as a stable customer, which will realize mass production on three models of Great Wall in 2020. At the same time, the company has obtained fixed-point projects from many auto enterprises since 2021. Thanks to its layout in automotive electronics and related fields for many years, Foryou Corporation(002906) in China’s HUD market share has increased rapidly, from 2.39% in 2020 to 16.18% in 2021.
Risk warning: the downstream demand is less than the expected risk.
