Market Trends of NOR Flash Memory Industry For The Automotive Industry
ADAS to be the Fastest Growing Application
- Advanced driver-assistance systems (ADAS) utilize technologies to aid drivers in safely operating a vehicle. By utilizing a human-machine interface, ADAS enhances both car and road safety. These systems rely on automated technology, including sensors and cameras, to identify potential obstacles or driver mistakes and react appropriately. ADAS empowers a vehicle to understand its environment and manage driving tasks like steering, braking, parking, etc. The importance of NOR Flash memory and devices is crucial in ADAS.
- The need for NOR flash memory in automotive applications has increased recently. A prime example of this is ADAS, where the utilization of NOR Flash is projected to increase significantly. NOR flash memory is crucial in various advanced driver-assistance systems (ADAS) as it is integral to safety-critical systems. Its non-volatile nature, programmability, and speed make it a dependable and efficient choice. Allowing the host processor to run code directly from the flash memory eliminates the need to transfer it to an external DRAM.
- ADAS has experienced a significant market expansion in the automotive industry. Currently, numerous ADAS applications use cameras, particularly backup cameras, to aid drivers in recognizing nearby dangers. Advanced sensing cameras offer even more sophisticated features, such as automated collision avoidance, lane changing, parking assistance, etc. Since sensing cameras necessitate more intricate processing than viewing cameras, highly efficient SoCs will be essential to sustain this advanced technology. The need for NOR Flash memory that offers both high density and high performance will persistently rise alongside the expansion in program size.
- The rise in demand for safety and comfort in passenger cars due to the integration of ADAS has been significant. This growth is primarily fueled by government regulations in developed countries like the United States, Japan, China, and Germany mandating the implementation of ADAS for passenger safety.
- Moreover, the increasing popularity of autonomous vehicles is also driving market expansion. For example, Intel predicts global car sales will exceed 101.4 million units by 2030, with autonomous vehicles expected to represent around 12% of car registrations by the same year. Alongside this shift, there has been a noticeable advancement in the development of essential tools and memory devices like NOR flash products to support the emergence of advanced driver assistance systems (ADAS).
- Many countries in Asia Pacific, North America, and Europe have enforced rules mandating the integration of different ADAS technologies in cars to reduce road accidents. For instance, the European Union has introduced Vision Zero, a project to eliminate road fatalities by 2050. The governing body aims to decrease injuries and deaths by 50% by 2030. It has made it compulsory to include essential safety features like ADAS and automatic emergency braking, creating substantial market prospects.
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China to Hold Major Market Share
- The demand for NOR flash memory in China's automotive industry is fueled by the country's growing automotive manufacturing sector. The increasing number of domestic automotive manufacturers and rising investments in automobiles are leading to the trend of incorporating advanced electronic systems into automobiles. This trend results in a higher requirement for NOR flash memory, which aids energy management, improves system dependability, and allows for compact designs in automotive electronics.
- Similarly, the International Energy Agency (IEA) has projected that electric vehicle (EV) sales will make up approximately 65% of total car sales by 2030 in the Net Zero Scenario. To achieve this, there should be an annual growth rate of around 25% in EV sales from 2023 to 2030. China accounted for nearly 60% of all new electric car registrations worldwide in 2022. Within China, the proportion of electric cars in total domestic car sales increased from 16% in 2021 to 29% in 2022, surpassing the national target of a 20% sales share by 2025. Also, in 2023, Eight million electric vehicles were sold in China.
- According to the CAAM (China Association of Automobile Manufacturers), in 2022, the total number of vehicle sales in China reached nearly 26.9 million, representing a 2.1% growth from the year before. This growth indicates the second consecutive year of increasing sales in 2022. As automotive sales increase, the demand for automobiles with advanced features grows, consequently driving the demand for NOR flash memory.
- According to OICA, the motor vehicle production grew from 5% in 2019 to 7% in 2022. The Chinese government offers financial incentives to electric vehicle manufacturers to encourage their use. Vehicles that are completely electric and can travel over 400 km on a single charge qualify for subsidies of RMB 12,600 (around USD 2000). Electric vehicles ranging from 300-400 km are eligible for subsidies of RMB 9100 (approximately USD 1400).
- The automotive NOR flash memories are extensively utilized in intelligent networking, motors, batteries, electronic control systems, intelligent cockpits, and ADAS for new energy vehicles.
- Autonomous vehicles incorporate advanced electronic systems and technologies that rely on Nor flash memory for various purposes, such as managing and storing the sensor data and facilitating real-time decision-making algorithms.
- For instance, in March 2024, Baidu Inc., a provider of AI and internet technologies, introduced a 24/7 robot taxi service called Apollo Go in Wuhan, representing China's autonomous driving industry. This move is part of Baidu's strategic efforts to expand its autonomous ride-hailing service platform. Thus, these features require NOR flash memory for storing software applications, contributing to the demand for NOR flash memory.
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