Analysis of the Next-generation Smart Cockpit Development in the Chinese Market

TapTechNews July 4th news, the market research institute Canalys released a report on 'Analysis of the Development Path of Next-generation Smart Cockpits in the Chinese Market'. The report states that as the visual algorithm promotion improves the practical application experience and the cost of perception and decision-making hardware decreases, it promotes the accelerated implementation of L2+ advanced driving assistance systems (ADAS).

It is expected that from 2025 to 2026, the urban navigation assisted driving system (NOA) will quickly penetrate to the market below 150,000 yuan ($21,400). The overall L2+ penetration rate will rise to 9.3%, an increase of 75% compared to 2023.

For L3 assisted driving, judging by the existing market product capabilities, after the introduction of regulations and standards, it will quickly cover the market above 300,000 yuan ($42,800) and a small number of new energy models of 250,000 yuan ($35,700). It is expected that by 2025, the market penetration rate of L3 assisted driving is expected to reach 4.6%.

The penetration rate of smart cockpits in the Chinese market has been steadily increasing since 2022 and reached 66% in 2023. It is expected to reach 80% in 2025. However, the plans of various automakers have tended to be the same, making the impact of the cockpit on consumers' car purchase decisions lower. The ability of automakers to meet the 'generalization' (TapTechNews note: the extensive, diverse and personalized needs of consumers for the mobilization of in-vehicle hardware and systems) has become crucial.

Reference