National Development Council: Automotive electronics, a new blue ocean for our country's electronics industry

In recent major exhibitions at home and abroad, such as this year's CES International Consumer Electronics Show in the United States and the "2016 Taipei International Auto Electronics Show," both demonstrate that under the trend of smart connectivity, the automotive electronics market will flourish in the future. Taiwanese businesses have competitive advantages in technology and customization, and if they seize the opportunity, they can create a new wave of growth momentum. In view of this, the Executive Yuan's "Economic Structure Strengthening Measures" has listed smart cars, smart in-vehicle systems, and connected vehicles as important promotional items to enhance the competitive advantage of the automotive industry, helping our country's automotive and electronics-related businesses seize this digital economy business opportunity.

According to IEK data from the Industrial Technology Research Institute, the degree of automotive intelligence will increase substantially in the future. In 2010, automotive electronic systems accounted for 35% of the total vehicle cost, and it is estimated that by 2030 this proportion will climb to 50%. In addition, international market research firm Strategy Analytics also estimates that the global automotive electronics market will grow from 220 billion USD in 2014 to 300 billion USD in 2019, with a compound annual growth rate of 6.4%, which will be greater than communications, consumer electronics and other products, showing that automotive electronics has great market potential.

As Google and Apple successively invest in the development of driverless vehicles, global attention has been drawn to issues such as autonomous driving and in-vehicle infotainment and other smart in-vehicle telematics systems. In recent years, IoT-related technologies have gradually matured and created various different applications. The car, which is closely related to daily life, has also been redefined from a mere transportation tool into a connected mobile device, giving rise to related application services such as transportation management, energy conservation and emissions reduction, logistics and transport, and smart tolling.

According to IEK data from the Industrial Technology Research Institute, the market size of connected vehicles and services is forecast to exceed 30 billion USD in 2018. The arrival of the connected vehicle era is driving the rapid development of the automotive electronics market. The "2016 Taipei International Auto Electronics Show" attracted buyers from major manufacturers in the United States, Germany and other countries to come to Taiwan to visit the exhibition, showing that Taiwanese businesses have competitive advantages in customization and internationalization in the automotive electronics field. In the future, by further deeply integrating the advantages of Taiwan's ICT industry, they will be able to grasp the 4C (Car) market after the 3C industry.

The Executive Yuan promoted the "Economic Structure Strengthening Measures" in July of the 104th year of the Republic of China. In addition, in the face of the global development trend of connected vehicles, the Ministry of Transportation and Communications is currently promoting the "Vehicle-Road Integration Plan" from the 104th to the 107th year of the Republic of China, combining communications and in-vehicle equipment to form a transportation networking environment, thereby improving the operational efficiency and safety of the transportation system. The Ministry of Economic Affairs has also cooperated with the Industrial Technology Research Institute to assist Taiwanese passenger transport operators in building the internet-connected in-vehicle business system "Y5 Bus" APP, developing innovative application services, and establishing a new model for mobile commerce. Through the joint efforts of the private sector and the government, it is hoped that the blue ocean market of automotive electronics can be expanded, thereby enhancing the competitiveness of related industries and accelerating upgrading and transformation.