At present, the construction of domestic smart cities is gradually developing to third- and fourth-tier cities, so the SoC chip market is gradually sinking, and the future growth of the SoC chip market will mainly come from the sinking market.
SoC products mainly include three categories: front-end IPC SoC chips, back-end DVR SoC chips, and back-end NVR SoC chips. IPC SoC chip is the core of video surveillance network camera; DVR SoC chip is digital video recorder, low cost, limited network remote monitoring, limited market development, but there is still room for development; NVR SoC chip compatibility and high cost restrict development , but the demand advantage is still expanding.
According to the “2022-2027 China SoC Chip Industry Market Segmentation Demand and Development Opportunity Research Report” released by Xinsijie Industry Research Center, in recent years, security video surveillance has gradually developed towards intelligence and high-definition. The volume of shipments continues to rise, reaching 150 million units in 2020, and is expected to exceed 200 million units by 2023, corresponding to the demand for IPC SoC chips of 200 million units; DVR/NVR shipments are expected to reach 40 million units. Based on this calculation, in 2023, the global IPC SoC chip market size will be about 6.6 billion yuan, and the DVR/NVR SoC chip market size will be 1.2 billion yuan.
In addition to the security field, the future SoC chip has a good application prospect in the automotive field. Benefiting from the development of industries such as ADAS, AI, and new energy vehicles, the market demand for on-board cameras continues to rise. It is estimated that by 2023, the global shipment of on-board cameras will reach 210 million units, which is expected to become a new growth point for the SoC chip industry.
In terms of market competition, the early domestic market was mainly occupied by several foreign companies such as Texas Instruments, Ambarella, and NXP, but currently SoC chips have been localized. At present, the domestic SoC chip market is mainly occupied by several companies such as Xingchen Technology, Fullhan Micro, Beijing Junzheng, Goke Micro, and HiSilicon. Among them, Hikvision has been affected by “sanctions”, and its market share has dropped significantly. In 2020, the proportion is only about 33%.
And Xingchen Technology quickly seized the market, and its market share showed a rapid growth trend, which will be about 26% in 2020, followed by Fullhan Microelectronics with a share of 18%. As Hisilicon gradually withdrew from the market, Xingchen Technology quickly seized the market by virtue of its technological advantages. The company’s revenue continued to grow, exceeding 700 million yuan in 2019 and approximately 1.1 billion yuan in 2020.
As far as the development of the SoC chip industry is concerned, benefiting from policy support for the field of security monitoring, the demand for security cameras will continue to rise in the future, and with higher quality requirements, SoC chips will also develop towards high quality. At present, the construction of domestic smart cities is gradually developing to third- and fourth-tier cities, so the SoC chip market is gradually sinking, and the future growth of the SoC chip market will mainly come from the sinking market.
Xinsijie industry analysts said that during the golden age of pan-security defense, the demand for SoC chip applications continues to rise, and the industry has a good development prospect, especially the front-end IPC SoC chip market. In terms of the market, my country’s SoC chips have been localized, and HiSilicon has been affected by the outside world, and its market share has dropped rapidly. Other companies have seized the market. The market competition is fierce, and the market competition pattern has not yet stabilized.