Financial Times news, near the end of the year, the market enters the window period of valuation switch, and investors begin to layout next year's boom track and high investment cost performance targets, Financial Times suggests focusing on low performance and low valuation and next year's expected high boom and high growth track. For example, the crystal industry, its downstream fields include new energy vehicles, 5G, the Internet of Things, smart phones, AR/VR, etc.
Several institutions forecast that China's Internet of Things spending will double in 2026, China's new energy vehicles are expected to grow by 25% in 2023, global smartphone shipments are expected to grow by 2.8% in 2023, 5G users have exceeded 1 billion accumulative, AR/VR headset shipments are expected to grow by 31.5% in 2023. Benefit from this, crystal vibration market space is broad.
Internet of Things spending in China is expected to double by 2026
By the end of October 2022, the number of terminal users of cellular Internet of Things in China's three major operators has reached 1.77 billion, a net increase of 379 million compared to the end of the previous year. The China Academy of Information and Communications Technology estimates that the number of mobile iot connections in China will reach 10 billion billion by 2030. According to market research firm IDC, China's iot spending exceeded $150 billion in 2021. It is expected that by 2026, China's expenditure on the Internet of things will be close to US $300 billion, basically doubling in five years and becoming the world's largest Internet of things market.
With the strong support of national policies for the Internet of Things, the Internet of Things drives the rapid growth of intelligent applications such as smart wearable devices, smart home, mobile payment terminals, smart speakers and other new applications. As the essential basic components of the Internet of Things devices, quartz crystal components have a broad market prospect.
Southwest Securities pointed out in the research report, benefiting from the explosive growth of the demand for the Internet of things, domestic demand is still strong, it is expected that the state of supply and demand mismatch in crystal vibration and other fields will continue in the long-term in 3-5 years, will continue to achieve industrial transfer in the future.
The downstream field of Yubo Electronics is mainly oriented towards the Internet of Things, and it continues to increase the downstream scene penetration of the Internet of Things. In order to grasp the market opportunities of the Internet of Things, Yubo Electronics has increased the investment in new product research and development, and the company has KHz small models, MHz high frequency products, RTC wafers (high precision), industrial wafers (wide temperature requirements), to further improve the global competitiveness.
China's new energy vehicles are expected to grow by 25% in 2023
In the research report "New Energy Vehicle Industry 2023 Outlook: New energy Vehicle Penetration Curve Continues to Accelerate", Pudong Bank International pointed out that we raised the annual sales forecast of China's new energy passenger vehicles in 2022 to 6.4 million units, a year-on-year growth of 92% and a corresponding penetration rate of 27.0%. For the whole year of 2023, the sales volume of new energy passenger vehicles in China will reach 8.02 million units, a year-on-year growth of 25%, corresponding to 36.9% penetration rate, an increase of 1.6 million units compared with the sales volume in 2022.
A single traditional fuel vehicle needs 30-50 quartz crystal components, and the consumption of a single new energy vehicle quartz crystal components will reach more than 130, covering automotive multimedia, ADAS system, body control system, car light controller, reversing radar, dashcam, airbag controller, window controller, anti-theft system, etc. With the gradual increase of automotive electronic penetration, it will drive the growth of the upstream crystal market.