Huachuang Securities: Core Track of Intelligent Perception Layer - Robots & Cars Open Up Incremental Space for Magnetic Sensors

According to the Zhitong Finance APP, Huachuang Securities released a research report stating that magnetic sensors are core devices in the intelligent perception layer. Benefiting from the development of markets such as robotics and automotive electronics, coupled with the recovery of demand in fields like new energy, industrial control, and consumer electronics, the market is expected to continue growing under the resonance of multiple scenarios. Currently, overseas leaders occupy a major share of the market, and there is ample room for domestic manufacturers to replace them. It is recommended to pay attention to key companies with a full technology matrix layout and automotive-grade product capabilities, such as Novosense and ORIENT-CHIP TECHNOLOGY. The main points of Huachuang Securities are as follows: Magnetic sensors are core devices in the system perception layer, accelerating development driven by technological evolution and diverse applications Magnetic sensors achieve non-contact measurement of physical quantities such as displacement, angle, and current through magnetoelectric conversion, reducing equipment loss while possessing advantages in complex environmental tolerance and cost-effectiveness. According to QYResearch data, by 2024, Hall effect sensors will dominate with a 64% market share, widely used in consumer electronics and industrial fields due to cost advantages and stability; magnetoresistive effect (AMR/GMR/TMR) sensors are accelerating penetration due to their high precision and low power consumption characteristics, with TMR gradually replacing traditional solutions in high-end scenarios such as automotive power systems, industrial robots, and data centers due to its outstanding sensitivity and temperature stability. In terms of functional applications, magnetic sensors include various types such as position, speed, switch, current, and electronic compass, covering automotive electronics, robotics, industrial, new energy, and consumer electronics scenarios comprehensively. According to Yole statistics, the global magnetic sensor market size was USD 2.9 billion in 2023 and is expected to grow to USD 3.7 billion by 2029, with a CAGR of 4%, where automotive electronics, industrial, and consumer electronics are the main application markets for magnetic sensors. Emerging applications in downstream sectors are blooming, injecting continuous growth momentum into the magnetic sensor industry In the robotics field, high-precision magnetic sensors have become key components in industrial automation and humanoid robots. For example, Tesla's Optimus Gen-3 achieves micron-level motion control through a single-joint integrated Hall sensor and magnetic encoder, promoting breakthroughs in miniaturization and high integration technology; In the automotive electronics field, according to Melexis data, the electric and intelligent upgrade of vehicles is driving the usage of magnetic sensors per vehicle from 30-50 in fuel vehicles to 80-100 in hybrid/pure electric vehicles. In the future, as the penetration rate of new energy vehicles further increases and ADAS functions upgrade, the usage of magnetic sensors per vehicle is expected to continue growing; In the new energy sector, the increasing demand for current detection accuracy in photovoltaic inverters is expected to create opportunities for TMR sensors to accelerate the replacement of traditional solutions; In the industrial control sector, the inventory cycle hitting bottom and the resonance of Industrial 4.0 upgrades will steadily increase the penetration rate of magnetic sensors in scenarios such as motor control and automated production lines; In the consumer electronics sector, the "national subsidy" policy stimulates a recovery in terminal demand, combined with innovations in AI hardware at the endpoint, extending magnetic sensors into high-value-added scenarios such as spatial positioning for AI glasses and motion tracking for wearable devices. The resonance of downstream multi-scenario demand is expected to drive continuous growth in the magnetic sensor market Overseas leaders dominate the development of the high-end market, while domestic manufacturers are accelerating technological breakthroughs The magnetic sensor market has a high concentration, with the top five global manufacturers accounting for over 70% market share according to Yole. International manufacturers such as Allegro, Infineon, and Melexis dominate market development due to their technological and scale advantages. According to Yicun Capital, the localization rate of magnetic sensor chips in China was only 25% in 2022, indicating a broad space for domestic substitution. In recent years, domestic manufacturers have actively pursued catch-up strategies. For example, Novosense is set to launch a wheel speed sensor based on the AMR (Anisotropic Magnetoresistance) effect with a functional safety level of ASIL-B(D) in 2024, and it has already entered the small batch order delivery phase with some customers. At the same time, in 2024, the company completed the acquisition and integration of Meigen, achieving horizontal expansion of its technology matrix and product layout. Looking ahead, as domestic manufacturers accelerate their endogenous and exogenous growth, they are expected to achieve rapid increases in market share in the magnetic sensor field. Risk Warning: The recovery of the consumer electronics and optical storage industries may be less than expected; uncertainties in the industrialization of robotics; intensified industry competition; uncertainties in industry technology iteration