Investment Opportunity - Whole Machine End

Whole machine--system--parts--materials

The level of localization of the low-altitude economic industrial chain

Complete machine: The technology is unfinalized, the global exploration and commercialization, and China's progress is leading

Overseas markets are approaching their initial operational target dates, with Volocopter in Germany planning to launch air taxi services for the Paris 2024 Olympic and Paralympic Games, and eVTOL manufacturers in North America and Europe are expected to start commercializing in 2025.

In April 2024, EHang's EH216-S won the first PC in the global eVTOL industry, becoming the only product in the eVTOL industry to obtain the TC, PC, and AC certificates.

Battery: The requirements for electric vehicles have been comprehensively improved

The energy density, safety, fast charging capacity and cycle life of power batteries affect the main key performance of eVTOLs, especially the energy density of power batteries, which directly determines the key indicators such as range, payload, energy efficiency, economy and environmental impact of eVTOLs.

At the same time, the unique operating profile and task cycle of eVTOL and the harsh operating environment put forward higher requirements for power batteries, including aviation-grade safety, high reliability, high energy density, frequent and fast charging and discharging capabilities, and power performance in complex environments.

Motor electronic control: with the whole aircraft airworthiness certification

The aeronautical grade of the eVTOL motor builds its high barrier product characteristics. On the whole, eVTOL motors need to reach the aerospace level, which is higher than the automotive grade, and need to have the characteristics of high safety, high environmental adaptability, high power density and long life, so the product development is more difficult than that of automotive motors. Depending on the power class, the models covered range from industrial drones and eVTOLs to regional jets, and the barriers to high power levels are usually higher.

The main aviation-grade motor manufacturers include three camps, generally speaking, the motor is bound to the main engine factory for airworthiness certification. Judging from the current motor pattern, it includes self-developed motor OEMs, overseas engine manufacturers, and domestic motor and electronic control manufacturers. At present, the way motor manufacturers play is basically to bind with the main engine factory, and support the main engine factory to carry out airworthiness certification.

Motor and electronic control: domestic accelerated development and matching

As the core power unit of the electric propulsion system, the motor system mainly includes the motor and the motor driver, which directly determines the energy utilization rate and propulsion efficiency of the electric propulsion system, and the permanent magnet synchronous motor is one of the more promising solutions, and the new motor materials, advanced manufacturing technology and new motor topology are the key to improve the power density, torque density, efficiency and reliability of the propulsion motor. High-power and high-temperature resistant power modules and intelligent and high-robust motor control technology are important development directions of motor controllers.

The propulsion system is one of the preferred ways to promote commercialization by using distributed layout technology, combined with hybrid oil and electricity or eVTOL. Distributed propulsion is mainly to obtain a more efficient thrust system, while reducing the noise of the aircraft, so that the aircraft has the ability to take off and land short distances or even vertical take-off and landing.

At the same time, under the existing technical conditions, the energy density of diesel-electric hybrid propulsion has obvious advantages, which can improve the efficiency of a single power of the aircraft under a wide range of working conditions, and can meet the needs of long endurance, so it is one of the important ways to accelerate the commercialization of eVTOL.

Avionics system: There are opportunities for continuous iterative upgrades

The avionics system can be subdivided into airborne systems, flight control systems and anti-jamming systems. In the past, related systems have also been continuously upgraded with the development of the aviation industry, such as the flight control system from mechanical manual to fly-by-wire control system, and then to intelligent autonomous flight system.

The avionics barrier is high, and the current pattern is relatively orderly. Avionics manufacturing involves high-end technologies in a variety of disciplines, with high market barriers and relatively orderly competition. The Chinese market is mainly divided into several types of participating manufacturers, including foreign-funded enterprises and Sino-foreign joint ventures, state-owned enterprises and institutions, private enterprises, etc. In response to the new requirements of eVTOL for avionics development, a number of high-quality independent manufacturers may emerge.

Key materials: lightweight brings incremental composite materials

The manufacturing process of low-altitude aircraft involves various materials and subdivided component categories. The material side includes key materials such as carbon fiber composite materials and metal alloys, as well as power system materials, such as power battery materials in electrified aircraft; Components include aviation relays, aviation contactors, circuit protection appliances, engine igniters, etc.

The permeability of composites in eVTOL will increase. Composites meet the weight reduction requirements of eVTOLs, and their weight ratio can reach more than 70%. It is mainly used in structural components and propulsion systems (75-80%), followed by internal beams and seat junctions (12-14%); Battery system , avionics and other small applications (8-12%).

In terms of the amount of composite materials used, more than 90% of the composites are carbon fiber, and about 10% of the composites will be reinforced with glass fibers in the form of protective films. The composite materials used in eVTOLs are expected to grow from 500 tonnes in 2024 to around 11,750 tonnes in 2030, at a CAGR of +69%.

Key materials: Shock absorption and noise reduction are the two major pain points of eVTOLs

The shock absorption system of eVTOLs is an important part of their design, mainly because the aircraft needs to absorb large shocks when landing, while providing sufficient comfort when driving on the ground. Another pain point of flying cars is noise reduction, in addition to the improvement of engines and propellers, it also includes the research of new materials and technologies, such as new foamed metal sound-absorbing materials.

From the perspective of the industry, porous materials, especially polymer foams, are one of the most effective sound-absorbing materials among many existing acoustic and vibration functional materials. Polyurethane (PU) foams are the most important class of polymer foams in sound-absorbing applications due to their low density, light weight, good mechanical properties, and ease of manufacture.