2024 Mobile Phone VCM Motors: Domestic Rise Brings Unlimited Opportunities

In 2024, the global mobile phone market is recovering, and the imaging competition has entered the era of "millimeter-level contest". As a core component of mobile phone cameras, VCM motors are moving from behind the scenes to the foreground, leading industrial transformation. This article will deeply analyze the current development status of the VCM motor industry and explore the opportunities and challenges under the wave of domestic substitution.

1. Industry Status: Strong Growth Momentum and Accelerated Domestic Substitution

• Continuous Demand Growth: The global smartphone shipment volume is expected to increase by 6.4% year-on-year in 2024, driving the growth of VCM motor demand. The deepening penetration of multi-cameras, the upgrading of AI imaging, and the outbreak of emerging markets have become the main growth drivers.
• Changing Competitive Landscape: Japanese manufacturers are shrinking, while domestic dual champions are rising. Domestic manufacturers such as Zhonglan Electronics and Youhua Micro have entered the global top five relying on technological breakthroughs and cost advantages.
• Technological Evolution: Material revolution and intelligent drive are promoting the performance improvement of VCM motors. The application of new materials such as super-elastic nickel-titanium alloy and graphene coating technology, as well as the integration of intelligent manufacturing and algorithms, have improved product accuracy and efficiency.

1. Domestic Substitution: Technological Breakthroughs and Cost Advantages

• Technological Breakthroughs: Domestic manufacturers have made breakthroughs in material innovation, process breakthroughs, and algorithm integration, such as Bilu Electronics' magnetic fluid damping technology and Youhua Micro's OIS fully automatic production line.
• Cost Advantages: The cost of domestic VCM motors is 30% lower than that of imported products, and they have the advantage of customized services, making them more competitive in the market.
• Intensified Head Effect: Qiutai Technology's TDK motor business and the acceleration of vertical integration are expected to reshape the global industrial pattern.

1. Challenges and Risks

• Overcapacity in High-end Segments: The demand for foldable screen mobile phones is lower than expected, which may lead to overcapacity of high-end VCM.
• Supply Chain Risks: Geopolitical factors may cause fluctuations in the supply of key materials, affecting industrial development.
• Changes in Technical Paths: The innovation of AI imaging algorithms may change the hardware technical path, putting forward higher requirements for VCM motor technology.

1. Future Outlook: Accelerated Domestic Substitution and Promising Industrial Upgrading

• Accelerated Domestic Substitution: With the continuous improvement of the technical strength of domestic manufacturers, the market share of high-end VCM motors will further increase, expected to exceed 40%.

• Promising Industrial Upgrading: The VCM motor industry will transform from labor-intensive to technology-intensive, and manufacturers with material research and development and equipment self-manufacturing capabilities will enjoy valuation premiums.
• Multi-product Solutions: Domestic manufacturers will actively expand multi-product solutions, such as the "lens + VCM + module" closed-loop model, to enhance product competitiveness.

1. Investment Suggestions

• Focus on Leading Manufacturers: Leading manufacturers such as Zhonglan Electronics and Youhua Micro have technical advantages and market competitiveness, which are worthy of attention.
• Focus on Material Innovation: Material innovative enterprises such as Boway Alloy and Huali Electronics are expected to benefit from the upgrading of the VCM motor industry.
• Focus on Intelligent Manufacturing: Enterprises such as Youhua Micro that actively layout intelligent manufacturing will improve production efficiency and product quality.

Summary: The VCM motor industry is in a critical period of structural transformation. Under the wave of domestic substitution, opportunities and challenges coexist. Relying on technological breakthroughs, cost advantages, and rapid response capabilities, domestic manufacturers are expected to rewrite global industrial rules and promote industrial upgrading and development.