I. Industry Risk Analysis

(1) Policy Risk

The driving recorder industry currently faces the risk of periodic tightening of policies: during the policy – making stage, technical standards (such as data collection accuracy and storage security requirements) are frequently revised, forcing enterprises to repeatedly invest in R & D in the short term; during the policy implementation period, supervision is strengthened (such as compliance review of cross – border transmission of driving data and audit of user privacy protection), leading to a sharp increase in operational compliance costs; during the policy evaluation stage, environmental protection regulations become stricter (such as material recovery rate and energy consumption standards), forcing the transformation of production lines. Entrepreneurs need to be vigilant about the dual – line financial pressure of R & D and compliance caused by the shortening of the policy window period, as well as the cross – regional market access barriers caused by differences in local regulations.

(2) Economic Risk

From the perspective of the economic cycle fluctuation theory, the driving recorder industry is currently facing the dual squeeze of demand – side fluctuations and economic downturn. During the economic expansion period, the incremental market driven by the growth of automobile sales has slowed down, and the demand for stock replacement has been delayed due to consumption downgrade; the prices of upstream semiconductor raw materials have remained high due to periodic inflation pressure, and the enterprise costs have risen rigidly. However, the terminal prices are restricted by homogeneous competition and cannot be passed on, resulting in a narrowing of profit margins. Under the expectation of economic recession, automobile enterprises and channel merchants have turned to conservative inventory strategies, and the lengthening of the payment period has intensified the cash – flow pressure on small and medium – sized enterprises. Entrepreneurs need to be vigilant about the risks of inventory overstock and capital chain rupture, and at the same time, pay attention to the periodic opportunity windows of policies to stimulate automobile consumption.

(3) Social Risk

The driving recorder industry currently faces the social risk of inter – generational consumption preference differentiation: the younger generation (Generation Z and Millennials) prefers intelligent and scenario – based Internet of Vehicles ecological products. Traditional single – function recorders are regarded as “antiques from the era of their fathers”, resulting in a brand recognition gap; the middle – aged consumer group (Generation X) has a higher sensitivity to privacy leakage, intensifying the compliance pressure on the storage and sharing mode of driving data; the elderly driving group has a low acceptance of the interaction threshold of new devices and the subscription – based charging model, forming a bottleneck for market penetration. The inter – generational digital divide makes it difficult to balance product positioning, and public concerns about data abuse continue to ferment. Entrepreneurs need to balance the dual challenges of technological iteration and user trust reconstruction.

(4) Legal Risk

The driving recorder industry faces data security compliance risks (it is necessary to comply with the “Personal Information Protection Law” and the “Cybersecurity Law”, and there may be privacy leakage issues when collecting driving data); product quality certification risks (failure to complete the mandatory 3C certification will lead to product sales bans and high fines); advertising compliance risks (it is necessary to avoid absolute advertising terms such as “the most” in the “Advertising Law”, and the technical parameters must be consistent with the test reports); industry standard adaptation risks (failure to meet the requirements after the update of standards such as the JT/T 1076 – 2016 of the Ministry of Transport will trigger product recall risks). Entrepreneurs need to prevent regulatory penalties due to non – compliant cross – border data transmission and hardware encryption technology defects, as well as joint and several compensation liabilities caused by user privacy lawsuits.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Currently, entrepreneurial opportunities in the driving recorder industry are concentrated in the in – depth integration field of intelligent driving and the Internet of Vehicles: develop 4K ultra – high – definition devices integrated with AI algorithms to enhance the premium of driving safety through functions such as real – time lane departure warning and fatigue driving monitoring; develop vehicle – grade low – power hardware for the new energy vehicle market, compatible with multi – brand vehicle systems to achieve data interconnection; layout the commercial vehicle field to develop a multi – device collaborative platform to meet the compliance requirements of logistics fleets in driving trajectory tracking and fuel consumption data management; use privacy computing technology to build a cloud storage solution that complies with the GDPR and domestic data security laws to solve the pain points of users’ driving data storage. Driven by policies, there is an access window period for products in niche scenarios that meet the mandatory installation standards (such as school buses and hazardous chemical transportation).

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the driving recorder industry should focus on core technology R & D and supply chain integration. First, obtain the resources of software and hardware development teams with AI algorithm and data processing capabilities, and jointly establish a stable supply chain system with vehicle – grade chip manufacturers and sensor suppliers; actively connect with commercial vehicle operation platforms, insurance companies, and government regulatory platforms to obtain customer resources through data service cooperation; take advantage of the policy support for new energy vehicles to apply for special subsidies and test licenses for intelligent connected vehicles; integrate third – party cloud service platforms to reduce data storage costs, cooperate with certification agencies to obtain mandatory certification resources such as 3C and ISO 26262, and give priority to factories with IATF 16949 certification when mass – producing quickly through the ODM model.

(3) Suggestions on Entrepreneurial Teams

Entrepreneurs in the driving recorder industry need to focus on technology, regulations, and supply chain capabilities. First, recruit members with backgrounds in hardware R & D, embedded systems, and automotive electronics to ensure the product iteration speed. Form a small team (3 – 5 people) with vehicle – grade certification experience to meet the requirements of strict supervision. Allocate at least one automotive parts supply chain expert with more than ten years of experience to solve production bottlenecks such as chip shortages. The founder must personally oversee the development of core algorithms and establish a patent firewall. Bind 2 – 3 former quality management personnel from vehicle manufacturers through equity to obtain industry access resources. Adopt a dual – track management system of “R & D team leader + factory director” to shorten the mass – production cycle.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the driving recorder industry should focus on controlling technological iteration and compliance risks: give priority to investing in R & D resources to ensure that products have cutting – edge functions such as night vision enhancement, 4K high – definition, and AI recognition of emergency events to avoid technological gaps; form a regulatory compliance team to deal with data privacy protection regulations in various countries (such as the EU GDPR) and driving data storage specifications (such as the requirements of China’s “Automobile Event Data Recording System”), and focus on monitoring the legality of image data collection, storage, and transmission; establish a multi – level supplier system to avoid the risk of chip shortages (for example, the inventory cycle of the main control chip of Novatek Microelectronics has reached 32 weeks), and at the same time, develop universal brackets compatible with multi – brand models to reduce inventory pressure; adopt the model of “hardware at cost price + cloud service subscription” to reduce the initial financial pressure, and improve the user renewal rate through value – added services of collision data (cooperating with insurance companies).