Telematics Control Unit Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 14.80 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Telematics Control Unit Market Analysis
The Telematics Control Unit Market is expected to register a CAGR of 14.80% during the forecast period.
Telematics is a communication system employed in the automotive industry that depends on data traveling to and from automobiles over wireless networks. The automobile industry is being propelled into the information age by combining wireless technology, location technology, and in-vehicle electronics.
- Data is either generated in the vehicle unit and communicated to the back-office systems, or the back-office systems push data to the vehicle unit like maps, stock updates, weather reports, internet data packets, etc. This exchange occurs by cellphone or the unit installed in the vehicle. The car communicates and maps its whereabouts utilizing a matrix of cellphone towers and satellite technologies. This technology is incorporated into and controlled by a telematics control unit.
- The telematics control unit has recently become a crucial component in the automobile industry. The adoption of telematics control units (TCU) has been low. The concept of connected cars is still in its early stages, with very few automobile companies including them. However, the emerging prospects of 5G and autonomous vehicles will likely expand the scope of connected cars. According to Appinventiv, connected cars are anticipated to become the largest segment of the global 5G Internet of Things endpoint market, having a projected 19 million endpoints by the end of 2023.
- The telematics control unit facilitates increasing the vehicle's connectivity by introducing additional modems and processors to enable communication from the car to the cloud, infrastructure, or other vehicles. It enables antenna power optimization through improved current sensing, diagnostics, and noise reduction. It generates a digital blueprint of every component of a vehicle's operation, enabling fleet management to evaluate where enhancements in accident prevention and driver safety regulations can be applied. In addition, the telematics control unit can help with maintenance by analyzing hours-of-use information, planning maintenance inspections, and taking note of guaranteed recovery, engine hour tracking, and service records tracking.
- However, factors such as a lower awareness in developed regions, price sensitivity of customers in developing and less developed regions, and the cyber security threat associated with telematics control units continue to challenge the growth of the studied market. Furthermore, the lack of a common global regulatory framework for telematics solutions challenges the growth of the market studied.
Telematics Control Unit Market Trends
Passenger Vehicles to Dominate the Market
- Passenger cars are used for compact, mid-size, and full-size vehicles that convey not more than eight passengers (including the driver). The telematics control units (TCUs) in passenger vehicles can be used for several purposes: emergency services notification, stolen vehicle tracking, and remote vehicle immobilization. TCUs can collect and transmit vehicle diagnostics data, allowing for remote monitoring and analysis. This can help with proactive maintenance, identifying potential issues, and improving overall vehicle performance.
- TCUs are commonly used in passenger vehicles for fleet management systems to monitor and track vehicle location, performance, and usage of vehicles. This helps optimize routing and monitor driver behavior and overall fleet efficiency. They also provide vehicle data to insurance companies for enhanced infotainment connectivity, navigation, and mapping.
- The increasing adoption of electric vehicles contributes to the growing demand for passenger vehicles. As governments and individuals prioritize sustainability, there is a shift towards cleaner transportation options. For instance, according to IEA, global battery-electric vehicle sales reached an estimated 7.3 million in 2022, up from around 4.6 million in 2021. In 2021, these sales more than doubled compared to 2020, and 2022 marks a new record in all-electric sales volume. Moreover, the growth of the middle class in many countries has resulted in increased purchasing power and a higher demand for passenger vehicles.
- According to OICA (International Organization of Motor Vehicle Manufacturers), Around 65.3 million passenger cars were sold worldwide in 2023, showing an increase of approximately 11.3 percent compared to the previous year. China held the top spot as the largest regional automotive market in 2023, with approximately 26.1 million units.
- The automotive industry is also witnessing an increase in the production of passenger vehicles. For instance, according to the Bureau of Economic Analysis (BEA), in 2022, approximately 1.8 million automobiles were produced in the United States. It represents an increase of about 13 percent compared with 2021. Such developments are likely to boost the growth of the studied market.
North America Holds Largest Market Share
- North America is one of the significant investors and adopters in the studied market owing to growing investment in automotive sectors and the latest technologies. Telematics control unit devices are used in various regional verticals to provide Safety, Comfort, and Convenience in the Automotive Sector.
- The United States is anticipated to be the significant market for connected cars in the region due to the significant presence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehicles, widespread adoption of 4G/5G and increasing sales of electric, connected and autonomous cars in the country.
- According to KBB, in the first quarter of 2023, just under 258,900 battery-electric vehicles were sold in the United States. This year-over-year increase was around 44.9% compared to the sales recorded in the F1Q of 2022.
- The increasing investments in R&D by major industry players, rising Internet penetration, falling data costs, availability of 5G, growing preference of customers for connectivity features over mechanical specifications of cars, and a peak in sales of electric and autonomous automobiles are creating demand in the automotive and transportation industry may further propel the studied market in the region.
Telematics Control Unit Industry Overview
The telematics control unit (TCU) market is characterized by significant fragmentation, with major industry players including LG Electronics Inc., Samsung Electronics Co. Ltd (Harman International), Robert Bosch GmbH, Continental AG, and Denso Corporation. To strengthen their competitive position, companies in this market are employing strategies such as partnerships and acquisitions to augment their product portfolios.
In March 2023, LG Electronics Inc. announced a significant development, as its research and development center in Vietnam officially transformed into an R&D subsidiary. This subsidiary is poised to play a pivotal role in the development and evaluation of software for vehicle infotainment (IVI) systems. IVI systems encompass vital technologies for the future of mobility, encompassing video, telematics, audio, and Navigation (AVN) solutions. Additionally, this subsidiary will facilitate the provision of diverse driving-related information and entertainment functionalities.
In December 2022, Ficosa demonstrated its commitment to advancing automotive technology by participating in the SELFY consortium, a pioneering project aimed at enhancing the resilience of autonomous and connected vehicles against cyber-attacks and emergency situations. The consortium's overarching objective is to devise collaborative tools capable of generating, monitoring, and collecting data to identify potential threats effectively. This effort will strengthen the industry's ability to respond to cyber threats and other potential service disruptions. The tools developed through this initiative are poised to usher in a significant technological advancement in the automobile sector, safeguarding the privacy, confidentiality, and integrity of Autonomous and Interconnected Mobility Systems.
Telematics Control Unit Market Leaders
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LG Electronics Inc.
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Samsung Electronics Co. Ltd (Harman International)
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Robert Bosch GmbH
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Continental AG
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Denso Corporation
*Disclaimer: Major Players sorted in no particular order
Telematics Control Unit Market News
- April 2023: The technology firm Continental, in collaboration with HERE Technologies, a leading location data and technology platform, announced their partnership to equip all of IVECO's commercial vehicles operating within the European Union with Intelligent Speed Assistance and fuel-saving capabilities. These cutting-edge features will be seamlessly delivered through Continental's eHorizon platform, which aggregates and deploys HERE map content. Furthermore, data exchange will be facilitated by Continental's scalable 4G/5G telematics control unit.
- December 2022: STMicroelectronics unveiled its latest innovation in automotive audio power amplification technology, introducing newfound digital flexibility to applications such as eCall, telematics, and AVAS. The FDA803S and FDA903S represent the pinnacle of advancement within STMicroelectronics' single-channel, fully differential 10W Class-D audio power amplifiers, housed within the renowned STMicroelectronics fully digital amplifier (FDA) family. These amplifiers have been purpose-built for automotive use cases, particularly for eCall and telematics applications, as well as any scenario requiring the reproduction of music, human speech, and warning messages at a standard power output level of up to 10W.
Telematics Control Unit Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.4 Impact of Macro Trends on the Market Landscape
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in Demand for Safety, Comfort, and Convenience in the Automotive Sector
5.1.2 Increased Deployment of 5G Technology
5.2 Market Restraints
5.2.1 Slower Rate of Penetration of Telematics in Developing Regions
5.2.2 Delayed Regulatory Sanctions
5.3 Connectivity Technology Trends (2G/3G Vs. 4G Vs. 5G)
6. MARKET SEGMENTATION
6.1 By Application
6.1.1 Safety and Security
6.1.2 Information and Navigation
6.1.3 Other Applications
6.2 By Type
6.2.1 Embedded OEMs
6.2.2 Aftersales
6.3 By Type of Vehicle
6.3.1 Passenger
6.3.2 Commercial
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 LG Electronics Inc.
7.1.2 Samsung Electronics Co. Ltd (Harman International)
7.1.3 Robert Bosch GmbH
7.1.4 Continental AG
7.1.5 Denso Corporation
7.1.6 Marelli Europe S.P.A.
7.1.7 Visteon Corporation
7.1.8 Valeo SA
7.1.9 Ficosa International SA
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MAREKET
Telematics Control Unit Industry Segmentation
A telematic control unit in the automobile sector refers to the embedded system on board that wirelessly connects the vehicle to cloud services or other vehicles over a cellular network. The telematic control unit collects telemetry data from the vehicle, such as speed, engine data, position, connectivity quality, etc., through interfacing with multiple sub-systems across data and control buses in the car.
The telematics control unit market is segmented by application (safety and security, information and navigation, and other applications), type (embedded OEMs and aftersales), type of vehicle (passenger and commercial), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Application | |
| Safety and Security | |
| Information and Navigation | |
| Other Applications |
| By Type | |
| Embedded OEMs | |
| Aftersales |
| By Type of Vehicle | |
| Passenger | |
| Commercial |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa |
Telematics Control Unit Market Research FAQs
What is the current Telematics Control Unit Market size?
The Telematics Control Unit Market is projected to register a CAGR of 14.80% during the forecast period (2024-2029)
Who are the key players in Telematics Control Unit Market?
LG Electronics Inc., Samsung Electronics Co. Ltd (Harman International), Robert Bosch GmbH, Continental AG and Denso Corporation are the major companies operating in the Telematics Control Unit Market.
Which is the fastest growing region in Telematics Control Unit Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Telematics Control Unit Market?
In 2024, the North America accounts for the largest market share in Telematics Control Unit Market.
What years does this Telematics Control Unit Market cover?
The report covers the Telematics Control Unit Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Telematics Control Unit Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Telematics Control Unit Industry Report
Statistics for the 2023 Telematics Control Unit market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Telematics Control Unit analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
