Dublin, Jan. 26, 2024 (GLOBE NEWSWIRE) -- The "Telematics Control Unit Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.
The telematics control unit market, crucial for enhancing automotive communication systems, is poised for significant growth in the upcoming years. A recent analysis forecasts a robust CAGR of 14.8% from 2023 to 2028, with a market expansion from USD 3.85 billion to an impressive USD 8.80 billion.
Market Insights Reveal Increasing Demand for Vehicle Connectivity and Safety
The integration of wireless technologies, location services, and in-vehicle electronics is propelling the automotive industry into a new realm of information connectivity. The telematics control unit (TCU) sits at the heart of this transformation, playing an essential role in both vehicle-to-vehicle and vehicle-to-infrastructure communication.
- The unit is responsible for streaming data between vehicles and backend systems, providing a plethora of information such as weather updates, internet packets, and GPS locations using various networks.
- Connected car technology, powered by TCUs, is set to become a dominant force in the global 5G IoT market, with an expected 19 million endpoints by the end of 2023.
- Recent global events have amplified the acceptance and integration of telematics technology, marking a long-term positive impact on market growth.
Passenger Vehicles to Take Lead in Market Share
In the passenger vehicle segment, telematics control units provide a suite of services, including emergency notifications, vehicle diagnostics, and fleet management. The technology is instrumental in improving vehicle performance, enhancing safety, and optimizing fleet operations.
With the electrification of the auto industry and the rise of the middle class globally, the demand for passenger cars featuring telematics is on the rise. In places like China, seen as the world's largest automotive market, passenger car sales reached 23.56 million units in 2022. The production spike in passenger vehicles, such as approximately 1.8 million automobiles in the United States in 2022, signifies the potential upswing in TCU market growth.
North America Emerges as Market Leader
North America retains the largest market share, with the United States leading the charge in the adoption of connected car technologies. The proliferation of automotive OEMs, increased tech awareness, and sales of electric and autonomous vehicles underpin this region's dominant position. Sales of battery-electric vehicles in the United States witnessed a 44.9% jump in the first quarter of 2023 compared to the same period in 2022.
With heightened investments in R&D, improving Internet infrastructures, and consumer preference for connectivity over mechanical features, North America's TCU market is set to continue its upward trajectory.
Competitive Landscape and Strategic Collaborations Shape the Industry
Featuring major players such as LG Electronics Inc., Samsung Electronics Co. Ltd (Harman International), Robert Bosch GmbH, Continental AG, and Denso Corporation, the market is highly fragmented with stakeholders vying for a commanding presence.
Innovation and strategy are at the forefront of industry evolution:
- LG Electronics Inc. has elevated its Vietnam R&D center to a subsidiary, focusing on infotainment system software development for future mobility.
- Ficosa's involvement in the SELFY consortium is set to enhance the resilience of autonomous and connected vehicles to cyber threats, heralding a new era of automotive cybersecurity.
The analysis presents an in-depth understanding of the telematics control unit industry, offering insights and data-driven predictions for stakeholders in the automotive sector.
This comprehensive market analysis accentuates the transformative impact of telematics control units on automotive communication and the subsequent enhancement of connected car capabilities, vehicle safety, and fleet efficiency.
A selection of companies mentioned in this report includes
- LG Electronics Inc.
- Samsung Electronics Co. Ltd (Harman International)
- Robert Bosch GmbH
- Continental AG
- Denso Corporation
- Marelli Motori SpA
- Visteon Corporation
- Valeo SA
- Ficosa International SA
For more information about this report visit https://www.researchandmarkets.com/r/v2g5p9
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