The global TCU market (Telematics Control Unit) is expected to grow 18% CAGR with more than 175 million new vehicles (passenger cars, LCVs, HCVs and buses) to be shipped with embedded connectivity during 2018-22 according to Counterpoint’s Internet of Things Tracker service.
In terms of number of units, the market will be primarily driven by EU’s eCall mandate, the adoption of embedded connectivity by Japanese OEMs and rising demand for connected vehicles in China.
Commenting on the findings, Hanish Bhatia, Senior Analyst, IoT & Mobility said, “In terms of market share, LG leads the market, catering to more than a quarter of the total market demand, followed by Continental, Harman, Bosch and Denso. Other TCU manufacturers together account for the remaining 28% of the total TCU market.”
Discussing on the brands’ performance, Hanish Bhatia further highlighted, “LG, Continental, Harman and Bosch’s strong association with top automotive OEMs such as General Motors, BMW, Audi, Daimler are driving the market volumes at large. Also, Denso has been working with Toyota for the Lexus brand till now, and the association will likely continue as Toyota adds embedded connectivity to its top-selling vehicles in the future”.
Looking at the connectivity technology, Peter Richardson, Research Director, Counterpoint Research said, “The market is moving swiftly towards 4G LTE connectivity with nearly half of the vehicles being fitted with 4G LTE enabled TCUs. Going forward, 4G LTE is likely to dominate the market until 2022 and beyond, as many markets look to sunset 2G and 3G networks in the first half of the next decade.”
Commenting on the connected car evolution, Research Director, Neil Shah noted, “There are three trends which are about to shape the entire automotive industry: first is electrification of vehicles; second the addition of super-fast, low-latency cellular connectivity; and third, hundreds of sensor-integrated highly-automated driving features. All these trends will be converging to a point over the next decade for which OEMs and the entire supply chain will have to be geared up, starting now. These new capabilities will enable radically new business models to flourish, creating new business opportunities while disrupting many existing companies.”
The market is moving swiftly towards 4G LTE connectivity with nearly half of the vehicles being fitted with 4G LTE enabled TCUs. More TCU manufacturers are expected to launch TCUs with C-V2X capabilities in 2018 and 2019, using the Qualcomm 9150 C-V2X chipset solution.