Product Code: 60381
The Telematics Control Unit Market was valued at USD 2.53 billion in 2019 and is expected to reach USD 4.60 billion by 2025, at a CAGR of 10.5% over the forecast period 2020 - 2025. The increase in inclination towards safety, security, and comfort in automation will drive the market in the forecast period. Many European Nations and other developing nations have been working on regulations to make vehicle and passenger safety updated and improved. this is also anticipated to boost the market demand.
- It is estimated that 80% of all innovations in the automotive industry today are directly or indirectly enabled by electronics. With vehicle functionality improving with every new model, this means a continuous increase in the semiconductor content per car.
- Connectivity is revolutionizing the vehicles. Connectivity to the cloud and cloud-based services benefit occupants as well as manufacturers by enabling over-the-air software upgrades and predictive maintenance. The increasing count of electronic control units (ECUs) for safety, engine management, motor control, tire air pressure, and infotainment all need to be networked, upgradeable, and secure.
- All these factors have been in the core for the demanding upkeep in the market as new and emerging technology and advances in communication tech have made data transfer and sharing more accessible, cheaper and faster, opening new opportunities with new possibilities. It has been estimated that telematics control unit with 5G support will become prominent by 2023 as 5G technology is already being realized in many nations, such as the United States, UAE, Saudi Arabia and in parts of Europe currently which will boost the market in the near future.
- However, the slower rate of penetration of telematics in the growing region could be challenging for the market.
Scope of the Report
Telematics, a communication technology, for the automobile end-user industry is based on information flowing to and generated from vehicles via wireless networks. It helps keep driver and passengers safer, provides real-time directions and re-routing in case of a traffic jam, auto dials an emergency number if a vehicle is in an accident, and so much more. It is the result of the convergence of wireless communications, location technology, and in-vehicle electronics pushing the automobile industry into the information age.
Key Market Trends
Information and Navigation Holds the Major Market Share
- Vehicle telematics has a broad application like real-time movement and the behavior of the vehicle can be determined most efficiently. In addition to tracking, telematics also provides live updates of the vehicle. Since there is an increase in shipment of the conventional and connected cars globally, especially the connected cars the demand of the telematics control unit to grow in the forecast period.
- A telematics solution for the automotive industry combines wireless GPS tracking with remote vehicle diagnostics and routing/ driver productivity tools to give fleet managers a complete, accurate, and timely picture of their fleet's activities.
- In addition, the technology enhances traffic efficiency by providing warnings for upcoming traffic congestions, proposing alternative routes, and ensuring eco-friendly driving, reducing CO2 emissions through adaptive cruise control, and smarter transportation management.
- Information for roadside assistance, vehicle diagnostics, local search, traffic and weather information can be obtained which helps the driver. All these factors, further, make a strong point for an increase in the adoption of the TCUs, as telematics demand is set to increase over the forecast period.
North America Account for Significant Market Share
- The large size of the market in the region is mainly due to large-scale domestic manufacturing, due to the government initiative toward disruptive technologies and technological innovation in informatics. The emergence of information technology and the increased usage of IoT in automotive applications have added new dimensions in the manner of conducting business operations in this region. These trends are boosting the North American TCUs market.
- Another driving factor for the demand of telematics, thus, thrusting the demand for the TCUs is the increase in vehicle theft. For instance, in the United States, about USD 6 billion was lost to motor vehicle theft in 2017. The average dollar loss per theft was USD 7,708.
- Motor vehicles in the United States were stolen at a rate of 237.4 per 100,000 people in 2017 and virtually remain unchanged from 237.3 in 2016. In 2017, reportedly 773,139 vehicles were stolen, up 0.8% from 767,290 vehicles in 2016. It translates to one motor vehicle theft every 40.9 seconds in 2017. Telematics can help solve such problems, thus creating opportunities for Telematics Control Unit market in the forecast period.
The major players include LG Electronics Inc., Harman International, Bosch Software Innovations GmbH, Continental AG, Fujitsu Ten Corporation, Huawei Technologies Co. Ltd, Flaircomm Microelectronics, Inc., Texas Instruments Incorporated, Ficosa International SA, Infineon Technologies, among others. Collaboration with end-user is highly preferred to make products ready for use and is expected to drive the vendors into forming a partnership for design and development. The market is fragmented since there is high competition among major market players. The highly attractive market due to the emergence of electronics safety equipment getting increased adoption to assist in meeting vehicle safety regulations.
- November 2018 - Texas Instruments introduced two new isolated Controller Area Network (CAN) adjustable data rate (FD) transceivers that combine the industry's highest bus fault protection, highest common-mode transient immunity (CMTI), and lowest electromagnetic emissions into a 35% smaller package. With a higher working voltage than competing devices and faster communication speed than the traditional CAN standard, the ISO1042 and ISO1042-Q1 help engineers better protect low-voltage circuits and increase communication throughput in applications, such as hybrid electric vehicles and electric vehicles (HEVs/EVs).
- January 2018 - Panasonic Corporation announced that it had started production of telematics control unit from December 2017. The new product is jointly developed with Ficosa International S.A., a supplier of automotive parts and systems in Spain.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Rise in Demand for Safety, Comfort, and Convenience in Automotive Sector
- 4.3.2 Technological Advancements in Telematics and Network Technology
- 4.4 Market Restraints
- 4.4.1 Slower Rate of Penetration of Telematics in Developing Regions
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Application
- 5.1.1 Safety and Security
- 5.1.2 Information and Navigation
- 5.1.3 Other Applications
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia-Pacific
- 5.2.4 Latin America
- 5.2.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 LG Electronics Inc.
- 6.1.2 Samsung Electronics Co. Ltd. (Harman International)
- 6.1.3 Bosch Software Innovations GmbH
- 6.1.4 Continental AG
- 6.1.5 Denso Corporation
- 6.1.6 Marelli Motori SPA
- 6.1.7 Fujitsu Ten Corporation
- 6.1.8 Huawei Technologies Co. Ltd
- 6.1.9 Flaircomm Microelectronics, Inc.
- 6.1.10 Texas Instruments Incorporated
- 6.1.11 Ficosa International SA
- 6.1.12 Infineon Technologies
- 6.1.13 STMicroelectronics
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS