Berg Insight, the world’s leading IoT market research provider, released a new report covering the telematics control unit (TCU) market. Berg Insight estimates that global shipments of TCUs for both passenger cars and commercial vehicles reached 74.4 million units in 2024. Growing at compound annual growth rate (CAGR) of 5.0 percent, global shipments are expected to reach 95.0 million units in 2029. The total global market value of TCUs is forecasted to grow from € 8.6 billion in 2024 to € 11.5 billion in 2029. The vast majority of all TCUs sold today feature 4G LTE connectivity, though many carmakers plan to use 5G TCUs for the next generation of cars that will be released in the upcoming years. Berg Insight expects that 5G TCUs will account for about 70 percent of total shipments in 2029.
The OEM hardware telematics ecosystem spans TCU vendors, network access device (NAD) vendors and system-on-chip (SoC) suppliers. “Berg Insight ranks LG Electronics as the leading TCU supplier with a market share of 26 percent”, said Martin Cederqvist, Senior Analyst at Berg Insight. Other leading suppliers include Aumovio, Harman, Denso, Valeo, Marelli, Actia, Bosch, Desay SV Automotive, Gosuncn WeLink, Hyundai Mobis, Lear, Lan-You Technology and Neusoft Corporation. In the NAD module segment, Berg Insight has identified Quectel as the market leader with a market share of 23 percent. “The company holds a strong position in its domestic market in China, as well as internationally, and benefits from its massive scale as the world’s largest cellular module vendor”, added Fredrik Stalbrand, Principal Analyst at Berg Insight. Other major NAD module vendors include Rolling Wireless, Favalon (Fibocom), MeiG and Kontron. LG Electronics and Aumovio moreover develop NAD modules in-house for their own TCUs. Qualcomm leads the connectivity SoC segment with an impressive 82 percent market share. While automotive connectivity SoCs remain a core pillar of its offering, Qualcomm has also emerged as the leading provider of SoCs for digital cockpits and is well positioned to drive development in the autonomous driving domain. The company is challenged by MediaTek and China-based UNISOC and ASR Microelectronics.
The TCU value chain is characterised by powerful actors at both ends. “Vehicle OEMs hold substantial leverage over their suppliers and dictates both technical specifications and commercial terms. At the opposite end, SoC suppliers maintain significant bargaining power, underpinned by high technological barriers to entry and a highly concentrated market structure”, said Mr. Cederqvist. Consequently, NAD and TCU vendors operate in a constrained middle ground between dominant upstream and downstream players. These players must continuously balance the competing demands of OEMs and SoC suppliers, adapting their designs and business terms to maintain these relationships. Success in this environment largely depends on flexibility, technical agility and the ability to align closely with OEM requirements while effectively managing SoC supplier dependencies.
There are several new technology trends that will affect the market in the upcoming years. “A challenge for OEMs is to align with the cellular network generations while at the same time providing cost-effective solutions. 5G RedCap is a promising solution to handle these challenges going forward”, said Mr. Stalbrand. The integration of the TCUs with other systems is an area where TCU supplies can find competitive advantage in terms of improved performance and cost savings. Integrated TCU and smart cockpit designs are gaining traction in China, while several vendors have also launched integrated TCU-antenna solutions. “Emerging technologies and use cases such as V2X communications, software-defined vehicles, autonomous driving and satellite communications will also have an impact on the TCU market in the coming years”, concluded Mr. Cederqvist.
Download report brochure: The Automotive Connectivity SoC, NAD and TCU Markets
