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An embedded system installed in a vehicle to track the vehicle's speed, location, and performance is known as a Telematics control unit (TCU). It gathers the rider data and analyses it to track the performance behaviour of the rider. The automotive industry has transformed drastically due to technological developments, allowing riders to observe vehicle driving behaviour and navigation. Telematics services play a crucial part in the revolution of the automotive sector.
With the advancement of emerging trends and technology in the Internet of Things (IoT), Big Data analytics, Machine to Machine (M2M), the telematics control unit market is anticipated to exhibit significant growth during the forecast period. Increased advancements in the semiconductor and embedded systems industry favour the TCU market escalating the market toward growth trajectories. However, security concerns related to cyber security related to the telematics control unit device might be considered as a restraint of the telematics control unit market during the forecast period.
Key Market Driver -
Rise in Adoption of IoT-Enabled Connected Devices and Tech-driven Mobility Services, Advancements in the semiconductor and embedded systems industry, Increased awareness of safety will drive the growth of the market
Key Market Restraint -
Security concerns related to cyber security may restrain the growth of the market
The Telematics Control Unit Market is segmented by Type (Embedded OEMs, Aftersales), Application (Safety and Security, Information and Navigation), Vehicle Type (Passenger, Commercial), and Geography.
By Types, the market is segmented into Embedded OEM and Aftersales. Currently, the Aftersales segment accounts for the largest share in the global market. This can be attributed to the fact that the OEMs have no compulsion to install a telematics control unit (TCU) in the vehicles. Apart from that, the cost is also a factor influencing the adoption of TCU. However, considering its use in safety and security, TCU is anticipated not to remain as a mere additional accessory. OEM will install it, just like the Airbag system was a mere safety accessory at first, but now it is an important safety feature in cars. Hence the Embedded OEM segment is anticipated to exhibit higher CAGR during the forecast period.
By Application, the Telematics Control Unit market is classified as Safety and Security and Information and Navigation. Information and Navigation currently hold the largest market share and is expected to maintain steady growth. Vehicle telematics enables riders with real-time movement, based on which the vehicle's behaviour can be determined most efficiently. 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 to tracking, telematics also provides live updates of the car since there is an increase in shipment of conventional and connected cars globally, especially connected vehicles. These factors will propel the demand for the telematics control unit to grow in the forecast period.
By Vehicle type, the market is segmented into Passenger cars and Commercial Vehicles. Currently, the Passenger Car segment holds a significant market share. Transportation and logistics is amongst the fastest developing industries that are implementing navigation systems. Vehicle monitoring, automobile maintenance, geofencing, and fleet tracking services are in high demand and are operated to upgrade commercial vehicles' efficiency and productivity. Hence though currently, the Passenger Car segment holds the largest market share, the Commercial Vehicle segment is anticipated to have the largest market share and exhibit a higher CAGR during the forecast period.
Major players operating in the global Telematics Control Unit market are Harman International, Continental AG, Marelli Motori S.P.A, Laird (Novero), Flaircomm Microelectronics, Inc., Ficosa International S.A, LG Electronics Inc., Bosch Software Innovations GmbH, Denso Corporation, Fujitsu Ten Corporation, Huawei Technologies Co. Ltd., Texas Instruments Incorporated, Peiker, and Novero, Visteon are among others.
Geographically, the Telematics Control Unit market is segmented into North America, Europe, Asia Pacific, and the rest of the world.
North America is expected to hold the largest share of the telematics control unit market. This can be attributed to the advancements in embedded systems and digital technology. The United States ranks first in this regional market due to the presence of technological giants. The emergence of information technology and the increased usage of IoT in automotive applications have added new dimensions in conducting business operations in this region.
The Asia-pacific region is expected to grow at a significant rate due to the flourishing manufacturing industry. The sector has been witnessing steady growth, driven by higher spending power among the middle-income class and declining production costs, which resulted from commoditization. China is a significant producer of cost-effective information and navigation telematics control units and is expected to retain its position in the Asia Pacific market over the forecast period. Increasing manufacturing of technologically advanced telematics control units is expected to further fuel the growth of the telematics control unit market in China. Also, the connected vehicles industry in APAC continues to integrate communication with the digital environment leveraging the role of antennas and integrated high-performance TCUs.
Europe is expected to witness substantial growth in the telematics control unit market due to increased adoption of electric connected cars and awareness about safety and clear rules that the riders need to follow. The increasing technology adoption in the commuting methods in Europe will offer immense growth opportunities. Growing investments and acquisitions in mobility startups, increasing focus on a convenient, economical, and eco-friendly commute, and rising technological adoption will significantly influence this region's telematics control unit market growth.
The rest of the world consists of Latin America, the Middle Eastern, and the African region. The middle eastern region is expected to contribute significantly to the growth of the telematics control unit market. This can be attributed to the early adoption of advanced technologies in the mobility and automobile sector, which have sensed opportunities for the same.
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