Automotive Telematics Control Unit (TCU) Market Analysis

Automotive Telematics Control Unit Market Analysis

Based on vehicle, the market is divided into passenger vehicles and commercial vehicles. The passenger vehicles segment held around 54% of the market share in 2023. In the passenger vehicle segment, automotive TCUs are experiencing increased adoption, driven by growing consumer demand for connected car services. This includes features such as real-time navigation, remote diagnostics, and enhanced safety and security functionalities.
 

For instance, in July 2023, Continental and Qualcomm collaborated on an advanced telematics control unit (that incorporates 5G and Cellular Vehicle-to-Everything (V2X) technologies. This advanced TCU offers a comprehensive suite of wireless connectivity options, including LTE, 4G, 4.5G, 5G, Wi-Fi, Bluetooth, and Hybrid V2X, enabling seamless communication between vehicles and the surrounding environment. Additionally, features like eUICC SIM, GPS, and GLONASS enhance functionality, further driving the adoption of TCUs in the automotive industry.
 

Based on connectivity, the market is categorized into embedded, tethered, and integrated. The embedded segment recorded around 43% of the automotive telematics control unit market share in 2023. Embedded connectivity is becoming increasingly prevalent in the market. This trend involves the integration of seamless connectivity features directly into vehicles, enabling continuous communication with external networks, services, and devices, thereby enhancing the overall driving experience.
 

For instance, in December 2023, Cavli Wireless unveiled the C16QS. This module is compliant with 3GPP Release 14 specifications, offers integrated GNSS support for precise location tracking, enhancing vehicle telematics capabilities. Furthermore, the integrated eSIM enables seamless global connectivity through Cavli's Hubble Device and connectivity management platform, facilitating enhanced connectivity experiences for automotive applications.
 

North America automotive TCU market accounted for 36% of the revenue share in 2023, driven by increasing demand for connected car services. This includes features such as real-time navigation, remote diagnostics, and enhanced safety and security functionalities among consumers and businesses.
 

For instance, in January 2023, Quectel announced the launch of its new automotive-grade 5G NR Release 16 modules, the AG59x series, to support next-generation automotive applications. These modules, built on the Snapdragon Auto Connectivity Platform, cater to the evolving needs of the automotive industry, ensuring high robustness and performance, particularly in challenging conditions like high temperatures. This facilitates the integration of advanced telematics features, driving the growth of the market.