Market Trends of Telematics Control Unit Industry
Passenger Vehicles to Dominate the Market
- Passenger cars are used for compact, mid-size, and full-size vehicles that convey not more than eight passengers (including the driver). The telematics control units (TCUs) in passenger vehicles can be used for several purposes: emergency services notification, stolen vehicle tracking, and remote vehicle immobilization. TCUs can collect and transmit vehicle diagnostics data, allowing for remote monitoring and analysis. This can help with proactive maintenance, identifying potential issues, and improving overall vehicle performance.
- TCUs are commonly used in passenger vehicles for fleet management systems to monitor and track vehicle location, performance, and usage of vehicles. This helps optimize routing and monitor driver behavior and overall fleet efficiency. They also provide vehicle data to insurance companies for enhanced infotainment connectivity, navigation, and mapping.
- The increasing adoption of electric vehicles contributes to the growing demand for passenger vehicles. As governments and individuals prioritize sustainability, there is a shift towards cleaner transportation options. For instance, according to IEA, global battery-electric vehicle sales reached an estimated 7.3 million in 2022, up from around 4.6 million in 2021. In 2021, these sales more than doubled compared to 2020, and 2022 marks a new record in all-electric sales volume. Moreover, the growth of the middle class in many countries has resulted in increased purchasing power and a higher demand for passenger vehicles.
- According to OICA (International Organization of Motor Vehicle Manufacturers), Around 65.3 million passenger cars were sold worldwide in 2023, showing an increase of approximately 11.3 percent compared to the previous year. China held the top spot as the largest regional automotive market in 2023, with approximately 26.1 million units.
- The automotive industry is also witnessing an increase in the production of passenger vehicles. For instance, according to the Bureau of Economic Analysis (BEA), in 2022, approximately 1.8 million automobiles were produced in the United States. It represents an increase of about 13 percent compared with 2021. Such developments are likely to boost the growth of the studied market.
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North America Holds Largest Market Share
- North America is one of the significant investors and adopters in the studied market owing to growing investment in automotive sectors and the latest technologies. Telematics control unit devices are used in various regional verticals to provide Safety, Comfort, and Convenience in the Automotive Sector.
- The United States is anticipated to be the significant market for connected cars in the region due to the significant presence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehicles, widespread adoption of 4G/5G and increasing sales of electric, connected and autonomous cars in the country.
- According to KBB, in the first quarter of 2023, just under 258,900 battery-electric vehicles were sold in the United States. This year-over-year increase was around 44.9% compared to the sales recorded in the F1Q of 2022.
- The increasing investments in R&D by major industry players, rising Internet penetration, falling data costs, availability of 5G, growing preference of customers for connectivity features over mechanical specifications of cars, and a peak in sales of electric and autonomous automobiles are creating demand in the automotive and transportation industry may further propel the studied market in the region.
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