Telematics Control Unit Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

(MENAFN- GlobeNewsWire - Nasdaq) New York, Aug. 25, 2023 (GLOBE NEWSWIRE) -- Reportlinkerannounces the release of the report "Telematics Control Unit Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" -
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
Telematics Control Unit Market Analysis
The telematics control unit market is expected to register a CAGR of 10.97% over the forecast period. An increase in demand for safety, comfort, and convenience in the automotive sector, along with increased demand for deployment of 5G technology, is expected to drive the market.
In recent years, the telematics control unit has become a crucial component in the automobile industry. However, the telematics control unit (TCU) adoption could have been higher. The concept of connected cars is still in its early stages, with only a few automobile companies including them in their vehicles. However, the emerging prospects of 5G and autonomvehicles have expanded the scope of connected cars. The telematics control unit is the core of connected vehicles, as it does the heavy lifting of the overall process.
The requirements from the telematics units have evolved drastically in recent years. During the Telematics 1.0 era, control units were required for in-car infotainment systems. With telematics 4.0, the control units must process a large amount of data from within and outside the vehicle. For instance, Panasonic believes the TCU may fulfill the ongoing struggle to reach total autonomvehicles from current advanced driver-assistance systems. Moreover, it considers that connected roads may reduce travel times by almost half and potentially eliminate up to 80% of crashes.
Besides, the possibilities with connected cars have increased exponentially with the development of TCU, with the expected launch of 5G. Initially, the application that involved TCU was considered a luxury, but it will be an essential component of a vehicle in the future. The current developers are prospecting applications for connected cars in traffic management, safety, insurance, and navigation.
The main factors affecting the market's growth include cyber security threats and attacks and underdeveloped countries' delayed adoption of telematics.
However, the industry has experienced a decrease in market capitalization, likely accelerating industry consolidation without additional funding. Furthermore, the post-COVID-19 era is expected to drive consumers toward more affordable substitutes for telematics control units and online shopping flexibility, among others.
Telematics Control Unit Industry Segmentation
A telematic control unit in the automobile sector refers to the embedded system on board that wirelessly connects the vehicle to cloud services or other vehicles over a cellular network. The telematic control unit collects telemetry data from the vehicle, such as speed, engine data, position, connectivity quality, etc., through interfacing with multiple sub-systems across data and control buses in the car.
The telematics control unit market is segmented by application (safety and security, information and navigation), type (embedded OEMs, aftersales), type of vehicle (passenger, commercial), and geography.
Telematics Control Unit Market Trends
This section covers the major market trends shaping the Telematics Control Unit Market according to our research experts:

Increased Deployment of 5G Technology
Mobile network download speed is necessary for vehicle telematics. Better communication and improved telematics will be made possible by increasing the number of automobiles connected to the Internet. Thus, the majority of the changes in vehicle telematics will be brought about by 5G.
5G has ultra-low latency, high reliability, massive network capacity, higher peak data speeds, and increased availability capacities, which all can be channeled into telematics, augmented reality, virtual reality, UHD video streaming, and smart home management tech.
Additionally, 5G's unfathomable speed permits ambitigrowth in the direction of more robust IoT networks and automated telematics. Compared to the 4G LTE network's 1,000 Mbps speed, it gives a speed of 10 GBPS, which is 100 times quicker.
A camera or two are used in emerging video telematics to monitor driving behavior. While video analysis of on-road vehicles combined with AI will improve road predictive and prescriptive maintenance and safety, video cameras can assist in the generation of more robust map data and real-time navigation, strengthening V2X communication and reducing road collisions as 5G moves toward automation.
Therefore, 5G is set to create a global network of devices functioning 100 times faster than the existing 4G LTE connections. In contrast, complete 5G connectivity will improve peer-to-peer communication, enhance vehicle telematics along with lower latency and higher speed, and pave a new path for futuristic and more reliable fleet management systems.

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