• Global TCU sales grew 8% YoY in 2024, with 75% of passenger cars sold featuring embedded cellular connectivity.
• The increasing demand for live navigation and real-time vehicle tracking is driving the adoption of TCUs in new vehicles sold across the globe.
• With strong partnerships across major automakers, LG remained the top TCU vendor in 2024 despite a drop in its market share.
• China’s local players, such as BYD, Neusoft and Huawei, are challenging global brands like LG with rapid innovation and production scalability.
• Due to high prices, 5G TCUs remain a niche product, accounting for a single-digit percentage market share.

Seoul, Beijing, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – April 7, 2025

The global TCU market continued to expand in 2024, recording an 8% YoY growth, as embedded connectivity became increasingly standard in passenger vehicles, according to Counterpoint’s latest Global Telematics Control Unit (TCU) Tracker. Commenting on the growing connectivity demand in cars, Associate Director Greg Basich said, “More than 75% of new cars sold featured TCUs, driven by rising consumer demand for live navigation, real-time vehicle tracking, over-the-air updates, and advanced telematics services. As automakers prioritize digital transformation, TCUs are crucial in enabling connected and software-defined vehicles.”

China remains the largest TCU market, backed by its booming electric vehicle (EV) sector and strong government support for intelligent transportation systems. The country’s rapid adoption of smart mobility solutions has made TCUs essential in modern vehicles. Following China, the US, Germany, Japan and the UK are key markets, with regulatory mandates and increasing consumer expectations accelerating adoption. Automakers in these regions are also aiming to enhance vehicle safety, user experience, and new mobility services by implementing connectivity.

Despite facing a slight decline in market share, LG continued to lead the global TCU market in 2024, supported by its long-standing partnerships with major automakers such as General Motors, Hyundai-Kia, Volkswagen and Toyota. However, the competitive landscape is shifting as Chinese companies such as BYD Electronics, Neusoft and Huawei aggressively expand their presence. BYD, the largest EV maker, has quickly gained market share and now matches Neusoft’s share.

Commenting on BYD’s strategy, Senior Analyst Parv Sharma said, “BYD’s vertical integration strategy is helping it increase its share of the TCU market. These local players are rapidly innovating and scaling production, posing a significant challenge to established global suppliers. By leveraging cost-effective manufacturing and deep integration with China’s fast-growing EV market, they are reshaping the industry's competitive dynamics.”

While 4G-based TCUs continue to dominate due to their affordability and widespread network support, 5G adoption remains limited. The high cost of 5G telematics devices, combined with infrastructure constraints, has restricted 5G TCUs to luxury and high-end vehicles like the Denza D9 and BMW 5 series, accounting for a single-digit percentage of total sales in 2024. However, with advancements in network deployment and the expected introduction of 5G RedCap technology in 2026, mass-market adoption is likely to gain momentum, particularly in mid-tier vehicle segments.

As the global automotive industry moves toward fully connected and autonomous mobility, the role of TCUs will become even more critical. Automakers and telecom providers are investing heavily in next-generation connectivity solutions to enable smarter, safer and more efficient transportation. With increasing emphasis on software-defined vehicles and intelligent connectivity, the TCU market is poised for continued growth throughout the decade.

* Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Telematics Control Unit Tracker, Q4 2024’ and ‘Global Telematics Control Unit Market Forecast, Q4 2024’ reports are now available for purchase at report.counterpointresearch.com.

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Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.