• TCU sales in China grew 9% YoY in Q1 2024, driven by double-digit growth of key domestic players.
• China continued to lead global TCU sales with a 32% share, a flat YoY growth in market share.
• Advanced infotainment and safety features are driving the increasing connectivity demand among users.
• China remained the 5G TCU leader with an 89% market share globally, driven by the diverse 5G products launched by the country’s TCU players.
• Neusoft led among the domestic players, but Huawei witnessed the highest growth (45% YoY) among the top five TCU players.

Beijing, Buenos Aires, Hong Kong, London, New Delhi, San Diego, Seoul, Taipei, Tokyo – June 27, 2024

Telematics Control Unit (TCU) or T-box sales* in China grew 9% YoY in Q1 2024, according to Counterpoint’s Global Telematics Control Unit Tracker. This growth was mainly driven by the increasing sales of key local players. Globally, China continued to lead TCU sales with a market share of 32%. Although its TCU sales increased, China’s global market share remained almost flat compared to Q1 2023.

Research Analyst Shaochen Wang said, “Advanced infotainment and safety features are driving the increasing connectivity demand among users. High-level assisted/autonomous driving, C-V2X, smart cockpit (multi-screen interaction and AI-supported voice control), over-the-air updates and other software-defined features are becoming increasingly important for the modern vehicle. All these require stable and fast connectivity, which drives the adoption of TCUs.”

LG maintained its top position in the Chinese market in Q1 2024 with a 17.9% share, followed by Valeo and Neusoft. Local T-box players like Neusoft, Huawei and BYD saw good YoY growth compared to global brands like LG and Valeo. Huawei saw the highest YoY growth of 45% as the company strives to grow its automotive business.

Research Analyst Abhilash Gupta said, “The demand for 5G TCUs, which provide high speed and low latency, is increasing gradually to satisfy new advanced mobility use cases. China remains the leader in 5G T-box with an 89% market share globally, driven by diverse 5G products launched by the country’s TCU players. Currently, 4G dominates the T-box sales with around 90% share.”

Commenting on the market outlook, Senior Analyst Parv Sharma said, “Currently, connected car penetration in China is over 80%, and we expect every car sold by 2028 will have embedded connectivity. 5G penetration is expected to surpass 90% by the end of this decade due to the need for advanced connectivity in modern vehicles.”

Sharma added, “Local TCU players hold nearly 57% of China's T-box market. International TCU players may face challenges in China due to price competition and OEMs' efforts to build an in-house ecosystem with the help of local supply chain players. Chinese TCU players are also expanding their international presence alongside the rise of Chinese EV manufacturers in the global market. BYD stands to benefit the most by supplying its own vehicles, while Neusoft will secure a significant share due to its strong partnerships with Geely, Great Wall Motor and FAW.”

*Sales here refer to wholesale figures, i.e. deliveries from factories by respective brands. The analysis covers cars with embedded TCU. Aftermarket TCUs are out of the scope of this study.

The comprehensive and in-depth ‘Global Telematics Control Unit Tracker, Q1 2024’ and ‘Global Telematics Control Unit Forecast, Q1 2024’ are now available for purchase at report.counterpointresearch.com.

Feel free to reach us at [email protected] for questions regarding our latest research and insights.

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.

Follow Counterpoint Research

press(at)counterpointresearch.com