Global TCU shipments to hit 95 million by 2029 as 5G drives next wave of vehicle connectivity
Press Release
The global market for Telematics Control Units (TCUs) — the core hardware enabling vehicle connectivity — continues to accelerate, with shipments reaching 74.4 million units in 2024, according to a new report from Berg Insight. Driven by the rapid adoption of connected and intelligent vehicles, shipments are expected to grow at a 5% CAGR, climbing to 95 million units by 2029. Correspondingly, the global TCU market value is forecast to increase from €8.6 billion in 2024 to €11.5 billion by 2029.
In 2024, around 78% of all new passenger cars and commercial vehicles sold worldwide were equipped with a TCU—up from 74% in 2023. While most of today’s TCUs rely on 4G LTE connectivity, the industry is transitioning toward 5G-enabled TCUs, which are expected to account for 70% of total shipments by 2029. The shift toward 5G reflects growing demands for real-time data exchange, over-the-air updates, and enhanced vehicle-to-everything (V2X) communication in next-generation vehicles.
Berg Insight highlights the complex and competitive structure of the TCU ecosystem, which spans vehicle OEMs, TCU manufacturers, network access device (NAD) suppliers, and system-on-chip (SoC) providers. OEMs maintain strong control over specifications and pricing, while SoC vendors hold significant influence due to technological barriers and limited competition. This dynamic leaves TCU makers balancing between powerful upstream and downstream partners, requiring agility, deep integration expertise, and strategic partnerships to thrive.
In terms of market leadership, LG Electronics emerged as the top TCU vendor by shipments in 2024, followed by Aumovio and Harman. Other major players include Bosch, Denso, Desay SV, Hyundai Mobis, Marelli, Lear, and Valeo.
On the silicon side, Qualcomm remains the dominant SoC supplier, leveraging long-standing partnerships with NAD and TCU manufacturers. MediaTek ranks second, expanding its focus on high-end 5G automotive solutions, while UNISOC and ASR Microelectronics are gaining traction in China’s growing automotive tech ecosystem.
The findings underline how connectivity is fast becoming the backbone of modern mobility, setting the stage for a fully networked, software-defined vehicle future.
