Global vehicle telematics hardware market accelerates as connected cars expand
Press Release, 18 December 2025
The global market for vehicle telematics hardware is growing rapidly as connected vehicles become standard across both passenger and commercial segments. A new strategy report from Berg Insight reveals that shipments of telematics devices including embedded OEM units, black boxes, OBD dongles, and telematics control units (TCUs) reached around 115.7 million units worldwide in 2023, and are forecasted to grow steadily over the next five years. This growth reflects rising demand for connectivity, real-time vehicle data and advanced services that improve safety, efficiency and fleet management.
Telematics hardware serves as the backbone of modern connected vehicles by enabling data exchange between vehicles, cloud systems and third-party services using cellular and satellite communication technologies. Embedded OEM telematics systems — built into vehicles at the factory — accounted for roughly 74 percent of new passenger cars and commercial vehicles in 2023, highlighting how mainstream connectivity has become for global automakers. Aftermarket devices, which can be added to existing vehicles to support services like vehicle tracking, roadside assistance and diagnostics, also continue to expand, with over 47 million units sold in 2023.
The Asia-Pacific region leads global aftermarket shipments, followed by Europe and North America, reflecting broad interest in telematics solutions across diverse markets. Berg Insight’s analysis also identifies key industry players shaping the hardware landscape: Teltonika leads in aftermarket device sales, while major OEM telematics suppliers include LG Electronics, Continental, Harman, Valeo, Bosch and others that develop integrated systems with vehicle manufacturers.
Market growth is propelled by multiple forces: regulatory mandates for safety and connectivity, the proliferation of fleet telematics for logistics and commercial applications, and the adoption of in-vehicle services like eCall, vehicle diagnostics and over-the-air updates. With telematics hardware evolving alongside technologies such as 5G, GNSS and integrated antenna solutions, the connected vehicle ecosystem is poised for further expansion through 2028 and beyond.
Compiled using AI
