Nov 14, 2025

Image by Freepik Virtually all of the world’s leading vehicle OEMs have launched mass-market connected services in key regions today. Connected vehicles rely on a telematics control unit (TCU), which provides communications between the vehicle and external networks and navigation satellite systems. Examples of connected car services offered include eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, over-the-air (OTA) updates, connected navigation, entertainment services such as music and video streaming, convenience services, Wi-Fi hotspots as well as AI personal assistant services. In their latest report, ‘ The automotive connectivity SoC, NAD and TCU markets ‘, Berg Insight estimates that global shipments of TCUs for both passenger cars and commercial vehicles reached 74.4 million units in 2024. Growing at a compound annual growth rate (CAGR) of 5.0%, global shipments are expected to reach 95.0 million units in 2029. The total global market value of TCUs is forecasted to grow from € 8.6 billion in 2024 to € 11.5 billion in 2029. Berg Insight estimates that 78% of all new passenger cars and commercial vehicles sold worldwide in 2024 were equipped with a TCU, up from 74% in 2023. The vast majority of all sold TCUs today feature 4G LTE connectivity, though many carmakers plan to use 5G TCUs for the next generation of cars that will be released in the upcoming years. Berg Insight expects that 5G TCUs will account for about 70% of total shipments in 2029. The OEM hardware telematics ecosystem spans TCU vendors, network access device (NAD) vendors and system-on- chip (SoC) suppliers. The value chain is characterised by powerful actors at both ends. Vehicle OEMs hold substantial use over their suppliers and dictates both technical specifications and commercial terms. At the opposite end, SoC suppliers maintain significant bargaining power, underpinned by high technological barriers to entry and a highly concentrated market structure. Consequently, NAD and TCU vendors operate in a constrained middle ground between dominant upstream and downstream players. These players must continuously balance the competing demands of OEMs and SoC suppliers, adapting their designs and business terms to maintain these relationships. Success in this environment largely depends on flexibility, technical agility and the ability to align closely with OEM requirements while effectively managing SoC supplier dependencies. The design and development of TCUs is complex as these have to integrate with other vehicle systems, fulfil strict quality standards and ensure performance during the long lifecycle of a vehicle model. For this reason, TCUs are generally developed by established automotive suppliers in cooperation with car manufacturers. Berg Insight ranks LG Electronics as the leading TCU vendor in terms of shipments. Aumovio and Harman were the runners-up, both holding significant market shares. Other major TCU vendors include Actia, Bosch, Denso, Desay SV Automotive, Gosuncn WeLink, Hyundai Mobis, Lear, Lan-You Technology, Marelli, Neusoft Corporation and Valeo. Important players in the TCU ecosystem include SoC vendors and NAD module vendors. The automotive connectivity SoC segment is heavily dominated by Qualcomm, which has longstanding relationships with all of the largest NAD module vendors, TCU suppliers and automotive OEMs. MediaTek ranks second and has pivoted its IoT business towards high-end 5G applications, with a strong focus on the automotive sector in recent years. Other important automotive connectivity SoC vendors are China-based UNISOC and ASR Microelectronics. The SoCs are in turn integrated into NAD modules. NAD module developers include both specialised cellular module providers, as well as TCU vendors that operate as vertically integrated TCU makers with in-house NAD module design capabilities. Quectel is the leading provider of NAD modules for the automotive industry, followed by Rolling Wireless. Other major NAD module vendors include the TCU vendors LG Electronics and Aumovio, as well as specialised module vendors like Favalon (Fibocom), MeiG and Kontron. TCU shipments by region (World 2023-2029) Comment on this article via X:  @IoTNow_  and visit our homepage  IoT Now Posted on: November 13, 2025