SEOUL, Jan. 29 (Yonhap) — LG Electronics Inc. was the world’s second-largest supplier of telematics control units (TCU) last year, a report showed Friday, as the South Korean tech giant eyes to expand its presence in the fast-growing automotive system market.
LG Electronics accounted for 18.4 percent of the global TCU shipments in 2020, to rank second behind Continental AG with a 20.3 percent market share, according to market researcher Counterpoint Research.
TCU is an embedded onboard system in the vehicle that powers telecommunications services. It is an essential item in connected-car services, allowing drivers to get real-time information related to their vehicles.
LG’s 2020 market share was down from a 24.5 percent share in 2018, when it topped the global TCU sector after beating Continental with an 18 percent share.
“LG’s market share is declining due to its heavy dependence on General Motors (GM), which has reached a saturation point in terms of TCU penetration,” said Aman Madhok, a senior analyst at Counterpoint Research. “During the last few years, Continental has overtaken LG in terms of market share due to new contracts and the increasing penetration of TCUs in mass-produced vehicles.”
Harman International Industries Inc., owned by South Korea’s Samsung Electronics Co., came in third with a market share of 13.3 percent in 2020, followed by Germany’s Robert Bosch GmbH with 8.3 percent and Japan’s Denso Corp. with 7.8 percent.
Counterpoint Research said that the global TCU market is expected to grow a compound annual growth rate (CAGR) of 14.4 percent during the 2020-2025 period, with the market value exceeding $6.3 billion in 2025.
One in four TCUs shipped in 2025 will be 5G-powered. Continental, LG and Harman were expected to remain as the top three suppliers in the 5G TCU market as well, it added.
“Falling prices of 5G TCUs will enable their adoption in mid-price cars, with automakers like GM, Ford and Volkswagen leading 5G connectivity by 2025,” Counterpoint Research said.