Seoul: LG Electronics was the world’s second-largest provider of telematics management items (TCU) final 12 months, a report confirmed, because the South Korean tech large eyes to broaden its presence within the fast-growing automotive system market.
LG Electronics accounted for 18.4 per cent of the worldwide TCU shipments in 2020, to rank second behind Continental AG with a 20.3 p.c market share, based on market researcher Counterpoint Analysis.
TCU is an embedded onboard system within the automobile that powers telecommunications providers. It’s a necessary merchandise in connected-car providers, permitting drivers to get real-time info associated to their autos.
LG’s 2020 market share was down from a 24.5 p.c share in 2018, when it topped the worldwide TCU sector after beating Continental with an 18 per cent share, stories Yonhap information company.
“LG’s market share is declining resulting from its heavy dependence on Common Motors (GM), which has reached a saturation level by way of TCU penetration,” stated Aman Madhok, a senior analyst at Counterpoint Analysis.
“Throughout the previous couple of years, Continental has overtaken LG by way of market share resulting from new contracts and the rising penetration of TCUs in mass-produced autos.”
Harman Worldwide, owned by Samsung Electronics, got here in third with a market share of 13.3 per cent in 2020, adopted by Germany’s Robert Bosch GmbH with 8.3 per cent and Japan’s Denso Corp. with 7.8 per cent.
Counterpoint Analysis stated that the worldwide TCU market is predicted to develop a compound annual development price (CAGR) of 14.4 per cent throughout the 2020-2025 interval, with the market worth exceeding $6.3 billion in 2025.
One in 4 TCUs shipped in 2025 will probably be 5G-powered. Continental, LG and Harman had been anticipated to stay as the highest three suppliers within the 5G TCU market as properly, it added.
“Falling costs of 5G TCUs will allow their adoption in mid-price automobiles, with automakers like GM, Ford and Volkswagen main 5G connectivity by 2025,” Counterpoint Analysis stated.
