Automotive Connectivity Control Unit Market Report 2026

The automotive connectivity control unit market size has grown exponentially in recent years. It will grow from $96.84 billion in 2025 to $117.15 billion in 2026 at a compound annual growth rate (CAGR) of 21%. The growth in the historic period can be attributed to increased in-vehicle electronics adoption, growth of infotainment systems, early telematics deployment, smartphone integration demand, navigation system evolution.

The automotive connectivity control unit market size is expected to see rapid growth in the next few years. It will grow to $233.62 billion in 2030 at a compound annual growth rate (CAGR) of 18.8%. The growth in the forecast period can be attributed to connected vehicle regulations, smart city infrastructure rollout, autonomous driving development, cloud-based vehicle services growth, vehicle cybersecurity requirements. Major trends in the forecast period include growth of v2x communication adoption, integration of telematics control units, expansion of connected car platforms, demand for over-the-air updates, rising focus on vehicle cybersecurity.

The rising demand for automobiles is expected to drive the growth of the automotive connectivity control unit market in the coming years. The growing demand for automobiles is fueled by factors such as population growth, economic development, changing consumer preferences, and regulatory shifts. An automotive connectivity control unit plays a vital role in modern vehicles by enabling seamless communication and integration between various in-vehicle systems and external networks, thereby enhancing safety, efficiency, and overall user experience. For example, in September 2024, according to the European Automobile Manufacturers' Association, a Belgium-based European Commission body, car production in the European Union reached 12.2 million units in 2023, representing an 11.6% increase compared with 2022. Therefore, the increasing adoption of electric vehicles and overall vehicle growth are contributing to the expansion of the automotive connectivity control unit market.

Leading companies in this market are innovating with products such as telematics control units to cater to customer needs with advanced functionalities. Telematics control units manage and oversee telematics services by collecting, storing, and transmitting vehicle data to external servers. In February 2024, Harman partnered with Qualcomm Technologies to introduce the Harman Ready Connect 5G Telematics Control Unit (TCU). This device represents a significant leap in automotive connectivity, delivering enhanced in-cabin experiences while streamlining time to market and engineering efforts for automakers. Powered by Qualcomm's Snapdragon Modem-RF Gen 2 system, it offers robust performance, reliability, and cutting-edge features to meet evolving market demands.

In March 2024, Intel Corporation, a US-based technology company, acquired Silicon Mobility SAS for an undisclosed amount. This acquisition allows Intel to strengthen its automotive portfolio by integrating Silicon Mobility's technology, which focuses on intelligent and programmable power devices. This move expands Intel's reach beyond high-performance computing and into advanced automotive solutions. Silicon Mobility SAS, based in France, specializes in semiconductor and software solutions.

Major companies operating in the automotive connectivity control unit market report include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Aptiv PLC, Valeo SA, Visteon Corporation, Magna International Inc., Panasonic Corporation, LG Electronics, Mitsubishi Electric Corporation, Denso Corporation, AISIN Corporation, Alpine Electronics Inc., Clarion Co., Ltd., Pioneer Corporation, Marelli, Forvia, Samsung Electronics, Sony Group Corporation, Thales Group.

North America was the largest region in the automotive connectivity control unit market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive connectivity control unit market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive connectivity control unit market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive connectivity control unit market consists of the sale of a central processing unit, graphics processing unit, accelerometers, gyroscopes, and speakers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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