A VISION FOR THE APAC TELEMATICS INDUSTRY:
Huge e-commerce increases, hundreds of Bn of investments in transportation infrastructure & strict emissions standards for heavy-duty vehicles are pushing up to a 22 percent CAGR from 2019-2024 for China’s commercial vehicle telematics market.
China’s logistics market accounts for approximately 15 percent of the country’s GDP & was projected to produce over 1Mn heavy-duty & over 200,000 medium-duty commercial vehicles last year. The market is emerging from conventional ‘track & trace’ solutions to the growing use of connected technology & factory-fit solutions. Coverage comprises Beijing-based G7 Technologies a leading commercial telematics provider, with customers including Amazon China, JD.com, and FedEx Express, and with at least $510 million in funding, including Ten cents. Award-winning supplier 666GPS is the nation’s largest GPS manufacturer with more advanced custom solutions. Shenzhen-based Meitrack serves a wide number of businesses with multiple solutions with integration with Mobileye. Shenzhen Huabao Electronic Technology supports both local & international markets, with some distribution via Alibaba as well as other aftermarket & OEM solutions.
LG Elect to supply automotive telematics systems to Honda:
South Korea’s LG Electronics Inc. has increased traction for its automotive electronics business by clinching a contract with Honda Motor Co. to supply telematics systems for its cars released in 2022. According to MMR study report, LG Electronics signed its 1st contract with the Japanese carmaker. Contract details counting the financial term were not disclosed. LG Electronics shares rose 3.33 % to finish Thursday at USD 78.66 in Seoul.
Telematics systems for Honda Motor will be formed at LG Electronics’ manufacturing lines in Incheon, Korea & Haiphong, Vietnam. LG Electronics expects the contract with Honda Motor would assistance its vehicle component solutions (VS) business return to a profit next year after the losses of 18 successive quarters since 2016. LG Electronics claimed a 17 % share in the global automotive telematics system market last year, down from 19.6 % in the year 2018. It used to be the market No one supplier but lost the lead to Germen brand Continental last year.
The Korean company is seeking to grab back the crown from its German rival in the worldwide automotive telematics system market which is projected to grow to $7 Bn in 2025 from $4.3 Bn in the year 2020. LG Electronics has already secured an automotive part order from Cadillac to supply its digital cockpits for new 2021 Cadillac Escalade in February. It contracted supply agreements for infotainment systems with Mercedes-Benz & Hyundai Motor’s premium brand Genesis in recent years.
Korean tech giant has been expanding down on its effort to groom VS business under leadership of young leader Koo Kwang-mo who has been vigorously seeking to realign business structure & to find new development engines. LG Electronics acquired Austria’s automotive lighting systems supplier ZKW for USD 1.21 billion won in the year 2018 & is planning to invest 898.5 Bn won in the vehicle solutions business this year, equivalent to the scale for the home appliance business.
You can browse the market data tables and figures spread through a comprehensive research report and in-depth ToC on “APAC Telematics Industry”.
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