LG Electronics' telematics related image / Courtesy of LG Electronics

By Kim Jae-heun

LG Electronics has secured orders to supply 5G telematics components to European carmakers, expanding its reach in the rapidly-growing self-driving and connected vehicle markets, the company said Monday.

Telematics is a branch of information technology that deals with the long-distance transmission of computerized information and is essential to developing autonomous and wirelessly connected cars.

LG Electronics' 5G telematics device offers Over The Air (OTA) service that updates vehicle software online and a high-precision positioning technology that reduces the error range of vehicle location information, as well as Dual SIM Dual Active (DSDA) technology that allows users to enjoy premium connected-car and autonomous-driving experiences.

The telematics market has shown potential for growth recently following the expansion of connectivity functions such as V2X (Vehicle to Everything) and its soaring demand.

The 5G telematics communication module was installed in vehicles for the first time last year and it is expected to expand taking over 25 percent of the overall telematics market by 2026.

LG Electronics' share of the global telematics market increased from 17 percent in 2019 to 24.1 percent in the third quarter of 2021, according to a public filing. Here, the company also garnered 10 percent of the world's 5G patent approvals in the 5G telematics communication module market, ranking second after Huawei.

LG Electronics is competing with Germany's Continental for the top tier position in the telematics market currently. The company started developing its "5G Connected Car Platform" in collaboration with Qualcomm last year, which is one of the core components of self-driving cars. The IT firm has also been conducting research on 5G-based telematics together with Intel since 2016.

"We will continue to contribute to creating a safer and better future on the road by expanding our innovation portfolio for advanced mobility," an LG Electronics official said.