This Time, K-Blackbox... Reasons Behind Its Bright Growth Prospects

Installation rates only 10-20% in Europe, Japan, etc.
Regulatory and perception changes expected to continue, outlook bright
Overseas sales growth including Thinkware... Japanese market share ↑

Tinkware's commercial vehicle-exclusive 3-channel black box 'iNavi B300.'
Photo by Tinkware

[Asia Economy Reporter Junhyung Lee] As the overseas black box market expands, domestic companies with technological capabilities such as Thinkware are expected to continue their growth in overseas sales. This is because the need for black boxes is increasing in the U.S. and Europe, where the black box penetration rate was relatively low.

Thinkware announced on the 8th that its overseas sales last year were tentatively estimated at 35 billion KRW, a 24.5% increase compared to the previous year (28.1 billion KRW). Following the breakthrough of 20 billion KRW in overseas sales in 2019, it exceeded 30 billion KRW in just one year. Considering that domestic companies faced difficulties in exports due to COVID-19 last year, this growth is remarkable. A Thinkware official stated, "Although there are still many variables in exports due to COVID-19, we are currently viewing this year's outlook positively."

The increase in global demand influenced by changes in overseas regulations and perceptions played a role. Due to privacy concerns, black box penetration rates were not high in major countries. According to market research firms such as Trend Monitor, the installation rate of black boxes in domestic vehicles is 90%, whereas in Europe and Japan it is in the 10-20% range. However, as more countries mandate black box installation and black boxes are used for crime prevention and accident handling, the market is showing steady growth.

Policies are being strengthened to mandate and encourage black box installation. The European Union (EU) has mandated the installation of information recording devices such as black boxes on newly released vehicle models since 2022. In 2024, this regulation will be expanded to all new cars. The Japanese government has mandated black box installation on commercial vehicles since 2017 and provides subsidies for black box installation. UK insurance companies offer discounts of 10-30% on car insurance premiums to drivers who have black boxes installed, encouraging their adoption.

Changes in perception are also significant. Credit research firm Value Penguin cited "battery consumption" as the reason for the low black box penetration rate in the U.S. Many consumers are reluctant to affect their car batteries due to the long driving hours typical of American drivers. However, as more people seek black boxes to resolve traffic accident disputes, the import value of black boxes in the U.S. has increased by approximately 1.13 trillion KRW over the past two years.

The situation is similar in Europe. According to UK insurer Aviva, the black box penetration rate in the UK increased fivefold from 4% in 2014 to 20% in 2019. Additionally, 72% of UK black box users responded that other drivers should also use black boxes. A survey conducted by the German Information and Communications Association BITKOM found that only 13% of drivers said they have no intention of using black boxes in the future.

Exports of domestic products are also performing well amid these changes. In particular, market share expansion in Japan has been notable. According to the Korea Trade-Investment Promotion Agency (KOTRA), the market share of Korean products in the Japanese black box market increased from 4.8% to 8% over the past three years. Although there was no significant change in market share in the U.S. during the same period, imports of Korean products increased by 25 billion KRW.

Meanwhile, according to industry sources, the global black box market is growing at an average annual rate of 13% and is expected to reach 6.8 trillion KRW by 2025.