Enjoy complimentary customisation on priority with our Enterprise License!
The automotive telematics market size is forecast to increase by USD 170 billion and is estimated to grow at a CAGR of 25.2% between 2023 and 2028. The market is experiencing significant growth due to several key factors. The increasing popularity of electric vehicles (EVs) is driving the demand for advanced connectivity solutions to support their unique features and requirements. Additionally, the technology environment is becoming increasingly conducive to telematics, with the proliferation of 5G networks and Internet of Things (IoT) enabling real-time data exchange between vehicles and the cloud. Furthermore, regulations aimed at enhancing vehicle safety, such as eCall and autonomous driving technologies, are also boosting market growth by mandating the integration of telematics systems in modern vehicles. Overall, these factors are fueling the expansion of the market, offering significant opportunities for growth in the coming years.
To learn more about this Automotive Telematics market report, View Report Sample
The market is a rapidly growing industry that integrates vehicle technologies with telecommunications and electrical engineering to provide real-time information and communication between vehicles and external networks. Vehicle production is a significant driver of this market, with both passenger vehicles and commercial vehicles adopting telematics systems for safety features, tracking, and improved driving experience. Embedded telematics, which involves integrating commercial telematics into the vehicle during manufacturing, is a major segment of the market. This includes embedded systems for safety and security, insurance telematics, and new energy vehicles. Tethered telematics, which involves connecting external devices to the vehicle, such as GPS systems and wireless telematics devices, is another segment. Fleet operators are major consumers of it, using the technology for vehicle tracking, maintenance scheduling, and driver behavior monitoring.
Telematics systems provide valuable data on vehicle performance, location, and driver behavior, which can help improve fleet efficiency and reduce costs. The market is expected to grow significantly due to the increasing demand for safety and security features, the integration of wireless communications, and the growing popularity of electric and autonomous vehicles. The market is also being driven by advancements in vehicular technologies and the increasing importance of road transportation in a connected world. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Regulations to improve the safety of modern vehicles is the key factor driving the growth of the market. Automotive telematics services are gaining prominence in the automotive market due to increased demand for vehicle tracking and navigation services. Among the various services offered by telematics, eCall, and stolen vehicle tracking have been the main areas of focus for many regulatory bodies across the world.
Moreover, emerging economies like India and China are developing regional navigation systems to support telematics service providers and reduce dependency on US GPS and GPS trackers. This will lead to a reduction in the cost of telematics devices in these countries. Increasing infrastructural support from governments and regulatory mandates is expected to drive the growth of the global market during the forecast period.
The growing popularity of API is the primary trend in the market. Application programming interfaces (APIs) allow significant data exchange and integration between different software systems, applications, and devices. The API allows third-party developers to build applications and services that can be integrated with the automotive telecommunications platform. This opens the door to innovative solutions, such as driver behavior analytics, insurance-based telecommunications, and personalized services for vehicle owners.
Additionally, the API can support over-the-air (OTA) software updates, improving vehicle performance and functionality without the need to visit a service center. The API drives the growth of the ecosystem around it. This ecosystem includes not only vehicle manufacturers and suppliers, but also application developers, data analytics companies, insurance companies, and other stakeholders. Hence, these factors are expected to drive the growth of the global market during the forecast period.
The high cost associated with telematics services is a challenge that affects the growth of the market. The upfront cost of setting up the telematics includes licensing, configuration, and installation fees, in addition to payments for customization and integration with existing systems. In addition, license fees must be renewed periodically, adding to the overall cost. Additionally, integration or customization can be more expensive than telecommunications equipment and license fees.
Moreover, automakers are looking for low-cost solutions to maintain high-profit margins. They are achieving this by implementing various cost-cutting measures through the launch of low-cost and no-frills products or through the expected operating process that sets challenges for the growth of the global market during the forecast period.
The automotive telematics market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The automotive telematics market growth insights report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The OEM segment is estimated to witness significant growth during the forecast period. Telematics OEMs typically focus on safety and security features, such as automatic collision notification, emergency assistance, stolen vehicle tracking, and remote vehicle immobilization. These features improve the overall safety of the driver and passengers. OEM telematics systems can support remote diagnostics, allowing manufacturers and service centers to monitor vehicle conditions and performance.
Get a glance at the market contribution of various segments. View PDF Sample
The OEM segment was the largest segment and was valued at USD 23.20 billion in 2018. The OEM telematics system enhances the driving experience by providing features such as remote start, remote door locking/unlocking, and settings that can be customized via a smartphone app or interface. These factors are expected to drive the demand for vehicle telematics, which in turn is expected to drive the growth of the OEM segment of the global automotive telecommunications market during the forecast period.
For more insights on the market share of various regions, Download PDF Sample now!
APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US and Canada are the largest contributors to the market in the region. In the US, well-known OEMs like General Motors are based in the regional market. The region also has a strong presence in aftermarket products. In addition, the increasing prevalence of EVs in the region, with most EVs equipped with vehicle telematics systems, also contributes to the market growth.
Moreover, the US is also at the forefront of introducing new diagnostic solutions and predictive systems. Domestic auto brand General Motors is the first auto industry OEM to offer predictive solutions out of the box. They offer predictive solutions for selected models in both passenger and commercial vehicle sectors. The company is working to upgrade its remaining models to vehicle telematics services. Such factors are anticipated to propel the growth of the regional market during the forecast period.
The automotive telematics market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth due to the increasing integration of advanced technologies in vehicle production. Telematics systems, which include embedded and tethered devices, are becoming essential components in both passenger vehicles and commercial vehicles. The market landscape depends on the Advanced Driver Assistance System, Cybersecurity, Unauthorized access, Connectivity system, Hardware, Bluetooth, Cybersecurity breach, Hacking, Vehicular Technology, Usage-Based Insurance (UBI), Fleet/asset management, Fuel management, On-road assistance, Emergency services, Embedded technology, Tethered technology, Integrated technology. These systems enable real-time monitoring of vehicle data such as location, speed, and onboard diagnostics, enhancing safety, security, and driving experience. Fleet operators, UPS, and ride-sharing services are major consumers of telematics systems for tracking and managing their vehicles efficiently. New energy vehicles are also adopting telematics systems for monitoring battery health and optimizing charging infrastructure.
Safety and security are key applications of automotive telematics, with insurance telematics providing usage-based insurance policies based on driving behavior. Telecommunications, electrical engineering, and wireless communications are crucial technologies driving the market's growth. Vehicular technologies like Wi-Fi, 4G, sensors, and smartphone applications are integral to wireless telematics devices, enabling seamless connectivity and data transfer. GPS systems and onboard vehicular diagnostics are essential features of telematics systems, providing location information and vehicle maintenance alerts, respectively. In summary, the market is experiencing growth due to the integration of telematics systems in vehicle production, the increasing demand for safety and security features, and the adoption of wireless connectivity technologies. Fleet managers, ride-sharing services, and commercial vehicle operators are major consumers of telematics systems, driving market growth.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.2% |
Market growth 2024-2028 |
USD 170 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.78 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agero Inc., Airbiquity Inc., BorgWarner Inc., Continental AG, Garmin Ltd., General Motors Co., LG Corp., Masternaut Ltd., MiX Telematics Ltd., OCTO Telematics S.p.A, Panasonic Holdings Corp., Qualcomm Inc., Robert Bosch GmbH, Solera Holdings LLC, Teletrac Navman US Ltd., TomTom NV, Trimble Inc., Verizon Communications Inc., Visteon Corp., and Volkswagen AG |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, Market forecasting, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this automotive telematics market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.