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The passenger vehicle telematics market size is forecast to increase by USD 46.2 billion at a CAGR of 24.94% between 2023 and 2028. The passenger vehicle telematics market is witnessing substantial expansion due to various influential factors. One of the major catalysts is the rising demand from original equipment manufacturers (OEMs) in BRIC countries (Brazil, Russia, India, and China) to integrate telematics systems and automotive Bluetooth products into automobiles. Another significant contributor is the increasing penetration of technology in vehicles, allowing for advanced in-car connectivity and functionality. Moreover, the increasing adoption of electric vehicles (EVs) is also propelling market growth, as telematics technology plays a vital role in enhancing EV performance and optimizing charging infrastructure utilization. These trends are anticipated to persist, driving the expansion of the passenger vehicle telematics market in the upcoming years.
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The market encompasses the use of advanced technologies, such as IoT devices, connected cars, and in-vehicle connectivity, to enhance driver safety and passenger comfort. Telematics systems employ external sensors and AI to monitor critical situations on the road and alert decision-makers in real-time. These systems enable fleet managers to track vehicle location, operation levels, and dispatching for optimized client delivery times and improved driver productivity. Fuel usage is another crucial aspect of passenger vehicle telematics, with technology advancements like 5G and GPS tracking enabling more efficient fleet management. Passenger safety features, such as autonomous driving and AI-assisted decision-making, are also gaining popularity in the market.
Telecommunication plays a vital role in ensuring seamless connectivity and data transfer between vehicles and control centers. The market is poised for significant growth due to the increasing demand for enhanced safety features, improved operational efficiency, and the integration of artificial intelligence and other advanced technologies. Vehicle telematics is transforming the automotive industry, offering new opportunities for innovation and growth.
The passenger vehicle telematics market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The smartphone integration segment is estimated to witness significant growth during the forecast period. The market is experiencing substantial growth due to the integration of advanced technologies and the increasing demand for connectivity and safety features. Risk assessments and safety performance are key concerns for vehicle operators, leading to the adoption of telematics solutions for real-time monitoring and decision-making. These systems facilitate maintenance and repair scheduling, reducing downtime and vehicle breakdowns. Hardware components, such as digital cockpits and external sensors, are essential for these systems, enabling features like commercial vehicle advanced driver assistance systems (ADAS), fleet management, and uptime solutions. The market caters to both business and personal vehicles.
These solutions provide a strong application base, enhancing the user experience and fueling growth in the telematics market. Technology advancements, including 5G, GPS tracking, artificial intelligence (AI), and cloud technologies, are driving innovation in this space. Telecommunication companies and insurance firms are also leveraging telematics data for commute risk assessment, driving behavior analysis, and automatic crash assistance, leading to customized insurance plans. The global footprint of the telematics market is expanding, with a significant presence in the aftermarket and service sectors. Service types range from basic vehicle data access to advanced fleet management solutions. Embedded technology and automobile telematics systems are becoming increasingly sophisticated, offering real-time vehicle performance insights and predictive maintenance. Decision-makers in the automotive industry are recognizing the potential of these systems to optimize operations, improve safety, and enhance the overall driving experience.
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The smartphone integration segment accounted for USD 6.20 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 40% to the growth of the global passenger vehicle telematics market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The global market encompasses advanced technologies and services, primarily focused on risk assessments, safety performance, maintenance, and repairs. Hardware components, such as digital cockpits, external sensors, and connectivity solutions, form the backbone of these systems. Automakers are integrating these systems into business and personal vehicles to offer enhanced driver experiences. Safety is a significant concern, with features like driver assistance systems, automatic crash assistance, and digital claim services becoming essential. Telematics market growth is driven by technology advancements, including 5G, GPS tracking, artificial intelligence (AI), and cloud technologies. These systems enable real-time vehicle data collection and analysis, facilitating fleet management and uptime solutions for vehicle operators.
Connectivity and aftermarket services are crucial aspects of the market. Service type offerings range from basic repairs to complex maintenance procedures. Global footprint and automobile telematics systems enable vehicle operators to monitor and manage their fleets effectively, reducing commute risk and optimizing driving behavior. Insurance companies leverage these systems for risk assessment and personalized insurance plans based on driving behavior. Vehicle breakdowns and maintenance are addressed through proactive decision-making based on real-time vehicle data. Telematics market trends include the integration of decision-makers' insights, telecommunication, and advanced features like vehicle noise compensation and in-vehicle connectivity. The market's future development will be influenced by advancements in 5G technology, AI, and the increasing importance of vehicle data for fleet management and insurance purposes.
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.
OEM push for embedded telematics systems in BRIC nations is the key driver of passenger vehicle telematics market growth. The market is primarily driven by advanced technologies and regulatory mandates in developed regions such as Europe and North America. Embedded telematics systems, which include factory-fitted equipment, offer several advantages over tethered and smartphone integration solutions. These advantages include real-time data reliability, fuel and routing optimization, vehicle maintenance warnings, stolen-car recovery, and cost-saving opportunities for both passenger cars and commercial vehicles. In the commercial vehicles segment, fleet operators seek uptime and corrective actions to minimize logistical strain. Telematics platforms enable fuel efficiency, vehicle performance monitoring, and maintenance requirements. Advanced safety features such as lane keeping assistance, cruise control, collision avoidance systems, and infotainment systems are also gaining popularity.
Regulatory bodies have passed legislation, including electronic logging device (ELD) mandates in the US and Canada, to encourage the installation of telematics systems in passenger vehicles. This trend is expected to continue, leading to significant market revenue growth. However, concerns over cybersecurity, traffic accidents, user data, and hacking pose challenges to the industry. Telematics providers offer solutions to address cybersecurity concerns. The aftermarket segment, which includes installation, troubleshooting, periodic replacement, and software updates, is also a significant contributor to the market. As the market evolves, telematics systems will continue to play a crucial role in optimizing vehicle performance, enhancing consumer purchasing habits, and improving overall fleet management.
Adoption of video telematics to precisely track driver behavior is the upcoming trend in the passenger vehicle telematics market. The market encompasses the integration of technology in passenger cars and commercial vehicles, facilitating sales channels through e-vehicle telematics. This market caters to fuel and routing optimization, vehicle maintenance warnings, stolen-car recovery, and fleet management for both passenger cars and commercial vehicles. Telematics plays a pivotal role in enhancing consumer purchasing habits by providing cost-saving opportunities, such as uptime optimization and corrective actions. In the OEM market category, factory-fitted telematics equipment is becoming increasingly common, offering software solutions for aftermarket installation, troubleshooting, and periodic replacement. The commercial vehicles segment, particularly fleet operators, benefits significantly from telematics, as it enables real-time monitoring of vehicle performance, maintenance requirements, and fuel efficiency.
Camera technology, including video-based safety systems, is a nascent yet promising development in telematics, focusing on monitoring driver behavior to minimize human errors and reduce traffic accidents. Advanced features like lane keeping assistance, cruise control, collision avoidance systems, and infotainment systems are part of the telematics platform, offering real-time navigation capabilities and enhancing overall vehicle performance. However, the market faces challenges such as logistical strain, cybersecurity concerns, and user data privacy. Market revenue growth is expected to continue as telematics becomes an integral part of modern vehicles, offering features like fuel efficiency, collision avoidance systems, and infotainment systems.
Data security in telematics industry is a key challenge affecting passenger vehicle telematics market growth. In the market, the integration of technology in autonomous vehicles and passenger cars is revolutionizing the sales channels. The European vehicle telematics sector is experiencing significant growth, driven by consumer purchasing habits and the implementation of fuel & routing optimization, vehicle maintenance warnings, stolen-car recovery, and uptime monitoring for fleet operators. Commercial vehicles segment, particularly fleet operators, are leveraging telematics for cost-saving opportunities through corrective actions and real-time monitoring. OEMs are increasingly offering factory-fitted telematics equipment, while the aftermarket segment is witnessing installation, troubleshooting, and periodic replacement. Logistical strain is being addressed through the optimization of vehicle performance and maintenance requirements.
Telematics platforms provide real-time navigation capabilities, lane keeping assistance, cruise control, collision avoidance systems, and infotainment systems. However, the market faces cybersecurity concerns, as malware can infiltrate in-vehicle infotainment systems and compromise other networks, such as controller area network (CAN) bus. Hacking poses a threat to critical functions like engine and brakes. Market revenue growth is influenced by fuel efficiency and the development of advanced features like lane keeping assistance, cruise control, and collision avoidance systems. User data is a valuable asset, and its protection is crucial. Telematics platforms must ensure data privacy and security to mitigate cyber threats and traffic accidents.
Market trends indicate a focus on cost-saving opportunities, fleet optimization, and the integration of advanced safety features.
The passenger vehicle telematics market forecasting 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 passenger vehicle telematics market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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.
Agero Inc. - The company offers advanced connectivity solutions for automobiles, enabling real-time monitoring and optimization of vehicle performance and driver behavior.
The passenger vehicle telematics market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 passenger vehicle telematics market represents a substantial and expanding segment within the automotive industry. This technology facilitates real-time interaction between vehicles and external entities, delivering essential data and services to passengers and automakers. Key elements consist of vehicle positioning, diagnostics, safety, and infotainment functionalities. The market expansion is fueled by factors including rising vehicle connectivity, escalating consumer demand for safety and convenience features, and the integration of sophisticated technologies such as artificial intelligence and machine learning. Moreover, government regulations and initiatives prioritizing vehicle safety and emissions reduction are further propelling market growth. Automakers and service providers are investing substantially in passenger vehicle telematics to introduce groundbreaking services and elevate the consumer experience.
Some prominent applications of this technology encompass remote diagnostics, real-time traffic updates, emergency assistance, and vehicle performance analysis. The passenger vehicle telematics market is projected to expand at a considerable pace in the upcoming years, with key players concentrating on creating advanced features and broadening their offerings to cater to the evolving consumer requirements. The implementation of 5G technology and the increasing prevalence of electric and autonomous vehicles are also anticipated to generate new possibilities within this market.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.94% |
Market growth 2024-2028 |
USD 46.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.47 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
China, US, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agero Inc., Airbiquity Inc., AT and T Inc., Bridgestone Corp., Bynx Ltd., Continental AG, Danaher Corp., BorgWarner Inc., DXC Technology Co., Fleet Complete, Garmin Ltd., OCTO Telematics S.p.A, Robert Bosch GmbH, Telefonaktiebolaget LM Ericsson, Telenav Inc., Trimble Inc., Valeo SA, Verizon Communications Inc., Visteon Corp., and Vodafone Group Plc |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our passenger vehicle telematics market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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