Automotive Telematics Market Size, Share, Growth Analysis, By Channel Type (OEM, Aftermarket), By Vehicle Type (Commercial Vehicle, Passenger Car), By Connectivity Solution (Embedded, Tethered), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG45C2081 |
Region:
Global |
Published Date: November, 2024
Pages:
173
|Tables:
0
|Figures:
0
Automotive Telematics Market Insights
Global Automotive Telematics Market size was valued at USD 58.13 Billion in 2022 and is poised to grow from USD 67.77 Billion in 2023 to USD 198.59 Billion by 2031, growing at a CAGR of 16.6% in the forecast period (2024-2031).
The integration of automotive telematics systems is increasing due to the increased need for high-performance, fuel-efficient, and technologically advanced automobiles. In addition, leading companies in the automotive industry such as Ford Motor Company are striving to do several things including extending the scope of the telematics services that they already offer. They are developing a telematics system that works with most car makes and models, which in turn is propelling the development of the market. As the government tries to promote the use of alternative energy cars in the post-pandemic era, electric vehicle sales are on an increase, along with an increase in demand from the market for tracking devices such automobile telematics systems. In addition, the US government is initiating several initiatives under the banner of increasing road safety. The developments in this respect may appear somewhat significant for vehicle telematics system providers that offer solutions in the market. To upgrade the current vehicle fleet capabilities with linked vehicle technology, for instance, the U.S. Geotab Inc. is a major player on the Internet of Things (IoT) and connected transport industry and has been awarded a contract from the federal government in January 2022. Besides this, with the requirement for ELD integration in commercial vehicles in the US and the linking of ELD with the telematics system, automotive telematics market would soar.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Automotive Telematics Market Segmental Analysis
The Global Automotive Telematics Market is segmented into channel type, vehicle type, application, connectivity solution, and region. By channel type, the market is bifurcated into OEM and aftermarket. Depending on vehicle type, it is classified into commercial vehicle, passenger car, and two-wheeler. According to the application, the market is categorized into Fleet/Asset management, Navigation & location-based system, Infotainment system, and Insurance telematic. As per connectivity solution, it is divided into embedded, integrated smartphones, and tethered. Regionally, the market is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Connectivity Solution
The embedded segment accounted for more than 65% of the global automotive telematics market in 2023. The main reasons for such high percentage are huge adoption by prominent automobile companies incorporating automotive telematics systems into passenger as well as commercial vehicles. Highly demand is also based on integration solutions in telematics, wherein automakers emphasize on connecting and providing usability. In addition, with increasing adoption for fleet tracking in driverless cars and usage of cloud-based embedded telematics systems, the market is on the rise. This underlines the significance of telematics for the automotive industry, as it enhances general safety and vehicle performance while simultaneously increasing operational savings for fleet operators.
The tethered segment would experience a steep growth rate at 17.4% CAGR through the projection period. The basis of the reasons for growth essentially lie in that the inclusion of cellphones as modems is simple, use of Wi-Fi services, and communication or navigation through Bluetooth. Telematics software, wherein vehicle owners can experience real-time alerts on their cellphones, is becoming popular as customers want connected cars. To these risks and status updates of the vehicle, these alarms keep the drivers updated about their safety and this blending of the elements is driving the automotive telematics market on a rapid scale.
Analysis by Channel Type
The original equipment manufacturer (OEM) segment had a market share of more than 65% of automotive telematics in 2023. This shareable portion is a result of the increasing interest of the automotive firm in the installation of modern systems for telematics in their newer car models. Supposedly, this will enhance safety for drivers and passengers, in addition to providing greater connectivity and aligning cars with insurance companies that quote cheaper premiums. The result of this is that real-time data analytics are made available to the manufacturers that help in assessing and preventing accidents while using telematics technology; this means that there are safer driving experiences. The OEM industry gains through it due to the fact that innovation and features in safety are well-priced in their cars, hence valued by manufacturers.
There is expected growth in the aftermarket segment, with a CAGR of 15.6% over the forecast period. The reason for this growth is mainly attributed to the flexibility and fast integration offered by automotive telematics systems and the many advantages it offers, such as saving more fuel, labor costs, and vehicle safety. With such fleet management solutions in place, businesses can optimize their routes and save much time figuring out the best routes. In addition to all that, this reduces costs. The capability of telematics systems to remote turn off cars during idle times also adds to reducing fuel waste that helps accelerate the growth of the aftermarket sector.
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Automotive Telematics Market Regional Insights
Asia-Pacific dominated the automotive telematics market in 2023, accounting for more than 56.87% share. Increased consumer demand in emerging economies such as China and India for affordable aftermarket automotive telematics systems may account for this massive market share. The need for telematics solutions is also triggered by increasing urbanization and car ownership in such regions. Government programs that include provisions for increasing internet penetration and other cellular connectivity networks, even in rural areas, will also be the primary driver of growth for the industry. Asia-Pacific will witness further growth in the automotive telematics market as this awareness in customers will help them achieve efficiency and safety.
The automotive telematics market will be able to gain great momentum in North America and is predicted to increase by 20.1%. The growth in this market is mainly due to technology suppliers' focus on developing the currently telematics-enabled passenger car systems. Manufacturers and service providers enhance vehicle performance and connection by innovation and advancement in products. As part of its agreement with SRM Technologies Private Ltd., a U.S.-based technology company, Zonar Systems, Inc. has entered a joint venture that may offer next-generation telematics services for light-duty cars. North America is proving its intention to engineer innovative telematics solutions for the automotive sector through cooperation aimed at increasing aftermarket sales and improving vehicle uptime.
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Automotive Telematics Market Dynamics
Drivers
Growing Demand for Connectivity
- The demand for connected automobiles mainly drives the automotive telematics market. As features such as remote monitoring, car diagnostics, and real-time navigation are becoming indispensable for drivers seeking enhanced experiences, automakers are equipping them with advanced telematics systems for seamless connectivity between automobiles and outside networks, thereby increasing driving convenience and safety and fostering consumer loyalty and developing the market.
Support from Regulations for Safety
- The automotive telematics market is getting a boost through the government's safety-related rules and efforts. Regulation authorities around the world are mandating the use of telematics systems to monitor driving behavior, track automobile performance, and ensure compliance with safety standards. Such regulations help motivate car makers to fit out their cars with state-of-the-art telematics systems that will automatically lead to safer driving habits. This presents a kind of marriage between state-of-the-art industry innovation and legislative help to facilitate the expansion and usage of the market for telematics systems.
Restraints
High Implementation Costs
- High costs of implementing the automotive telematics system are the greatest barrier to market growth. The cost in terms of hardware, software, and continuous maintenance is predicted to go up, especially for fleet operators and smaller manufacturers. Such a cost may make them apprehensive to the use of the system which would then restrict the overall growth of the market. Organizations may limit full-scale adoption due to the need to weigh the cost against long-term benefits.
Data Privacy Issues
- One of the main barriers to telematics business growth is the problem of data privacy. Telematics systems accumulate and share enormous volumes of personal and vehicle information, thus concerned consumers will likely be worried about potential misuse or illegal access to their data. Regulatory frameworks, including GDPR, add complexity to data management issues facing automakers. Customers need to earn trust in addressing these issues, and when this does not happen, it may prevent the adoption of telematics systems in cars.
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Automotive Telematics Market Competitive Landscape
The automotive telematics market is a highly competitive market with the involvement of established giants and new entrants. Some of the dominant players in the market include Verizon Connect, Geotab, and Teletrac Navman. These companies build momentum through recent advancements and offer the full package. They focus on innovation, strategic alliances, and bringing new markets into play for the development of their products. For their side, small enterprises usually focus on a relatively few applications, and thus, they develop a dynamic atmosphere that promotes inventions, both in terms of technology and marketing extension.
Top Player’s Company Profile
- Ford Motor Company
- Toyota Motor Corporation
- Mercedes-Benz AG
- Volkswagen AG
- General Motors Company
- BMW Motors
- AB Volvo
- Hyundai Motor Company
- Tata Motors
- Nissan Motor Co., Ltd
- Cartrack
- Mix Telematics
- I.D. Systems
- Trimble Inc.
- Omnitracs
Recent Developments
- In May 2023, Targa Telematics gave a clear statement on its acquisition of Viasat Group Spa, thus establishing a significant international player in the Internet of Things space. Along with the Chilean firm, this acquisition will pave the door for innovative solutions and digital services for linked mobility by targeting eight important European nations: Italy, Portugal, Spain, France, the UK, Belgium, Poland, and Romania.
- In May 2023, Bridgestone Mobility Solutions announced an alliance with RIO, a digital service provider. As a result of this agreement, the telematic solutions of Bridgestone's Webfleet will be fully compatible with any MAN vehicle on which an OEM hardware RIO box from MAN is installed.
- In May 2023, ZF Friedrichshafen AG presented its AxTrax 2 high-tech electric axle platform. It is aimed at several commercial vehicle models. The system is fully integrated with automated driving systems, advanced driver-assistance systems as well as brake systems. It also applies CAN bus for communication and information exchange with telematics systems.
Automotive Telematics Key Market Trends
- Integrating Machine Learning into AI: A spree in the automotive telematics sector, combining AI and machine learning technology is. For better route planning, more customized experience of driving, and predictive maintenance, these technologies facilitate it. Utilizing AI-driven information enables automakers to avail cutting-edge technologies such as adaptive cruise control and autonomous emergency braking. This too fits the growing need for intelligent and effective transportation options while improving vehicle performance.
- Adoption of Fleet Management Solutions: Companies become aware of how important the use of telematics is for optimizing fleet operations, saving on fuel, and improving general productivity. With businesses looking for efficiency and sometimes also cuts in expenses, the need to utilize real-time tracking, driver behavior monitoring, and maintenance warnings telematics systems increases. The development trend in telematics technology is establishing future movements in this light, and it is impacting fleet management as well.
Automotive Telematics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the automotive telematics market is growth at a great pace primarily due to factors such as an increased customer propensity for connectedness, governmental support towards safety improvements, and technological innovational parameters involving AI integration. The industry is developing widely in terms of the adoption of telematics solutions despite barriers such as high installation costs and data privacy concerns. However, the telematics system has its advantages in terms of improved performance of vehicles and operation efficiency. This competitive market has coexistence of established firms with creative start-ups creating an environment for ongoing development. Players thus have to focus on issues related to privacy and exploit emergent technology in developing their offers as the market unfolds in a bid to set up positions for long-term success in this rapidly developing industry.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 58.13 Billion |
| Market size value in 2031 | USD 198.59 Billion |
| Growth Rate | 16.6% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Telematics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Telematics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Telematics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Telematics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Telematics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Telematics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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