Vehicle Telematics Market Size, Share, Growth Analysis, By Technology(Embedded, Tethered), By Sales Channels(OEMS and Aftermarket) - Industry Forecast 2024-2031

Global Vehicle Telematics Market size was valued at USD 77.75 billion in 2022 and is poised to grow from USD 87.74 billion in 2023 to USD 283.71 billion by 2031, growing at a CAGR of 15.80% during the forecast period (2024-2031).

Due to the increasing usage of embedded technology, there is an increasing need for automobile telematics systems in both business and personal vehicles. Technology advancements like 5G, GPS tracking, the Internet of things (IoT), and artificial intelligence (AI) with the integration of telecommunication and informatics urge users to use more of this technology, particularly for fleet management. As embedded systems and external sensors advance, it is essential for decision-makers to utilise vehicle telematics more effectively in order to gain competitive advantages. Telematics in fleet management systems allow users to take charge of crucial business processes like mileage reporting and order and shipment management. In recent years, the telematics market for auto insurance has also grown. Insurance companies are increasingly using telematics to assess commute risk and driving behaviour. Only 2% to 3% of all insurance plans are currently telematics-based, but this segment of the market will grow significantly in the coming years. As an illustration, Cambridge Mobile Telematics (CMT), a provider of telematics services, stated on April 14, 2022, that it would offer automatic crash assistance and a digital claim service to the insurance provider HUK-COBURG. As businesses are required to keep an eye on these vehicles, the development of autonomous vehicles is also anticipated to result in a strong demand for the market. Autonomous vehicle development is being done by businesses like Tesla, Waymo, and Pony.ai.

US Vehicle Telematics Market is poised to grow at a sustainable CAGR for the next forecast year.