Global Automotive Telematics Market – Industry Trends and Forecast to 2030

Global Automotive Telematics Market, By On-Highway Vehicle Services (ACN, Emergency Calling, Navigation and Infotainment, On-Road Assistance, Remote Diagnostics, Vehicle Tracking/Recovery), On-Highway Vehicle Form Factor (Embedded Telematics Solutions, Integrated Telematics Solutions, Tethered Telematics Solutions), Off-Highway Vehicle Services (Fuel Management, Location/Usage Tracking, Maintenance and Repair, Navigation, Diagnostics, Other Services), Off-Highway Vehicles Technology (Cellular Technology, Satellite Technology), Hardware (Infotainment Display Unit, Telematics Solutions Control Unit), Vehicle (Passenger Car, Commercial Vehicles) – Industry Trends and Forecast to 2030.

Automotive Telematics Market Analysis and Size

Automotive telematics refers to a type of integration technology which assists in incorporating communication technologies with the vehicle and the devices installed in the vehicles in order to achieve proper safety and management solutions.

The emergence of integrated telematics coupled with policies for driver safety, the increasing need for risk management and the rising importance of smartphones are the major factors driving the automotive telematics market. The increase in popularity of these systems because of their features such as efficient utilization of power and visualization of vehicle position on digital maps, the use of systems for trailer tracking and automobile insurance and high demand as intuitive vehicular guidance also boost the automotive telematics market. Furthermore, development of diverse and variant telematics systems extends profitable opportunities to the automotive telematics market players in the forecast period.

On the other hand, high cost associated with the systems and complexities owing to communication breakdowns and error rates are factors expected to obstruct the automotive telematics market growth. The rise in concerns regarding the sensitivity of a single error causing heavy and serious breakdowns is projected to challenge the automotive telematics market in the forecast period.

Data Bridge Market Research analyses that the global automotive telematics market is expected to grow at a CAGR of 19.76% during the forecast period of 2023 to 2030, at a USD 64.01 billion in 2022 and is further estimated to reach USD 76.66 billion by 2030. ‘Vehicle Tracking/Recovery’ dominates on-highway vehicle services segment in global automotive telematics market as it addresses critical needs and offers peace of mind to vehicle owners and fleet managers.

This automotive telematics market report provides details of new recent developments, trade regulations, import export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographical expansions, technological innovations in the market. To gain more info on automotive telematics market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth..

Report Scope and Market Segmentation

Market Definition

Automotive telematics is a technology that combines telecommunications and informatics to enable the remote monitoring, tracking, and communication with vehicles. It involves the use of sensors and GPS technology to collect and transmit data related to a vehicle's location, performance, and driver behavior to a central system. This data is then analyzed to provide insights into vehicle safety, maintenance, and efficiency, and it can also be used for applications such as navigation, emergency assistance, and insurance pricing. Telematics plays a crucial role in enhancing the safety, efficiency, and connectivity of modern vehicles, while also paving the way for advancements in autonomous and connected vehicle technologies.

Global Automotive Telematics Market Dynamics

Drivers

• Safety and Security Requirements

The growing emphasis on vehicle safety and security is driving the adoption of automotive telematics. Telematics systems provide real-time monitoring of vehicle location, driver behavior, and maintenance needs. This, in turn, enhances safety by enabling quicker responses to accidents or theft. For instance, in case of an accident, telematics can automatically send an alert to emergency services with the vehicle's precise location, potentially saving lives.

• Government Regulations

Increasing government regulations pertaining to vehicle safety, emissions, and fuel efficiency are a powerful force behind the expansion of telematics solutions. Many countries have introduced regulations that mandate the use of telematics for monitoring and reporting data. For example, telematics systems can record and transmit data on emissions levels or driver behavior, ensuring that vehicles comply with environmental and safety standards. This regulatory pressure serves as a catalyst for the integration of telematics technology.

Opportunities

• Connected and Autonomous Vehicles

The growth of connected and autonomous vehicles presents a substantial opportunity within the telematics market. Telematics systems are indispensable for enabling vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, which is essential for the development and adoption of self-driving cars. Telematics systems help these vehicles exchange crucial data, enhancing safety and efficiency on the road.

• Data Analytics and Monetization

 Telematics systems generate copious amounts of data related to vehicle and driver behavior. This data can be harnessed for various applications, including predictive maintenance, usage-based insurance, and targeted marketing. Service providers and automakers can capitalize on this data by offering innovative services and monetizing it. For instance, insurance companies can offer personalized policies based on the data collected from telematics, creating a win-win situation for consumers and the industry.

Restraints/Challenges

• Data Privacy and Security Concerns

With the collection and transmission of sensitive data, telematics systems confront concerns related to data privacy and security. Customers and regulatory bodies are increasingly apprehensive about how this data is stored, accessed, and protected. Data breaches and unauthorized access to personal information can erode trust and lead to significant privacy and security challenges for both users and service providers.

• High Implementation Costs

 The initial cost of implementing telematics systems, which includes hardware and software components, can be substantial. Smaller fleet operators and price-sensitive consumers may find it challenging to make the necessary investments in telematics solutions. This can limit the widespread adoption of telematics technology, particularly among businesses or individuals with limited budgets. However, as technology advances and economies of scale come into play, these costs are expected to decrease over time.

Recent Developments

• In March 2022, Phillips Connect made several announcements to help fleets and drivers benefit from smarter trailers, including new smart nosebox gateways, backup cameras, and a partnership with Utility to launch the Utility Connect trailer telematics system
• In March 2018, Ram Commercial selected Verizon Connect for its factory-fit telematics software solutions on select Ram commercial vehicles. Ram Telematics powered by Verizon Connect is a comprehensive telematics and mobile workforce management software platform that supports Ram’s commitment to providing customers with value beyond the vehicle. The new offering will help customers save money, increase driving safety, and improve operations by providing critical information businesses of any size can use to optimize their fleets

Global Automotive Telematics Market Scope

The automotive telematics market is segmented on the basis of on-highway vehicle services, on-highway vehicle form factor, off-highway vehicle services, off-highway vehicles technology, hardware, and vehicle. The growth amongst the different segments helps you in attaining the knowledge related to the different growth factors expected to be prevalent throughout the market and formulate different strategies to help identify core application areas and the difference in your target markets.

On-Highway Vehicle Services

• CAN
• Emergency Calling
• Navigation and Infotainment
• On-Road Assistance
• Remote Diagnostics
• Vehicle Tracking/Recovery

On-Highway Vehicle Form Factor

• Embedded Telematics Solutions
• Integrated Telematics Solutions
• Tethered Telematics Solutions

 Off-Highway Vehicle Services

• Fuel Management
• Location/Usage Tracking
• Maintenance and Repair
• Navigation
• Diagnostics
• Other Services

Off-Highway Vehicles Technology

• Cellular Technology
• Satellite Technology

Hardware

• Infotainment Display Unit
• Telematics Solutions Control Unit

Vehicle

• Passenger Car
• Commercial Vehicles

Global Automotive Telematics Market Region Analysis/Insights

The automotive telematics market is analyzed and market size, volume information is provided by country, on-highway vehicle services, on-highway vehicle form factor, off-highway vehicle services, off-highway vehicles technology, hardware, and vehicle as referenced above.     

The countries covered in the globally automotive telematics market report are the U.S., Canada, Mexico, Brazil, Argentina, rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, and rest of the Middle East and Africa.

Asia-Pacific is expected to dominate and witness the fastest growth because of the upcoming government rules and regulations for telematics, rise in concern regarding safety and security, and increase in telematics management in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as consumption volumes, production sites and volumes, import export analysis, price trend analysis, cost of raw materials, down-stream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Global Automotive Telematics Market Share Analysis

The automotive telematics market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to the market.

The major players covered in the global automotive telematics market report are:

• Verizon (U.S.)
• Magneti Marelli S.p.A. (Italy)
• Intel Corporation (U.S.)
• MiX Telematics (South Africa)
• Robert Bosch GmbH (Germany)
• HARMAN International (U.S.)
• TomTom International BV (Netherlands)
• Masternaut Limited (U.K.)
• I.D. Systems (U.S.)
• Teletrac Navman US Ltd (U.S.)
• Trimble Inc. (U.S.)
• Omnitracs (U.S.)
• Continental AG (Germany)
• Bridgestone Corporation (Japan)
• Delphi Technologies (U.K.)
• Qualcomm Technologies, Inc. (U.S.)
• LG Electronics (South Korea)
• Visteon Corporation  (U.S.)