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Global automotive telematics market size is estimated to grow from US$ 50.90 billion in 2022 to US$ 251.05 billion by 2031 at a CAGR of 19.4% during the forecast period 2023-2031. On the other hand, the volume is projected to grow at a CAGR of 18.5% during the forecast period.
Today, a vehicle is equipped with around 30 to 90 electronic modules controlling diverse systems, from airbags to seating positions to brakes and entertainment. Automotive telematics is a technology that combines GPS systems, onboard vehicle diagnostics, wireless telematics devices, and black box technologies to record and transmit vehicle data, such as speed, location, maintenance requirements and servicing, and cross-reference this data with the vehicle’s internal behavior. Most of the telematics technology is being used in making smart vehicles for monitoring location, the behavior of vehicle or fleet of vehicle, remote control access, and many more. Thus, telematics is opening the road to smart transportation, bringing autonomous driving closer to reality.
Key Takeaways from the Global Automotive Telematics Market
OEM to Generate Higher Revenue in Global Automotive Telematic Market
By sales channel, OEMs held the highest share in the global automotive telematics market in 2021. This is attributed to the need for automakers to offer value-added services and differentiate their vehicles from those of their competitors. In addition, OEMs are able to generate revenue from subscription fees charged for access to connected services.
OEM provides integrated sensors and capabilities that can deliver a high degree of data related to vehicle operation at minimal cost. OEMs are increasingly being preferred across the globe, mostly in the U.S., Europe and Russia, for its features like automatic emergency calls and vehicle location identification.
The OEMs segment comprises corporations that design, develop, produce, and market vehicles such as passenger cars, light commercial vehicles, trucks, buses, and two-wheelers. These OEMs install telematics units in their vehicles during production. Automotive OEMs are investing in Research and Development (R&D) activities to develop new telematics solutions for their customers. Automotive telematics solutions offered by OEMs are gaining popularity among end-users due to their better quality, durability, and reliability.
Asia Pacific is holding the lion’s share in the global automotive telematics market and is expected to continue its dominance during the forecast period. With regulations and policies related to the safety of vehicles and adoption of advanced technology, the regional market is expected to grow at the fastest CAGR.
Some of the key factors driving this rapid market growth include the increasing need for real-time data analytics and communication in connected and autonomous vehicles, as well as the growing awareness of the safety and efficiency benefits offered by telematics systems. In addition, government initiatives such as mandatory e-call systems for new cars in Europe and China's Intelligent Connected Vehicles (ICV) mandate are also expected to play a role in boosting market demand. Looking ahead, the Asia Pacific region is expected to remain the global leader in automotive telematics market growth, with Astute Analytica forecasting that the number of connected vehicles will reach 352 million by 2023.
List of Key Companies Profiled:
As per our latest findings and extensive research, it is found that big players are investing heavily primarily in product development and collaboration with the automotive OEMs to have capture a higher market share. Apart from this, some of them are expanding their geographical reach by acquiring small brands and domestic companies.
(Note*: We also provide granular level reports, made to sub-segment level or only for niche segments. Contact us, if you require more details.)
By Component segment:
By Vehicle Type:
By Sales Channel:
|Market Size Value in 2022||US$ 50.90 Bn|
|Expected Revenue in 2031||US$ 251.05 Bn|
|Unit||Value (USD Bn)|
|Segments covered||By Component, By Application, By Vehicle Type, By Connectivity, By Sales Channel, By Region|
|Key Companies||Robert Bosch GmbH, Continental AG, LG Electronics, Verizon, Harman International, Delphi Automotive Plc, Visteon Corporation, Magneti Marelli S.P.A., Tomtom International BV, Qualcomm Technologies Inc., Intel Corporation, Trimble Inc, AT&T , Octo Telematics, Airbiquity Inc., Masternaut Limited, The Descartes Systems Group Inc., Box Telematics, Act Soft, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Automotive telematics is a technology that combines GPS systems, onboard vehicle diagnostics, wireless telematics devices, and black box technologies to record and transmit vehicle data, such as speed, location, and maintenance requirements among others.
Telematics devices collect and transmit GPS and vehicle-specific data via General Packet Radio Service (GPRS), 4G and cellular networks, or satellite communication to a centralized server, where the data is categorized, interpreted, and optimized for consumer user interfaces.
Telematics includes data about fuel consumption, idling time, location, speed, sharp acceleration or braking, and vehicle faults.
Automatic collision notification, emergency assistance, roadside assistance, vehicle diagnostics are some of the features of automotive telematics.
Global Automotive Telematics Market is projected to expand at a GAGR of 19.4% during the forecast period 2023-2031.
Factors such as increasing adoption of NGTP, favorable government Initiatives and rising technology penetration are driving the Global Automotive Telematics Market.
The connected systems have access to information, such as medical details, family details, addresses, and routes traversed, thereby leading to data privacy infringement.
The focus of telematics manufacturers on making telematics compatible with multiple operating systems and software platforms are creating opportunities in the Global Automotive Telematics Market.
The Global Automotive Telematics Market is segmented based on component, application, vehicle type, connectivity, sales channel, and region.
The hardware component is leading the Global Automotive Telematics Market in 2022.
The vehicle tracking/recovery (fleet management) application of the automotive telematics has the highest market share in 2022.
Heavy vehicle has the fastest CAGR in the Global Automotive Telematics Market during the forecast period.
Asia Pacific region dominates the Global Automotive Telematics Market in 2022.
The key players in the Global Automotive Telematics Market are Robert Bosch GmbH, Continental AG, LG Electronics, and Harman International, among others.