The global automotive telematics market is expected to grow at a CAGR during the forecast period (2022-2029).
Telematics is a collection of automatic vehicle connectivity solutions usually based on cellular technology for both private and business users. Telematics technologies provide two-way wireless communication possibilities for vehicles regardless of their geographical location. In 2017, the significant trend seen is the availability of a wide range of “value-added services” based on automotive telematics technology such as roadside assistance, vehicle diagnostic, and smart maintenance service.
The major factors that drive the telematics market are safety and security concerns, 24×7 connectivity, superior driving features, provision of online vehicle diagnostics & maintenance alerts, advanced connectivity solutions, and others. The Major restraints of the market are additional expenses borne by the customer for availing the telematics services, the threat of hackers breaching the security and accessing data or causing a nuisance to the vehicle system, non-availability of constant & seamless connectivity, and lack of awareness among customers in specific regions.
The global market for Automotive Telematics market by service is divided into Safety & Security, Information & Navigation and Remote Diagnostics
The global market for Automotive Telematics market by product is segmented into tethered, embedded, and integrated systems. Smartphone integration, where apps run on the phone and the human-machine interface (HMI) is transferred to a vehicle, is likely to be a long-term companion to embedded and tethered solutions to support the passenger's preferred lifestyle apps such as internet radio. A seamless in-vehicle experience for consumers will depend on overcoming existing barriers for both embedded and tethered connectivity. Tethering services revenues for telematics and infotainment systems are amount to USD 909 million in 2016.
The global market for the Automotive Telematics market by vehicle is segmented into passenger cars and commercial vehicles. Commercial vehicles are further classified into light commercial vehicles and heavy commercial vehicles. The future of the global automotive telematics industry looks promising with many opportunities in the passenger car and light commercial vehicle. Connected vehicles transmit data to backend servers, belonging to different entities. The first is servers belonging to the OEM of the car itself, which collect performance data and can remotely distribute OTA (Over the Air) software updates if needed. Telematics and application servers not only collect data about the vehicle’s activity but can also send them specific commands, which can have a frightening effect in the wrong hands.
The global automotive telematics market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
The North American automotive telematics market size was worth USD XX billion in2018 and is forecasted to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period. North America is expected to have a major share in the global automotive telematics market. The U.S in the North American region is the principal user of automotive telematics systems. In North America, every vehicle insurance company is either using or plans to use some sort of telematics solution, as it enables the insurance companies to minimize risk through monitoring of different aspects such as maintenance, usage & security, etc. People are willing to pay a premium for features and options like safety devices and telematics. The major growth technologies in North America will likely be associated with safety. This is because of the emphasis that the National Highway Traffic Safety Administration (NHTSA) places on reducing crashes and saving lives associated with vehicle crashes.
The Asia Pacific automotive telematics market size was worth USD XX billion in 2018 and is forecasted to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period. Developing markets, like, India and China in the Asia Pacific region are considered to hold the major market share for automotive telematics in the forecast period. Rising smart device access in telecom is a major reason expected to build up the Asia Pacific automotive telematics market. Rising logistics actions and transportations are also likely to boost the Asia Pacific automotive telematics market.
Moreover, rising government initiatives concerning security and safety levels of vehicles are the crucial factor for market growth. For instance, the Indian Government has allocated USD 2.4 Billion for improving safety and network systems in metropolitan cities. In the year 2016, the China government made it mandatory for satellite installation of telematics systems in commercial vehicles.
The main four players in automotive telematics are Agero Inc., I.D.Systems, Inc., Airbiquity Inc., and TomTom International held 38% of the market share globally.
Some of the market players are Robert Bosch, Continental AG, Qualcomm Technologies, Verizon, Intel Corporation, Delphi Automotive Plc, LG Electronics, and Harman International.
Key players are concentrating on launching products that are technically advanced to grab major revenue in the automotive telematics industry globally. For instance, In Dec 2018, MiX Telematics, a global leader of fleet and mobile asset management solutions, launched MiX Now - simplified, self-service fleet software that empowers business owners to easily manage their vehicles and drivers.
In the upcoming years, companies are expected to begin using telematics applications to develop new business models, for example, insurance companies introducing Usage-based insurance.
The telematics market is expected to expand in the coming years and attract several new players globally.
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