Automotive Telematics Market Share, Size, Trends, Industry Analysis Report, By Technology Type (Embedded, Tethered, and Integrated); By Sales Channel; By Vehicle Type; By Region; Segment Forecast, 2023 - 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM3345
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global automotive telematics market was valued at USD 85.23 billion in 2023 and is expected to grow at a CAGR of 16.4% during the forecast period. Rapid increase in the number of road fatal accidents across the globe and growing integration of sophisticated telematics systems like advanced driver assistance systems, cameras, and many other applications coupled with the growing incorporation of advanced communication techniques such as automotive telematics in various verticals, are among the key factors projected to boost the growth of the segment market.
To Understand More About this Research: Request a Free Sample Report
Additionally, there has been a drastic increase in the demand for transportation and rise in consumer disposable income along with the growing focus of manufacturers on developing next-gen solutions and automotive capabilities, will also create huge growth opportunities for the market.
For instance, in February 2022, SRM Tech & Zonar, entered a strategic partnership for the expansion in the telematics-enabled insights to more fleets. With this partnership, companies are bound to add AI enabled predictive analytics to the light-duty fleets telematics, which enables the actionable data analytics for enhanced vehicle uptime.
The research study provides a comprehensive analysis of the industry, assessing the market on the basis of various segments and sub-segments. It sheds light on the competitive landscape and introduces automotive telematics market key players from the perspective of market share, concentration ratio, etc. The study is a vital resource for understanding the growth drivers, opportunities, and challenges in the industry.
Moreover, many large telecom players are focusing on developing 5G for the improvement in the safety & efficiency of advanced telematics solutions. The growing penetration and potential of 5G and artificial intelligence (AI) and widespread use of AI in telematics solutions for various purposes including eye tracking, enhanced HMI, driver monitoring, engine control units, and better gesture recognition, is gaining significant traction and popularity all over the world.
The outbreak of the COVID-19 pandemic has significantly impacted the growth of the automotive telematics market. The rapid spread of the pandemic worldwide led to a significant reduction in global vehicle sales, as consumers were staying at home and limited their spending due to lockdowns and social distancing measures, which had a negative impact on the adoption of telematics systems.
Industry Dynamics
Growth Drivers
With the rising popularity of connected cars across the globe, consumers are increasingly looking for vehicles that offer numerous advanced features such as remote diagnostics, predictive maintenance, and real-time monitoring, which has resulted in a growing demand for automotive telematics systems. In addition, several governments have implemented regulations requiring vehicles to have certain safety features including emergency calling systems that can be easily enabled through telematics solutions, that is also boosting the growth of the automotive telematics market.
Furthermore, telematics systems are also increasingly being used by various businesses to manage their vehicle fleets, as these systems can help businesses to optimize their routes, track their vehicles in real-time, and monitor driver behavior, which can result in significant cost savings and open huge potential for the global market growth.
Report Segmentation
The market is primarily segmented based on technology type, sales channel, vehicle type, and region.
|
By Technology Type |
By Sales Channel |
By Vehicle Type |
By Region |
|
|
|
|
To Understand the Scope of this Report: Speak to Analyst
Embedded segment accounted for the largest market share in 2022
The embedded segment accounted for largest market share in 2022, and is likely to retain its market position throughout the anticipated period. The growth of the segment can be largely attributed to its ability to provide the assurance of continuous connectivity without any hassle along with the rich user experience. Moreover, connectivity is being offered through a built-in advanced telematics control unit, which ensures the better user experience and constant connection, that leads to increased adoption of these systems across the globe at rapid pace.
The integrated segment is projected to grow at fastest growth rate over the course of study period, mainly due to rapid increase in the prevalence for consolidation of hardware components into a single device, that helps in reducing the average time taken as well as cost for fleet managers. In addition, the rapidly growing emergence of Internet of Things (IoT) and widespread adoption of smartphones across the globe, are further anticipated to create significant growth opportunities for the segment in the near future.
OEM segment held the significant market revenue share in 2022
OEM segment held the significant market revenue share with considerable growth rate, which is mainly driven by rapid increase in the demand for connected cars globally, as consumers are increasingly demanding advanced connected cars which could provide them with the features including real-time traffic updates, enhanced safety features, and remote vehicle diagnostics. Additionally, many governments around the world are mandating the use of telematics technology in automobiles for several purposes such as reducing carbon emissions, enhancing the transportation efficiency, and improving road safety, which in turn, propelling the growth of the segment market exponentially.
The aftermarket segment is further expected to gain promising growth over the coming years, on account on growing penetration and popularity of aftermarket telematics solutions among consumers, as they are less expensive as compared to OEMs and are also easier to install and can be easily customized as per the vehicle owner needs and requirements.
Commercial vehicles segment is expected to witness highest growth
The commercial vehicles segment is expected to grow at a maximum CAGR during the anticipated period, owing to growing adoption of these solution among fleet operators globally to maximize uptime, enhance safety, and optimize operations coupled with this, operators can deploy programs to effectively implement corrective measures and can also identify cost-saving opportunities. Moreover, many commercial vehicles need regulatory compliance, such as hours of service rules for commercial truck drivers, thus telematics solutions can help automate compliance reporting and tracking, thereby propelling the segment market.
The passenger segment led the industry market with largest revenue share, that is highly accelerated by growing consumer preferences and shift towards telematics and rising demand for improved safety and convenience-related services including vehicle maintenance alerts, real-time tracking, stolen-vehicle recovery, and fuel & routing optimization.
North America region dominated the global market
The North America region dominated the market. The growing concerns of driving and passengers regarding the security and safety and rising focus on preventing accidents coupled with the emerging trend of fuel-efficient vehicles mainly in the developed countries like US and Canada are the foremost factors driving the global market growth and demand. Additionally, the surge in the prevalence regarding the add on features including Global Positioning System, as a standard option for addressing numerous concerns such as rise in the number of accidents and increasing fuel prices across the region, will further stimulate the market growth.
The Asia Pacific region is expected to be the fastest growing region with a healthy during the projected period, due to its surging demand for highly fuel-efficient vehicles along with the growing integration of several types of navigation features. Several large market companies are focusing on strengthening their market position through tapping on untapped opportunities of APAC region and implementing on various business developing strategies, that is also creating significant growth opportunities for the market.
Competitive Insight
Some of the major players operating in the global market include LG Electronics, Continental AG, AT&T Inc., Robert Bosch, Verizon, Masternaut Limited, Teletrac Navman, Airbiquity Inc., I.D. Systems, TomTom Telematics, Mix Telematics, Samsung Electronics, Trimble Inc., Omnitracs, Zonar Systems, Microlise Telematics, Webfleet Solutions, and Octo Group.
Recent Developments
- In September 2022, Cambridge Mobile Telematics announced the launch of its new solutions for changing the driver behavior and reduce the frequency of crash. Company’s new Hard Brake Alerts provide the real-time feedback and help in frequency reduction by only using a driver’s phone and no other software required.
- In July 2022, Edelweiss Insurance introduced Switch, a comprehensive motor insurance, which is a fully digital motor policy which detects the motion and automatically activate the insurance. It allows customers to save money according to their driving behavior and it measures the quantity and quality of the driving & automatically calculates the premiums.
Automotive Telematics Market Report Scope
|
Report Attributes |
Details |
|
Market size value in 2024 |
USD 99.02 billion |
|
Revenue forecast in 2032 |
USD 334.84 billion |
|
CAGR |
16.4% from 2024–2032 |
|
Base year |
2023 |
|
Historical data |
2019– 2022 |
|
Forecast period |
2024– 2032 |
|
Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
|
Segments covered |
By Technology Type, By Sales Channel, By Vehicle Type, By Region |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
|
Key companies |
LG Electronics, Continental AG, AT&T Inc., Robert Bosch GmbH, Verizon, Masternaut Limited, Teletrac Navman, Airbiquity Inc., I.D. Systems Inc., TomTom Telematics B.V., Mix Telematics, Samsung Electronics, Trimble Inc., Omnitracs, Zonar Systems, Microlise Telematics Pvt. Ltd., Webfleet Solutions B.V., and Octo Group S.p.A. |
The automotive telematics market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
FAQ's
key companies in automotive telematics market are LG Electronics, Continental AG, AT&T Inc., Robert Bosch, Verizon, Masternaut Limited, Teletrac Navman, Airbiquity Inc., I.D. Systems, TomTom Telematics.
The global automotive telematics market expected to grow at a CAGR of 16.4% during the forecast period.
The automotive telematics market report covering key segments are technology type, sales channel, vehicle type, and region.
key driving factors in automotive telematics market are increase in use of cloud-based technology for automotive telematics solution.
The global automotive telematics market size is expected to reach USD 334.84 billion by 2032, according to a new study by Polaris Market Research.
© 2024 Polaris Market Research and Consulting. All rights reserved
