According to a new report published by Introspective Market Research, titled, “Automotive Telematics Market by Service (Information & Navigation, Safety & Security, Fleet Management, Insurance Telematics, Others), Technology (Integrated, Embedded, Tethered), Sales Channels (OEM, Aftermarket) Region Global Market Analysis and Forecast, 2024-2032 And Region Industry Forecast, 2024–2032,” the global
Automotive Telematics Market size was valued at $ 45.11 Billion in 2023, and is projected to reach $ 170.23 Billion by 2032, registering a CAGR of 15.9% from 2024 to 2032.
The automotive telematics system is a combination of information technology and communications systems used to track the movements and locations of vehicles (GPS) with the assistance of on-board diagnostic systems and the Global Positioning System. A portion of the chief elements of these frameworks in cars are programmed impact cautioning, vehicle following, crisis calling, driver conduct observing, route help, and on-street help administrations. Maps, weather forecasts, stock updates, Internet data packets, and other data can be pushed to the vehicle unit from the back-office systems or created in the vehicle unit and sent there. This communication takes place via a car-installed device or a mobile phone. Using satellite technology and a network of cellular towers, the vehicle communicates and maps its location. Moreover, rising interest for cell phone highlights in vehicles, computerized driving innovations with traveler wellbeing highlights, headways in 5G association, and expanded government drives to lay out a shrewd transportation framework (ITS) are projected to support market interest.
The automobile industry's safety and security initiatives drive the market's expansion. Numerous major nations' governments have enacted stringent regulations to ensure the safety and security of automobiles. To monitor cars' movements and positions, numerous governments have mandated a greater number of installations. Services like theft tracking and emergency call systems are now required in many nations. For instance, the Service of Street Transport and Interstates of the Focal Legislature of India has ordered that all open vehicles be outfitted with area-checking gadgets, GPS, and crisis buttons as a wellbeing measure under Proviso 35(2) of Segment 2 of the Demonstration. The European Commission has additionally required a mix of e-call frameworks to diminish the rising number of streets passing and to guarantee the security of the general population.
Car OEMs and telecoms suppliers look for corporate arrangements, for example, endeavor asset arranging, client relationships with the executives, production network the board, and human assets the board to productively and actually oversee extension as the purchaser base creates. Software as a service (SaaS) or the cloud may be used by businesses to provide solutions that are more cost-effective. Because telematics is a merger of several existing industries, the various parties involved must develop applications and integrate systems. Framework coordinated assistance can be an astute application for the telematics market. Middleware execution will turn out to be more imperative as innovation progresses since interfacing with different systems will be required. There is potential to consolidate the numerous frameworks inside the Car OEM, as well as those of media communications suppliers and outsider frameworks like banks and the Web, with those of the OEM to lift the telematics market.
Global Automotive Telematics Market, Segmentation
The Automotive Telematics Market is segmented based on service, technology, and region.
Service:
Fleet management is the dominant segment of the automotive telematics market. Fleet management systems help businesses run smoothly by identifying unsafe driving habits, reducing excessive fuel consumption, and strategizing more efficient routes. Drivers can use fleet management systems to search for cars as needed, collect and store data on engine problems, and identify dangerous driving incidents such as heavy idling and speeding. For fleet owners, this driver information is invaluable. That is why the business segment telematics market is growing. Fleet management services are becoming more common as they help fleet owners minimize costs during their operations, which helps grow the telematics market in the commercial sector as well.
Technology:
The embedded segment dominates the automotive telematics market. The growth of the embedded technology industry has been affected by several disruptive factors such as the expansion of cloud-based services, cost optimization of service plans, and government regulations. Various solutions such as remote diagnostics, emergency calls (e-Call), and others cannot be used successfully and efficiently without an embedded connectivity solution that monitors the use of embedded connectivity. Many manufacturers are now adding solutions to vehicles to increase vehicle sales. Volvo, Hino, Mack, and Ford are some of the well-known companies that have partnered with vehicle telematics manufacturers to provide a seamless experience for their customers. However, integrated systems are one of the emerging technologies in the automotive telematics market. Both technologies are cost-effective and offer endless possibilities for data sharing. For example, Omnitracs provides Volvo Trucks with integrated telematics that helps Volvo customers locate assets and gain insight into driver behavior.
Region:
North America dominates the automotive telematics market. Thanks to increasing industrialization and a large number of commercial vehicles, the region leads the world market. The main factors affecting the expansion of the market are the increased safety concerns of drivers, passengers, and vehicles and the prevention of accidents. Additionally, government laws favoring automotive telematics are driving industry growth in the fastest-growing region in the automotive telematics market. Due to the strict safety rules implemented by the government in this industry, the market is expected to grow moderately in Europe. For example, since 2018, the European Commission has made E-Call telematics systems necessary for all new passenger and commercial vehicles. Its purpose is to minimize the response time of emergency vehicles and save the lives of passengers in a serious accident.
Asia Pacific is expected to be the emerging region in the automotive telematics market. Asia Pacific is the largest market region for the automotive industry. Sales have increased over the past five years, thanks to significant contributions from India, China, and other Southeast Asian countries. Local manufacturers and global automakers have recognized the potential of the Asia-Pacific market. Increasing technical features of passenger and commercial vehicles and government regulations regarding the safety and security of vehicles and passengers have created a potential environment for the growth of the telematics market.
Some of The Leading/Active Market Players Are-
- Advanced Diabetic Solutions (US)
- Act Soft (U.S.)
- Airbiquity Inc (U.S.)
- Harman International (U.S)
- Calamp (U.S.)
- Garmin Ltd (U.S)
- Airiq Inc (Canada)
- Astrata Group; At&T (Singapore, SG)
- Box Telematics (UK)
- Continental AG (Germany)
- Delphi Automotive Plc (UK) and Other Active Players.
Key Industry Developments
- In May 2023, Targa Telematics made a major announcement regarding the acquisition of Viasat Group Spa, creating a major global player in the IoT industry. This acquisition paves the way for innovative connected mobile solutions and digital services in eight key European countries: Italy, Portugal, Spain, France, Great Britain, Belgium, Poland, and Romania, in addition to the company based in Chile.
- In September 2023, Google Cloud and technology company Continental announced a strategic partnership to provide innovative, flexible, and forward-looking digital solutions for the automotive industry. The partnership combines Continental's automotive technology expertise with Google's data and artificial intelligence technologies to create a new generation of safe and efficient. solutions and user-centric automotive solutions. In addition, the parties plan to expand their strategic partnership to new areas of cooperation in the future to create better automotive connections and experiences for customers.
Key Findings of the Study
- North America dominates due to industrialization and security concerns, while Europe is moderately growing with strict regulations such as mandatory eCall systems. Asia Pacific has emerged as a key market due to sales growth, technological advancements, and government regulations promoting vehicle safety.
- Global government mandates, such as India's requirement for tracking devices on public vehicles and the EU's electronic calling systems, are encouraging the expansion of telematics for car safety and security.
- Fleet management is in control, helping companies reduce costs and operate effectively, while embedded solutions lead a market fueled by partnerships between OEMs and telematics providers such as Volvo and Omnitracs.
