Global Automotive Telematics Market Insights and Forecast to 2028

Automotive Telematics Market

The global Automotive Telematics market size is projected to reach USD 205640 Million by 2028, from USD 50430 Million in 2021, at a CAGR of 21.7% during 2022-2028. Key drivers of the automotive telematics market include the growing government regulations for maintaining the safety, security of vehicles. The increasing penetration of smartphones and the variety of connectivity solutions available will drive the growth of the automotive telematics market during the forecast period. 

The potential use case for ease of diagnosis will lead to widespread adoption thereby surging the market growth in the coming years. However, factors such as data hacking threats and high installation costs will restrain the market expansion. Moreover, the evolution of intelligent transport systems for enhanced driver and vehicle safety will augment the automotive telematics market in the subsequent years.

Trends Influencing the Global Automotive Telematics Market

Various regulations by the government for ensuring proper vehicle maintenance

Government authorities are enacting several legislations for resolving issues related to vehicle safety, security, and location tracking. Automotive manufacturers are implementing vehicle tracking systems like GPS, camera surveillance, and emergency request buttons in vehicles to improve the security of vehicles. This is expected to create immense opportunities for the growth of the automotive telematics market during the forecast period.

Availability of various connectivity options and smartphones

The integration of real-time fleet monitoring systems, cloud-based technology, and widespread penetration of smartphones has boosted the use of automotive telematics. The app to car connectivity enables access to GPS, live tracking, geo-fencing, and access to preloaded entertainment services. Consumers want to stay connected even while traveling. Hence manufacturers are developing connected vehicles for monitoring and safety. This is expected to drive the growth of the automotive telematics market in the upcoming years.

Ease of diagnosis

Telematics provides real-time access to vehicle data through GPS,  accelerometer, and built-in sensors. The predictive analysis helps in the quick detection of faults, fuel consumption, and status on vehicle health thereby improving the overall repair and maintenance process. Thus the potential benefits in the form of accurate diagnosis will increase adoption ultimately surging the growth of the automotive telematics market.

Data hacking and High Installation costs

Automotive telematics has a host of disadvantages that will restrict the market growth during the review period. The frequent sharing of sensitive user data over an unsecured database system provides a huge risk as attackers may steal crucial data. Moreover integrating telematics systems for both software and hardware requires huge investments. These factors will hamper the automotive telematics market expansion.

Vehicle, driver safety

The huge scope for telematics to provide detailed analysis on driver behavior behind the wheels allows fleet managers to cut down on unethical behaviors such as harsh braking, excessive speed, tailgating, and collisions. The intelligent transportation system provides more data in the form of toll transactions, dispatching, routing, insurance, and vehicle assistance during accidents. These emerging trends will provide lucrative opportunities for the growth of the automotive telematics market in the future.

Automotive Telematics Market Share

Based on channel type, the OEM segment dominated in 2018 with a value of US$ 33.7 billion and will provide lucrative opportunities for growth in the automotive telematics market share and will reach US$ 225.6 billion by 2026 at a CAGR of 27.9%. 

Based on vehicle type, the commercial vehicle type is expected to provide lucrative opportunities for growth in the automotive telematics market share. However, Two-wheeler will grow the fastest in the coming years.

Based on application, the fleet/asset management segment is expected to provide huge scope for growth in the automotive telematics market share as fleet management solutions offer a host of benefits to fleet managers in the forms of vehicle, tracking and driver safety thereby leading to widespread adoption. On the other hand, Safety and security will grow the fastest in the subsequent years.

Based on connectivity, the embedded segment will dominate in the automotive telematics market share during the forecast period due to government regulations mandating vehicle safety which has increased the focus of automotive manufacturers to integrate cloud-based technology, telematics, and these solutions cannot function properly without embedded solutions.

Based on region, North America is expected to spur ahead in the automotive telematics market share during the forecast period due to increasing industrialization, the huge volume of car production, and government regulations for vehicle safety.

By Type

• Plug and Play Telematics
• Hardwired Install Telematics

By Application

• Passenger Car
• LCV-Light Commercial Vehicle
• HCV-Heavy Commercial Vehicle

By Company

• Agero
• Airbiquity
• Continental
• Verizon
• Visteon
• Trimble
• Masternaut
• TomTom International
• Telogis

By Region

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA

Scope of Automotive Telematics Market Report