Today, technology is a necessary component in every aspect of our life. More technologically advanced products, including autos, are more popular with consumers. The automotive telematics market is expanding as a result of consumer demand for vehicles with telematics systems.
COVID-19 Impact
The pandemic has affected every sector of the market. Due to continuous lockdowns worldwide imports and export have declined a lot. Many industries, like the car manufacturing and the insurance service sector, have faced a lot of challenges during this crucial period of COVID-19. The entire world has suffered economically due to the increase in prices. The high cost of fully integrated telematics systems has lowered the market demand for telematics systems. The decrease in market demand has affected the growth of the global automotive telematics market. Though, it is expected that the industry will regain its position in the market because of the user-friendly features it offers to drivers, automakers, and insurance companies.
The Automotive Telematics market report is segmented on the basis of application, vehicle type, channel, solution, and region. The different types of applications in which telematics is used are- fleet management, Location-based & Navigation systems, V2X, Safety and Security, Insurance Telematics, and others. By vehicle type, it is bifurcated into passenger cars, commercial vehicles, and two-wheelers. It is separated into embedded, tethered, and integrated smartphones based on solution. It is divided into OEM and Aftermarket categories based on channel. Although the automotive telematics market is global in scope, it is broken down into North America, South America, Europe, Asia Pacific, and the Middle East & Africa for regional analysis.
Telematics systems help passengers and companies that provide ride-sharing to keep a close eye on drivers helping them to manage payments on the basis of ride distance and monitor the movement of vehicles by just using their smartphones. The system provides full safety and security to the users.
A Telematics system is a technique used to navigate and monitor the location or movement of a vehicle with the help of a Global Positioning System (GPS) combined with an onboard diagnostic system. The GPS and diagnostic system helps to record the speed and internal behavior of the vehicles. Automobile insurance companies and fleet management companies are the major user of telematics systems globally.
The vehicle telematics solution has three fundamental parameters- Telematics control unit (TCU), Front-end web and mobile app, and Telematics cloud server. On the other hand, the Cloud-based telematics server is made up of a web server, a database, and an application server. In recent years, there has been an increase seen in the usage of Cloud-based technology and also in the integration of real-time fleet management systems in many automotive telematics solutions. The global automotive telematics market will develop primarily as a result of the rising demand for telematics technology. The telematics control unit gathers information and then sends it to the Cloud-based telematics server by using mobile/cellular network over HTTPS. Later on, the collected information is stored in the telematics server which can be accessed anytime anywhere by the end-user on a laptop, desktop, or even in a mobile application.
The Automotive telematics system keeps the consumer in touch with the outside world. With the increased usage of the Internet in day-to-day life, the need to stay updated has become very important people need a regular and break-free connection to the internet even while traveling. The demand for Cloud-based and inbuilt telematics system vehicles is steadily rising, buyers expect their vehicles to be technologically updated and some even want their cars to have similar features to computers and smartphones.
The Global Automotive telematics market size was observed to be $51.4 billion in 2022 and it is expected to reach $328.7 billion by 2029 at a CAGR of 28.5% from 2022-2029.
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Automotive Telematics system is software built for vehicles that consist of GPS technology, helps in wire-less tracking, works on wireless connectivity, and methodology, and is very useful to communicate from and to the vehicle. The term ‘Telematics’ is made by combining two words: ‘informatics’ and ‘telecommunication'. The technology is in huge demand because of its variety of user-friendly features, the automotive telematics system collects, process the information, and then transmit it for vehicle use like maintenance requirement, automotive servicing, and many more.
The Global Automotive Telematics market growth is likely to get interrupted as the technology fails to provide uninterrupted internet service. Which happens due to inconsistent networks given by service providers that differ from region to region. The telematics system has a very high installation cost. As the technology is new in the market it’s highly prone to data hacking which is a hindrance to the growth of the global automotive telematics market. The interruption in Internet connectivity is another issue that needs attention. However, the intelligent transportation system has helped autonomous vehicles in improving their performance, and an increase in business decisions for fleet owners will become a great opportunity for the growth of the market.
The Automotive Telematics Market Forecast report presents information about the current situation of the industry in the market along with describing various factors affecting the growth of the market and what all are the future growth opportunities that the industry might face in the forecast period. The research contains a detailed overview of the market along with the definition, supply chain, investment opportunity, classifications, industry chain structure, application, and more. The report is useful for users who want to understand the market thoroughly. The research includes an analysis of the behavior of consumers, and the dynamics of the market such as driving factors, limitations, opportunities, and customer demands. The report on the global automotive telematics market highlights the impact of the COVID-19 pandemic on market share, price rates, and annual growth rate.
Latest innovations
- Development in the aftermarket car telematics technology will create a wide path for solutions provided by third parties Or aftermarket service providers building more growth opportunities for the market. To reach sustainability goals and reduce the cost of operation the commercial fleet operators will come up with new ideas and innovations. Which in town will increase the demand for telematics systems in the market during the forecast period.
- There will be many new types of connected car telematics solutions launching in the market along with the present one. Smartphone-based telematics devices, automotive telematics systems/boxes, Bluetooth-connected telematics devices, and OEM telematics devices are a few of the currently available telematics technology-based devices present in the market.
- The change in government rules and regulations on vehicle telematics and increased demand for connectivity solutions will be another factor driving the growth of the global automotive telematics market. The telematics system helps to loosen-up vehicle diagnosis, which is increasing the popularity of the technology in the market.
Automotive Telematics Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2029 |
| Study Period | 2018-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | USD 328.7 billion |
| Growth Rate | CAGR of 28.5 % during 2019-2029 |
| Segment Covered | Vehicle Type, Application, Channel, Solution, Regions |
| Regions Covered | North America, Europe, Asia Pacific, Middle East and Africa, South America |
Key Segments of the Global Automotive Telematics Market
Application Overview (USD Billion)
- Fleet management
- Location-based & Navigation system
- V2X
- Safety and Security
- Insurance Telematics
- Others
Vehicle type Overview (USD Billion)
- Passenger car
- Commercial vehicle
- Two-wheelers
Channel Overview (USD Billion)
- OEM
- Aftermarket
Solution overview (USD Billion)
- Embedded
- Tethered
- Integrated smartphone
Regional Overview (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
The Middle East and South Africa
Frequently Asked Questions (FAQ) :
The market value of automotive telematics market in 2029 was USD 328.7 billion.
The automotive telematics market is growing at a CAGR of 28.5% over the forecast period.
The application of the automotive telematics market Fleet management, Location-based & Navigation system, V2X, Safety and Security, Insurance Telematic and other.