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Global Automotive Telematics System Market - Forecasts and Trends (2017 - 2022)

  • February 2017
  • Mordor Intelligence LLP
Report ID: 3787263


Table of Contents

The global automotive telematics market is poised to grow exponentially at a 28% CAGR. Approximately 68 million new cars are expected to have advanced connectivity features by the end of the forecast period. The market is forecasted to be worth USD XX billion by the end of 2020.The market is driven by the consumers who are demanding new innovative features and services that seamlessly integrate into their digitized and mobile lifestyles. The integration of telecommunications and information processing systems in automobiles that includes the emergency warning system for vehicles, GPS navigation, integrated hands-free cell phones, wireless safety communications, and automatic driving assistance systems, comes under the scope of telematics.

Market Dynamics of Global Automotive Telematics Systems

The market is primarily driven by technological improvements aimed at enhancing the overall in-vehicle experience of passengers and also bringing about a greater degree of interaction within and among the vehicles. In addition, the market is also driven by strict safety norms, increased safety awareness, and affordability  to adopt telematics systems.  Telematics comprise electronic, electromechanical, and electromagnetic devices — usually silicon micro-machined components operating in conjunction with computer controlled devices and radio transceivers to provide precision repeatability functions. The market is hindered by the high costs involved in installing the entire telematics infrastructure in the vehicle.

The automotive telematics market is expected to grow at a higher rate till 2030. The market will be primarily driven by concerns regarding the safety of the driver/occupant that helps to augment the use of telematics services significantly. Equipping the new vehicles with e-Call as a mandate from the EC has also helped to expand the telematics market in Europe. The region is also home to a number of automotive telematics hardware suppliers in Germany, UK, and Italy. Japan, the US, Mexico, Canada, South Korea, Thailand and BRIC countries also present huge potential, primarily due to the stringent safety regulations (like the NCAP program administered by the Department of Transportation's National Highway Traffic Safety Administration (NHTSA)).

The market is segmented on the basis of services offered like safety, information and navigation, fleet management, entertainment, and remote diagnostics. The report provides comprehensive analysis and insights into the services offered in automotive telematics market. Safety constitutes the major segment in the services offered by automotive telematics. Wireless vehicle safety communications  telematics majorly aid in car safety and road safety. The electronic sub-system in a car is used for the purpose of exchanging safety information about road hazards, and the location and speed of vehicles. In addition to wireless local area networks, emergency warning systems telematics are also developed like collision warning for international harmonization and standardization of vehicle-to-vehicle, infrastructure-to-vehicle, and vehicle-to-infrastructure to provide real-time short range communication systems. Information from telematics is also extensively used in car-sharing and also for auto insurance purposes.   The market is witnessing an increase in collaboration of the automotive telematics and the automobile insurance industry and these collaborations are boosting growth. The market is also segmented by the type of telematics in the automotive industry. Embedded telematics systems market is the leader, followed by tethered and integrated telematics systems.

The use of automotive telematics in EVs is also expected to propel the market growth in the coming years.  The leading vendors are looking to leverage the opportunity presented by the introduction of electric vehicles (EVs) in the market. The report also segments the market by geography.

Some of the key market players are:

Agero Inc.
Airbiquity Inc.
Continental AG
Verizon Communications Inc.
Visteon Corporation

What the Report Offers

Market definition along with identification of key drivers and restraints for the market.
Market analysis with region specific assessments and competition analysis on a global and regional scale.
Identification of factors instrumental in changing the market scenario and rising prospective opportunities, along with the identification of key companies that can influence the market on a global and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market share.
Identification and analysis of the macro and micro factors that affect the industry on both the global and regional scale.

Please note: this report requires certain updates. We have all the information available but require 2 business days to complete the process and ensure it is as up-to-date as possible.

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