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Automotive Telematics Market

Automotive Telematics Market

  • February 2020
  • 140 pages
  • ID: 5879095
  • Format: PDF
  • Prescient & Strategic Intelligence Private Limited


Table of Contents

Automotive Telematics Market Research Report: By Vehicle Type (Passenger Car, Commercial Vehicle), System Type (Embedded, Tethered, Integrated), Services (Safety and Security, Infotainment and Navigation, Remote Diagnostics), Communication Technology (V2V, V2I) - Industry Size, Share, Development and Demand Forecast to 2030

The global automotive telematics market is expected to attain $149.9 billion in revenue in 2030. In 2019, the market was valued at $27.7 billion, and it is predicted to shootup massively during the forecast period (2020–2030), with a CAGR of 16.6%. The major reasons behind this rapid rise of the market are the increasing demand for better safety features in vehicles, rising sale of connected vehicles, and growing implementation of supportive government measures and regulations.

The growing demand for enhanced safety features in vehicles that will lead to increased passenger safety and an efficient road traffic system is one of the major factors fueling the surge in the automotive telematics market value. Some of the major outcomes of road transportation are road traffic and serious accidents and deaths, and the main reason behind most of them is human error. However, with the wide-scale utilization of various telematic solutions, the prevalence of such fatal accidents can be reduced considerably.

In the last few years, the world has witnessed a tremendous rise in the demand for connected cars, primarily due to the swift technological advancements and numerous advantages offered by them over the traditional vehicles, such as traffic and collision warnings, real-time traffic monitoring, automobile diagnostics, and roadside assistance. Additionally, these vehicles also offer vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity features, which are two of the major components of telematic solutions. Thus, the growing demand for connected cars is causing the surge in the integration of telematics solutions.

On the basis of vehicle type, the automotive telematics market is bifurcated into commercial vehicle and passenger car. Of these, commercial vehicles are expected to register faster growth, in terms of revenue, during the forecast period. This is attributed to the rapid rise in the integration of cloud-based fleet management telematic solutions by fleet owners across the globe. Fleet telematic solutions allow for the efficient organization of day-to-day operations of the fleet, by providing real-time details of the connected vehicles to the central control unit.

Based on system type, the automotive telematics market is divided into integrated, embedded, and tethered categories. Amongst these, the embedded category accounted for the majority of the market share, in terms of revenue, throughout the historical period (2015–2019). This is ascribed to the fact that nearly all the telematic solution providers offer in-built systems, in order to make continuous network connectivity possible. Out of the different categories, the integrated one is predicted to record the fastest growth, in terms of revenue, during the forecast period.

One of the key trends being witnessed in the automotive telematics market is the growing number of partnerships and collaborations among different solution providers, systems integrators, original equipment manufacturers (OEMs), and other players. For instance, Avis Budget Group Inc. initiated a partnership with Verizon Communications Inc. in December 2019. The purpose behind this partnership was to start an all-in-one digital travel assistant, with the aid of Verizon’s countrywide 4G LTE network, especially for the clients of Avis Budget Group Inc. and Payless Car Rental Inc.

Globally, North America had the largest share in the automotive telematics market, in terms of revenue, in 2019. The main factor behind this was the large-scale implementation of supportive government regulations. For instance, the Federal Motor Carrier Safety Administration (FMCSA) in the U.S. has made it mandatory for the commercial vehicles in the country to install electronic logging devices (ELD), which caused a huge spike in the demand for automotive telematic solutions, thereby leading to the market growth in the region.

Hence, the market, on account of the increasing global demand for automotive telematic solutions, in order to increase road and vehicle safety and enable efficient traffic management, is set to witness a massive boom in the coming years.

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