PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320176
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320176
Automotive Telematics Market size was valued at USD 8,907.1 Million in 2022, expanding at a CAGR of 13.8% from 2023 to 2030.
Automotive telematics is an interdisciplinary field that combines telecommunications, informatics, computer science, electrical engineering, and vehicular technologies to create a vehicle telematics system that collects and derives insight from vehicle telematics data in order to improve the general efficiency and safety of the driver experience. This technology leverages GPS and onboard diagnostics to record and transfer data on vehicle use, maintenance requirements, and automotive servicing. Telematics devices can monitor the health of a vehicle and inform drivers of possible problems before they result in big difficulties. This can assist to prevent unexpected breakdowns and costly repairs, as well as keep vehicles running at peak performance.
Consumers nowadays are increasingly concerned about their road safety. With road accidents continuing to be a major concern around the world, there is a growing emphasis on improving vehicle safety. Automotive telematics systems provide features such as automatic crash notifications, emergency assistance, and real-time tracking, which can significantly improve response times in the event of an accident and increase overall road safety. Every year, more than 1.35 million people die on the world's roads, and millions more are seriously injured. This preventable epidemic hits the poorest hardest and is killing the next generation, according to global road safety statistics. The development of IoT (Internet of Things) and the implementation of 5G networks open up enormous opportunities for automotive telematics. However, Vehicles have become more susceptible to cyber-attacks as they evolve connected. Concerns about security may hinder the wider deployment of telematics.
The Global Automotive Telematics Market is segmented on the basis of Channel, Connectivity Solutions, Vehicle Type, application, and Region.
The market is divided into three categories based on Channel: OEM and Aftermarket. The OEM channel segment dominates the market. OEMs are playing a gradually important role in the telematics market. It also often provides additional services and technologies in its vehicles, including automotive telematics systems.
The market is divided into two categories based on Connectivity Solutions: Embedded, Integrated smartphones, and Tethered. Embedded Connectivity Solutions dominates the market and is likely to maintain its dominance during the forecast period. Automotive telematics embedded connectivity solutions refer to telematics systems that are integrated directly into a vehicle during manufacturing.
The market is divided into two categories based on Vehicle Type: Passenger Vehicles, Commercial Vehicles. Automotive telematics is highly beneficial for enterprises and the management of fleets in commercial vehicles. Automotive telematics plays an essential part in advancing commercial vehicle operational efficiency and safety, making it a vital tool for fleet management in a variety of industries such as logistics, transportation, delivery services, and construction.
The market is divided into two categories based on application: Fleet/Asset Management, Navigation & location-based system, Infotainment systems, Insurance telematics, Safety & Security, and Others. Safety & Security is expected to dominate the market growth. The security and safety features provided by vehicle telematics systems have greatly contributed to the telematics market's growth. As technology advances, they may expect ever more advanced safety features to be integrated into these systems.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Asia Pacific is expected to dominate the growth of the Automotive Telematics Market, due to the Development of 5G connectivity, increasing demand for smartphone features in the car, and automated driving technologies along with passenger safety features. Asia Pacific countries, particularly China and South Korea, are at the forefront of 5G network deployment. 5G's greater capacity, speed, and lower latency considerably improve telematics services, allowing for reliable real-time data transmission and paving the path for more advanced applications such as autonomous driving. China is forecasted to reach 1 billion 5G subscribers by 2025, while the number of 5G users by 2030 is expected to reach 1.6 billion, according to a recent report by the GSMA. Also, the number of 5G base stations in China exceeded 2.3 million at the end of 2022, including approximately 887,000 built during the year, according to the Mobile Economy China 2023. Europe is another dominant region for the growth of the Automotive Telematics Market, due to an increase in demand for improved connectivity and intelligence in vehicles.
The market for Automotive Telematics is highly competitive, with both established and emerging companies present. To maintain their market positions and meet the rising demand for telematics services, these manufacturers participate in partnerships, mergers, and acquisitions, as well as R&D efforts. For example, On December 14, 2022, Agero, whose leading B2B software and services enable auto manufacturers, insurers, fleets, and others to support their customers at every stage of vehicle ownership, and Geotab, a global leader in IoT and connected transportation, announced that roadside assistance services powered by Agero are now available to the fleet telematics company's customers. Automotive telematics competitors must emphasize innovation, guarantee the security and privacy of their systems, and work to provide user-friendly solutions that address customers' changing needs. Additionally, it's critical for businesses to keep up with regulatory changes, as these can have a big impact on the market.
In March 2023, the Global market leader in telematics technology, Teletrac Navman, will attend this year's Commercial Vehicle Show to discuss the upcoming migration from ICE to EVs and showcase technology that facilitates fleet operators in the transition.