Automotive Telematics Market to Reach USD 320.6 Billion by 2030, Says Persistence Market Research, Inc
Persistence Market Research
9 min read
Automotive telematics integrates communication and information technologies to provide navigation, safety, and tracking services. The global growth of the diagnostics market is fuelled by regulatory emphasis on environmental protection in Europe and the USA
New York, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Market Size & Overview:
The automotive telematics market is projected to attain a substantial size, with an estimated value of $320.6 billion by 2030, reflecting a remarkable compound annual growth rate (CAGR) of 27.9% throughout the forecast period.
Notably, in 2018, the North American region is expected to dominate and command a significant portion of the market share.
The Automotive telematics market seamlessly integrates telecommunications and informatics to offer a spectrum of services, encompassing navigation, safety, and security for vehicles. Its primary functions include vehicle tracking, trailer tracking, container tracking, car sharing, and emergency warning systems.
This comprehensive report on automotive telematics classifies the market into five distinct segments based on vehicle type, technology, sales channel, end-use, and region/country.
The cloud-based telematics server comprises a web server, application server, and database, facilitating the transfer of data collected by Telematics Control Units (TCUs) through a GPRS/cellular network over HTTPS.
Subsequently, end users can access the stored data via desktop or mobile applications. A key driver propelling the automotive telematics market is the growing integration of real-time fleet monitoring systems in vehicles, coupled with the increasing adoption of cloud-based technology for telematics solutions.
Telematics, employing the synergy of Global Positioning System (GPS) and on-board diagnostics systems, serves as a methodology for monitoring the location and movement of vehicles.
This enables the recording of speed and internal behaviour, making telematics systems pivotal for entities such as automobile insurance companies and fleet management organizations.
The core components of a vehicle telematics solution encompass the Telematics Control Unit (TCU), telematics cloud server, and the front-end web and mobile applications.
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Real-time Fleet Monitoring Integration: The increasing incorporation of real-time fleet monitoring systems within vehicles stands as a significant catalyst. This integration enhances efficiency and operational insights for various applications.
Cloud-Based Technology Adoption: A pivotal factor fueling market growth is the widespread adoption of cloud-based technology for automotive telematics solutions. This tech shift contributes to enhanced data accessibility, scalability, and overall system flexibility.
Comprehensive Vehicle Tracking Services: The multifaceted capabilities of automotive telematics, including vehicle tracking, trailer tracking, container tracking, and car-sharing functionalities, are driving the surge. These services cater to diverse needs in navigation, safety, and security.
Emergence of Emergency Warning Systems: The rise in the development and deployment of emergency warning systems for vehicles plays a crucial role. These systems contribute to enhanced safety measures and rapid response mechanisms.
Categorization for In-depth Analysis: The structured categorization of the market into segments based on vehicle type, technology, sales channel, end-use, and region facilitates in-depth analysis. This segmentation approach enables a comprehensive understanding of diverse market dynamics.
Government regulations for vehicle telematics are designed to address various aspects, ensuring the safe and responsible deployment of advanced technologies in the automotive sector. These regulations typically encompass safety standards, requiring telematics systems to incorporate features such as automatic crash notification and emergency assistance to enhance overall vehicle safety.
Privacy and security considerations are central, with rules governing the collection, storage, and sharing of telematics data to protect user information. Emission monitoring and reporting requirements contribute to environmental goals, aligning with efforts to reduce carbon emissions and promote sustainable transportation.
In the realm of commercial vehicles, regulations often dictate the use of telematics for purposes such as tracking driver hours-of-service, monitoring fuel efficiency, and improving fleet management practices. Insurance telematics guidelines may govern the fair and transparent use of driving behavior data for premium calculations.
Accessibility for emergency services is emphasized, ensuring that telematics systems facilitate swift response in case of accidents. Interoperability standards promote compatibility among diverse telematics systems, fostering innovation and competition. Consumer consent and transparency are prioritized, necessitating explicit permission for data collection and clear communication regarding its usage.
Regulations also address concerns related to geolocation data, and periodic compliance checks are conducted to ensure adherence to established standards. These regulations collectively shape the responsible integration of telematics technologies into the automotive landscape, balancing innovation with safety, privacy, and environmental considerations.
Rise in trend of connectivity solutions in Automotive Telematics Market:
The automotive telematics market is experiencing a notable surge in the trend of connectivity solutions, marking a transformative shift in the industry. This rise is propelled by the increasing integration of advanced communication technologies and the growing demand for connected features in vehicles.
Connectivity solutions in automotive telematics involve the seamless exchange of data between vehicles, infrastructure, and other devices, leading to enhanced functionalities and improved user experiences.
One key aspect of this trend is the rise of connected vehicles, where automobiles are equipped with internet connectivity and communication modules. This connectivity enables real-time data transfer for a range of applications, including navigation, safety features, vehicle diagnostics, and entertainment systems.
The connected vehicle ecosystem is fostering innovations such as vehicle-to-vehicle (V2V) communication and vehicle-to-infrastructure (V2I) communication, contributing to improved traffic management and overall road safety.
The integration of 5G technology plays a pivotal role in advancing connectivity solutions in the automotive telematics market. The high data transfer speeds and low latency offered by 5G enable more robust and responsive communication between vehicles and their surrounding environment. This, in turn, supports the development of advanced driver assistance systems (ADAS) and facilitates the evolution towards autonomous driving.
Moreover, the rise in the trend of connectivity solutions extends beyond individual vehicles to fleet management applications. Telematics systems provide real-time tracking, monitoring, and communication capabilities for entire fleets, leading to improved efficiency, route optimization, and maintenance planning.
As the automotive telematics market continues to evolve, driven by the increasing demand for connected and smart vehicles, the trend of connectivity solutions is expected to play a pivotal role in shaping the future of the industry. This shift not only enhances the functionality and safety of vehicles but also opens up new opportunities for innovative services and applications within the automotive ecosystem.
Key Benefits for Automotive Telematics Market:
This study presents analytical depiction of the automotive telematics Market analysis along with the current trends and future estimations to depict the imminent investment pockets.
The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
The current automotive telematics market size is quantitatively analysed from 2018 to 2026 to benchmark the financial competency.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the automotive telematics industry.
Key Players in the Automotive Telematics Market:
MiX Telematics: Global provider of fleet and mobile asset management solutions, focusing on vehicle tracking, driver safety, and compliance for improved efficiency.
Verizon: Leading Telecommunications Company offering fleet management services, asset tracking, and connected vehicle solutions to optimize operations.
Harman International (Samsung Electronics): Harman, a Samsung Electronics company, specializes in in-car connectivity, infotainment systems, and advanced driver assistance systems (ADAS) for the automotive industry.
TomTom Telematics BV: Part of Bridgestone, TomTom Telematics provides fleet management and connected car solutions, emphasizing real-time insights for efficient operations.
I.D. Systems, Inc.: Provider of wireless solutions for industrial and vehicle management, offering asset tracking, monitoring, and control systems.
Trimble Inc: Technology company providing telematics solutions for industries such as agriculture, construction, and transportation, focusing on fleet management and asset tracking.
Cartrack: global Telematics Company specializing in fleet management, stolen vehicle recovery, and insurance telematics, with a focus on vehicle security and fleet optimization.
Teletrac Navman: Leading provider of GPS-based fleet management solutions, covering vehicle tracking, compliance management, and fuel efficiency for enhanced safety and efficiency.
Airbiquity Inc: Global leader in connected vehicle services and telematics solutions, offering Choreo™ cloud platform for connected vehicle programs.
Masternaut Limited: Fleet management solutions provider, part of the Michelin Group, offering vehicle tracking, driver behavior analysis, and fuel management.
Omnitracs: Leading provider of fleet management and telematics solutions, covering route optimization, driver management, and compliance services for enhanced safety and efficiency in fleets.
Key Segmentation:
By Vehicle Type:
Passenger: Telematics solutions tailored for passenger vehicles, encompassing features such as navigation, safety, and entertainment.
Commercial: Telematics applications designed specifically for commercial vehicles, focusing on fleet management, diagnostics, and safety.
By Technology Type:
Embedded: Telematics systems integrated directly into the vehicle, providing seamless connectivity and functionalities.
Tethered: Telematics solutions relying on external devices for connectivity.
Smartphone: Telematics applications leveraging smartphone integration for enhanced connectivity and features.
By Sales Channel:
OEM: Telematics systems integrated into vehicles during the original manufacturing process.
Aftermarket: Telematics solutions added to vehicles post-manufacturing, often by third-party providers.
By End User:
Infotainment: Telematics features related to in-car entertainment and information.
Diagnosis: Telematics applications focusing on vehicle diagnostics and health monitoring.
Navigation: Telematics functionalities centered on navigation and location-based services.
Safety & Security: Telematics systems providing features for enhancing vehicle safety and security.
Others: Additional telematics applications catering to diverse end-user needs.
By Region/Country:
APAC: Telematics market in the Asia-Pacific region.
China: Specific focus on telematics trends and solutions in China.
Japan: Telematics landscape and adoption in Japan.
South Korea: Overview of telematics developments and usage in South Korea.
India: Telematics market dynamics and applications in India.
ASEAN: Telematics trends in the Association of Southeast Asian Nations region.
Indonesia, Malaysia, Thailand: Specific insights into telematics markets in these ASEAN countries.
Rest of ASEAN: Telematics overview in other ASEAN nations.
Oceania: Telematics landscape in the Oceania region, covering Australia and New Zealand.
About Persistence Market Research:
Business intelligence is the foundation of every business model employed by Persistence Market Research. Multi-dimensional sources are being put to work, which include big data, customer experience analytics, and real-time data collection. Thus, working on “micros” by Persistence Market Research helps companies overcome their “macro” business challenges.
Persistence Market Research is always way ahead of its time. In other words, it tables market solutions by stepping into the companies’/clients’ shoes much before they themselves have a sneak pick into the market. The pro-active approach followed by experts at Persistence Market Research helps companies/clients lay their hands on techno-commercial insights beforehand, so that the subsequent course of action could be simplified on their part.
