Vehicle Telematics Market Size Worth USD 213.67 Billion, Globally, by 2029 at 16.6% CAGR
Fortune Business Insights
5 min read
Fortune Business Insights
The Global Vehicle Telematics Market size is expected to grow from USD 72.78 Billion in 2022 to USD 213.67 Billion by 2029; it is estimated to grow at a CAGR of 16.6% from 2022 to 2029. Rising Consumer Demand and Awareness for Automotive Telematics Solutions to Foster Industry Growth
Pune, India, July 26, 2022 (GLOBE NEWSWIRE) -- The global vehicle telematics market size was valued at USD 64.93 billion in 2021 and reached USD 72.78 billion in 2022. The market is expected to reach USD 213.67 billion by 2029, exhibiting a CAGR of 16.6% during the forecast period. Furthermore, increased fuel efficiency, rising consumer demand, and awareness of automotive telematics solutions boost the market growth. Fortune Business Insights™ provides this information in its report titled “Vehicle Telematics Market, 2022-2029.”
COVID-19 Impact:
Strong Focus on Domestic Semiconductor Manufacturing Supported Industry Growth
This market was positively impacted during the pandemic due to the strong focus on domestic semiconductor manufacturing. The re-commencement of activities and lockdown relaxations enabled manufacturers to enhance their production activities. Semiconductor chipsets and wafers deployment increased rapidly in the consumer electronics sector. Furthermore, companies, such as Taiwan Semiconductor Manufacturing and United Microelectronics, announced the expansion of their production plans. These factors incited growth during the pandemic.
By service, the market is segmented into infotainment system, insurance telematics, fleet/asset management, safety & security, information & navigation, and others.
Growth Drivers
Improved Operational Efficiency for Fleet Management Companies to Foster Market Progress
Rising Safety and Security Concerns to Foster Market Progress in North America
Market Drivers-
Improved Operational Efficiency for Fleet Management Companies to Foster Market Progress
Vehicle telematics comprises a combination of telecommunication systems and information technology to track the locations and movements of automobiles. Improved operational efficiency and fleet management companies are expected to enhance the product demand. Telematics can help drivers reduce fuel consumption by maximizing their efficiency and track idle time. Furthermore, the adoption of telematics solutions can boost the vehicle’s safety and elevate maintenance, thereby allowing the drivers to retain a safe driving environment. Moreover, the increasing demand for advanced safety features in automobiles is expected to enhance the product demand. These factors may drive the vehicle telematics market growth.
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Regional Segmentation-
Rising Safety and Security Concerns to Foster Market Progress in North America
North America is anticipated to dominate the vehicle telematics market share due to rising safety and security concerns. The market in North America stood at USD 23.94 billion in 2021 and is expected to gain a huge portion of the global market share in the coming years. Furthermore, implementing several government norms are likely to enhance the industry’s progress. For example, the U.S. government undertook a contract with Geotab in January 2022 to retrofit fleet management telematics technology in 217,000 vehicles. These factors may incite growth in the region.
In Europe, gradually decreasing hardware prices are likely to foster the product demand adoption. Furthermore, the entry of several established OEMs that provide solutions and warranties backed by dealerships may stoke market growth.
In Asia Pacific, the increasing number of Telematics Service Providers (TSPs) in India and China is expected to increase the demand for vehicle telematics. As per the survey conducted by Tech Mahindra, 90% of Indian consumers prefer a four-wheeler equipped with telematics technology. This survey was conducted to analyze consumer behavior and undertake effective steps.
Major Players Devise Acquisitions to Enhance Brand Positioning
Prominent companies operating in the market enter acquisitions to enhance their product offerings and elevate brand positioning. For example, Trimble announced the acquisition of an asset management software provider to private and government organizations in the U.S. in December 2021. This strategy may allow the players to offer clients advanced solutions, bolster their product offerings, and enhance their brand positioning. Furthermore, manufacturers deploy partnerships, mergers, novel product launches, innovations, and automated production techniques to bolster their market position.
List of Players Operating in the Vehicle Telematics Market are as follows:
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