About This Report

Technology is used in automotive telematics to link automobiles to data and communication systems. It makes it possible for vehicles to communicate with external platforms and with one another. Telematics systems may track a car's position, keep an eye on how it drives, and give real-time information on things like speed, fuel economy, and maintenance requirements. By providing features like collision alerts and emergency help, this technology improves safety. Additionally, it allows for car diagnostics, which supports early problem detection for both drivers and manufacturers. Driving is also made more convenient and connected by telematics, which allows services like navigation, remote car control, and entertainment options.
In 2022, the Automotive Telematics market was valued at US$ XX million, which is anticipated to be around US$ XX million by 2030. Over the forecast period, the market is expected to grow at a CAGR of XX%.

Increasing safety and security concerns and rising connected services are the driver while privacy concerns is a restraint.

Telematics systems offer features like automatic emergency calling (e-Call) in order to provide emergency services with critical information in the event of an accident. The deployment of e-Call is anticipated to reduce emergency response times, according to the European Parliament, and thereby save thousands of lives every year. For instance, one Tesla Model 3 crash and fire occurred in the United States in 2018. Emergency services were promptly summoned to the situation after being informed by the onboard telematics system, limiting any potential damage. Additionally, in-car entertainment, navigation, and the internet are all things that consumers want to be smooth. The convenience and driving experience is improved by the services provided by telematics systems. In many contemporary cars, smartphone apps can be used to remotely start the engine, lock or unlock doors, and check the vehicle's health.
However, consumers are concerned about their privacy when personal vehicle data is collected and transmitted. The security and privacy of users could be jeopardized by unauthorized access to this data. For instance, in 2020, academics drew attention to flaws in a well-known telematics system, demonstrating how hackers would be able to access user data and endanger customer privacy.

The OEM segment is expected to account for a significant market share by the channel type segment

The global Automotive Telematics market is mainly classified based on vehicle type, channel type, connectivity solutions, and applications. On the basis of vehicle type, the market is segmented into commercial vehicles and passenger vehicles. Based on the channel type, the market is classified into aftermarket and OEM. By connectivity solution, the market is categorized into integrated smartphones, embedded, and tethered. On the basis of application, the market is segmented into navigation & location-based system, insurance telematics, safety & security, fleet/asset management, v2x, infotainment system, and other applications.
Based on the channel type, The OEM (Original Equipment Manufacturer) segment often holds the major market share in the Automotive Telematics Market due to that many automakers can directly incorporate telematics systems into brand-new automobiles throughout the manufacturing process. Embedded solutions, safety and regulatory mandates, and customization and integration are the major drivers for the OEM channel market growth worldwide. OEMs include telematics systems into cars immediately during the manufacturing process, giving customers pre-installed connectivity. Customers are more likely to use integrated telematics services as a result of this convenience, which increases adoption.
Additionally, OEMs are including telematics solutions that enable automatic emergency response in case of accidents due to rising legal requirements for vehicle safety, such as e-Call (emergency call) systems in Europe. OEMs are able to create telematics systems that seamlessly connect with other automotive systems, improving user experience and providing features like over-the-air upgrades, remote diagnostics, and vehicle health monitoring. One prominent maker of electric vehicles is Tesla. Tesla's vehicles have cutting-edge telemetry features that enable the business to gather data for future upgrades, remotely diagnose problems, and provide software updates. The benefit of OEM-based telematics solutions is demonstrated by Tesla's success in incorporating telemetry into their vehicles, which has increased customer happiness and loyalty.

Interesting Facts of Automotive Telematics Market.

• On the basis of vehicle type, the passenger vehicle category has a bigger market share than the commercial vehicle segment in the Automotive Telematics Market. This is so that drivers and passengers can benefit from technologies that improve comfort, security, and connectedness. Passenger vehicles have a broader customer base and are frequently fitted with telematics systems.
• Based on the channel type, The OEM (Original Equipment Manufacturer) segment often holds the major market share in the Automotive Telematics Market due to that many automakers can directly incorporate telematics systems into brand-new automobiles throughout the manufacturing process.
• By connectivity solution, the embedded connectivity solution segment often holds the major market share in the Automotive Telematics Market. Embedded telematics refers to technologies that are directly incorporated into the hardware of the car during manufacturing in order to provide the vehicle and its passengers with a flawless and dedicated connectivity experience.
• On the basis of application, the fleet/asset management segment often holds the major market share in the Automotive Telematics Market. Telematics technology is utilized by fleet and asset management systems to optimize the operation and management of vehicle fleets and other mobile assets used in a variety of sectors.
• Automobile telematics are becoming more widely used in Southern European nations like Italy, Spain, and Portugal as people become more aware of the advantages of connected cars and road safety. The market is expanding as a result of regulatory support for vehicle tracking systems and the necessity for effective fleet management solutions in the logistics sector.
• The automobile telematics market is expanding quickly in the Asia Pacific region, which is dominated by nations like China, Japan, and South Korea. The adoption of telematics solutions for safety, navigation, and improved driving experiences is being fueled by factors like the growing demand for smart vehicles, the expanding automotive sector, and improvements in communication technologies.

North America will account for the largest share of the Automotive Telematics industry. 

North American region holds a major market share globally. There are a number of variables that contribute to North America's supremacy in the automotive telematics market. The region's technology ecology and high rate of smartphone adoption have produced a climate that is favorable for the adoption of connected car solutions. The United States had over 280 million smartphone users in 2020, according to Statista, indicating a sizable potential user base for telematics services.
The requirement for effective fleet management as well as strict legislation encouraging vehicle safety have accelerated the implementation of telematics solutions. For instance, the Electronic Logging Device (ELD) mandate from the U.S. Federal Motor Carrier Safety Administration (FMCSA) mandates that commercial vehicles utilize telematics-enabled ELDs for precise recording of driving hours. This has caused the region's commercial vehicle industry to adopt telematics systems in substantial numbers. Popular North American manufacturers and tech firms like General Motors, Ford, and Tesla have also been instrumental in the growth of telematics services. Customers have embraced Tesla's linked vehicle services, which include remote software updates and real-time data monitoring, and they have demonstrated the potential advantages of telematics-driven activities.

Global Automotive Telematics Market Key Players: 

Some of the major competitors in the global Automotive Telematics market include Robert Bosch GmbH, Visteon Corporation, Continental AG, TomTom NV, Trimble Inc., MiX Telematics Ltd., CalAmp Corp., Verizon Communications Inc., AT&T Inc., and Harman International Industries, Inc.
Automotive Telematics is competitive with aggressive market strategies of global and regional companies looking to strengthen their market position through new product launches and facility expansions. The following are some recent market developments:

• Bosch and TomTom announced their collaboration to create a high-resolution mapping system in April 2021, which will improve the capabilities of automated driving systems.
• The "SmartCore" advanced infotainment and telematics platform from Visteon, which focuses on delivering connected services and improving user experiences, which was announced for electric vehicles in October 2020.
• In February 2021, Continental announced a partnership with Amazon Web Services (AWS) to create a connected vehicle platform to provide new digital services and features to automakers,
• TomTom and Verizon teamed together in March 2021 to share traffic data, enhancing Verizon's location-based services and telematics products.
• To increase its capabilities in fleet management and transportation solutions, Trimble purchased Kuebix, a provider of transportation management systems, in September 2020.

Frequently asked questions about the global Automotive Telematics market

Q: What is the current size of the global Automotive Telematics market?
Ans: The Automotive Telematics market was valued at XX million US$ in 2022 and is projected to reach XX million US$ by 2030, at a CAGR of XX% during the forecast period.

Q: What are the major opportunities in the Automotive Telematics industry?
Ans: The adoption of cutting-edge communication technology, the rise of linked vehicles, and the potential for improved vehicle safety and efficiency represent significant growth opportunities for the Automotive Telematics sector.

Q: What is the major growth driving factor for the Automotive Telematics industry?
Ans: The necessity for real-time monitoring and communication in vehicles, as well as the rising desire for connected cars, are the main growth drivers for the Automotive Telematics business.

Q: Which region is expected to have the largest share of the Automotive Telematics market?
Ans: North American region is expected to have the largest share of the Automotive Telematics market

Q: Which vehicle type segment will dominate the Automotive Telematics market?
Ans: On the basis of vehicle type, the passenger vehicle category has a bigger market share than the commercial vehicle segment in the Automotive Telematics Market. This is so that drivers and passengers can benefit from technologies that improve comfort, security, and connectedness