Jul 28, 2017
5 Takeaways from Fact.MR’s Automotive Telematics Market Forecast
by Team Fact.MR
Telematics has emerged as an important technology in the modern vehicular system. Automotive telematics has significantly boosted the functional capabilities of vehicles, making them more safe and connected. Currently, telematics is used in enhancing automotive safety, mapping and communication systems. Fact.MR’s new report reveals that the global market for automotive is set to increase at a robust CAGR of 24.2% over the forecast period (2017-2022) to reach a valuation of US$ 53,280 Mn. This growth will be facilitated by factors such as rising number of internet users, introduction of sophisticates communication systems, favorable government policies, and development of high-speed broadband networks. Following takeaways from Fact.MR’s report on the global automotive telematics market assert on its future prospects.
- OEMs will remain the largest sales channel for automotive telematics throughout the forecast period. Increasing strategic partnerships and collaborations between telematics component manufacturers and top automotive companies is reassuring OMEs’ dominance.
- On the basis of services, the safety & security segment is projected to account for the largest revenue share of the market over the forecast period. By the 2017-end, this service segment is likely command for more than half of global revenues. Meanwhile, integration of automotive telematics is steadily increasing in several other services segments including entertainment, navigation and information.
- By product type, the embedded segment is projected to surpass a valuation of US$ 23,701 Mn towards the end of 2022, registering a strong CAGR. In addition, the segment currently accounts for close to half of the market value. During the forecast period, the tethered segment is projected to witness the highest CAGR.
- Based on vehicles types, the passenger car segment presently accounts for over one-half market share in terms of revenue and is projected to reach a market valuation in excess of US$ 28,530 Mn by the end of projection period. This is mainly attributed to growing need for efficient wireless communication systems in vehicles.
- Among region, Europe is expected to remain the frontrunner in the global automotive telematics market in terms of revenue over 2022. This is primarily due to presence of some of the leading auto component manufacturers and automotive companies in the region. Meanwhile, the market in Asia Pacific excluding Japan (APEJ) is expected to expand at the highest CAGR over the forecast period.
Some of the leading players in the global market for telematics include Verizon Telematics, Inc, TomTom N.V, Magneti Marelli S.p.A, Delphi Automotive Plc, Visteon Corporation, Harman International Industries, Incorporated, Trimble Inc, Masternaut Limited, Airbiquity Inc., and Robert Bosch GmbH. In order to increase market presence, many of these companies are actively focusing on adding new features to their products as well as trying to integrate telematics with a wider range of vehicle components.