Automotive Telematics Market

Automotive Telematics Market Outlook till 2032

The global automotive telematics market was valued at around US$ 41.59 Billion in 2022. Sales of Automotive Telematics are projected to accelerate at a CAGR of 18% to top US$ 217.7 Billion by 2032.

The global automotive telematics market is growing as a consequence of the increasing connectivity solutions trend and the increased ease of vehicle assessment. However, the threat of data hacking may be a significant impediment to market expansion.

Report Attributes	Details
Expected Market Value (2022)	US$ 41.59 Billion
Projected Forecast Value (2032)	US$ 217.7 Billion
Global Growth Rate (2022-2032)	18% CAGR
Expected Market Share of the U.S. Market (2032)	31%
Growth Rate of Europe (2022-2032)	10%
Major Automotive Telematics Service Providers	Harman International Industries, Inc. Magneti Marelli S.p.A Airbiquity Inc. Verizon Telematics, Inc. TomTom N.V. Masternaut Limited Trimble Inc. Visteon Corporation Robert Bosch GmbH Delphi Automotive Plc.

Revenue Analysis of Automotive Telematics from 2017-2021 Vs Market Projections for 2022 to 2032

According to Fact.MR, sales of automotive telematics services have increased at an incredible rate over the last five years, with a CAGR of 16% from 2017 to 2021. Automotive telematics systems are widely used in communication, mapping, and enhancing vehicle safety mechanisms.

Considering the troughs in the global automotive sector during the first half of the COVID-19 pandemic, prospects shrank somewhat during the global epidemic. The global automotive industry contracted by 16% in 2020, but growth for telematics remained resilient. This is also owing in large part to the emergence of EVs.

As the global number of road fatal accidents remains on the rise, automakers are integrating sophisticated telematics systems, such as advanced driver assistance systems, cameras, and other applications, to assess road crash outcomes, allowing drivers to execute evasive actions. With 1.35 million individuals dying and 50 million injured, the requirement for telematics is becoming increasingly pressing. According to Fact.MR, the industry will expand at an astounding 18% CAGR between 2022 and 2032.

Which are Some Prominent Drivers of the Automotive Telematics Market?

Broadband network improvements are accelerating the expansion of automotive telematics

With the auto industry aiming to capitalize on next-generation automotive functionalities, advanced communication techniques such as automotive telematics are witnessing broad acceptance in applications such as vehicular communication, security, mapping systems, and road infrastructure. Furthermore, optimized broadband networks, as well as the widespread usage of smartphones for communication, are supposed to propel the automotive telematics market forward.

Along with the ever-increasing prominence of in-car mobile communications among drivers, there has been a surge in demand for automotive telematics technology. Because assistive technologies like automotive telematics increase sales opportunities, automakers have begun incorporating the system into their products and promoting it as an updated version of their commodities.

Intense competition is propelling the Automotive Telematics industry forward

Increasing demand for transportation and a rise in the disposable income of consumers have offered lucrative growth opportunities to the automotive industry. With the manufacturers of the auto industry tapping into the next-gen automotive capabilities, smart technologies like automotive telematics are finding applications in vehicular communication, safety, road transportation, and mapping system.

As a result of the increase in the adoption rate of the system, the global automotive telematics market is undergoing a phase of innovation, wherein the key players have a significant role to play. According to the study, the newbies of the automotive telematics market dive into the business to bag the lucrative opportunity that the market has to offer. This has compelled the established players to enter into strategic mergers and acquisitions to reinforce their position on the map of the global automotive telematics market.

What are the Challenges Faced by the Automotive Telematics Market?

Cyber-attacks are restraining the market demand

The risks of cyber-attacks leading to the leakage of confidential data posed a challenge to the growth of the automotive telematics market. However, the legislation of stringent laws and guidelines pertaining to the protection of confidential data can mitigate these concerns.

Comparative View of Automotive Telematics Markets

Automotive Telematics Market :

Attributes	Automotive Telematics Market
CAGR (2022-2032)	18%
Market Value (2032)	US$ 217.7 Billion
Growth Factor	With the auto industry aiming to capitalize on next-generation automotive functionalities, advanced communication techniques such as automotive telematics are witnessing major growth.
Opportunity	Leading service providers are relying on the launch of new software that enables sophisticated damage detection systems that are based on cloud and artificial intelligence strategies.

Tele-ICU Services Market :

Attributes	Tele-ICU Services Market
CAGR (2022-2032)	16.7%
Market Value (2032)	USD 13.21 Billion
Growth Factor	In response to an aging population, circumstances such as the pandemic, and the prevalence of chronic ailments, growing adoption for intensive care facilities are boosting the growth in the tele-ICU market.
Opportunity	Due to the scarcity of intensivists, the aging population, and the high frequency of major illnesses requiring ICU attention, tele-ICU facilities appear to be the best solution in sight.

Which Regional Market is the Most Profitable for Automotive Telematics Manufacturers?

According to Fact.MR’s projections, Europe is anticipated to emerge as an opportunistic market for automotive telematics, given the rising concerns over road safety in recent years. A staggering CAGR exceeding 10% is projected, with an expected valuation of nearly 35 Bn by 2032. Major emphasis is expected to be laid on embedded telematics, given their high degree of precision.

As per data published by the European Transport Safety Council, there were around 42 road deaths per million inhabitants in the EU in 2020. In FY 2019-20, a 17% decrease in the number of casualties was observed across the EU, with the figure even higher at 23% over the past 5 years. This is largely in part due to the implementation of advanced driver assistance systems to prevent fatalities.

Developing countries such as India, South Korea, and China are major driving factors for automotive telematics in Asia. Moreover, logistics sectors, demand and supply chains along with different end-user sectors are focusing on the safety and security of the equipment and products they provide. Thus, not only are heavy commercial vehicles integrating automotive telematics but also passenger vehicles are adapting automotive telematics to ensure the safety of passengers.

Based on these aforementioned developments, Fact.MR anticipates demand for automotive telematics in the Asian region to surge at a CAGR of 9% across the 2021-2032 assessment period. A valuation of US$ 77.2 Billion has been forecast for the Asian market by the end of the forecast period.

Country-wise Analysis

Why will United Kingdom witness rapid market growth over the forecast period?

The United Kingdom has the largest telematics demand. The potential of telematics technology to locate automobiles is the sole motivation for consumers in the United Kingdom to use it.

In the coming decades, we can expect to witness the development of innovative technologies such as AI, machine learning, and IoT, as well as their incorporation with automotive systems such as ADAS and vehicular connectivity. Many big manufacturers are heavily investing in telematics research and development for future vehicles, and they are announcing the latest developments with their products in the UK.

Strong Presence of Automotive Telematics Manufacturers Creating Lucrative Opportunities for Market in China?

Because of the increasing demand for telematics solutions in fleet management, China is expected to have the fastest revenue rate of growth throughout the forecast period. Start-ups in China, such as Nio, FutureMove, and Qoros, are embracing telematics technology.

Because of the adoption of technological advancements and digitization, the country has witnessed an increase in the integration of automotive telematics. Furthermore, 4G network penetration is being observed in China. As a consequence, the flexibility of utilizing technology has contributed to the sales of automotive telematics.

Country-wise Forecast CAGRs for the Automotive Telematics Industry

Country	CAGR
China	15%
U.S.	16%
Australia	13%
France	14.5%

Category-wise Insights

Safety Playing Key Role for Demand of Embedded Automotive Telematics?

Embedded segment is anticipated to dominate the market

Increasing number of road accidents and vehicle mishaps are the key reasons driving growth for embedded automotive telematics. In addition, demand from the logistics sector for GPS navigation and emergency systems has unfolded by leaps and bounds in the last few years.

Thus, the embedded segment is anticipated to lead the market by recording a value of over US$ 6 Billion by 2032. Several product launches have become the mainstay of this segments. In January 2021, Teltrac Navman introduced an AI dual-dashboard camera, capable of capturing and analysing 100% of drive time, thereby averting possible accidents.

Collaborations and Partnerships Augmenting Demand for OEM Automotive Telematics?

Europe is poised to remain an attractive market for the growth of the OEM segment

The report opines that the OEM segment will enjoy its position as the forerunning sales channel in the automotive telematics market during the forecast period. This is attributed to the increase in the productive collaborations and strategic partnerships between the top automotive companies, thereby, assuring the dominance of OEM in the global automotive telematics market.

According to the report, OEM is predicted to lend absolute $ opportunity with US$ 32 Billion and Europe is anticipated to remain an attractive market for the growth of the OEM market through the forecast period.

Market Competition

Prominent service providers are relying on introducing new software which facilitate advanced damage detection systems, based on cloud and artificial intelligence approaches. Noteworthy developments in the past few months are as follows :

• In January 2021, Harman International Industries Inc. announced the introduction of HARMAN Turbo Connect (TBOT). The software anticipates and mitigates connectivity discrepancies on the road. This addition to the current portfolio satisfies current demand for high speed connectivity with low latency, especially when used with 5G-enabled technologies, including its Smart Conformal Antenna.
• In November 2021, Robert Bosch GmbH introduced its Ridecare services, equipped with a sensor box, to detect damage to a vehicle and smoke inside the vehicle. The sensor deploys a cloud-based data analysis using artificial intelligence, disbursing information on whether a vehicle has been damaged, or someone has smoked in it. Pilot projects are being initiated across North America, Asia and Germany.
• Masternaut, a Michelin Group company, today announced the launch of its new Move Electric solution in June 2021 to assist fleet managers in transitioning away from internal combustion engines.
• Ford released 'FordLiive,' an integrated uptime system created to assist Ford commercial vehicle operators to improve productivity, in March 2021. The system helps to maximize vehicle uptime while decreasing vehicle breakdowns and maintenance requirements.

Key Segments Covered in the Automotive Telematics Market Survey

• By Product Type :

  • Embedded Automotive Telematics
  • Integrated Automotive Telematics
  • Tethered Automotive Telematics

• By Services :

  • Safety and Security 
  • Information & Technology 
  • Entertainment & Remote Diagnostics 

• By Vehicle Type :

  • Passenger Car 
  • LCV Automotive 
  • HCV Automotive 

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America 
  • Latin America 
  • Europe 
  • East Asia 
  • South Asia & Oceana
  • Middle East & Africa