Automotive Telematics Market
Automotive Telematics Market by Product Type (Embedded Automotive Telematics, Integrated Automotive Telematics, Tethered Automotive Telematics), by Services (Safety and Security Automotive Telematics, Information & Technology Automotive Telematics), by Vehicle Type, by Sales Channel and Regional Analysis 2021-2031
The global automotive telematics market stood at over US$ 22 Bn in 2018, registering a Y-o-Y growth of 23.3% by 2019. Prospects appear even more optimistic, with the industry expected to reach US$ 41.6 Bn by 2021, growing over 5x to reach US$ 217.7 Bn throughout the 2021-2031 forecast period.
|Market Size Value in 2021||US$ 41.6 Bn|
|Project Market Forecast Value in 2031||US$ 217.7 Bn|
|Global Growth Rate (2021-2031)||18%|
|Growth Rate of Europe||10% CAGR from 2021-2031|
Demand Analysis of Automotive Telematics from 2016 to 2020 Vs Market Projections for 2021 to 2031
As per Fact.MR’s report, over the last five years, sales of automotive telematics services accelerated at an impressive pace, registering a CAGR of 16% from 2016 to 2020. Automotive telematics systems find widespread applications in communication, mapping and for improving the safety features in an automotive.
Prospects somewhat contracted during the COVID-19 pandemic, given the troughs experienced in the global automotive sector in the initial half of the pandemic crisis. A 16% contraction was experienced in the global automotive industry in 2020, however, demand for telematics remained strong. This is also attributed to a large extent to the proliferation of EVs.
As the global incidence of road fatalities continues to surge, automotive manufacturers are incorporating advanced telematics systems, including advanced driver assistance systems, cameras and other software to predict road crash outcomes, permitting drivers to take evasive actions. With 1.35 million people dying and 50 million people being injured, the need to incorporate telematics is becoming more imperative. As per Fact.MR, a staggering 18% CAGR is predicted for the industry in the 2021-2031 assessment period.
Improved Broadband Networks Strengthening Growth of Automotive Telematics?
With the auto-industry envisioning to tap into the next-gen automotive capabilities, sophisticated communication technologies such as automotive telematics are witnessing a proliferated adoption in applications such as vehicular communication, safety, mapping system, and road transportation. Additionally, improved broadband networks alongside the ubiquitous use of smartphones for communication is predicted to uphold the growth of the automotive telematics market.
There has been a burgeoning demand for effective satellite navigation services in parallel to the perennially rising popularity of in-built mobile communications among drivers, thereby creating robust demand for automotive telematics technology. Since assistive technologies such as automotive telematics pave way for the sales prospects, carmakers have started incorporating the system in their product and showcased it as an upgraded version of their products.
Autonomous cars and EVs, being the immediate future of the automotive industry, have unavoidable requisite for the detection of unauthorized utilization of such vehicles, thereby making automotive telematics a viable feature for the next-gen vehicles. Additionally, sustained focus to promote the use of vehicles with green energy is expected to create opportunities for electric vehicles in general and automotive telematics market in particular.
Previously, 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.
How is Intensified Competition Driving Growth for Automotive Telematics?
Increasing demand for transportation and 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 through a phase of innovation, wherein the key players have a significant role to play. For instance, Visteon Corporation will showcase a digitally advanced cockpit technology as a crucial shift towards the next-gen automotive. The novel cockpit electronics architecture consists of high resolution display systems with curved non-rectangular edges to enhance the viewing experience for the riders.
According to the study, the newbies of the automotive telematics market dive into the business to bag the lucrative opportunity that market has to offer. This has compelled the established players to enter into strategic mergers and acquisitions to reinforce their position in the map of the global automotive telematics market.
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Mounting Road Safety Concerns Pushing Demand for Automotive Telematics in Europe?
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 2031. 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 implementation of advanced driver assistance systems to prevent fatalities.
While this is an encouraging trend, there is significant progress required to be made to bring the numbers down even further. According to the World Health Organization, every six minutes, someone dies on European roads. Almost 40% of the victims are pedestrians, cyclists and motorcyclists. Hence, numerous telematics providers are making inroads across the region, including Valeo S.A, Continental A.G and Movildata Internacional.
How is the Market for Automotive Telematics Expected to Fare in Asia?
Developing countries such as India, South Korea and China are a major driving factor for automotive telematics in Asia. Owing to adoption of technological advancements along with digitalization has spurred the integration of automotive telematics in the region. in addition, countries from this region are observing a penetration of 4G networks. Thus, the ease of using technology has positively influencing the sales of automotive telematics.
Moreover, logistics sectors, demand and supply chains along with different end user sectors are focusing on safety and security of 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 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 2021-2031 assessment period. A valuation of US$ 77.2 Bn has been forecast for the Asian market by the end of the forecast period.
Safety Playing Key Role for Demand of Embedded Automotive Telematics?
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 Bn by 2031. 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?
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 Bn and Europe is anticipated to remain an attractive market for the growth of the OEM market through the forecast period.
An Adaptive Approach to Modern-day Research Needs
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
|Historical Data Available for||2016-2020|
|Market Analysis||US$ Mn for Value & ‘000 Units for Volume|
|Key Regions Covered||
|Key Countries Covered||
|Key Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
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Key Segments Covered
- Embedded Automotive Telematics
- Integrated Automotive Telematics
- Tethered Automotive Telematics
- Safety and Security Automotive Telematics
- Information & Technology Automotive Telematics
- Entertainment & Remote Diagnostics Automotive Telematics
- Passenger Car Automotive Telematics
- LCV Automotive Telematics
- HCV Automotive Telematics
- Automotive Telematics Sales via OEMs
- Automotive Telematics via Aftermarket
- FAQs -
As of 2021, demand for automotive telematics will likely reach US$ 41.6 Bn
The automotive telematics industry is expected to surpass a CAGR of 18% from 2021-2031.
The automotive telematics market is expected to reach nearly US$ 145 Bn by 2031
From 2016 to 2020, automotive telematics demand surged at a CAGR of 16%
Increased requirements for reducing the burden of road accidents is primarily spurring demand for automotive telematics
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 are prominent automotive telematics ma
Europe is expected to register an astounding 10% value CAGR, reaching nearly US$ 35 Bn by 2031
According to Fact.MR, Asia is expected to register a growth rate of 9% from 2021-2031
Embedded automotive telematics is expected to accumulate US$ 6 Bn for automotive telematics.
OEM’s are expected to yield an opportunity worth US$ 32 Bn for automotive telematics in the assessment period.
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