26 C
New York
Monday, June 24, 2024
HomeResearchAutomotive Telematics: A Booming $200.19 Billion Market Opportunity by 2031, Fueled by...

Automotive Telematics: A Booming $200.19 Billion Market Opportunity by 2031, Fueled by 16.5% Growth


Related stories


The Automotive Telematics Market is poised for significant growth, fueled by the rising demand for fuel-efficient and technologically advanced vehicles. This trend is further amplified by the increasing integration of telematics systems with electric vehicles (EVs) and stricter government regulations mandating safety features.

The Automotive Telematics Market, valued at USD 59 Billion in 2023, is anticipated to reach a staggering USD 200.19 Billion by 2031. This exponential growth signifies a compound annual growth rate (CAGR) of 16.5% throughout the forecast period.

The automotive telematics market is being driven by the increasing demand for high-performance, fuel-efficient vehicles packed with advanced features, prompting automakers like Ford to expand their telematics offerings across vehicle models. However, the market faced a temporary setback in 2020 with a year-on-year drop of around 7% due to declining vehicle production and sales during the pandemic. Post-pandemic government initiatives promoting electric vehicles have reignited demand for tracking devices like automotive telematics systems. Key players are now focusing on offering comprehensive fleet management services integrated with upcoming passenger car models, exemplified by Ford’s initiative to provide fleet monitoring services with driver behavior monitoring across its new models. The U.S. government’s road safety initiatives and mandates like integrating Electronic Logging Devices in commercial vehicles are further boosting market growth.

Automotive Telematics Market
Automotive Telematics Market

Get a Free Sample PDF Copy of  the Latest Research @ https://www.snsinsider.com/sample-request/1010 

Growth Factors and Opportunities

Looking ahead, the use of automotive telematics in electric vehicles (EVs) is anticipated to be a major growth driver, with leading vendors strategically positioning themselves to capitalize on the burgeoning EV market. Additionally, the European Commission’s mandate for e-Call systems in new vehicles has significantly expanded the European telematics market, particularly in countries like Germany, the UK, and Italy, which are home to prominent hardware suppliers. However, the enhanced user experience of telematics solutions hinges on robust wireless connectivity, prompting telecom players to develop 5G technology for improved safety and efficiency. 5G offers faster V2V and V2I communication, larger capacity, and wider spectrum, enabling higher connection density without interference and incredibly low latency, potentially avoiding 68% of accidents. Countries like the US, China, Germany, and the UK are already integrating 5G-enabled TCUs in new vehicles. Furthermore, collaborative efforts and investments in 5G infrastructure by nations like the EU, South Korea, and the UK will accelerate the evolution of 5G-connected telematics gateways, driving intelligent telematics and new applications in the coming years, with 6G’s commercialization targeted for 2030.

Market Segment

By Solution

  • Component
  • Service

By Vehicle

  • Passenger
  • Commercial

By Sales Channel

  • OEM
  • Aftermarket

By Application

  • Information & Navigation
  • Safety & Security
  • Fleet Management
  • Insurance Telematics
  • Others

Segment Analysis

Safety and Security: Witnessing Faster Growth

This segment encompasses applications like stolen vehicle tracking, automatic emergency alerts, driver monitoring, and remote locking/unlocking. The increasing focus on road safety is prompting governments to raise the bar for safety evaluations in vehicles and accelerate response times for medical assistance in emergencies. Automakers are actively integrating telematics technology to meet these evolving regulations and enhance vehicle safety and security features. This trend is further exemplified by Navistar’s announcement in March 2022 to include factory-installed telematics devices as standard equipment in all new electric and internal combustion engine Class 6-8 International Truck and IC Bus models. The combined effect of stricter regulations and proactive measures from automakers is expected to drive faster growth in the market for safety and security-focused telematics applications throughout the forecast period.

Want Detailed Insight on this Research, Drop your Enquiry Here @ https://www.snsinsider.com/enquiry/1010 

Impact of Geopolitical and Economic Factors on the Automotive Telematics Market

The ongoing Russia-Ukraine conflict has disrupted global supply chains for various automotive components, impacting vehicle production and consequently affecting the demand for automotive telematics systems. Furthermore, the war has triggered a surge in fuel prices, leading some consumers to prioritize fuel efficiency over advanced features like telematics, potentially slowing down the adoption of these systems in certain regions. However, the long-term effects remain uncertain, as the conflict could also lead to a renewed focus on electric vehicles and alternative fuel sources due to rising fuel costs, indirectly benefiting the telematics market through the integration of these systems in EVs for features like battery management and remote monitoring.

On the economic front, an economic slowdown can negatively impact consumer spending, potentially leading to a decline in vehicle sales and, as a result, a decrease in demand for telematics systems. Consumers might be more hesitant to purchase new vehicles with advanced features like telematics during economic downturns, and businesses might be less inclined to invest in fleet management solutions. The safety and security segment could potentially experience some degree of resilience, as safety regulations become more stringent, and telematics systems might become mandatory features in some regions, even during economic slowdowns. Additionally, existing fleet operators might continue to utilize telematics solutions to optimize their operations and potentially reduce costs.

Asia-Pacific Emerges as Automotive Telematics Hotspot

The Asia-Pacific region is poised to capture a significant share of the global automotive telematics market. Rising fuel prices are fueling demand for fuel-efficient vehicles with navigation systems that optimize consumption. Moreover, countries like India have mandated vehicle tracking and emergency buttons in public transport, driving telematics adoption for enhanced safety. The region’s focus on connected vehicle infrastructure creates opportunities for data-driven telematics solutions. Leading companies are tapping into this potential, exemplified by Borqs Technologies’ collaboration with Qualcomm in 2022 to develop telematics products tailored for Indian and Southeast Asian markets. With increasing regulations, connectivity demands, and cost considerations, the Asia-Pacific’s appetite for automotive telematics is soaring.

Prominent Key Players Profiles

  • Robert Bosch
  • Continental AG
  • Qualcomm technologies
  • Verizon
  • Intel Corporation
  • Delphi Automotive Plc
  • LG Electronics
  • Harman International
  • DENSO Corporation
  • Ficosa International SA
  • Magnetic Marelli SpA
  • Trimble Inc. (U.S.)
  • TomTom International B.V. (Netherlands)
  • Telogis (U.S.)
  • Visteon Corporation (U.S.)
  • AT&T Inc. (U.S.)
  • Harman International Industries Inc. (U.S.)

Innovating the Future of Automotive Telematics

  • Continental AG and Google Cloud joined forces at CES 2024 to unveil a personalized travel experience. Their collaboration integrates Google Cloud’s generative AI voice assistant into Continental’s Smart Cockpit, enabling natural conversations, conversational navigation, driver personalization, and in-car control.
  • At CIIE 2023, Robert Bosch GmbH showcased its advanced intelligent driving solutions tailored for the Chinese market. New production models in China will feature Bosch’s end-to-end navigation assistance for high-speed applications, leveraging telematics for data processing and advanced driver-assistance systems (ADAS).

Key Takeaways from the Automotive Telematics Market Study

  • Gain insights into the projected market size and growth rate for the automotive telematics market throughout the forecast period.
  • Identify the key trends and opportunities shaping the future of the market, including the integration of telematics with EVs, the impact of 5G and 6G technologies, and the evolving regulatory landscape.
  • Understand the performance of different market segments, including passenger cars, commercial vehicles, safety and security applications, and others.
  • Gain valuable data on the growth potential of different geographical regions, including Asia-Pacific, Europe, North America, and others.

Access Detailed Research Insight with Full TOC and Graphs @ https://www.snsinsider.com/reports/automotive-telematics-market-1010 


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories