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Automotive Telematics Market Research Report: By Vehicle Type (Passenger Car, Commercial Vehicle), System Type (Embedded, Tethered, Integrated), Services (Safety and Security, Infotainment and Navigation, Remote Diagnostics), Communication Technology (V2V, V2I) - Industry Size, Share, Development and Demand Forecast to 2030

  • Published: February 2020
  • Report Code: AT10608
  • Available Format: PDF
  • Pages: 140

Valued at $27.7 billion in 2019, the global automotive telematics market is projected to advance with a CAGR of 16.6% during the forecast period (2020–2030), to generate revenue of $149.9 billion in 2030.

Geographically, the Latin America, Middle East, and Africa (LAMEA) automotive telematics market is expected to witness the fastest growth during the forecast period. This can be mainly attributed to the increasing demand for fleet telematics, connected vehicle technologies, and integration of safety features into vehicles.

Automotive Telematics Market

Fundamentals Governing Automotive Telematics Market

One of the major trends witnessed in the automotive telematics market is increasing number of collaborations and partnerships among different systems providers, original equipment manufacturers (OEMs), telematics solution providers, and other stakeholders. For instance, in December 2019, Avis Budget Group Inc. entered into a partnership with Verizon Communications Inc., in order to launch an all-in-one digital travel assistant exclusively for customers of Avis Budget Group Inc. and Payless Car Rental Inc., using Verizon’s nationwide 4G LTE network.

Increasing demand for improved safety features in vehicles and more efficient road traffic is the major reason driving the growth of the automotive telematics market. Road traffic, serious injuries, and deaths are some unacceptable and confounding outcome of road transportation, and the primary cause of road crashes and accidents is human error. India registered the maximum number of road accidents in the world, followed by China and the U.S. This can be reduced by supports offered by different telematics solutions, which provide a more safer driving option to drivers, thereby propelling the demand for automotive telematics across the world.

Automotive Telematics Market

Incorporation of 5G network technologies, which have higher radio frequencies than the existing 4G network, in telematics solutions provides immense growth opportunities to players in the automotive telematics market. The telematics solutions increase the complexity of vehicle technologies, which, in turn, require an enhanced network connectivity to simplify their functioning. In December 2019, Verizon Communications Inc. was the first ever company to introduce 5G network in the U.S., thereby making the U.S. first ever country to introduce 5G network. Thus, the adoption of 5G network in car connectivity service is expected to enhance the growth opportunities for telematics solution providers.

Automotive Telematics Market Segmentation Analysis

The commercial vehicle category, based on vehicle type, is expected to witness faster growth in the automotive telematics market, during the forecast period. This can be buoyed by the stringent government regulations and rise in adoption of cloud-based fleet management telematics solutions by fleet owners, globally.

The embedded category dominated the automotive telematics market, on the basis of system type, throughout the historical period. This is due to the fact that, at present, almost all the telematic service providers offer in-build telematics systems in their offerings to enable continuous network connectivity.

The automotive telematics market is expected to attain the fastest growth in the remote diagnostics category, based on service, during the forecast period. This can be attributed to the fact that the remote diagnostics service offers efficient on-time solutions to automotive faults by analyzing the vehicle health before-hand.

The vehicle-to-vehicle (V2V) technology was the largest category in the automotive telematics market during the historical period. This is majorly due to the factors, such as enhanced safety of vehicles equipped with communication systems and stringent government regulations.

Automotive Telematics Market Report Coverage
Report Attribute Details
Historical Years 2015-2019
Forecast Years 2020-2030
Market Size by Segments Vehicle Type, System Type, Services, Communication Technology
Market Size of Geographies U.S., Canada, Germany, U.K., France, Italy, Spain, Japan, China, India, South Korea, Brazil, Mexico, Saudi Arabia, South Africa
Market Players Teletrac Navman US Ltd., Inseego Corp., MiX Telematics Ltd., Visteon Corp., Verizon Communications Inc., Robert Bosch GmbH, DENSO CORP., General Motors Co., Valeo SA, HARMAN International Industries Inc.

Geographical Analysis of Automotive Telematics Market

North America was the largest market for automotive telematics during the historical period, led by the U.S. Increased governmental regulations are also benefiting the market growth in the region. For instance, in the U.S., the Federal Motor Carrier Safety Administration (FMCSA) mandated installation of electronic logging device (ELD) in commercial vehicles. Such government initiatives provide good ground for innovation and future growth of the automotive telematics industry. Moreover, the U.S. has accounted for a major portion of the market revenue in the region till now, due to considerable investments by government and private organizations, coupled with favorable policy frameworks. Further, the increasing sales of long-haul trucks in the country would continue to boost the demand for automotive telematics during the forecast period.

Automotive Telematics Market

Competitive Landscape of Automotive Telematics Market

The global automotive telematics market is fragmented in nature, with multiple players operating independently in the different countries and cities across the world. Some of the major players operating in the market are Teletrac Navman US Ltd., Inseego Corp., MiX Telematics Ltd., Visteon Corp., Verizon Communications Inc., Robert Bosch GmbH, DENSO CORP., General Motors Co., Valeo SA, and HARMAN International Industries Inc.

Recent Strategic Developments of Major Automotive Telematics Players

In recent years, major players in the automotive telematics market have taken several strategic measures, such as product launches, partnerships, and facility expansion, to gain a competitive edge in the industry. For instance, in July 2019, Verizon Communications Inc. launched exclusive Inseego 5G MiFi M1000 in the U.S. As an outcome of this development, Inseego's device would be available to Verizon’s customers, when the device would be connected to its 5G ultra-wideband network.

Moreover, in November 2019, Visteon Corp. entered into a partnership with Tata Communications Ltd., in order to receive digital infrastructure from Tata Communications. The partnership would allow Visteon Corp. to develop more secured and flexible telematics solutions for automobiles as well as assist it in geographical expansion.

Automotive Telematics Market Size Breakdown by Segment

The automotive telematics market report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.

Based on Vehicle Type

  • Passenger Car
  • Commercial Vehicle

Based on System Type

  • Embedded
  • Tethered
  • Integrated

Based on Services

  • Safety and Security
  • Infotainment and Navigation
  • Remote Diagnostics

Based on Communication Technology

  • Vehicle-to-Vehicle (V2V)
  • Vehicle-to-Infrastructure (V2I)

Based on Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
  • Asia-Pacific (APAC)
    • Japan
    • China
    • India
    • South Korea
  • Latin America (LATAM)
    • Brazil
    • Mexico
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • South Africa

Key Questions Addressed/Answered in the Report

  • What is the current scenario of the global automotive telematics market?
  • What are the emerging technologies for the development of automotive telematics?
  • What are the historical size and the present size of the market segments and their future potential?
  • What is the feasibility of telematics services in different system categories?
  • What are the major catalysts for the market and their impact during the short, medium, and long terms?
  • What are the evolving opportunities for the players in the market?
  • Which are the key geographies from the investment perspective?
  • What are the key strategies adopted by the major players to expand their market shares?
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