The increasing number of supportive regulations and policies implemented by the European Union (EU), coupled with the growing need to develop a safer driving alternative, is the major growth driver for the European automotive telematics market. As a result of these factors, the industry is projected to generate $37,249.8 million revenue by 2030, advancing at a CAGR of 16.1% during the forecast period (2020–2030).
However, the COVID-19 pandemic has temporarily created a negative impact on the European automotive telematics market. The manufacturing industry across Europe has been witnessing a slowdown owing to the government mandates for lockdown, smaller workforces, and reduced product/service demand from customers. The pandemic adversely impacted the supply chain of numerous industry sectors across the region in the first two quarters of 2020, which also led to the reduced integration of automotive telematics solutions.
Safety and Security To Exhibit Fastest Growth in Market during Forecast Period
On the basis of service, the European automotive telematics market is categorized into safety and security, infotainment and navigation, remote diagnostics, fleet/asset management, insurance telematics, vehicle-to-everything (V2X), and others. Among these, in the forecast period, the safety and security category is expected to witness the fastest growth in the industry, in terms of value.
The government focus on the technological aspect, to increase the safety and security during the transportation of passengers and goods, is driving the market for this category. Furthermore, the increasing adoption of connected and semi-autonomous vehicles and development of intelligent transportation systems are expected to benefit this category, and, in turn, the European automotive telematics market, in the coming years.
Furthermore, on the basis of vertical, the market is categorized into transportation and logistics, government and utilities, travel and tourism, construction, education, healthcare, media and entertainment, and others. Out of these, the construction and government and utilities sectors are projected to be the most lucrative for in the European automotive telematics market players.
Geographically, Germany held the largest share in the European automotive telematics market in the historical period (2014–2019), and it is expected to remain the largest market in the forecast period. The growing implementation of government policies related to vehicle safety is the primary growth driver for the country’s market. Moreover, advancements in technology and the increasing awareness on telematics solutions, coupled with the growing adoption of telematics by fleet owners, are expected to boost the demand for telematics solutions in the country.
Partnership Is Most Common Strategic Measure Taken by Players in Market
Players in the European automotive telematics market are involved in partnerships and collaborations to expand their market presence. For instance, Masternaut Ltd., part of Michelin Group, signed a long-term contract with Fraikin SAS, a commercial vehicle fleet services company in Europe. Under this partnership, the former will provide connected fleet management tools and services to the 3,000 online order delivery vehicles of Fraikin in the U.K..
Similarly, in October 2019, Geotab Inc. entered into a partnership with Volvo AB to offer its connected vehicle technology to Volvo AB. Under this strategic development, Volvo AB would introduce a fully integrated electronic logging device (ELD), designed with Geotab’s technology, for its trucks.
Some of the major players operating in the European automotive telematics market are Robert Bosch GmbH, Valeo S.A., Continental AG, MiX Telematics Ltd., Verizon Communication Inc., AREALCONTROL GmbH, FleetGO Group Ltd., MAC & NIL srl, frameLOGIC PL, Emixis SA, ICOM Ltd., iData Kft., CVS Mobile Inc., Mireo d.d., Movildata Internacional SLU, Axtech AB, SafeFleet, Transpoco, BigChange Group Limited, and Loqus Holdings p.l.c.