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Telematics Market to Generate Revenue Worth $140.1 Billion by 2022

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Published Date:   February 2016

The global telematics market was valued at $26.3 billion in 2015, and it is expected to register revenue of $140.1 billion by 2022, exhibiting a CAGR of 28.5% during 2016–2022. The commercial sector was the largest category in 2015.

Whereas, during the forecast period, the consumer sector is expected to exhibit faster growth in the telematics market, owing to the greater application of telematics in various areas, such as fleet/asset management, navigation, infotainment, insurance, vehicle-to-vehicle (V2V), and vehicle-to-infrastructure (V2I).

Increasing R&D is an Emerging Trend in Telematics Market

With the advancement in technology, consumers expect more convenience features in their vehicles. This has led to increase in R&D activities in the telematics industry, which has led to the development of several integration features. With the increasing use of smartphones and their integration with vehicles, all major telematics providers are increasing the accessibility of telematics through smartphones. Development of application programming interface (API) to integrate third-party software applications is another initiative in the telematics market.

Government Projects and Initiatives for Adoption of Telematics is Driving Market Growth

In order to assure vehicular safety, governments of several countries have been promoting the use of telematics in vehicles. This is one of the major factors boosting the telematics market growth. For instance, eCall project promoted by the European Commission (EC) was adopted in Europe in 2013. eCall is targeted to provide assistance to motorists, who have met with road accident and are unable to speak due to injuries. The Government of China rolled out a program in 2014 that promotes the use of fleet management solution in every vehicle. In Brazil, a program known as SIMRAV that has been introduced to monitor and control crimes associated with vehicles. This program is also operated with the help of telematics.

Segmentation Analysis of Telematics Market

Telematics Market

On the basis of sector, the telematics market is bifurcated into commercial and consumer. In the commercial telematics market, the solution category accounted for larger share, of around 75%, in 2015, based on application. Whereas, the service category is expected to grow at a faster pace as compared to the solution category, and the former’s market share is likely to increase during the forecast period.

In the consumer telematics market, the aftermarket accounted for larger share in 2015, based on distribution channel. Whereas, market share of original equipment manufacturer (OEM) is expected to increase during the forecast period, owing to the increasing numbers of premium vehicles with pre-installed telematics solutions.

Geographical Analysis of Telematics Market

Globally, the APAC telematics market is expected to witness the fastest growth during the forecast period. Currently, APAC has low market share, owing to less number of automated vehicles in the region. However, with the economic development and increasing disposable income of people in the region, the demand for such vehicles is expected to increase in the coming years. The Government of China has been promoting connectivity in vehicles, especially in commercial vehicles. BMW has recently entered into a partnership with a Chinese internet service provider, Baidu, to build highly automated driving tracks in Beijing and Shanghai. The growing number of high net worth individuals (HNI) in India is also escalating the demand for connected cars. The automotive manufacturer, Mahindra, has recently introduced an application REVive in its selected passenger cars in India. This application enables emergency calling through user’s smartphone.

Explore Report with Detailed TOC at: https://www.psmarketresearch.com/market-analysis/global-telematics-market

Competitive Landscape of Telematics Market

Some of the major players operating in the telematics market are HARMAN International Industries Inc., Verizon Communications Inc., TomTom International BV, Vodafone Group Plc, AT&T Inc., Ford Motor Company, Telefonica S.A., BMW Group, MiX Telematics, and Trimble Navigation Ltd.

The major operators in the global telematics market are actively involved in various strategic developments, such as partnerships, product launches, and client wins. For instance, in January 2016, Harman announced partnership with Microsoft to introduce new mobile productivity services, as well as utilization of existing products, services, and technologies of both corporations, including cloud platforms, telematics, and driver productivity. In February 2015, Trimble launched a mobile application, Trimble TrimView Direct. The application leverages existing real-time data collected by Trimble’s TrimFleet. It also provides a dashboard of real-time data, such as order status and timelines, ticket details, fleet analytics and performance, vehicle location, trip status, signal health, and driver hours and performance.

GLOBAL TELEMATICS MARKET SEGMENTATION

By Sector

  • Commercial
    • By Application
      • Solutions
        • Fleet/Asset Management
        • Navigation
        • Infotainment
        • Insurance
        • V2V & V2I
        • Tele-health
        • Remote Alarm & Monitoring
      • Services
        • Design & Consulting
        • Integration & Deployment
        • Maintenance & Training
    • By Distribution Channel
      • Aftermarket
        • Embedded
        • Portable
      • OEM
        • Embedded
        • Hybrid
    • By End-user
      • Logistics & Transportation
      • Insurance
      • Healthcare
      • Media & Entertainment
      • Automotive Manufacturers & Dealers
      • Government Agencies & Utilities
  • Consumer
    • By Application
      • Solutions
        • Fleet/Asset Management
        • Navigation
        • Infotainment
        • Insurance
        • V2V & V2I
        • Tele-health
        • Remote Alarm & Monitoring
      • Services
        • Design & Consulting
        • Integration & Deployment
        • Maintenance & Training
    • By Distribution Channel
      • Aftermarket
        • Embedded
        • Hybrid
      • OEM
        • Embedded
        • Hybrid
    • By End-user
      • Passenger Car
      • Insurance
      • Healthcare
      • Media & Entertainment
      • Automotive Manufacturers & Dealers
      • Government Agencies

GEOGRAPHICAL SEGMENTATION

By Geography

  • North America
    • By Application
    • By Sector
      •  By End-User
  • Europe
    • By Application
    • By Sector
      • By End-User
  • Asia-Pacific
    • By Application
    • By Sector
      • By End-User
  • Rest of the World (RoW)
    • By Application
    • By Sector
      • By End-User