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A04405 | Pages: 276 | Charts: 71 | Tables: 118 |
Telematics technology is used to monitor a wide range of information related to an individual vehicle or an entire fleet, which is majorly used by fleet management and automobile insurance companies. Telematics systems gather vehicle’s location, driving pattern, engine diagnostics, and vehicle activity, and this data is visualized on software platforms, which helps fleet managers to take decisions and manage resources accordingly.
Technological advancements followed by adoption of various technologies such as in-car infotainment, in-vehicle connected features and advanced driver assistance systems in vehicles will positively influence the growth of the automotive OEM telematics market demand. In addition, the introduction of telematics in vehicles has increased the performance of GPS and diagnostic systems, through which the speed and internal behavior of the vehicle are recorded. Auto insurance companies and fleet companies use telematics systems primarily to monitor the location and behavior of vehicles. Automakers choose between mutually exclusive connectivity options such as built-in telematics, connected devices and integrated smartphones, increasing system performance accordingly. All these factors are propelling the growth of automotive OEM telematics industry.
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Significant factors impacting the automotive OEM telematics market growth include integration of real-time fleet monitoring systems in vehicles, ease in integration of vehicle diagnosis, and rise in trend of connectivity solutions. In addition, intelligent transport systems, better driver, and vehicle safety present significant opportunities for market expansion.
The automotive OEM telematics market is segmented into offering, vehicle type, application, and region. On the basis of offering, the market is segmented classified into hardware, software, and services. On the basis of vehicle type, it is categorized into passenger vehicle and commercial vehicle. By application the market is divided into infotainment and & navigation, fleet management, safety and & security, and diagnostics. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The North American automotive telematics market is expected to grow at a considerable rate during the forecast period, owing to rise in need to manage fleet in a more efficient way, technological advancements, and increase in concerns over safety of vehicle & driver. Increased demand for smart fleet management systems, smart technologies, government initiatives, and advent & integration of IoT & information, communication, & technology particularly into automobiles are the factors responsible for the market growth. Increase in demand for smart transportation and concern of users toward environments are the major factors for which the automotive OEM telematics manufacturers are focusing to bring more advanced systems in the market. Investment in emerging areas of smart cities and innovation in fleet management in different transportation modes are expected to provide lucrative opportunities for the automotive OEM telematics market.
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The leading companies are adopting strategies such as acquisition, agreement, expansion, partnership, contracts, and product launches to strengthen their market position.
Fleet operators can track their vehicles in real-time and check if drivers are following the suggested path or any diversions on road. For such fleet management, cloud-based solutions such as AI, IoT, and big data, are used to collect primary data. In addition, Techwave Consulting Inc., is using sensors that can be embedded in vehicles to monitor high-value goods, as they connect to the cloud and transmit the data in real time.
Furthermore, activities that are crucial in smart fleet management include vehicle & driver tracking, asset management, two-way communication, driver safety & time management, rescheduling the delivery task, and others. Moreover, introduction of innovative products and advantages of using smart fleet management services such as quick access & response, wide-area coverage, and cost reduction, help vendors to increase their productivity and efficiency, which boost the demand for smart fleet management services used for automotive OEM telematics.
Advanced diagnostic system is expected to boost the growth of the automotive telematics market. In advanced diagnostics, the system in the car is expected to supply data of the vehicle to both the automobile dealer and the customer, which can help predict potential automobile issues before they take place.
In fleet management, it is easy to track vehicle records and decide which vehicle has travelled the most and accordingly offer service with the help of connectivity solutions. The diagnostic service offered is an efficient way to know the status of the vehicles. It allows the consumers to manage the maintenance of their vehicle, thus saving money and time by avoiding unwanted expenses & breakdowns. The system provides a maintenance schedule and timely reminders to the consumer. The diagnostic system keeps a track of the smoke emission and fuel consumption of the vehicles, thereby monitoring its engine health. This service sends a detailed report about the vehicle to decide the service schedules for the automobile. Thus, ease of vehicle diagnosis with the help mobile applications is expected to fuel the growth of the market.
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The additional costs incurred while providing connectivity in the vehicle is expected to restrict the growth of the automotive telematics market. Providing connectivity solutions in the vehicle incurs additional expenses to the consumers in the form of hardware, connectivity solutions, and telecom service charges. These additional costs bestowed upon the consumer have a significant impact on the automotive telematics market. Thus, high installation cost of telematics systems in vehicles is expected to hinder the market.
The safety services offered in vehicles with OEM telematics solutions are an appropriate example of cutting-edge aftermarket technology, which involves sharing data between the vehicle and the humans.
Safety is a combination of telecommunication and automobile technology used to improve vehicle efficiency, reduce fuel consumption & maintenance cost, enhance security & safety measures, and assist the driver to enhance his overall driving experience. Features such as live traffic updates, automatic toll transactions, insurance telematics, road-side assistance in case of accidents or breakdowns, and smart routing & tracking, are expected to provide an exponential growth opportunity for the key players operating in the automotive OEM telematics market.
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Key Market Segments
Key Market Players