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2019

Automotive Telematics Market

Automotive Telematics Market Size, Share, Competitive Landscape and Trend Analysis Report by Channel (OEM and Aftermarket), Vehicle Type (Commercial Vehicle, Passenger Car, and Two-Wheeler), Application (Fleet/Asset Management, Navigation & Location-Based System, Infotainment System, Insurance Telematic, Safety & Security, V2X, and Others), and Connectivity Solution (Embedded, Integrated Smartphones, and Tethered): Global Opportunity Analysis and Industry Forecast, 2019-2026

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Author's: Pranav Padalkar | Lalit Janardhan Katare
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Automotive Telematics Market Outlook - 2026

The global automotive telematics market size was valued at $50.4 billion in 2018, and is projected to reach $320.6 billion by 2026, registering a CAGR of 26.8% from 2019 to 2026. By channel type, the OEM segment was the highest revenue contributor in 2018, accounting for $ 33.7 billion, and is estimated to reach $ 225.6 billion by 2026, registering a CAGR of 27.9% during the forecast period. In 2018, the North America region is anticipated to occupy major chunk of the market share. 

Automotiove Telematics Market

 

Telematics is a methodology of monitoring location and movement of a vehicle by combining Global Positioning System (GPS) and on-boards diagnostics systems. With the help of GPS and diagnostics system, it is possible to record the speed and internal behavior of vehicles. Telematics systems are mainly adopted by automobile insurance companies, fleet management companies, and others to monitor location and behavior of a vehicle. Vehicle telematics solution consists of 3 fundamental parameters i.e. Telematics Control Unit (TCU), telematics cloud server, and the front end- web app and mobile App. The automotive telematics market trends will be deciding on the basis of forecast & active steps taken by an industry manufacturer from the year 2018 to 2026.

The cloud-based telematics server consists of a web server, an application server, and a database. The information collected by TCU is sent to cloud-based telematics server through a GPRS/cellular network over HTTPS and later the data stored in the telematics server can be accessed by end users using either a desktop or mobile application. The major factor that are driving the automotive telematics market share is the increase in integration of real-time fleet monitoring systems in vehicles and increasing use of cloud-based technology for automotive telematics solution.

Automotive Telematics Market
By Channel Type
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OEM by channel type segment is projected as the most lucrative segments

 

Telematics technology enables both ride-sharing companies and passengers to keep a closer tab on drivers, manage payments based on the ride maps, and monitor vehicle movement through smartphones in a seamless and secure manner. The automotive telematics market forecasted from 2019 to 2026 by considering all the driving factors that influence equally to the market demand. 

Government regulations for vehicle telematics and rise in trend of connectivity solutions drive the growth of the market. In addition, ease of vehicle diagnose due to the telematics systems also propels the automotive telematics market growth. However, threat of data hacking, high installation cost, and lack of uninterrupted & seamless internet connectivity hinder the growth of the market. Furthermore, intelligent transportation system, improved performance of autonomous vehicles, enhancement of business decisions for fleet owners imposes a remarkable growth opportunity for the market.

Automotive Telematics Market
By Application
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Safety & security by application segment is projected as the most lucrative segments

 

The automotive telematics market is segmented on the basis of channel type, vehicle type, connectivity solutions, application, and region. By channel type, it is bifurcated into OEM and aftermarket. By vehicle type, it is categorized into passenger, commercial vehicles, and two-wheeler. By application, it is classified into fleet/asset management, navigation & location-based system, infotainment system, insurance telematics, safety & security, V2X, others. By connectivity solution, it is divided into embedded, integrated smartphones, and tethered. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key players in the report include Masternaut Limited, TomTom Telematics B.V, Trimble Inc.,Omnitracs ,VERIZON, I.D.Systems, Inc., Airbiquity Inc.,Harman International Industries, Inc., MiX Telematics, Teletrac Navman, and CARTRACK. 

Automotive Telematics Market
By Vehicle Type
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Two Wheeler by Vehicle type segment is projected as the most lucrative segments

 

Government regulations for vehicle telematics

Government rules and regulations for the safety, security, and tracking of vehicles in different regions drives the growth of the telematics market. For instance, in April 2018, government of India passed a rule for all public transport vehicles over six-seater capacity to have a tracking device installed in them. In addition, in December 2017, the Ministry of Industry and Information Technology (MIIT) and the Standardization Administration of China (SAC) jointly established national guidelines for the development of telematics systems. Therefore, government regulations for vehicle telematics fuel the growth of global automotive telematics market.

Rise in trend of connectivity solutions

Smartphones have changed the definition of connectivity over time. People wish to stay connected with the outer world even while travelling. Now that connectivity has become the need of the hour, automobile manufacturers adopt connectivity solutions in their vehicles to boost their automobile sales. Consumers are expecting their vehicles to perform tasks similar to computers and smart phones. Therefore, the automotive telematics market is expected to grow at a promising rate due to the rise in customer demands for staying connected 24*7 even while travelling.

Automotive Telematics Market
By Connectivity Solution
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Embedded by Connectivity Solutions segment is projected as the most lucrative segments

 

 Ease of vehicle diagnosis

Advance diagnostic system is expected to boost the growth of the automotive telematics market. This system in a car supplies data of the vehicle to both automobile dealers as well as customers, which helps to predict potential automobile issues before their occurrence. In fleet management, it is easy to track vehicle records and decide which vehicle has travelled the most and accordingly offer services with the help of connectivity solutions. Diagnostic systems keep a track of smoke emission and fuel consumption of vehicles, thereby, monitor engine health. Thus, ease of vehicle diagnosis with the help mobile applications is expected to fuel the growth of the market.

Threat of data hacking

Telematics is a relatively new technology. Events, such as unauthorized access to multiple car connectivity solutions or breaking into the in-vehicle connectivity system can restrict the automotive telematics market. The major security concern is that hackers have access to the computer system of cars as well as to the data that it collects and stores. Thus, hacking threats of vehicle with telematics systems is one of the factors expected to hamper the growth of the market.

High installation cost

The additional costs incurred while providing connectivity in a vehicle is expected to restrict the growth of the automotive telematics market. Providing connectivity solutions in the vehicle incurs additional expenses to 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.
Lack of uninterrupted & seamless internet connectivity

The main objective of telematics solutions is to keep consumers connected to the outside world. People need a continuous access to the Internet while travelling. Consumers expect their cars to perform tasks similar to their computers or smart phones. Interrupted connectivity restrict the growth of the telematics segment as it fails to offer a seamless Internet service. This is mainly due to inconsistency in the network offered by service providers, which varies for different regions.

Intelligent transportation system

The safety services offered in vehicles with telematics solutions are an appropriate example of cutting-edge aftermarket technology, which involves sharing data between vehicles and 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 the 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 is expected to provide an exponential growth opportunity for the key players operating in the automotive telematics market.

Better driver and vehicle safety

Real-time monitoring, geofencing, and diagnostic features are incorporated in vehicles due to the increase in demand for fleet safety and security in transportation of goods through commercial vehicles. According to telematics service providers, telematics in overall the automotive industry is expected to grow rapidly in developing nations. Asia-Pacific has witnessed strong adoption of solutions such as installation of Global Positioning System (GPS) in commercial vehicles, due to regulatory mandates. Therefore, increase in need for safety and security is expected to boost the growth of the automotive telematics market.

Automotive Telematics Market
By Region
2026
Asia-pacific 
North America
Europe
LAMEA

Asia Pacific by region segment is projected as the most lucrative segments

 

Key Benefits for Automotive Telematics Market:

  • This study presents analytical depiction of the automotive telematics Market analysis along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  • The current automotive telematics market size is quantitatively analyzed from 2018 to 2026 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the automotive telematics industry.

Automotive Telematics Market Report Highlights

Aspects Details
Automotive Telematics Market By CHANNEL TYPE
By CHANNEL TYPE
  • OEM
  • Aftermarket
Automotive Telematics Market By Vehicle Type
By Vehicle Type
  • PASSENGER VEHICLE
  • COMMERCIAL VEHICLE
  • TWO WHEELER
Automotive Telematics Market By Application
By Application
  • Fleet/Asset management
  • Navigation & location-based system
  • Infotainment system
  • Insurance telematic
  • Safety & security
  • V2X
  • Others
Automotive Telematics Market By Connectivity Solutions
By Connectivity Solutions
  • Embedded
  • Integrated smartphones
  • Tethered
Automotive Telematics Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Russia, Italy, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

Teletrac Navman, MIX TELEMATICS, TRIMBLE INC, I.D.Systems, Inc., VERIZON, Airbiquity Inc, MASTERNAUT LIMITED, TOMTOM TELEMATICS BV., CARTRACK, OMNITRACS, HARMAN INTERNATIONAL (SAMSUNG ELECTRONICS)

Analyst Review

In automotive technology, satellite-based positioning technologies are used to connect telematics solutions via wireless connectivity that enables audio or visual data and drivers to various in-vehicle telematics applications. The automotive telematics market has witnessed a significant growth over the years, owing to the increase in trend of connectivity solutions worldwide.

A telematics system offers multiple features such as driver’s emergencies such as roadside assistance, airbag, navigation, vehicle security notification, stolen vehicle tracking services, and others. Hardware in telematics control unit consists of infamous “black box” module that integrates a phone, GPS receiver, digital signal processor and microphone for voice recognition. It also gathers diagnostic information from sensors.
The growth of the automotive telematics market is driven by government regulations for vehicle telematics and rise in trend of connectivity solutions. Integration of real-time fleet monitoring systems in vehicles and increased use of cloud-based technologies for automotive telematics solution are expected to boost the growth of automotive telematics market. In addition, ease of vehicle diagnosis with the help of telematics systems also propels the growth of the market. However, threat of data hacking, high installation cost, and lack of uninterrupted & seamless internet connectivity hinder the growth of the market. Furthermore, intelligent transportation system, improved performance of autonomous vehicles, and enhancement of business decisions for fleet owners provides remarkable growth opportunities for the growth of the automotive telematics market.

Among the analyzed regions, currently, North America is the highest revenue contributor and Asia Pacific is anticipated to create dominance during the forecast period, followed by Europe and LAMEA. This growth is attributed to proactive development and research in telematics technology for the various applications of vehicles and rapid economic improvement.
 

Author Name(s) : Pranav Padalkar | Lalit Janardhan Katare
Frequently Asked Questions?

The global automotive telematics market size was valued at $50.4 billion in 2018, and is projected to reach $320.6 billion by 2026, registering a CAGR of 26.8% from 2019 to 2026.

The forecast period in the Automotive Telematics Market would be 2026

The market value of Automotive Telematics Market in 2019 is estimated to be $ 61.0 Billion

The base year calculated in the Automotive Telematics Market report is 2018

The companies are selected based on the product offerings, organic and inorganic strategies adopted and Georgraphic footprint. Additional, the company tie ups with key OEMs and revenue generated are the key pointers for selection.

The major companies holding the major share includes Masternaut Limited, TomTom Telematics B.V, Trimble Inc.,Omnitracs ,VERIZON, I.D.Systems, Inc., Airbiquity Inc.,Harman International Industries, Inc., MiX Telematics, Teletrac Navman, and CARTRACK

In terms of channel type OEM is estimated to be a matured market growing at a CAGR of 27.9% during the forecast period.

In terms of vehicle Type two wheees is estimated to be a most influencing segment growing at a CAGR of 9.1% during the forecast period.

The key growth strategies adopted by the automotive telematics industry players includes innovations and developments of better and efficient products. These strategies opted by various industry players is leading to the growth of the automotive telematics industry as well as the players.

The telematics used of various application which includes fleet/ asset management, navigation & loction based system, infotainment solutions, insurance telematics,V2X and others.

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Automotive Telematics Market

Global Opportunity Analysis and Industry Forecast, 2019-2026