Consumer Telematics Market Overview:
Global consumer telematics market size is expected to garner $26.18 billion by 2020, registering a CAGR of 33.7% during the forecast period 2014-2020. Consumer telematics are communication technologies and services enabling transfer of large amounts of data in and out of passenger vehicles in real-time. This provides consumers in-vehicle services, global positioning System (GPS) navigation, traffic information, local search (for example, for petrol pumps / gas stations or restaurants) and concierge services.
Passenger cars manufactured today offer unique connectivity solutions for better monitoring and tracking. The market is driven by amplified market penetration of smart phones, supportive governmental regulations which call for higher safety and security measures, growing demand for superior driving experience, lowered connectivity cost, and high speed internet technologies such as Long-Term Evolution (LTE).
Consumer telematics includes passenger cars. Technology agreements and collaborations are the key strategies adopted by the market players to enhance their market share. Based on type of telematics, the market is segmented into Automotive Original Equipment Manufacturers (OEM) and Aftermarket. The traditional automotive OEM emphases on traffic safety while aftermarket highlights media, entertainment and other personalized services.
Currently, Aftermarket has a relatively high market share as compared to Automotive OEM. Vehicle manufacturing companies, in alliance with telematics providers can lead to high growth of Automotive OEM segment.
Based on Applications, Consumer Telematics Market is segmented into Solutions and Services. Solutions include fleet/asset management, Infotainment, Tele health, Insurance Telematics, Vehicle-to-Vehicle (V2V)/ Vehicle to Infrastructure (V2I), remote alarm, etc. Services include design & consulting, deployment & integration and maintenance & training.
Further, consumer telematics market is segmented, based on End User i.e. Car (owned and rental based), Healthcare, Insurance, Media & entertainment, Vehicle manufacturers/dealers, Government agencies, etc.
Geographically, the market is segmented into, North America, Europe, Asia Pacific and LAMEA. In the years to come, Asia-Pacific is expected to grow as a prominent automobile market in future, which would fuel the market for consumer telematics in the region. The increase in sales is largely driven by the increasing population and rising disposal income. LAMEA is forecasted to grow at a good pace, because of increasing government regulations for vehicle as well as driver safety & security.
CONSUMER TELEMATICS MARKET KEY BENEFITS
- Current and future trends adopted by the key market players are highlighted to determine overall competitiveness of the market
- Porters Five Forces analysis and SWOT analysis of the key market players are provided to illustrate the business strategies adopted by buyers and suppliers
- The technology-effective drivers and opportunities are highlighted to describe the top factors responsible for the market growth
- Various operating segments of the consumer telematics market are carefully analyzed to measure the potential of the emerging market
- The quantitative analysis of the market through 2013-2020 is provided to elaborate the market potential
Consumer Telematics Market Report Highlights
By SOLUTION TYPE
By END USER
Key Market Players
Verizon 103, Ford Motors Co, Trimble Navigation Limited, Telefonica, TomTom, Harman, AT&T, Vodafone Group Plc, MiX Telematics, BMW
Consumer telematics is a technology in automobiles offering connectivity service to provide convenience, performance, and most importantly safety and security, coupled with powerful network technology. The consumer telematics market is expected to grow at a significant rate, owing to the increasing customer demand for vehicle safety, stringent government regulations and the increasing need for all-time connectivity. In addition, growing awareness among the customers would also lead to a rapid growth during the forecast period. The technological developments adopted by the car manufacturers enable the consumers to remotely connect with their vehicles. The market for consumer telematics includes telematics used in passenger cars.
In addition to the factors that positively impact the market, some of the limitations associated with telematics market include the threat of hackers breaching the security, additional costs to be incurred by the consumers, non-availability of uninterrupted and seamless connectivity, and lack of awareness among consumers in certain regions.
The consumer telematics market holds a prospective growth of embedded telematics technology. Automotive OEM embedded telematics type, is expected to gain momentum, given the increasing collaborations between component or device manufacturers and connectivity service providers. Insurance industry is the leading market for the consumer telematics, contributing maximum revenue and driving the consumer telematics market, given the expected increase in adoption of insurance telematics for passenger cars. Insurance telematics will allow the insurer to rate risk, enable underwriting, and offer insurance rates based on an individual’s actual driving behavior.
The scope of the telematics market is expected to be high in North America and Europe. Regions such as APAC and LAMEA, presently have less adoption, but they are anticipated to grow at comparatively higher rate during the forecast period. The growth would primarily be driven by the supportive government regulations and increasing awareness coupled with increasing number of automobiles.
Collaboration, service enhancement and product launches are the prominent strategies adopted by different companies in order to compete in consumer telematics market. These strategies are primarily aimed at expanding their product offerings and reach. The key market players such as TomTom, BMW, Ford, AT&T and Trimble are analyzed in the report. The intensity of rivalry among the competitors is intense, owing to the presence of numerous market players. Homogenous product lines and low switching cost, increases the bargaining power of the buyers.