According to a recent report published by Allied Market Research, titled, "China, India and Southeast Asia Automotive OEM Telematics Market by Vehicle Type and Application: Opportunity Analysis and Industry Forecast, 2019-2026," China, India and Southeast Asia automotive OEM telematics market was valued at $5,207.3 million in 2018, and is projected to reach $38,723.4 million by 2026, registering a CAGR of 27.1% from 2019 to 2026.
At present, China dominated China, India and Southeast Asia automotive OEM telematics market in 2017, whereas Southeast Asia is expected to grow at a significant rate in China, India and Southeast Asia automotive OEM telematics market forecast.
Factor such as government rules & regulations and rising trend of connectivity solutions is driving the China, India and Southeast Asia automotive OEM telematics market growth. In addition, ease in vehicle diagnosis is anticipated to propel the growth of market. However, threat of data hacking and high installation cost is hindering the growth of market. Furthermore, smart transportation system and improvement in performance of autonomous vehicle is a remarkable growth opportunity for the players operating in the China, India and Southeast Asia automotive OEM telematics industry.
Automotive OEM services have focused on fostering relationships with customers by improving services for a better user experience and launching new models that are in compliance with the regulatory standards. Moreover, growth in collaborations between mobile network providers and automotive manufacturers to provide seamless telematics services to customers is expected to provide lucrative opportunities for the growth of the telematics market in the near future.
Automotive manufacturers need to adhere to the safety standards defined by the governments of respective regions. The eCall system is one of the standard devices used in European vehicles for automatically dialing a helpline number and send location details in case of emergencies. The European car manufacturing industry has been closely working with connectivity device manufacturers and telecom service providers to offer connectivity solutions, which are as per the industry standards.
Ford Motors and BMW are the key leaders in the automotive OEM infotainment market. Harman has a Tier-1 supplier network in automotive OEM telematics services. China, India and Southeast Asia automotive OEM telematics market giants, such as Ford, Toyota, and BMW, have consolidated their market position, hardware reliability, open platforms, and quality through various innovations in their services and extensive regional coverage.
Further, car manufacturers have been focusing on providing faster communication tools for accessing large telematics codes, which in turn will propel the growth of China, India and Southeast Asia automotive OEM telematics market.
The automotive environment is changing at a rapid pace due to globalization. The increase in automotive sales has been caused due to improvement in manufacturing facilities in most of the emerging countries such as China, India, and others. The global automotive sector promises better productivity and sales as this sector consists of different segment such as premium and four wheelers among others, which in turn drives excellent profitability. This factor majorly influences prominent players of the automotive sector to invest and expand the business through different segments to gain better profitability. In addition, increase in disposable income of consumers and surge in passenger vehicles sale & production respectively across the globe has fueled the rising demand for automotive vehicle. Developing countries such as India, China, and others are the most promising countries for the automotive sector. The increase in demand for vehicles in automotive sector fuels the growth of the automotive OEM telematics market in China, India, and Southeast Asia. In recent years, consumers have shifted their interest to technologically advanced, requiring low cost, maintenance vehicles, which in turn boost the overall use of advance telematics in vehicle.
The safety services offered in telematics system are an appropriate example of cutting edge aftermarket asset & operation-based management technology, which involves sharing data between the vehicle 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 his overall driving experience. In addition, it prompts alert messages regarding traffic jams and parking space availability. All these fleet operation-based features provide intelligent transportation systems, which are designed to improve the overall driving experience. Moreover, AI and machine learning capabilities facilitate autonomous dispatching & routing and empowers telematics services to predict vehicle health and driving habits based on a vehicle’s utilization with lower maintenance requirements and cost-effectiveness. All these factors together significantly contribute toward China, India, Southeast automotive OEM telematics market growth.
Key Findings of the China, India and Southeast Asia automotive OEM Telematics Market :
- In 2018, based on application, the solutions segment was the highest revenue contributor.
- In 2018, based on vehicle type, the passenger car segment was the highest revenue contributor.
- In 2018, based on Asia Pacific region, China contributed the highest market revenue, followed by India and Southeast Asia.
The key players analyzed in this report include AT&T Inc., Bayerische Motoren Werke Aktiengesellschaft (BMW), Ford Motor Company (Ford), HARMAN International, MiX Telematics, Telefónica S.A., TomTom International BV., Trimble Inc., Verizon, Vodafone Group, and others, which holds the major contribution in China, India and Southeast Asia automotive OEM telematics market share.