Automotive Telematics Market

GMI Research analysis indicates that the Automotive Telematics Market estimated at USD 7.5 billion in 2021 and is slated to register a double digit CAGR 11.4% over the period, 2022-2029 and is projected to reach USD 17.8 billion in 2029.

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Market Dynamic

Key Drivers and Emerging Trends

The key factors propelling the growth of the global automotive telematics market are government regulations for the adoption of telematics, an increase in the trend of connectivity solutions, and ease of vehicle diagnosis. Government across the globe has passed several regulations and policies for safety, security, and monitoring of vehicles. For instance, in 2017, the Standardization Administration of China (SAC) and the Ministry of Industry and Information Technology (MIIT) jointly established national guidelines regarding the development of telematics systems. Consumers expect their vehicles to perform tasks similar to smartphones and computers, which is the reason why automobile manufacturers are installing connectivity solutions in their vehicles to boost automobile sales. For instance, Nissan Motor Co. Ltd. partnered with Microsoft Azure to install Connect Telematics Systems (CTS) in all LEAF and Infiniti models. The diagnostics system allows both automobile dealers and customers to track potential automobile issues before their occurrence.

Restraint in the Automotive Telematics Market

High installation costs, lack of uninterrupted and seamless internet connectivity, and the threat of data hacking are the major restraints which might hinder the growth of the global automotive telematics market.

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Application – Segment Analysis

Based on the application, the fleet management segment is anticipated to grow at a higher CAGR during the forecast period. Fleet management software provides seamless running of a business by offering plans to reduce excess fuel usage, more efficient routes, and eliminate risky driver habits by identifying the causes. These features provide a substantial surge to the growth of the fleet management segment in the global automotive telematics market.

Connectivity Solutions – Segment Analysis

On the basis of the connectivity solutions, the embedded segment is projected to dominate the market during the forecast period. Most of the telematics solutions and services cannot be used efficiently without the presence of embedded connectivity solutions, such as remote diagnostics, eCall, among others. In addition, there have been several government regulations and policies for the use of embedded connectivity. For instance, in 2018, Europe mandated the use of eCall. These factors play a crucial role in propelling the growth of the embedded segment in the global automotive telematics market.

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Region – Segment Analysis

Based on the region, Asia-Pacific region is expected to grow at a higher CAGR over the forecast period. This is mainly attributed to the growing number of automobile manufacturers in countries like China. Furthermore, the increasing demand for telematics systems in the trucking industry to track consignments in developing countries, such as China, India, Indonesia, and Thailand, is providing substantial growth to the market. Furthermore, increasing benefits of using built-in connectivity and telematics in commercial vehicles further contribute to the growth of the automotive telematics market in Asia-Pacific. 

Top Market Players

Various notable players operating in the market include Masternaut, Cartrack, Omnitracs, MiX Telematics, Trimble Inc., TomTom International BV., HARMAN International, Verizon, Teletrac Navman US Ltd, ands I.D. Systems Inc., among others.

Key Developments: 

• • In 2020, Masternaut, a Michelin Group Company, which is a leader in connected vehicle technology and services, signed a long-term contract with Fraikin, the largest commercial vehicle fleet services company. This partnership is aimed at offering connected fleet management tools and services to one of the big four supermarket’s 3000 online order delivery vehicles.
  • In 2020, Omnitracs, a leader in SaaS-based fleet management and data analytics solutions, announced the acquisition of SmartDrive, a leader in video-based safety and transportation intelligence. This integration is done to provide end-to-end platform that optimizes driver productivity and workflow, safety, routing, compliance, and dispatch.
  • In 2019, HARMAN International, a fully owned subsidiary of Samsung Electronics Co., Ltd., launched 5G-ready Telecommunications Control Unit (TCU) to provide scalable mobile network connectivity for connected cars that are either using the current 4G network infrastructure or the faster 5G network.

Segments covered in the Report:

The global automotive telematics market has been segmented on the basis of connectivity solutions, application, vehicle type, channel type and regions. Based on connectivity solutions, the market is segmented into embedded, integrated smartphones, and tethered. Based on application, the market is segmented into fleet/asset management, navigation & location-based system, infotainment system, insurance telematics, safety & security, and others. Based on vehicle type, the market is segmented into passenger vehicle, commercial vehicle, and two-wheeler. Based on channel type, the market is segmented into OEM and aftermarket. 

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Key questions answered in this research report:

• • At what pace is global automotive telematics market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in automotive telematics market? what will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global automotive telematics market?
  • Which connectivity solutions generated maximum revenues in 2021 and identify the most promising connectivity solutions during the forecast period?
  • What are the various application areas of global automotive telematics market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2021)	USD 7.5 billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Connectivity Solutions, By Application, By Vehicle Type, By Channel Type, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Masternaut, Cartrack, Omnitracs, MiX Telematics, Trimble Inc., TomTom International BV., HARMAN International, Verizon, Teletrac Navman US Ltd, I.D. Systems Inc., among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Automotive Telematics Market by Connectivity Solutions

• • Embedded
  • Integrated smartphones
  • Tethered

Global Automotive Telematics Market by Application

• • Fleet/Asset Management
  • Navigation & Location-based System
  • Infotainment System
  • Insurance Telematics
  • Safety & Security
  • Others

Global Automotive Telematics Market by Vehicle Type

• • Commercial Vehicle
  • Passenger Car
  • Two-Wheeler

Global Automotive Telematics Market by Channel Type

• • OEM
  • Aftermarket

Global Automotive Telematics Market by Region

• • North America Automotive Telematics Market (Option 1: As a part of the free 25% customization)
    • By Connectivity Solutions
    • By Application
    • By Vehicle Type
    • By Channel Type
    • US Market All-Up
    • Canada Market All-Up
  • Europe Automotive Telematics Market (Option 2: As a part of the free 25% customization)
    • By Connectivity Solutions
    • By Application
    • By Vehicle Type
    • By Channel Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Automotive Telematics Market (Option 3: As a part of the free 25% customization)
    • By Connectivity Solutions
    • By Application
    • By Vehicle Type
    • By Channel Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Automotive Telematics Market (Option 4: As a part of the free 25% customization)
    • By Connectivity Solutions
    • By Application
    • By Vehicle Type
    • By Channel Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Automotive Telematics (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Masternaut
  • Cartrack
  • Omnitracs
  • MiX Telematics
  • Trimble Inc.
  • TomTom International BV.
  • HARMAN International
  • Verizon
  • Teletrac Navman US Ltd
  • D. Systems Inc.