Automotive Telematics Global Market Opportunities And Strategies To 2032

This report describes and explains the automotive telematics market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global automotive telematics market reached a value of nearly $100,728.8 million in 2022, having grown at a compound annual growth rate (CAGR) of 22.9% since 2017. The market is expected to grow from $100,728.8 million in 2022 to $342,035.4 million in 2027 at a rate of 27.7%. The market is then expected to grow at a CAGR of 27.2% from 2027 and reach $1,137,846.0 million in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, growth in vehicle ownership, increased occurrences of vehicle theft and high adoption of connected cars. Factors that negatively affected growth in the historic period included the high installation cost of automotive telematics solutions.

Going forward, rising demand for electric vehicles (EV), supportive government regulations and the increasing concerns about vehicle safety will drive the growth. Factor that could hinder the growth of the automotive telematics market in the future include a lack of standardization.

The automotive telematics market is segmented by connectivity solutions type into embedded, integrated and tethered. The embedded market was the largest segment of the automotive telematics market segmented by connectivity solutions type, accounting for 60.4% of the total in 2022. Going forward, the integrated segment is expected to be the fastest growing segment in the automotive telematics market segmented by connectivity solutions type, at a CAGR of 28.9% during 2022-2027.

The automotive telematics market is segmented by vehicle type into commercial vehicles and passenger vehicles. The passenger vehicles market was the largest segment of the automotive telematics market segmented by vehicle type, accounting for 64.8% of the total in 2022. Going forward, the commercial vehicles segment is expected to be the fastest growing segment in the automotive telematics market segmented by vehicle type, at a CAGR of 29.3% during 2022-2027.

The automotive telematics market is segmented by application type into fleet/asset management, navigation and location-based system, infotainment system, insurance telematic, safety and security and other applications. The fleet or asset management market was the largest segment of the automotive telematics market segmented by application type, accounting for 32.5% of the total in 2022. Going forward, the other applications segment is expected to be the fastest growing segment in the automotive telematics market segmented by application type, at a CAGR of 33.3% during 2022-2027.

The automotive telematics market is segmented by sales channel type into original equipment manufacturer (OEM) and aftermarket. The original equipment manufacturer (OEM) market was the largest segment of the automotive telematics market segmented by sales channel type, accounting for 68.0% of the total in 2022. Going forward, the original equipment manufacturer (OEM) segment is expected to be the fastest growing segment in the automotive telematics market segmented by sales channel type, at a CAGR of 28.1% during 2022-2027.

North America was the largest region in the automotive telematics market, accounting for 34.4% of the total in 2022. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the automotive telematics market will be the Middle East and Africa where growth will be at CAGRs of 33.1% and 32.5% respectively. These will be followed by Western Europe and Asia Pacific where the markets are expected to grow at CAGRs of 30.7% and 29.4% respectively.

The global automotive telematics market is highly fragmented, with a large number of small players. The top ten competitors in the market made up to 6.20% of the total market in 2021. The market concentration can be attributed to the high barriers to entry, in terms of high costs and the stringent regulations set up by the regulatory authorities. Samsung Electronics Co., Ltd. was the largest competitor with 1.84% of the market, followed by Robert Bosch GmbH with 1.43%, Michelin Group with 1.13%, Valeo Group with 0.58%, TomTom N.V. with 0.49%, Vontier with 0.19%, Trimble Inc. with 0.17%, Continental AG with 0.16%, NavInfo Co. Ltd with 0.12% and Ficosa International SA with 0.09%.

The top opportunities in the automotive telematics market segmented by connectivity solutions type will arise in the embedded segment, which will gain $143,185.2 million of global annual sales by 2027. The top opportunities in the automotive telematics market segmented by vehicle type will arise in the passenger vehicles segment, which will gain $148,438.9 million of global annual sales by 2027. The top opportunities in the automotive telematics market segmented by application type will arise in the fleet or asset management segment, which will gain $81,525.3 million of global annual sales by 2027. The top opportunities in the automotive telematics market segmented by sales channel type will arise in the Original Equipment Manufacturer (OEM) segment, which will gain $167,752.4 million of global annual sales by 2027. The automotive telematics market size will gain the most in the USA at $54,973.1 million.

Market-trend-based strategies for the automotive telematics market include use of artificial intelligence (AI), product innovations, collaborations and acquisitions, new technology development, telematics-based insurance, use of cloud technology and adoption of self-installed telematics devices.

Player-adopted strategies in the automotive telematics market include focus on enhancing business capabilities through the launch of new products and solutions, offering innovative solutions through strategic collaborations and partnerships and expanding operational capabilities through strategic acquisitions.

To take advantage of the opportunities, the publisher recommends the automotive telematics companies to increase focus on use of artificial intelligence (AI), focus on product innovations, focus on technological advancement, focus on use of cloud technology, expand in emerging markets, continue to focus on developed markets, focus on partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to focus on fast-growing vehicle types, focus on fast-growing applications and target electric vehicle (EV) companies.