The Global Automotive OEM Telematics Market 10th Edition

The definition of a car telematics system in this report is an automatic system designed for passenger cars that incorporates some form of cellular communications. Several categories of car telematics applications are now offered by carmakers. Examples include eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, over-the-air (OTA) updates, connected navigation and infotainment, entertainment services such as music and video streaming, convenience services, Wi-Fi hotspots as well as AI personal assistance services. Convenience services include remote control of vehicle functions such as door lock/unlock, vehicle preconditioning (heating or cooling of the passenger compartment before a trip), EV charging management and finding the last parking position.

The number of connected cars with embedded OEM telematics systems is expected to surpass 500 million by 2029

Virtually all of the world’s leading carmakers have launched mass-market services in key regions today. The research estimates that 79 percent of all new cars sold worldwide in 2024 were equipped with an OEM-embedded telematics system, up from 75 percent in 2023. The eCall mandate in EU27+EFTA+UK has accelerated the adoption of telematics, making it a standard feature in nearly all new cars sold in the region in 2024. By 2025, the attach rate in EU27+EFTA+UK is expected to reach 100 percent, up from 97 percent in 2024. North America is an advanced market in terms of premium telematics services with an attach rate of about 93 percent. In China, the attach rate reached 84 percent in 2024. Other developed markets include Russia and CIS, Japan and South Korea

In other regions, the attach rate is still around 30-40 percent. Since many volume brands such as Toyota, GM, Stellantis, Ford, Volkswagen, Hyundai, Honda and Nissan now offer connected services for free in their main markets, they will constitute a large part of the growth of connected car subscriptions in the coming years. Premium brands such as BMW, Mercedes-Benz and Audi have offered telematics services as a standard feature across models and geographies for more than a decade and have a considerable number of subscribers.

Other major car brands offering embedded telematics on a broad scale include Kia, Tesla, Renault, Geely, BYD, Volvo Cars, Mazda, JLR, SAIC, GWM, Chery, Subaru, Porsche, Lexus and Changan Motors. Relatively newly founded brands in China such as Leapmotor, Li Auto and NIO also offer embedded telematics services. The research estimates that total shipments of embedded OEM telematics systems reached 64.5 million units worldwide in 2024. Growing at a compound annual growth rate of 4.9 percent, shipments are expected to reach 82.1 million units in 2029. During the same time, the attach rate of embedded telematics units is forecasted to increase from about 79 percent in 2024 to 93 percent in 2029.

The number of embedded telematics subscriptions is forecasted to grow at a compound annual growth rate of 13.0 percent from 286.6 million in 2024 to 528.1 million in 2029. Car manufacturers rely on services provided by mobile network operators, MVNOs, connectivity management platform providers and telematics service providers. Mobile operators and MVNOs such as AT&T, Vodafone, China Unicom, China Mobile, KDDI, Deutsche Telekom, Orange, Verizon, Cubic and NTT are leading connectivity providers in the automotive segment. Connectivity management platforms is also an important part of the connected car ecosystem enabling features such as provisioning, subscription management, cost monitoring and event management. Leading connectivity management platforms players in the automotive industry include Cisco, Aeris, Airlinq and Lolo Company.

Telematics service providers in the OEM segment have established partnerships with multiple telematics system vendors to enable connected car services for car manufacturers across an international footprint. Examples of telematics service providers focusing on the automotive OEM segment include Beijing Yesway Information Technology, Bosch, Cerence AI, Forvia, Harman International, Here Technologies, PATEO, Sibros, SiriusXM Connect, Sonatus, TomTom, Valtech Mobility and WirelessCar. There are also companies specialising in building connected car services and applications upon connected car data. Examples of such companies include Caruso, CCC Intelligent Solutions, High Mobility, LexisNexis Risk Solutions and Smartcar.

Highlights from the report

• Insights from 30 executive interviews with market leading companies.
• New data on car populations and new car registrations worldwide.
• Comprehensive overview of the car OEM telematics value chain and key applications.
• In-depth analysis of market trends and key developments.
• Detailed profiles of 25 major car OEMs and their telematics propositions.
• Updated market forecasts by region lasting until 2029

The report answers the following questions

• What is the current status of the car OEM telematics industry?
• Which are the key OEM telematics applications?
• Which are the leading telematics service providers?
• What telematics offerings are available from the leading car OEMs today?
• What business models are used by car OEMs?
• How are mobile operators and MVNOs positioning themselves in the telematics value chain?
• How will connected car data consumption evolve in the next years?
• How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?