Automotive Telematics Market Report 2026

The automotive telematics market size has grown exponentially in recent years. It will grow from $207.47 billion in 2025 to $262.95 billion in 2026 at a compound annual growth rate (CAGR) of 26.7%. The growth in the historic period can be attributed to fleet digitalization, gps tracking adoption, fuel cost optimization needs, regulatory compliance requirements, growth of commercial vehicle fleets.

The automotive telematics market size is expected to see exponential growth in the next few years. It will grow to $670.75 billion in 2030 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to connected vehicle expansion, electric vehicle telematics demand, AI-driven analytics adoption, smart mobility initiatives, real-time data monetization. Major trends in the forecast period include growth of fleet management solutions, adoption of real-time vehicle tracking, expansion of usage-based insurance, integration of predictive maintenance analytics, rising demand for driver safety monitoring.

The rising incidence of car accidents is expected to support the growth of the automotive telematics market in the coming years. Car accidents, also known as vehicle collisions, involve impacts with other vehicles or stationary objects, and automotive telematics helps reduce such incidents by offering real-time feedback and alerts to drivers. Leading automobile manufacturers are increasingly integrating telematics systems to enhance vehicle and driver safety. For instance, in February 2023, according to data released by Statistisches Bundesamt, a Germany-based federal statistical authority, around 21,600 people were injured in road traffic incidents in 2023, representing an increase of approximately 900 injuries, or 5%, compared to 2022. In addition, traffic-related fatalities increased by 13, reaching 167 in February 2023. Therefore, the growing number of car accidents is driving the expansion of the automotive telematics market.

Key players in the automotive telematics market are focusing on developing advanced technological solutions, such as AI-powered telematics platforms, to address evolving industry requirements and strengthen their competitive positioning. AI-powered telematics solutions combine artificial intelligence with telematics functionalities to optimize vehicle tracking, utilization, safety monitoring, and maintenance planning through a single integrated platform. For instance, in October 2023, Nauto, a US-based provider of AI-driven safety and operational solutions for commercial vehicles, introduced an enhanced telematics solution with advanced capabilities. These features deliver detailed insights into vehicle tracking, usage patterns, misuse, and maintenance planning. Nauto’s solution integrates telematics with AI-enabled driver and vehicle safety technologies within a unified device and software ecosystem, reducing the need for multiple in-cab devices and enabling fleet operators to lower costs and improve operational efficiency. Additionally, enhanced safety functions include advanced detectors that generate specific alerts to differentiate pedestrians, bicyclists, and motorcyclists, improving risk identification for vulnerable road users.

In February 2024, Karma Automotive, a US-based producer of ultra-luxury hybrid and electric vehicles, acquired Airbiquity for an undisclosed sum. Through this acquisition, Karma seeks to enhance its software-defined vehicle strategy by incorporating advanced telematics capabilities, over-the-air update systems, and cloud-based connectivity solutions into its technology framework. Airbiquity is a US-based automotive telematics company that specializes in connected vehicle services.

Major companies operating in the automotive telematics market report include Samsung Electronics Co., Ltd, Robert Bosch GmbH, Michelin Group, Valeo Group, TomTom N.V., Trimble Inc., Continental AG, NavInfo Co. Ltd, Ficosa International SA, Shenzhen Eelink Communication Technology Co., Ltd, TruckTrack GmbH, INTRANAV, FLEETIZE - Telematics, Exatrek, Visualix, Trackee.io, IoT Venture GmbH, Masternaut, Teletrac Navman, Verizon Connect, QUARTIX, Vodafone Fleet Telematics, RAM Tracking, Samsara, OCTO Automotive, MiX Telematics, Telematika, Kazan Telematics, TrackGPS, Mapon, Intellishift, Linxup, Damoov, Cambridge Telematics, ISAAC Instruments, Frotcom, Argus Telematics, Autotrac, Omnilink, Teltonika Telematics, Location Solutions Telematics LLC, Norconsult Telematics, FMS Tech, Advanced Telematics Solutions, Ctrack Matrix.

North America was the largest region in the automotive telematics market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive telematics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive telematics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive telematics includes revenue earned by entities by black box telematics device, smartphone-based telematics device, Bluetooth-powered telematics device, OBD-ii port telematics device, and OEM telematics device. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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