Global Automotive Telematics Market, By Component (Hardware, Software, Services), By Vehicle Type (LCV, Two-Wheeler, Others), By Connectivity (Satellite, Cellular), By Channel (Aftermarket, OEMs), By Application, Estimation & Forecast, 2017 - 2027

Global Automotive Telematics Market is Projected to Grow at a CAGR of 19.4% During the Forecast Period 2017-2027

The global automotive telematics market held a market value of USD 37,102.6 Million in 2020 and is forecasted to reach USD 123,487.5 Million by the year 2027. The market is expected to register a CAGR of 19.4% during the forecast period.

Automotive telematics is a communication technology for the automobile industry which is based on the information flowing to and generated from the vehicles through wireless networks. The market is anticipated to be driven by the rising adoption of NGTP would enhance the telematics service delivery coupled with the favourable government initiatives and the rising technology penetration.

Despite the driving factors the increased communication, leading to security and privacy concern are expected to hinder the market growth. The automotive telematics assisted in reducing the fleet costs during the COVID-19 pandemic, which helped in boosting the growth in the market.

Growth Influencers:

Increasing adoption of NGTP enhances the telematics service delivery

NGTP or next-generation telematics protocol enables over-the-air delivery of integrated data and services for a range of connected vehicles. The protocol helps in the implementation of an enhanced in-vehicle telematics approach. NGTP also presents a standard uniform for delivering end-to-end telematics services. It also works with older vehicles. Therefore, the rising adoption of NGTP would enhance the telematics service delivery is expected to boost the market growth.

Segments Overview:

The global automotive telematics market is segmented into component, application, vehicle type, connectivity, and channel.

By Component,

• Hardware
• Self-contained Telematics Units (TCU)
• GPS Devices
• Software Platform
• Services
• Consulting
• Implementation
• Maintenance
• Telematics as a Service

The hardware segment is anticipated to hold the largest market share of about 68% owing to the rising demand for GPS devices in automotive telematics. Within the segment, the GPS devices segment is expected to surpass a market volume of 370,465.2 thousand units in 2027. Within the services segment, the maintenance segment is estimated to witness the fastest CAGR of 21%.

By Application,

• Automatic Crash Notification
• Billing Services
• Driver Behavior
• Emergency Calling
• Insurance Risk Assessment
• Navigation
• On-Road Assistance
• Remote Diagnostics
• Vehicle Tracking/Recovery (Fleet Management)
• Others

The vehicle tracking/recovery (fleet management) is expected to hold the largest market share of around 25% owing to the fuel efficiency and decrease in the cost of running a business. The on-road assistance segment is estimated to cross a market value of around USD 9,700 million by 2025.

By Vehicle Type,

• Light Commercial Vehicles
• Passenger Car
• Electric Vehicles
• ICE Vehicles
• Heavy Vehicles
• Two-Wheeler
• Others

The passenger car segment held the largest market share of around 50% owing to high demand of automotive telematics in passenger cars. Within this segment, the electric vehicles segment grew at a CAGR of about 21.3% owing to rising adoption of electric vehicles globally.

By Connectivity,

• Satellite
• Cellular

The satellite segment is expected to hold the largest market share owing to rising adoption of satellite connectivity over cellular connectivity for automotive telematics.

By Channel,

• Aftermarket
• OEMs

The OEMs segment held the largest market share owing to increasing usage of automotive telematics in the OEMs segment as compared to the aftermarket segment. However, the aftermarket segment is also estimated to grow at significant rates during the forecast period.

Regional Overview

On a regional basis, the global automotive telematics market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Europe region held the largest market share of about 32% owing to the presence of major automotive companies in the region, globally. The North America and Middle East & Africa region are also expected to grow at significant rates during the forecast period.

The Asia Pacific region held the second largest market share owing to the presence of emerging economies, such as China and India. The region constitutes countries such as Singapore, Malaysia, China, Japan, Thailand, Vietnam, Australia & New Zealand, and Indonesia, among other countries.

Competitive Landscape

Key players operating in the global automotive telematics market include Robert Bosch GmbH, Continental AG, LG Electronics, Verizon, Harman International, Delphi Automotive Plc, Visteon Corporation, Magneti Marelli S.P.A., Tomtom International BV, Qualcomm Technologies Inc., Intel Corporation, Trimble Inc, AT&T, Octo Telematics, Airbiquity Inc., Masternaut Limited, The Descartes Systems Group Inc., Box Telematics, Act Soft, and Other Prominent Players.

Major 4 players in the market hold about 65% of the market share. These players are involved in mergers & acquisitions, product launches, and collaboration, among others. For instance, in July 2021, Marelli entered into a strategic technological partnership with SMRP BV for providing smart illuminated exterior parts of vehicles.

The global automotive telematics market report provides insights on the below pointers:

• Market Penetration: Provides comprehensive information on the market offered by the prominent players
• Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
• Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
• Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global automotive telematics market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
• Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments

The global automotive telematics market report answers questions such as:

• What is the market size and forecast of the Global Automotive telematics Market?
• What are the inhibiting factors and impact of COVID-19 on the Global Automotive telematics Market during the assessment period?
• Which are the products/segments/applications/areas to invest in over the assessment period in the Global Automotive telematics Market?
• What is the competitive strategic window for opportunities in the Global Automotive telematics Market?
• What are the technology trends and regulatory frameworks in the Global Automotive telematics Market?
• What is the market share of the leading players in the Global Automotive telematics Market?
• What modes and strategic moves are considered favorable for entering the Global Automotive telematics Market?