The automotive telematics market is projected to grow from USD 10.02 billion in 2025 to USD 16.72 billion by 2032 at a CAGR of 7.6%.
The rollout of 5G networks is significantly advancing the automotive systems by enabling faster, low-latency connectivity crucial for V2X communication, an essential component for autonomous driving and intelligent transportation systems. This enhanced connectivity allows telematics platforms to support real-time data exchange for functions like hazard alerts, cooperative driving, and smart traffic coordination.
The adoption of edge computing within telematics systems further enables real-time processing of critical vehicle data directly onboard, improving responsiveness for safety and navigation functions. AI and machine learning are increasingly integrated into telematics platforms to enable predictive insights such as route optimization, driver behavior analysis, and early incident detection. In addition, improved sensor integration and communication protocols such as CAN bus are enabling more precise data collection, while growing attention to cybersecurity is ensuring stronger protection against threats in increasingly connected vehicles.
Additionally, embedded telematics helps automakers create a closed ecosystem for offering subscription-based services and using vehicle data for new revenue opportunities. The growing demand for EVs and vehicles with advanced driver assistance systems (ADAS) is increasing the need for integrated, software-based telematics. OEMs are also moving toward hybrid systems that combine embedded telematics with cloud and edge computing to support real-time data processing and better service delivery. GM’s OnStar, Hyundai’s BlueLink, and Toyota’s i-Connect all offer features such as real-time navigation, remote diagnostics, and OTA updates.
For instance, in November 2024, Volkswagen Group (Germany) rolled out its Fleet Interface Data solution in collaboration with CARIAD, offering embedded telematics to fleet customers across brands such as Volkswagen, Audi, Škoda, and Cupra. This platform provides near real-time insights into mileage, remaining range, warning signals, and upcoming service needs, all without additional telematics hardware. These factors are expected to support the growth of embedded telematics systems significantly.
Hardware manufacturers are integrating 4G/5G connectivity, edge computing, and satellite communication into TCUs to improve performance and service reliability. Modern TCUs also include hardware security modules (HSMs), secure boot, encryption, and intrusion detection to protect against cyber threats and ensure safe software updates. Additionally, there is growing interest in modular hardware designs that can support future upgrades and V2X features. Companies such as LG Electronics (South Korea), Denso Corporation (Japan), and HARMAN International offer advanced TCUs with 4G/5G, GNSS, and cybersecurity capabilities, which are widely used by leading OEMs such as Toyota and Volkswagen. For instance, Visteon Corporation provided a TCU to Ford for its 2025 Mustang and Mustang Mach-E vehicle models.
It requires all new cars and light vans sold in the EU since April 2018 to be equipped with an emergency call (eCall) system. This system automatically contacts emergency services in the event of a serious accident, transmitting the vehicle’s location and other key data to speed up rescue response. Other regulations, such as the General Safety Regulation and EU Data Act, are pushing manufacturers to improve data privacy, user data ownership, and system compatibility. Usage-based insurance is also growing, supported by GDPR-compliant platforms, with insurers such as AXA, Allianz, Admiral, and UNIQA partnering with automakers and tech providers to offer customized premiums based on driving behavior. The continued expansion of advanced 5G networks is further enabling real-time features such as predictive maintenance, vehicle-to-grid connectivity, and in-car digital services, positioning Europe as a highly regulated and innovation-driven telematics market.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
Leading telematics service providers, such as AT&T Intellectual Property (US), Geotab (Canada), Samsara (US), Verizon Connect (US), and Powerfleet (US), offer bundled and innovative telematics services tailored for fleets, OEMs, and mobility operators. These companies provide comprehensive service platforms that integrate real-time vehicle tracking, driver behavior monitoring, AI-enabled video telematics, maintenance diagnostics, EV analytics, and workflow automation.
The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
The rollout of 5G networks is significantly advancing the automotive systems by enabling faster, low-latency connectivity crucial for V2X communication, an essential component for autonomous driving and intelligent transportation systems. This enhanced connectivity allows telematics platforms to support real-time data exchange for functions like hazard alerts, cooperative driving, and smart traffic coordination.
The adoption of edge computing within telematics systems further enables real-time processing of critical vehicle data directly onboard, improving responsiveness for safety and navigation functions. AI and machine learning are increasingly integrated into telematics platforms to enable predictive insights such as route optimization, driver behavior analysis, and early incident detection. In addition, improved sensor integration and communication protocols such as CAN bus are enabling more precise data collection, while growing attention to cybersecurity is ensuring stronger protection against threats in increasingly connected vehicles.
Embedded telematics is expected to hold the dominant share of the automotive telematics market during the forecast period.
Embedded telematics is expected to hold the largest share of the automotive telematics market, as it is built directly into the vehicle's system, allowing OEMs to offer features connected to the factory itself. Regulations in Europe and China also require factory-installed telematics to monitor energy use and vehicle safety. In China, the New Energy Vehicle National Monitoring Platform (NEV-NMP) mandates that all electric and hybrid vehicles transmit real-time data, such as battery status, vehicle location, and alerts to a centralized government platform, making embedded telematics essential for compliance.Additionally, embedded telematics helps automakers create a closed ecosystem for offering subscription-based services and using vehicle data for new revenue opportunities. The growing demand for EVs and vehicles with advanced driver assistance systems (ADAS) is increasing the need for integrated, software-based telematics. OEMs are also moving toward hybrid systems that combine embedded telematics with cloud and edge computing to support real-time data processing and better service delivery. GM’s OnStar, Hyundai’s BlueLink, and Toyota’s i-Connect all offer features such as real-time navigation, remote diagnostics, and OTA updates.
For instance, in November 2024, Volkswagen Group (Germany) rolled out its Fleet Interface Data solution in collaboration with CARIAD, offering embedded telematics to fleet customers across brands such as Volkswagen, Audi, Škoda, and Cupra. This platform provides near real-time insights into mileage, remaining range, warning signals, and upcoming service needs, all without additional telematics hardware. These factors are expected to support the growth of embedded telematics systems significantly.
The hardware segment is projected to lead the automotive telematics market during the forecast period.
Hardware is expected to hold the dominant share of the automotive telematics market. Key components such as telematics control units (TCUs), sensors, antennas, CAN Bus, communication modules, and electronic control units (ECUs) are essential for enabling vehicle connectivity and data exchange. With vehicles becoming more software-defined, there is a growing need for powerful and flexible hardware that can support OTA updates, built-in cybersecurity, and fast data processing. OEMs are increasingly favoring embedded, factory-fitted hardware to ensure consistent deployment across vehicle models.Hardware manufacturers are integrating 4G/5G connectivity, edge computing, and satellite communication into TCUs to improve performance and service reliability. Modern TCUs also include hardware security modules (HSMs), secure boot, encryption, and intrusion detection to protect against cyber threats and ensure safe software updates. Additionally, there is growing interest in modular hardware designs that can support future upgrades and V2X features. Companies such as LG Electronics (South Korea), Denso Corporation (Japan), and HARMAN International offer advanced TCUs with 4G/5G, GNSS, and cybersecurity capabilities, which are widely used by leading OEMs such as Toyota and Volkswagen. For instance, Visteon Corporation provided a TCU to Ford for its 2025 Mustang and Mustang Mach-E vehicle models.
Europe is expected to have the second-largest share of the automotive telematics market during the forecast period.
Europe is expected to hold the second-largest share of the automotive telematics market during the forecast period. The European automotive telematics market is led by advanced OEM-integrated systems, shaped by strict regulations and varying regional needs. Unlike regions where third-party providers dominate, European automakers offer built-in telematics platforms such as Volkswagen’s We Connect, BMW’s ConnectedDrive, Mercedes-Benz Me Connect, Renault’s EASY CONNECT, and Stellantis’s Uconnect. These systems commonly include OTA updates, remote diagnostics, digital services like parking and charging, and links to insurance products. The E-Call mandate is the key regulatory driver for the automotive telematics market in the European region.It requires all new cars and light vans sold in the EU since April 2018 to be equipped with an emergency call (eCall) system. This system automatically contacts emergency services in the event of a serious accident, transmitting the vehicle’s location and other key data to speed up rescue response. Other regulations, such as the General Safety Regulation and EU Data Act, are pushing manufacturers to improve data privacy, user data ownership, and system compatibility. Usage-based insurance is also growing, supported by GDPR-compliant platforms, with insurers such as AXA, Allianz, Admiral, and UNIQA partnering with automakers and tech providers to offer customized premiums based on driving behavior. The continued expansion of advanced 5G networks is further enabling real-time features such as predictive maintenance, vehicle-to-grid connectivity, and in-car digital services, positioning Europe as a highly regulated and innovation-driven telematics market.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
- By Company Type: Tier I - 8%, Tier II - 56%, and Tier III - 36%
- By Designation: CXOs - 36%, Managers - 51%, and Executives - 13%
- By Region: North America - 24%, Europe - 38%, Asia Pacific - 30%, and RoW - 8%
Leading telematics service providers, such as AT&T Intellectual Property (US), Geotab (Canada), Samsara (US), Verizon Connect (US), and Powerfleet (US), offer bundled and innovative telematics services tailored for fleets, OEMs, and mobility operators. These companies provide comprehensive service platforms that integrate real-time vehicle tracking, driver behavior monitoring, AI-enabled video telematics, maintenance diagnostics, EV analytics, and workflow automation.
Research Coverage:
The report covers the automotive telematics market in terms of service, form type, offering, vehicle type, connectivity, EV type, aftermarket, EV by service, and region. It covers the competitive landscape and company profiles of the major automotive telematics market ecosystem players.The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report:
- The report will help market leaders/new entrants with information on the closest approximations of revenue numbers for the overall automotive telematics market and its subsegments.
- This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies.
- This report also provides insights into automotive telematics architecture in two-wheelers and four-wheelers, as well as automotive telematics market trends in India.
- The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
- The report also helps stakeholders understand the current and future pricing trends of the automotive telematics market.
The report provides insights into the following pointers:
- Analysis of key drivers (surging demand for connected vehicles and in-car digital services, increasing adoption of remote diagnostics to enhance vehicle efficiency, telematics-driven optimization in fleet management and logistics), restraints (regulatory complexities around usage-based insurance models, data privacy and cybersecurity concerns), opportunities (expansion of IoT and next-gen connectivity technologies, convergence of advanced analytics, generative AI, and smart city integration, heightened emphasis on vehicle safety and security through mandates), and challenges (limited user acceptance and behavioral resistance, absence of industry-wide standardization).
- Product Development/Innovation: Detailed insights on upcoming technologies and research & development activities in the automotive telematics market
- Market Development: Comprehensive information about lucrative markets (the report analyzes the automotive telematics market across varied regions)
- Market Diversification: Exhaustive information about untapped geographies, recent developments, and investments in the automotive telematics market
- Competitive Assessment: In-depth assessment of market share, growth strategies, and product offerings of leading players such as LG Electronics (South Korea), HARMAN International (US), Denso Corporation (Japan), Continental AG (Germany), and Robert Bosch GmbH (Germany) in the automotive telematics market
Table of Contents
1 Introduction
2 Research Methodology
4 Premium Insights
5 Market Overview
6 Automotive Telematics Market, by Vehicle Type
7 Automotive Telematics Market, by Form Type
8 Automotive Telematics Market, by Offering
9 Automotive Telematics Market, by Connectivity
10 Automotive Telematics Market, by Fleet Management Service
11 Automotive Telematics Market, by Service
12 Electric & Hybrid Vehicle Telematics Market, by Vehicle Type
13 Electric & Hybrid Vehicle Telematics Market, by Service
14 Automotive Telematics Aftermarket, by Vehicle Type
15 Automotive Telematics Market, by Region
16 Competitive Landscape
17 Company Profiles
18 Analyst's Recommendations
19 Appendix
List of Tables
List of Figures
Companies Mentioned
- Lg Electronics
- Harman International
- Denso Corporation
- Continental AG
- Robert Bosch GmbH
- Aptiv
- Visteon Corporation
- Marelli Holdings Co. Ltd.
- Valeo
- Infineon Technologies AG
- Ficosa Internacional SA
- AT&T Intellectual Property
- Verizon
- Bridgestone Mobility Solutions B.V.
- Itriangle Infotech Pvt Ltd.
- Ce Info Systems Ltd.
- Atlanta Systems Pvt. Ltd.
- Blackbox Gps Technology
- Rosmerta
- Addsecure
- Panasonic Corporation
- Garmin Ltd.
- Powerfleet
- Trimble Inc.
- Calamp
- The Descartes Systems Group Inc.
- Qualcomm Technologies, Inc.
- Airiq Inc.
- Actsoft, Inc.
- Teletrac Navman US Ltd.
- Michelin
- Octo Group S.P.A.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 367 |
| Published | August 2025 |
| Forecast Period | 2025 - 2032 |
| Estimated Market Value ( USD | $ 10.02 Billion |
| Forecasted Market Value ( USD | $ 16.72 Billion |
| Compound Annual Growth Rate | 7.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 32 |
