Passenger Vehicle Telematics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Passenger Vehicle Telematics Market is projected to expand from USD 30.74 Billion in 2025 to USD 60.61 Billion by 2031, registering a CAGR of 11.98%. This sector involves merging informatics with telecommunications to facilitate two-way data transmission between automobiles and external networks. Key factors propelling this growth include strict government safety mandates and an increasing consumer demand for remote diagnostics and usage-based insurance. Highlighting this scale, the 5G Automotive Association reported that the number of cellular-connected vehicles globally exceeded 300 million in 2024.

Despite this progress, the industry confronts significant obstacles related to cybersecurity vulnerabilities and data privacy. The vast quantities of sensitive information produced by connected cars attract cyberattacks, causing hesitation among potential users. Consequently, manufacturers are compelled to allocate substantial resources toward developing secure architectures, a necessity that can slow down widespread adoption.

Market Drivers

The expansion of high-speed 5G and IoT connectivity acts as a fundamental catalyst for the contemporary telematics landscape, converting vehicles into software-defined entities. This infrastructure is essential for supporting low-latency, high-bandwidth applications such as Over-the-Air (OTA) updates and Vehicle-to-Everything (V2X) communication. Ericsson's June 2025 'Mobility Report' indicates that global 5G subscriptions topped 2.4 billion in the first quarter of 2025, offering the necessary magnitude for mass connected mobility. This connectivity boosts the financial performance of major tech suppliers; for example, Qualcomm's 'Fiscal 2025 Third Quarter Results' showed a 21% year-over-year rise in automotive revenue to a record $984 million, fueled by Snapdragon Digital Chassis adoption.

Concurrently, the rise of electric vehicle telematics is altering the market landscape, as battery-operated systems require distinct monitoring capabilities absent in internal combustion engines. Telematics are essential for EVs to optimize range predictions, manage battery health, and identify charging stations, effectively reducing range anxiety. This sector grows alongside the general trend toward electrification. According to the European Automobile Manufacturers’ Association’s 'New Car Registrations' update in November 2025, battery-electric vehicle registrations in the EU jumped by 38.6% in October 2025 year-over-year. As production scales to meet this demand, embedding specialized energy management telematics is becoming a prerequisite for market participation.

Market Challenges

The primary obstacle hindering the Global Passenger Vehicle Telematics Market is the rising concern over cybersecurity flaws and data privacy. As automobiles increasingly depend on two-way data exchange, they become vulnerable to unauthorized information interception and malicious hacking. This vulnerability threatens sensitive user data, including driving history and real-time location, causing significant consumer apprehension. The potential for data theft and surveillance erodes trust in connected services, which directly retards the uptake of usage-based insurance models and advanced telematics capabilities.

Additionally, the operational cost of securing this growing network imposes a financial strain on the industry. To maintain strict compliance and build secure software architectures, manufacturers must divert substantial capital, delaying the introduction of new innovations. This difficulty is compounded by the rapid entry of new vehicles into the ecosystem, expanding the potential attack surface. In 2024, the European Automobile Manufacturers' Association reported approximately 10.6 million new passenger car registrations in the European Union. This vast volume of digitally enabled inventory demands expensive and complex defense systems, raising production costs and curbing the market's financial growth.

Market Trends

A major structural evolution in the industry is the rapid move from aftermarket OBD-II devices toward OEM-embedded telematics systems. This shift is necessitated by the requirement for deeper integration with vehicle control units - capabilities that aftermarket dongles cannot reliably provide - to enable features like immutable data logging and remote diagnostics. Automakers are standardizing built-in connectivity to ensure compatibility with future software environments and to retain control over user experiences, thereby minimizing dependence on third-party hardware. Highlighting this trend, Motorq stated during the 'Fleet Forward 2025' conference in October 2025 that 96% of new vehicles sold now include factory-installed modems, making aftermarket hardware largely redundant for basic connectivity.

At the same time, automakers are actively seeking to monetize telematics data by shifting from one-off hardware transactions to recurring software-as-a-service (SaaS) revenue streams. By utilizing detailed data from embedded systems, OEMs are introducing tiered subscription plans that provide individual owners and fleet managers with real-time analytics on logistics, driver behavior, and vehicle health. This approach converts the vehicle into a digital platform, enabling manufacturers to accrue high-margin revenue over the asset's life rather than just at the point of sale. For instance, Ford Motor Company’s 'Second Quarter 2025 Financial Results' reported that paid subscriptions to the Ford Pro Intelligence platform increased by 24% year-over-year to 757,000 users, demonstrating the commercial success of these digital ecosystems.

Key Players Profiled in the Passenger Vehicle Telematics Market

• Robert Bosch GmbH
• Continental AG
• OnStar LLC
• AirIQ Inc.
• Agero, Inc.
• Qualcomm Incorporated
• Zonar Systems, Inc.
• Omnitracs, LLC
• MiX Telematics International (Pty) Ltd.

Report Scope

In this report, the Global Passenger Vehicle Telematics Market has been segmented into the following categories:

Passenger Vehicle Telematics Market, by Service Offering:

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

Passenger Vehicle Telematics Market, by Form Type:

• Embedded
• Tethered
• Integrated

Passenger Vehicle Telematics Market, by Type:

• Discrete
• Consulting
• Implementation
• Maintenance

Passenger Vehicle Telematics Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Vehicle Telematics Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.