Telematics Global Market Report 2025

The telematics market size has grown rapidly in recent years. It will grow from $111.75 billion in 2024 to $129.89 billion in 2025 at a compound annual growth rate (CAGR) of 16.2%.The growth during the historical period can be attributed to the increasing demand for vehicle tracking and fleet management, a heightened focus on driver safety, the growing adoption of connected vehicles, regulatory requirements for emergency response systems, decreasing hardware costs, and the expanding use of mobile and cloud-based communication platforms.

The telematics market size is expected to see rapid growth in the next few years. It will grow to $234.96 billion in 2029 at a compound annual growth rate (CAGR) of 16%.The projected growth in the forecast period can be attributed to the rising demand for connected vehicle ecosystems, greater focus on fleet efficiency and predictive maintenance, more stringent emissions and safety regulations, increased use of AI for real-time analytics, expansion of telematics infrastructure for electric vehicles (EVs), and the growing adoption of usage-based insurance models. Key trends expected during this period include the widespread adoption of connected vehicle technologies, integration of AI and machine learning for predictive analytics, advancements in fleet management solutions, development of real-time vehicle diagnostics, and improvements in cybersecurity measures to ensure data protection.

The growing adoption of electric vehicles (EVs) is anticipated to drive the expansion of the telematics market. EVs are vehicles powered by electricity rather than traditional fuels, utilizing batteries for propulsion. This rise in EV adoption is driven by declining battery prices and stricter emissions standards, making electric vehicles more cost-effective and appealing to consumers. Telematics in EVs plays a crucial role in monitoring battery health, optimizing route planning, managing charging schedules, and delivering real-time performance data. For example, in August 2024, the Energy Information Administration reported that in the U.S., sales of hybrid, plug-in hybrid, and battery electric vehicles increased from 17.8% of all new light-duty vehicle sales in Q1 2024 to 18.7% in Q2. This trend underscores how the increasing popularity of EVs is contributing to the growth of the telematics market.

Leading telematics providers are focusing on innovations such as virtual electric fleet management to enhance fleet performance, lower emissions, enable real-time energy tracking, and facilitate the shift to sustainable, cost-effective EV operations. A virtual electric fleet refers to a software-based platform that remotely monitors and manages electric vehicles, optimizing fleet sustainability and efficiency. For instance, in October 2023, Dynamon, a UK-based software firm, introduced a synthetic telematics tool that enables fleet operators to simulate EV operations using real-world data and predictive analytics. This tool helps reduce costs and ensures a smooth transition to electric mobility by virtually modeling EV behavior and performance through advanced analytics and simulation.

In October 2023, Banyan Software Inc., a U.S.-based software company, acquired LEVL Telematics Limited for an undisclosed sum. This acquisition aims to broaden Banyan’s presence in the telematics sector and deliver more robust solutions to its clients. LEVL Telematics Limited, headquartered in the UK, specializes in providing fleet management and telematics services.

Major players in the telematics market are Volkswagen AG, Toyota Motor Corporation, Mercedes-Benz AG, Ford Motor Company, General Motors Company, BMW Motors, Verizon Inc., AT&T, Hyundai Motor Company, Nissan Motor Co. Ltd., Tata Motors, AB Volvo, Telefónica S.A, Continental AG, Vodafone Group Plc, NXP Semiconductors, Harman International, TomTom International B.V., CalAmp Corp., Inseego Corp.

North America was the largest region in the telematics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in telematics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the telematics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Telematics refers to the use of technology to transmit and receive information over long distances. It enables real-time tracking of assets such as vehicles or equipment. This technology enhances safety, efficiency, and communication by integrating tools like GPS and mobile networks to facilitate seamless data exchange.

The primary components of telematics are hardware, software, and services. Hardware includes the physical devices installed in vehicles that collect, transmit, and sometimes store data. Telematics systems utilize various types of connectivity, such as satellite-based systems, cellular networks, and Bluetooth or Wi-Fi connections. The vehicle categories that employ telematics include passenger vehicles, commercial vehicles, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and off-highway vehicles. These systems support a wide range of applications, including fleet management, vehicle tracking and monitoring, driver behavior analysis, predictive maintenance, infotainment and navigation, usage-based insurance (insurance telematics), emergency response, roadside assistance, and more.

The telematics market research report is one of a series of new reports that provides telematics market statistics, including the telematics industry global market size, regional shares, competitors with the telematics market share, detailed telematics market segments, market trends, and opportunities, and any further data you may need to thrive in the telematics industry. This telematics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The telematics market consists of revenues earned by entities by providing services such as vehicle tracking, fleet management, remote diagnostics, and usage-based insurance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The telematics market includes sales of telematics devices, software platforms, and subscription-based services that enable data transmission and monitoring. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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 and 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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