The Global Telematics Semiconductors Market was valued at USD 14.9 billion in 2024 and is estimated to grow at a CAGR of 10.9% to reach USD 41.9 billion by 2034.
The rapid expansion is fueled by the surge in connected vehicle technologies, the integration of AI in telematics control units (TCUs), the adoption of vehicle-to-everything (V2X) communication systems, and the widespread use of embedded GNSS modules. Automakers are increasingly investing in high-performance, energy-efficient telematics semiconductors to support features like real-time tracking, fleet safety compliance, predictive analytics, over-the-air updates, and warranty optimization. As connected vehicle platforms and intelligent transportation networks evolve, telematics chips are becoming a core component of digital transformation across the mobility landscape. Automotive OEMs are incorporating telematics capabilities to align with safety regulations, improve operational efficiencies, and enable next-gen mobility-as-a-service models. Growing demand for secure, real-time data processing and better integration of vehicle systems has led to widespread adoption of advanced telematics SoCs, low-power wireless transceivers, and automotive-grade microcontrollers. This transition is further supported by the rise of smart mobility ecosystems and digital vehicle lifecycle platforms across multiple regions and vehicle segments.
The system-on-chip (SoC) solutions segment held 34.2% share and is expected to grow at a CAGR of 10.5% from 2025 through 2034. SoCs are increasingly favored due to their ability to combine processing, connectivity, and security features into a single compact solution. Their integrated architecture allows for improved performance, lower power consumption, and reduced hardware footprint. Automakers are turning to SoCs for their scalability, low-latency design, and ability to handle real-time data for applications such as predictive maintenance, vehicle diagnostics, location tracking, and OTA firmware updates. The increasing shift to connected vehicle architectures is further driving the demand for SoC-based telematics solutions.
The embedded telematics segment held a 55% share in 2024 and is expected to register a CAGR of 9.6% through 2034. Embedded solutions are gaining momentum among OEMs and large fleet operators due to their factory-installed nature, high reliability, and compliance with stringent data protection requirements. These integrated modules enable seamless tracking, remote diagnostics, and improved fleet governance across a wide range of vehicle platforms and geographical regions. Embedded telematics modules also support advanced vehicle electronics infrastructure and are considered essential for modern-day fleet management, especially in commercial and electric vehicle segments.
United States Telematics Semiconductors Market held an 83% share, generating USD 4.5 billion in 2024. The strong performance of the U.S. market is attributed to the fast adoption of connected vehicle platforms, regulatory emphasis on vehicle safety and data transparency, and rapid investments in next-gen telematics infrastructure. Increased use of AI-powered SoCs, V2X communication modules, and embedded chipsets is driving the integration of telematics across passenger cars, commercial fleets, and electric vehicles. The U.S. market continues to lead in terms of innovation, scalability, and real-time connectivity in the automotive semiconductor space.
Leading companies in the Global Telematics Semiconductors Market include Qualcomm, MediaTek, Renesas Electronics, STMicroelectronics, Analog Devices, Texas Instruments, Murata Manufacturing, Fibocom Wireless, NXP Semiconductors, and Infineon Technologies. To strengthen their foothold, companies operating in the telematics semiconductors space are focusing on a mix of technological innovation, strategic partnerships, and product portfolio expansion. Many are investing in the development of low-power, high-performance chipsets tailored to support AI-enabled telematics functions, cybersecurity, and V2X communication. Collaborations with automotive OEMs and Tier-1 suppliers help ensure tighter integration into vehicle platforms. Firms are also scaling R&D activities to shorten design cycles and enhance real-time processing capabilities.
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The rapid expansion is fueled by the surge in connected vehicle technologies, the integration of AI in telematics control units (TCUs), the adoption of vehicle-to-everything (V2X) communication systems, and the widespread use of embedded GNSS modules. Automakers are increasingly investing in high-performance, energy-efficient telematics semiconductors to support features like real-time tracking, fleet safety compliance, predictive analytics, over-the-air updates, and warranty optimization. As connected vehicle platforms and intelligent transportation networks evolve, telematics chips are becoming a core component of digital transformation across the mobility landscape. Automotive OEMs are incorporating telematics capabilities to align with safety regulations, improve operational efficiencies, and enable next-gen mobility-as-a-service models. Growing demand for secure, real-time data processing and better integration of vehicle systems has led to widespread adoption of advanced telematics SoCs, low-power wireless transceivers, and automotive-grade microcontrollers. This transition is further supported by the rise of smart mobility ecosystems and digital vehicle lifecycle platforms across multiple regions and vehicle segments.
The system-on-chip (SoC) solutions segment held 34.2% share and is expected to grow at a CAGR of 10.5% from 2025 through 2034. SoCs are increasingly favored due to their ability to combine processing, connectivity, and security features into a single compact solution. Their integrated architecture allows for improved performance, lower power consumption, and reduced hardware footprint. Automakers are turning to SoCs for their scalability, low-latency design, and ability to handle real-time data for applications such as predictive maintenance, vehicle diagnostics, location tracking, and OTA firmware updates. The increasing shift to connected vehicle architectures is further driving the demand for SoC-based telematics solutions.
The embedded telematics segment held a 55% share in 2024 and is expected to register a CAGR of 9.6% through 2034. Embedded solutions are gaining momentum among OEMs and large fleet operators due to their factory-installed nature, high reliability, and compliance with stringent data protection requirements. These integrated modules enable seamless tracking, remote diagnostics, and improved fleet governance across a wide range of vehicle platforms and geographical regions. Embedded telematics modules also support advanced vehicle electronics infrastructure and are considered essential for modern-day fleet management, especially in commercial and electric vehicle segments.
United States Telematics Semiconductors Market held an 83% share, generating USD 4.5 billion in 2024. The strong performance of the U.S. market is attributed to the fast adoption of connected vehicle platforms, regulatory emphasis on vehicle safety and data transparency, and rapid investments in next-gen telematics infrastructure. Increased use of AI-powered SoCs, V2X communication modules, and embedded chipsets is driving the integration of telematics across passenger cars, commercial fleets, and electric vehicles. The U.S. market continues to lead in terms of innovation, scalability, and real-time connectivity in the automotive semiconductor space.
Leading companies in the Global Telematics Semiconductors Market include Qualcomm, MediaTek, Renesas Electronics, STMicroelectronics, Analog Devices, Texas Instruments, Murata Manufacturing, Fibocom Wireless, NXP Semiconductors, and Infineon Technologies. To strengthen their foothold, companies operating in the telematics semiconductors space are focusing on a mix of technological innovation, strategic partnerships, and product portfolio expansion. Many are investing in the development of low-power, high-performance chipsets tailored to support AI-enabled telematics functions, cybersecurity, and V2X communication. Collaborations with automotive OEMs and Tier-1 suppliers help ensure tighter integration into vehicle platforms. Firms are also scaling R&D activities to shorten design cycles and enhance real-time processing capabilities.
Comprehensive Market Analysis and Forecast
- Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
- Competitive landscape with Porter’s Five Forces and PESTEL analysis
- Market size, segmentation, and regional forecasts
- In-depth company profiles, business strategies, financial insights, and SWOT analysis
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Table of Contents
Chapter 1 Methodology
Chapter 2 Executive Summary
Chapter 3 Industry Insights
Chapter 4 Competitive Landscape, 2024
Chapter 5 Market Estimates & Forecast, by Type, 2021-2034 ($Bn, Units)
Chapter 6 Market Estimates & Forecast, by Connectivity, 2021-2034 ($Bn, Units)
Chapter 7 Market Estimates & Forecast, by Vehicle, 2021-2034 ($Bn, Units)
Chapter 8 Market Estimates & Forecast, by Region, 2021-2034 ($Bn, Units)
Chapter 9 Company Profiles
Companies Mentioned
The companies profiled in this Telematics Semiconductors market report include:- Analog Devices
- Broadcom
- Infineon Technologies
- Microchip Technology
- NXP Semiconductors
- ON Semiconductor
- Qualcomm
- Renesas Electronics
- STMicroelectronics
- Texas Instruments
- Fibocom Wireless
- MediaTek
- Murata Manufacturing
- Quectel Wireless Solutions
- ROHM Semiconductor
- Samsung Semiconductor
- Sierra Wireless
- Sony Semiconductor Solutions
- Telit Communications
- U-blox AG
- Altair Semiconductor
- Cavli Wireless
- Nordic Semiconductor
- Sequans Communications
- Silicon Labs
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 220 |
| Published | September 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 14.9 Billion |
| Forecasted Market Value ( USD | $ 41.9 Billion |
| Compound Annual Growth Rate | 10.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 26 |
