Automotive Telematics System Market to Reach USD 49.19 Billion by 2032 with 5.04% CAGR  

Overview

The automotive telematics system market is valued at USD 29.65 billion in 2022 and is expected to reach USD 49.19 billion in 2032, growing a CAGR of  5.04% during the forecast period.

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• Remote computing consists of electronic components and devices, including silicon micromechanical devices, electromechanical systems, and electronic devices. These components work in conjunction with computer control equipment and radio transceivers to monitor all aspects of the vehicle's operation and provide accurate operational information. Key features are often provided by telematics systems, including stolen vehicle assistance, which can track and recover vehicles using GPS technology.
• In addition, the integration of GPS technology with in-car diagnostics can record and report the vehicle's driving behavior. location and speed. Insurance companies can use this information for risk assessment and management, and fleet managers can use this information for effective fleet management. These resources are an important part of remote information business.
• Looking ahead, the use of traffic information in electric vehicles (EVs) is expected to drive market growth in the future. Commercial companies are actively exploring the opportunities offered by bringing electric vehicles to market.
• The European long-distance market is expanding as part of the European Commission's mandate to use electronic telephone calls. In addition, there are many transportation materials in the region, especially in the form of hardware in countries such as Germany, England and Italy.
• Security is an important aspect of vehicle information processing, where security plays an important role in wireless vehicle communications. Improve traffic and safety. These systems help prevent and reduce accidents by exchanging safety information about road hazards, vehicle location and speed.
• In addition, emergency notification system, instant communication between the vehicle and the infrastructure, accident etc. It is designed to facilitate reporting of safety warnings. The goal of the development is to improve safety by harmonizing vehicle-to-vehicle, infrastructure-to-vehicle and vehicle-to-building communications.
• Telematics data is also used in many applications such as car sharing and car insurance. Ride-sharing services that leverage remote data processing will optimize fleet management and improve user experience. Similarly, auto insurance companies use telematics data for risk assessment and personal insurance products.
• Although China, the largest automobile market, has encountered some difficulties, the Asia-Pacific region is still the world's largest automobile market. However, the region is expected to be the leader in the automotive telematics market due to factors such as increasing vehicle sales, technological developments and regulatory requirements.
• The automotive telematics market is characterized by a variety of advanced features and applications designed to improve vehicle safety, performance and connectivity. With the continuous progress and expansion in the industry, the industry is poised for significant growth, especially in the Asia-Pacific region, which needs powerful tools.

Automotive Telematics System Market Trends

Safety and Security to Accelerate Growth

• Safety and security operations must drive growth in the remote data vehicle industry by focusing on improving vehicle safety and security. These capabilities include various applications such as stolen vehicle tracking, automatic collision warning, driver monitoring capabilities and remote vehicle locking/unlocking.
• Governments around the world are improving road safety by implementing stricter regulations on vehicle safety measures and reducing emergency response times for drivers. The importance of security has forced people in the automobile industry to develop automobile information systems in remote areas to meet varying regulatory standards in different regions.

For example:

• In March 2022, Navistar announced plans to integrate factory electronics into all Class 6-8 international vehicle and IC bus products, including electronic models, as standard equipment for all new models. This measure reflects the industry's commitment to integrating the best solutions to improve vehicle safety and security capabilities.
• This model supports the development of remote operation of vehicle information, and the development of safety standards in the automobile industry encourages automobile manufacturers to participate in maintenance safety and security. Safety features come standard on new models. Therefore, the market for remote data processing equipment designed for vehicle safety and security applications is expected to expand rapidly during the forecast period.
• The automotive industry's focus on safety and security encourages the use of the best solutions designed to improve vehicle safety. As regulatory requirements continue to increase and consumers demand safer vehicles, utility manufacturers have prioritized the integration of operational processes with advanced remote control to solve safety issues. The increasing importance of safety and security will also lead to significant growth in the market for telematics devices designed for vehicle safety in the coming years.

Asia-Pacific Expected to Capture Major Market Share

Asia-Pacific stands out as one of the most rapidly emerging markets in the automotive sector, driven by increasing demand for fuel-efficient vehicles and the integration of navigation features such as GPS as standard options. This trend is a response to challenges like rising fuel prices, a surge in accidents, and instances of vehicle theft.

India, a significant player in the Asia-Pacific automotive market, recently introduced its first Automotive Research Association of India (ARAI) certified AIS 140 compliant vehicle telematics and emergency button solution. This initiative aligns with the directives set by the Indian Ministry of Road Transport and Highways (MoRTH) in 2016. The implementation of the AIS 140 regulation, which commenced on April 1, 2018, mandates the installation of vehicle tracking devices and one or more emergency buttons in all public service vehicles, both existing and new.

For Instance,

• In April 2022, Borqs Technologies, Inc. announced a collaboration with Qualcomm Technologies, Inc. to engage in the research and development, as well as sales, of automobile telematics products, primarily targeting the Indian and Southeast Asian markets. These products, including in-vehicle infotainment systems (IVI) and Telematics Control Units (TCU) for two and three-wheelers, are built upon technologies embedded in Qualcomm chipsets.
• The enforcement of regulations aimed at enhancing vehicle safety and security across Asia-Pacific nations is anticipated to drive a rapid adoption of vehicle telematics solutions in the region during the forecast period.

Automotive Telematics System Industry Overview

The global automotive remote data market exhibits high fragmentation due to the presence of many regional players.

• In March 2022, Geotab, the world's leading provider of IoT and connected transportation services, announced a partnership with Free2Move, a global fleet, travel, and information company from the company owned by Stellantis. The partnership is designed to deliver Geotab integrated solutions to Stellantis vehicles covering brands such as Ram, Dodge, Jeep and Chrysler.
• Additionally, Bosch GmbH completed the acquisition of up to 14% shares of Stellantis from the paid-up capital of Zeliot Connected Services Private Limited in March 2022. Zeliot is a B2B startup that offers mobile connectivity solutions including vehicle tracking, fleet management and remote data processing.

Automotive Telematics System Market Leaders

• Continental AG
• Robert Bosch GmbH
• Clarion Co. Ltd (Faurecia Clarion Electronics)
• ACTIA Group
•  Octo Telematics
• Magnetic Marelli SpA
• Valeo Group
• NavInfo Co. Ltd
• Ficosa International SA

Automotive Telematics System Market News

• In May 2023, Targa Telematics announced the acquisition of Viasat Group Spa, creating a major international player in the IoT space. This offering aims to provide new solutions and digital services to connect the company to eight major European countries (Italy, Portugal, Spain, France, United Kingdom, Belgium, Poland and Romania) and Chile.
• In May 2023, Bridgestone Mobile Solutions has teamed with RIO to integrate Bridgestone's Webfleet telematics system into all MAN trucks equipped with RIO boxes, resulting in seamless communication.
• In May 2023, ZF Friedrichshafen AG announced the state-of-the-art AxTrax 2 electric axle platform designed for a wide range of commercial vehicles. This new system is fully integrated with the car's important functions such as braking, advanced driver assistance systems (ADAS) and autonomous driving systems, while also facilitating communication and information sharing with other remote data processors via the CAN bus.

Automotive Telematics System Market Segments

• Automotive remote data processing system is a technology that integrates telecommunications and informatics to collect real-time vehicle data and send it to the central platform. The system can monitor and analyze vehicle performance, location, driving behavior and diagnostics. By doing this, it increases efficiency and safety and provides better information for fleet management and vehicle owners.

Market Segmentation

By Technology Type

• Embedded
• Tethered
• Integrated

By Solution

• Component
• Service

By Vehicle Type

• Passenger
• Commercial

By Sales Channel

• OEM
• Aftermarket

By Application Type

• Information & Navigation
• Safety & Security
• Fleet Management
• Insurance Telematics
• Others

By Geography

• North America
  • United States
  • Canada
  • Rest of North America
• Europe
  • Germany
  • United Kingdom
  • France
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Rest of Asia-Pacific
• Rest of the World
  • Brazil
  • Saudi Arabia
  • Other Countries