Global Automotive Telematics Market Report and Forecast 2024-2032

Global Automotive Telematics Market Outlook

The global automotive telematics market size was approximately USD 76.63 billion in 2023. The market is further projected to grow at a CAGR of 14.9% between 2024 and 2032, reaching a value of USD 277.17 billion by 2032.

Key Takeaways

Automotive telematics is a combination of many interdisciplinary fields like telecommunications, informatics, computer science, and electrical engineering to create solutions such as GPS systems, onboard vehicle diagnostics, wireless telematics devices, and black box technologies. The retrieved data from the vehicle is sent up to the cloud by the telematics device which is then decoded and reported as well as analysed through the fleet management software.

In recent times, the automotive sector has increasingly resorted to connected car technology as an essential part of all vehicles. The benefits of connected cars such as greater safety and less pollution are positively influencing the automotive telematics market growth. Another factor influencing the market is the growing demand for modern telematic solutions that increase road safety such as driver safety scorecards, vehicle health diagnostics, optimal driving condition reports, and tech assistance for accidents.

The rising demand for automotive telematics at a global scale can also be attributed to the influx of 5G-enabled vehicles, which provide access to entertainment apps, such as music streaming services. Furthermore, there is a surge in deployment of telematics control units (TCUs) inside vehicles as TCUs are not dependent on an external mobile phone or device and ensure a steady connection, impacting the market positively.

Key Trends and Developments

Growing integration of telematics systems with smartphones; telematics role in ADAS; growing demand for EV-based telematics; and deployment of data analytics and machine learning; are the major trends supporting the automotive telematics market expansion

Automotive Telematics Market Trends

One of the prominent trends is the rising adoption of EV telematics which offers useful insights into battery status and performance, and vehicle metrics, among others, to enhance the user's driving experience. It can offer users the real-time status of an EV and identify any potential issues and requirements for maintenance, which can mitigate the wear and tear of the vehicle and enhance its overall performance.

In June 2023, Queclink Wireless Solutions, an IoT device supplier, launched a smart dash cam, CV 200, which is integrated with the capabilities of AI, and offers real-time recording and video analysing features. It offers road view as well as the interior view of the vehicle and consists of a primary forward-facing camera and a second interior detachable camera.

Market Segmentation

“Automotive Telematics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Infotainment and navigation services account for the majority of the automotive telematics market share, offering features that facilitate improved entertainment as well as vehicle monitoring and navigation

The automotive sector is transitioning towards creating innovative technologies amid the rising demand for luxurious, safe, and smart vehicles. An in-vehicle infotainment system provides a combination of entertainment and information as well as works as a central unit for controlling and monitoring the vehicle. The telematics system is also equipped with a tracking device that helps drivers in navigating the roads, enhancing their driving experience by offering improved safety and efficiency.

The automotive telematics market development can also be attributed to the growing demand for fleet management services. Software like GPS collects data about a fleet’s real-time location and transmits it through a cellular network to the main servers. This data is then processed and converted to useful information for the fleet managers and insights received from vehicle telematics can help business owners accelerate efficiency, track fleets, and eliminate downtime.

Original equipment manufacturers (OEMs) are expected to maintain their dominance in the automotive telematics market, offering integrated telematics solutions

Original equipment manufacturers (OEM) occupy a substantial share of the vehicle telematics market as a large number of vehicles are equipped with telematics systems beforehand. This integrated telematics does not require any additional costs and activation, offering the users seamless access to telematics automatically. Telematics systems offered by OEM also face fewer vehicle downtime compared to the aftermarket, which further makes them an attractive option.

Meanwhile, the aftermarket segment is expected to witness a steady growth in the forecast period as it offers a cost-efficient solution to the end-users as well as the provision of telematics for the older models of vehicles, which does not possess telematics.

Competitive Landscape

The automotive telematics market players are introducing novel technologies to stay ahead in the competition, further increasing their collaboration efforts to meet the evolving regulatory landscape

Other players operating in the automotive telematics market are Marelli Holdings Co., Ltd., Verizon Communications Inc., Octo Group S.p.A, Aptiv PLC, Visteon Corporation, Airbiquity Inc., and Omnitracs, LLC, among others.

Several market players are establishing tie-ups with location data providers to provide their customers with crucial information about their driving routes and strengthen their telematics capabilities. Location data platforms are expected to enhance the real-time visibility of a fleet, offer regular monitoring, and improve overall driver safety.

Automotive Telematics Market Analysis by Region

Europe is a significant market for the technology as many road transport telematics applications have been imposed on all vehicles in the region to increase road safety. Fleet management has become a global business, and several large players offer this service globally.

Currently, Europe also leads the demand for advanced fleet management services which help to reduce operating costs and improve asset return on investment. The data collected from telematics helps fleets better control maintenance and fuel expenses through route optimisation and idling reduction. In Europe, around 66% of new vehicles are sold to corporations and with fleets becoming bigger in size, the demand for telematics to optimise fleet size and reduce cost is increasing.

The Asia Pacific automotive telematics market is also expected to witness robust growth in the forecast period due to the growth of the automotive sector and the increased demand for aftermarket telematics solutions among fleet owners seeking to upgrade their existing vehicles. Moreover, rapid digitalisation, improvement in public transportation infrastructure, and the advent of connected mobility in the region are expected to favour the regional market growth.

Key Highlights of the Report