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The automotive event data recorder market size is forecast to increase by USD 979.6 million, at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to several key factors including the rising number of road accidents worldwide has increased the demand for EDRs to help investigators determine the cause of accidents. Additionally, the growing popularity of dashboard cameras for event recording is driving market growth, as these devices often include EDR technology. However, the high investments required to install EDRs and their supporting technologies can be a challenge for market expansion. Despite this, the market is expected to continue growing due to increasing regulations mandating the use of EDRs and advancements in technology leading to more cost-effective solutions.
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The market is evolving rapidly, driven by the increasing adoption of event data recorders in vehicles. These black box devices capture critical data in the event of an accident, enhancing personal safety and aiding vehicle insurance companies in assessing claims. The usage-based insurance model benefits from accurate data, offering tailored premiums based on driving behavior. As electric vehicles and diesel trucks become more prevalent, the demand for EDRs grows. The integration of ESP and ABS systems further enhances data accuracy. With increasing focus on privacy and data security, the market must address these concerns while delivering reliable EMR reports. Overall, the market is expanding as privacy and safety concerns drive advancements in automotive data recording technologies.
Rising number of road accidents across the world is notably driving market growth. Road traffic accidents are a significant global concern, resulting in approximately 1.3 million fatalities annually, according to the World Health Organization (WHO). These accidents are a major contributor to injury-related deaths, particularly in low- and middle-income countries. Factors such as inadequate safety systems, reckless driving behaviors, substandard road infrastructure, and unsafe vehicles are the primary causes of these accidents. The economic burden of road traffic accidents is substantial, accounting for approximately 3% of the GDP in most countries. In developed regions like the US, the majority of vehicles are equipped with Event Data Recorders (EDRs), which enable automotive regulators and Original Equipment Manufacturers (OEMs) to analyze faults precisely. EDRs, also known as "black boxes," are crucial for vehicle safety and accident investigation.
Further, they record data related to vehicle systems, such as Electronic Stability Program (ESP), Anti-lock Braking System (ABS), and airbag deployment, during the moments leading up to a crash. EDR data is essential for insurance companies, as it can be used in the context of usage-based insurance models. This data can help insurers assess driving behavior, determine accident fault, and provide discounts based on safe driving. With the rise of Electric Vehicles (EVs) and Diesel trucks, as well as the increasing adoption of Autonomous vehicles, the demand for EDRs is expected to grow. This growth is likely to result in capacity expansions, plant turnarounds, mergers, and EDR installation and maintenance costs. Real-time monitoring of vehicle data through telematics devices offers opportunities for proactive accident prevention and reconstruction. Thus, such factors are driving the growth of the market during the forecast period.
Growing popularity of dashboard cameras for event recording is the key trend in the market. The market encompasses the use of advanced technologies, such as Electronic Stability Program (ESP) and Anti-lock Braking System (ABS), in modern automobiles. EDR systems, also known as "black boxes," are installed in various vehicles, including diesel trucks and electric vehicles, to enhance personal safety and facilitate accident investigation. These systems record and store data related to vehicle performance, engine functions, and driving behavior during car crashes or accidents. Automotive insurance companies and vehicle insurance providers are increasingly utilizing EDR data for usage-based insurance models, which can influence insurance premiums based on driving habits. Commissioned by automotive OEMs, EDR installation and maintenance costs are a significant consideration for capacity expansions, plant turnarounds, mergers, and autonomous vehicle technology developments. Real-time monitoring of EDR data enables accident reconstruction and vehicle safety improvements.
Telematics devices, including dashboard cameras, are essential components of EDR systems. These devices can record and save videos and audio during accidents or vehicle break-ins, providing valuable evidence for insurance claims and accident investigations. Dashboard cameras, installed in the windshield or interior mirror housing, can be powered through the cigarette lighter receptacle and are equipped with sensors to detect accidents or break-ins. The increasing adoption of these devices among fleet management companies, including ride-sharing services, allows for effective tracking of vehicle movement and driver behavior. Thus, such trends will shape the growth of the market during the forecast period.
High investments needed to install EDRs and their supporting technologies is the major challenge that affects the growth of the market. The market has gained significant traction due to increasing focus on personal safety and accident investigation. In Europe and the US, regulatory bodies have mandated the installation of EDRs in modern automobiles. For instance, the EU mandated the installation of eCall technology in new cars from April 2018. This technology automatically dials emergency services in case of a severe accident. Furthermore, the EU banned telephone roaming charges across member states in 2014 to promote interoperability of eCall systems. However, some Automotive OEMs are hesitant to install EDRs due to a lower rate of return. Revenues from EDRs primarily depend on rare events such as car crashes and accidents.
Furher, automotive insurance companies and vehicle insurance models based on usage are significant consumers of EDR data. Telematics devices and real-time monitoring enable insurance companies to offer discounts based on driving behavior. The market for EDRs is expected to expand with funding from autonomous technologies and capacity expansions. Plant turnarounds, mergers, and installation and maintenance costs are some challenges. Despite these challenges, the market for EDRs is poised for growth due to the increasing importance of vehicle safety and accident investigation. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aptiv Plc - The company offers automotive event data recorders including in-cabin devices, dongles and telematics control units.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, driven by the increasing adoption of advanced safety technologies such as Electronic Stability Program (ESP) and Anti-lock Braking System (ABS) in passenger cars and diesel trucks. EDRs, also known as "black boxes," play a crucial role in personal safety by providing critical data during car crashes and accidents. This data is essential for accident investigation and insurance claim processing. Automotive insurance companies and vehicle insurance providers are increasingly utilizing EDR data for their usage-based insurance models, offering discounts based on safe driving behavior. The integration of EDRs with telematics devices and autonomous technologies is further expanding the market's capacity. Automotive OEMs are collaborating with vendors to develop EDRs tailored to their vehicle models, with installations occurring during plant turnarounds and mergers.
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The passenger cars segment was the largest and was valued at USD 2.60 billion in 2018. The growing emphasis on vehicle safety and real-time monitoring has led to the widespread installation of EDRs in modern automobiles. EDR installation and maintenance costs are a concern for some automotive OEMs, but the benefits of improved safety, accident reconstruction, and insurance premium reductions outweigh these expenses. The market for automotive event data recorders is expected to continue growing, with electric vehicles and autonomous vehicles also adopting this technology.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Event data recorders (EDRs) are essential components in modern automobiles, capturing vital data during car crashes and accidents. EDRs, which include systems such as Electronic Stability Program (ESP) and Anti-lock Braking System (ABS), record data on vehicle speed, engine RPM, throttle position, and braking status. This information is crucial for personal safety, accident investigation, and insurance claims. Automotive insurance companies and vehicle insurance providers increasingly use EDR data for usage-based insurance models, offering discounts based on safe driving behavior.
Automotive OEMs are investing in EDR installation, capacity expansions, and plant turnarounds to meet the growing demand for these safety features in diesel trucks, electric vehicles, and autonomous vehicles. EDRs play a significant role in vehicle safety, providing real-time monitoring and accident reconstruction data. The commission from EDR installation and maintenance cost is a growing revenue stream for the automotive industry. Additionally, the integration of telematics devices and autonomous technologies in EDRs is driving funding for research and development in this sector. The increasing importance of EDRs in car safety and insurance industries is leading to mergers and collaborations among key players. EDR data is transforming the automotive landscape, providing valuable insights into driving behavior and vehicle performance. The EMR reports generated from EDRs are essential for vehicle safety, accident investigation, and insurance premium calculations.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is a significant segment in the automotive industry, focusing on recording and analyzing data from various vehicle systems during car crashes and accidents. EDR systems, also known as black boxes, capture crucial information related to Automobiles, including ESP (Electronic Stability Program) and ABS (Anti-lock Braking System) data. Diesel trucks and Electric vehicles are increasingly adopting EDR technology for Personal safety and Commission purposes. Automotive OEMs are integrating EDR into Modern automobiles, including Autonomous vehicles, to enhance Vehicle safety and Accident investigation. EDR reports are essential for Insurance companies in determining Insurance premiums based on Usage-based insurance models and Driving behaviour. Telematics devices installed in vehicles facilitate Realtime monitoring and Accident reconstruction. EDR installation and maintenance cost are driving Capacity expansions and Plant turnarounds among market players. Mergers and Acquisitions are also prevalent in the market, as companies seek to expand their offerings and Funding for research and development of Autonomous technologies. The market is poised for growth, with a focus on providing valuable insights for Automotive insurance and Vehicle safety.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 979.6 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Germany, Japan, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, Cansonic Dash Cam, Continental AG, DENSO Corp., Digital Ally Inc., Garmin Ltd., Infineon Technologies AG, OCTO Telematics S.p.A, PAPAGO Inc., Pittasoft Co. Ltd., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Squarell BV, Vacron, Veoneer Inc., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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