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The automotive telematics market size is estimated to grow at a CAGR of 18.34% between 2022 and 2027. The market size is forecast to increase by USD 91.86 billion. The growth of the market depends on several factors such as the growing popularity of EVs, the presence of a conducive technology environment, and regulations to improve the safety of modern vehicles.
This automotive telematics market report extensively covers market segmentation by Distribution Channel (OEM and aftermarket), Application (passenger cars and commercial vehicles), and Geography (North America, APAC, Europe, South America, and Middle East and Africa) and geography North America, APAC, Europe, South America, and Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Regulations to improve the safety of modern vehicles is the key factor driving the growth of the market.
Automotive telematics services are gaining prominence in the automotive market due to increased demand for vehicle tracking and navigation services. Among the various services offered by telematics, eCall, and stolen vehicle tracking have been the main areas of focus for many regulatory bodies across the world.
Moreover, the emerging economies like India and China are developing regional navigation systems - the Indian Regional Navigation Satellite System in India and Beidou in China - to support telematics service providers and reduce dependency on US GPS. This will lead to a reduction in the cost of telematics devices in these countries. Increasing infrastructural support from governments and regulatory mandates is expected to drive the growth of the global automotive telematics market during the forecast period.
The growing popularity of API is the primary trend in the market. Application programming interfaces (APIs) allow significant data exchange and integration between different software systems, applications, and devices. The API allows third-party developers to build applications and services that can be integrated with the automotive telecommunications platform. This opens the door to innovative solutions, such as driver behavior analytics, insurance-based telecommunications, and personalized services for vehicle owners.
Additionally, the API can support over-the-air (OTA) software updates, improving vehicle performance and functionality without the need to visit a service center. The API drives the growth of the ecosystem around automotive telematics. This ecosystem includes not only vehicle manufacturers and suppliers, but also application developers, data analytics companies, insurance companies, and other stakeholders. Hence, these factors are expected to drive the growth of the global automotive telematics market during the forecast period.
The high cost associated with telematics services is a challenge that affects the growth of the market. The upfront cost of setting up the telematics includes licensing, configuration, and installation fees, in addition to payments for customization and integration with existing systems. In addition, license fees must be renewed periodically, adding to the overall cost. Additionally, integration or customization can be more expensive than telecommunications equipment and license fees.
Moreover, automakers are looking for low-cost solutions to maintain high-profit margins. They are achieving this by implementing various cost-cutting measures through the launch of low-cost and no-frills products or through the expected operating process that sets challenges for the growth of the global automotive telematics market during the forecast period.
The market research 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 growth strategies.
Global Automotive Telematics Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 OEM segment is estimated to witness significant growth during the forecast period. Telematics OEMs typically focus on safety and security features, such as automatic collision notification, emergency assistance, stolen vehicle tracking, and remote vehicle immobilization. These features improve the overall safety of the driver and passengers. OEM telematics systems can support remote diagnostics, allowing manufacturers and service centers to monitor vehicle conditions and performance.
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The OEM segment was the largest segment and was valued at USD 19.85 billion in 2017. The OEM telematics system enhances the driving experience by providing features such as remote start, remote door locking/unlocking, and settings that can be customized via a smartphone app or interface. These factors are expected to drive the demand for a vehicle telematics which in turn is expected to drive the growth of the OEM segment of the global automotive telecommunications market during the forecast period.
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APAC is estimated to contribute 35% 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. The US and Canada are the largest contributors to the automotive telematics market in the region. In the US, well-known OEMs like General Motors are based in the regional automotive telematics market. The region also has a strong presence in aftermarket products. In addition, the increasing prevalence of EVs in the region, with most EVs equipped with vehicle telematics systems, also contributes to the market growth.
Moreover, the US is also at the forefront of introducing new diagnostic solutions and predictive systems. Domestic auto brand General Motors is the first auto industry OEM to offer predictive solutions out of the box. They offer predictive solutions for selected models in both passenger and commercial vehicle sectors. The company is working to upgrade its remaining models to vehicle telematics services. Such factors are anticipated to propel the growth of the regional automotive telematics market during the forecast period.
The outbreak of the COVID-19 pandemic in 2020 negatively affected the automotive telematics market in North America. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Furthermore, integrating telematics into connected and self-driving cars will revolutionize the driving experience. Advanced safety features, predictive maintenance, and seamless vehicle-to-vehicle communication drive the adoption of automotive telematics. Thus, such factors are anticipated to propel the growth of the regional automotive telematics market during the forecast period.
The automotive telematics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automotive Telematics Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.34% |
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Market growth 2023-2027 |
USD 91.86 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
17.74 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agero Inc., Airbiquity Inc., BorgWarner Inc., Continental AG, Garmin Ltd., General Motors Co., LG Corp., Masternaut Ltd., OCTO Telematics S.p.A, Panasonic Holdings Corp., Qualcomm Inc., Robert Bosch GmbH, Solera Holdings LLC, TomTom NV, Trimble Inc., Verizon Communications Inc., Visteon Corp., Volkswagen AG, MiX Telematics Ltd., and Teletrac Navman US Ltd. |
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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 forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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