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The motor racing telematics (MRT) market size is forecast to increase by USD 280.4 million, at a CAGR of 9.75% between 2023 and 2028. Market expansion hinges on various factors, including rising demand for performance optimization across industries, spurring the adoption of motor racing telematics driven by favorable regulations. Additionally, the increasing utilization of electronic components contributes to enhanced performance capabilities, driving market growth. These interconnected trends underscore a paradigm shift in the automotive and motorsport sectors, where technology plays a pivotal role in driving innovation and competitiveness.
As industries prioritize efficiency, safety, and performance, the market for motor racing telematics stands to benefit from increased demand and adoption. Regulatory support further accelerates this trend, providing a conducive environment for industry players to leverage advanced technologies and capitalize on emerging opportunities. As a result, the market expands to cater to diverse needs, driving continuous innovation and advancement in performance optimization solutions. Motorsport transmission, crucial for delivering power efficiently and reliably in high-performance vehicles, is integral to this evolving landscape. These systems enhance vehicle agility and acceleration, essential for competitive racing environments. The market analysis includes an in-depth examination of trends, growth drivers, and challenges, with historic market data from 2018 to 2022 providing insights into market dynamics and evolution over time.
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In the adrenaline-fueled world of motor racing, telematics technology emerges as a game-changer. Telecommunications devices seamlessly integrate with remote computers, enabling real-time monitoring of engine performance, tire pressure, and tire temperature. This data, crucial for optimizing high-tech performance equipment, empowers teams to make split-second decisions for enhanced speed and safety. Moreover, in the in vehicle telematics sector, the fusion of IoT platforms with linked automobiles elevates connectivity to new heights, fostering unparalleled communication between drivers and their machines. As the racing industry continues to evolve, telematics redefine the boundaries of performance, shaping the future of motor racing equipment and automobiles alike. Our researchers analyzed the market research and growth data with 2023 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.
Increasing demand for performance optimization is the key driver for the growth of the market. The global market is positively influenced by the deployment of telecommunications solutions by motor racing teams. Teams use real-time data to better understand bike and rider performance as a result of the need for a competitive edge in the race. Telematics data allows teams to identify areas for development and optimize both bike setup and race plans by providing important information on variables such as speed, acceleration, braking, and maneuverability.
Moreover, the motorsport sector is driven by the need to improve lap times, efficiency, and safety through data-driven decisions, which is driving the demand for advanced telematics systems. The global market is expected to witness tremendous expansion during the forecast period as performance improvement efforts grow to intensify.
Deployment of 5G networks and edge computing capabilities is the primary trend in the market. Real-time data transmission and analysis during races will be revolutionized by these developments. Ground sensors in motorsport and race management systems will be able to communicate seamlessly owing to the fast speeds and low latency of 5G. With edge computing, data processing occurs closer to the origin, reducing transmission latency and rapidly improving data intelligibility.
Moreover, this development will encourage the use of sophisticated telemetry, giving riders and teams access to more in-depth and accurate performance measurements, and can increase competition and predictability in motor racing competitions around the globe. Automotive racing seats will play a crucial role in this advancement, providing essential support and safety to drivers while they navigate increasingly demanding circuits. As the racing environment becomes more data-driven, the demand for technologically advanced automotive racing seats is expected to rise. These seats not only enhance driver comfort and safety but also contribute to the overall performance of the vehicle, making them integral to the evolving landscape of motorsports worldwide. This synergy between telemetry advancements and automotive racing seats is set to drive significant market growth throughout the forecast period.
High costs associated with telematics services are the challenge that affects the growth of the market. The total costs associated with motocross telematics systems include initial costs such as licensing, configuration, and installation fees as well as payments for customization and integration with existing systems. In addition, hidden costs such as installation fees and network roaming fees can pose challenges to motor racing telematics (MRT) market growth. All these costs contribute to the total cost and influence the customer's decision-making.
Therefore, manufacturers are forced to keep profit margins low. This affects the financial position of manufacturers and prevents them from spending on R&D, which further affects the development of in-vehicle telematics. This may affect the OEM's aim to gain maximum control points in the telematics ecosystem and is expected to impede the growth of the global 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 and forecasting strategies.
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 M2M segment is estimated to witness significant growth during the forecast period. The market for M2M applications has significant growth potential, especially in developing economies like India and China. The steady adoption of M2M applications in countries such as China, India, Thailand, and Singapore is expected to drive the market. The strengthening of government and regulatory initiatives, such as those of the EU, and the mandatory integration of automotive security systems, such as eCall, in all New car models are driving M2M connectivity and M2M cybersecurity solutions.
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The M2M segment was the largest segment and valued at USD 206.60 million in 2018. The deployment of M2M automotive competitive telecommunications applications in the automotive sector could reduce the number of road accidents and damage. In addition, automakers have begun offering in-vehicle services, such as information systems that provide real-time information, to reduce traffic congestion, carbon emissions and shorten travel time. Overall, the demand is seeing an increase in M2M applications, which is expected to drive market growth during the forecast period.
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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. Another region offering significant growth opportunities to companies is Europe. The European market has grown steadily in recent years due to the development of technology and the growing popularity of motorsport. Manufacturers and teams in Europe are increasingly using telematics solutions to enhance security measures, track data and increase performance. Moreover, major companies have unveiled the most advanced GPS tracking devices, data loggers, and telemetry systems designed specifically for racing applications. Real-time data analysis provided by these systems enables teams to improve driver performance, perfect vehicle configurations, and gain a competitive edge. In addition, due to the strong commitment to the sustainability of the European motorsports community, eco-friendly telemetry systems have become popular, allowing for efficient fuel use and reduced carbon emissions. Thus, such factors will drive the growth of the market in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market integrates informatics and information technology to monitor vehicle telemetry, employing remote objects and computer programs for real-time data analysis. This high-tech sector utilizes in-vehicle telematics to enhance racing technology, ensuring performance systems' reliability and green vehicle efficiency. Market opportunities arise from consumer needs for stability and comfort, driving investments in software implementation and hybrid vehicle technology. Challenges include economic crises impacting labor productivity and manufacturing costs. Competitive intensity is analyzed through Porter's five forces, highlighting the potency of buyers and suppliers in this fast-paced industry. Trends indicate an increasing focus on remote monitoring, simulation, and integration of telematics for optimized performance.
Further, in the heart of motorsports, the market stands as a beacon of innovation, reshaping the landscape of racing. From racing bikes to complex performance machines, telematics technology is seamlessly integrated into the vehicular system, providing real-time insights into crucial parameters like engine oil temperature and engine oil pressure. As the industry embraces sustainability, green vehicles and hybrid vehicles take center stage, propelled by telematics solutions aimed at enhancing fuel efficiency. Cutting-edge remote computer and control modules, powered by high-performance processors, enable teams to fine-tune every aspect of their vehicles for optimal performance. With a global viewers of avid viewers, the evolution of telematics in motorsports is undeniable, promising an exhilarating future where data-driven decisions and high tech performance equipment reign supreme on the racetrack.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.75% |
Market growth 2024-2028 |
USD 280.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.66 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, Germany, France, UK, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agero Inc., Airbiquity Inc., Aptiv Plc, AT and T Inc., Bridgestone Corp., Bynx Ltd., Comtech, Continental AG, DXC Technology Co., Emkay Inc., iLink Digital Inc., OCTO Telematics S.p.A, PTC Inc., Robert Bosch GmbH, Telefonaktiebolaget LM Ericsson, Valeo SA, Verizon Communications Inc., Visteon Corp., Vodafone Group Plc, and Volkswagen AG |
Market dynamics |
Parent market analysis, Market forecast, 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 forecast period |
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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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