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The Global Passenger Vehicle Telematics Market size is estimated to grow by USD 46.2 billion between 2023 and 2028, accelerating at a CAGR of 24.94%. OEM push for embedded telematics systems in BRIC nations is exponentially driving market growth. Additionally, government initiatives to promote EVs are also driving the market growth. EVs significantly reduce air pollution as they do not emit harmful pollutants such as particulates, carbon monoxide, hydrocarbons, and volatile organic compounds. EVs need these services as a standard fitment to track the vehicle's battery status, which will positively impact the market growth. Furthermore, the growing integration of smartphones and tablets in automobiles aimed to enhance the overall in-vehicle experience of the passengers and drivers is propelling the market growth. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges.
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The market, driven by technology advancements like 5G and AI, integrates telematics systems with IoT devices and smartphones to enhance road safety and driver productivity. It enables decision-makers and fleet managers to monitor vehicle location, operation, and service levels, optimizing dispatching and client delivery times. With features for autonomous driving and passenger safety, coupled with GPS tracking and external sensors, it revolutionizes order and shipment management for connected cars, tablets, and alerts in critical situations. Our researchers analyzed the data with 2023 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
OEM push for embedded telematics systems in BRIC nations is a major factor driving the market growth. The market expansion is significantly propelled by Original Equipment Manufacturers (OEMs) advocating for embedded systems in BRIC nations. While developed regions like Europe and North America currently dominate the market due to their dependable 24x7 connectivity, legislative initiatives are poised to encourage the installation of embedded telematics in passenger vehicles worldwide, thereby driving the adoption of these systems across the automotive industry.
Moreover, in emerging markets such as Brazil, Russia, India, and China, increasing consumer demand for navigation and infotainment services is fostering collaboration between OEMs and telematics providers to introduce innovative products and services. India's expanding middle class and urbanization further contribute to the demand for in-vehicle entertainment and information systems, which are no longer exclusive to premium cars. These factors collectively fuel the expansion of the global market.
The adoption of video telematics to precisely track driver behavior is a prominent trend in the market. It has evolved from simply tracking vehicles using GPS to monitoring every component of vehicles using cloud technology and data analytics. Monitoring driver behavior is essential to prevent road fatalities, and modern services use camera technology for this purpose.
Moreover, video-based safety systems for monitoring driver behavior are at a nascent stage, but their strong demand is expected to benefit the market. Fleet operators are considering the use of video-based safety systems, which will boost revenue. Companies such as MiX Telematics and Omnitracs offer integrated solutions and supporting platforms for video telematics, which will fuel the expansion of the global market in the forecast period.
The high cost associated with telematics services is hindering market demand. These setup costs include license, installation, and customization fees. Subscription renewals and hidden charges like roaming fees for cross-border travel and equipment termination also add to the cost. The high cost of embedded affects automakers' ability to keep prices low and maintain profitability.
As a result, manufacturers may compromise on R&D, affecting the growth of automobile-embedded telematics. This has led to cost-cutting measures, such as launching low-cost products and streamlining processes, which may challenge the global market during the forecast period.
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The market share demand by the smartphone integration segment will be significant during the forecast period. The smartphone integration segment was valued at USD 6.20 billion in 2018. The adoption of smartphone-integrated solutions is high in mid-size passenger vehicles. The high volume expansion of the mid-size vehicle segment, particularly in APAC, will increase the adoption of smartphone-integrated systems during the forecast period. Therefore, the smartphone-integrated segment is expected to grow during the forecast period.
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Moreover, consumers prefer the availability of a strong application base for their connected devices. For instance, the Android operating system for smartphones has the highest number of users in the market as it supports an array of third-party applications. Application development for in-vehicle systems is yet to be adopted by developers as the market is still in the nascent stage. As a result, developers prefer application development for smartphones, which leads to increased market penetration of smartphone-integrated solutions. Such factors will increase the segment demand in this market during the forecast period.
APAC is estimated to contribute 40% 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.
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The adoption rate of automotive telematics in APAC is expected to moderate growth during the forecast period owing to the increasing demand from emerging markets such as India, China, Malaysia, and Indonesia. Telematics services such as fleet management and vehicle tracking services will likely drive the revenue growth of the market. In addition, prominent OEMs in APAC are increasing the adoption of telematics offerings in their commercial portfolios to ensure product differentiation. All these factors will contribute to the regional market growth during the forecast period.
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.
Agero Inc. - The company offers passenger vehicle telematic solutions to improve the accident management process to minimize costs and reduce stress for the customers.
The 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" 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 witnessing rapid growth driven by the integration of connected cars and Internet of Things (IoT) devices to enhance driver safety and mitigate critical situations on the road. With a focus on improving road safety, in-vehicle connectivity enables the deployment of autonomous driving technologies and passenger safety features. Fleet managers benefit from features like vehicle location tracking, operation tracking, and service level monitoring, which optimize dispatching and improve client delivery times. Additionally, insights into driver productivity and fuel usage contribute to efficiency improvements. This market thrives on technology advancements such as GPS tracking, Artificial intelligence (AI), and telecommunication, supported by external sensors for informed decision-making in order and shipment management.
Moreover, the market continues to evolve with advancements in alerts systems, aiming to reduce road accidents through enhanced safety communications and emergency systems. Integration of telecommunication devices and GPS navigation enables efficient automatic driver assistance and robust fleet management solutions for improved safety and productivity. The market witnesses increasing espousal of remote control & monitoring features to combat vehicle thefts and enable real-time tracking. Notably, the North America passenger vehicle telematics market leads in the adoption of telematics devices and intelligent transportation systems, further supported by smartphone applications for seamless connectivity. Service levels, emissions, and logistics tools are prioritized alongside risk assessments and safety performance evaluations for comprehensive telematics solutions.
Passenger Vehicle Telematics Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.94% |
Market growth 2024-2028 |
USD 46.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.47 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
China, US, Germany, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agero Inc., Airbiquity Inc., AT and T Inc., Bridgestone Corp., Bynx Ltd., Continental AG, Danaher Corp., BorgWarner Inc., DXC Technology Co., Fleet Complete, Garmin Ltd., OCTO Telematics S.p.A, Robert Bosch GmbH, Telefonaktiebolaget LM Ericsson, Telenav Inc., Trimble Inc., Valeo SA, Verizon Communications Inc., Visteon Corp., and Vodafone Group Plc |
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. |
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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
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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