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The global passenger vehicle telematics market size is estimated to grow by USD 24.78 billion between 2022 and 2027 accelerating at a CAGR of 18.05%.
This report extensively covers market segmentation by Product (smartphone integration, tethered, and embedded), Type (remote message processing system, brake system, and transmission control system), and Geography ( APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
OEM push for embedded telematics systems in BRIC nations is exponentially driving market growth. Additionally, government initiatives to promote EVs are also driving 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 telematics 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.
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During 2020-2021, the outbreak of COVID-19 had a significant impact on the passenger vehicle telematics market in APAC. However, industrial operations returned to pre-COVID-19 levels by the end of 2021 owing to the implementation of preventive measures and vaccination drives. This facilitated the resumption of production operations, which, in turn, improved the production and sales of passenger vehicle telematics in the region during 2021-2022. An increase in demand for passenger cars is expected to drive the growth of the regional passenger vehicle telematics market during the forecast period.
Our researchers analyzed the data with 2022 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. Developed regions like Europe and North America dominate the embedded passenger vehicle telematics market due to its reliable 24x7 connectivity. However, legislation is expected to encourage embedded telematics installation in passenger vehicles, leading to increased adoption of telematics systems in the automotive industry. In emerging markets, such as Brazil, Russia, India, and China, rising consumer interest in navigation and infotainment services is driving collaboration between OEMs and telematics providers to introduce new products and services. India's growing middle class and urbanization also contribute to the demand for in-vehicle entertainment and information systems, which are no longer restricted to premium cars alone. These factors are expected to drive the growth of the global passenger vehicle telematics market.
The adoption of video telematics to precisely track driver behavior is a prominent trend in the passenger vehicle telematics market. Telematics 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 telematics services use camera technology for this purpose. Video-based safety systems for monitoring driver behavior are at a nascent stage, but their strong growth is expected to benefit the global passenger vehicle telematics market. Fleet operators are considering the use of video-based safety systems, which will boost revenue growth. Companies such as MiX Telematics and Omnitracs offer integrated solutions and supporting platforms for video telematics, which will fuel the growth of the global passenger vehicle telematics market in the forecast period.
The high cost associated with telematics services is hindering market growth. Telematics 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 telematics 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 passenger vehicle telematics market during the forecast period.
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The market share growth by the smartphone integration segment will be significant during the forecast period. The smartphone integration segment was valued at USD 5.36 billion in 2017 and continued to grow by 2021. The adoption of smartphone-integrated solutions is high in mid-size passenger vehicles. The high volume growth 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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The remote message processing system segment holds the biggest share of the global passenger vehicle market telematics market. Key competencies required to develop connected automobile systems include vehicle data ingestion, processing, and display. These data can be collected, analyzed, and used to generate fresh ideas and solutions. 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. Such factors are positively impacting the market growth.
APAC is estimated to contribute 45% 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.
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Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Passenger Vehicle Telematics Market.
Agero Inc. - The company offers road haulage services for shipping containers and LCL goods.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The 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 Passenger Vehicle Telematics Market Customer Landscape
The 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.
Passenger Vehicle Telematics Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.05% |
Market growth 2023-2027 |
USD 24.78 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
17.63 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, 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., Delphi Technologies Plc, DXC Technology Co., Fleet Complete, OCTO Telematics S.p.A, Robert Bosch GmbH, Telefonaktiebolaget LM Ericsson, Telenav Inc., Trimble Inc., Valeo SA, Verizon Communications Inc., Visteon Corp., Vodafone Group Plc, and Garmin Ltd. |
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 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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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