CHICAGO, March 5, 2024 /PRNewswire/ — Automotive Telematics Market is projected to grow from an estimated USD 9.0 billion in 2024 to reach USD 16.1 billion by 2030 at a CAGR of 10.1%, according to a new report by MarketsandMarkets™. Automotive manufacturers are highly focused on collaborating with telematic suppliers to integrate their services into their new models to increase drivers’ and on-road safety. Several automakers offer e-SIM card facilities in their top-end variants, like Ford, who collaborated with Vodafone to offer 4G Wi-Fi connectivity. All the premium vehicles are equipped with this e-Sim card facility, which is also anticipated to drive the overall market growth. The Telematics market is further boosted by the growing emphasis on vehicle connectivity and data-driven insights to enhance driver safety, efficiency, and convenience.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=245073008
Browse in-depth TOC on “Automotive Telematics Market”.
210 – Tables60 – Figures260 – Pages
Automotive Telematics Market Scope:
|
Report Coverage |
Details |
|
Market Size |
USD 16.1 billion by 2030 |
|
Growth Rate |
CAGR of 10.1% |
|
Largest Market |
Asia Pacific |
|
Market Dynamics |
Drivers, Restraints, Opportunities & Challenges |
|
Forecast Period |
2024-2030 |
|
Forecast Units |
Value (USD Million/Billion) |
|
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Service (eCall, On-road Assistance, Insurance risk assessment, Remote Diagnostics), Form (Embedded & Integrated), Connectivity, Aftermarket and Region |
|
Geographies Covered |
Asia Pacific, North America, Europe, and Rest of the World |
|
Report Highlights |
Updated financial information / product portfolio of players |
|
Key Market Opportunities |
5G/6G will create futuristic growth opportunities |
|
Key Market Drivers |
Increasing use of telematics in fleet management |
“Passenger Cars dominate the automotive telematics market at a global level.”
The passenger car segment is projected to lead the automotive telematics market during the forecast period. The growth is mainly attributed to the highest share of passenger cars, with about 70 million in 2023, among overall vehicle production, which is expected to surpass 79 million by 2030. Factors such as rising demand for connected features, advanced safety technologies, and growing acceptance of ADAS for improved safety and comfort drive the passenger car telematics market. Over 40% of Class C segment passenger cars are installed with an OE-fitted telematic system. Alternatively, Class D & above passenger cars are installed with OE-fitted telematics modules in their luxury vehicles to attract consumer attention. Although Asia-Pacific leads the automotive telematics market owing to a higher volume of passenger cars, the European and North American markets hold a higher penetration of telematics unit fitment. OEMs like Volkswagen, Ford, Mercedes-Benz, Audi, and BMW offer telematics units as a standard or optional feature in these regions.
Furthermore, regulatory mandates for vehicle safety (such as the e-Call mandate in Europe) and emissions monitoring in these regions have pushed automakers to adopt telematics solutions to comply with stringent requirements – moreover, robust telecom infrastructure with widespread presence complementing the access to telematic services. As the penetration of embedded telematics is expanding beyond luxury and premium segments, mid-range models from Chery, GAC Motor, Toyota, Honda, and Nissan and strategic collaborations with technology companies like Google and Samsung to extend their telematic offerings will allow them to capture a significant share for automotive telematics industry in passenger cars segment.
“Insurance-based assessment to be the fastest growing automotive telematics service by 2030.”
Insurance-based assessment services are projected to become a prominent telematics service market by the end of 2030 as they offer several benefits over standard insurance. This service provides insurers with valuable data to assess risk and tailor insurance premiums based on individual driving behaviour. By leveraging telematics devices installed in vehicles, insurers can track metrics such as driving speed, distance travelled, braking patterns, and time of day, allowing for a more personalized and fair pricing model. This approach incentivizes safer driving habits among policyholders, reducing accident rates and insurance claims ultimately lowering costs for insurers. Regulatory bodies are pushing automakers to deploy telematics and connectivity functionalities in vehicles to improve passenger and vehicle safety. This increased demand for cars with more sophisticated and connected features. In a 2022 study on public perception and use of telematics, the Insurance Research Council (IRC) found that in the US, 45% of drivers surveyed indicated they had significantly changed their driving habits for safety after taking part in a telematics program, and an additional 35% stated that they had made minor adjustments to their driving style.
Further, a whitepaper published by LexisNexis Risk Solutions stated that around 80%-90% of those who bought auto insurance in 2017 had telematics-enabled coverage. Additionally, insurance firms may help customers in times of need due to the growing demand for connected car services, which expedites the claims procedure and saves time. Hence, the increasing adoption of automotive telematics would prompt the market growth of insurance-based assessment services in the coming years.
“North America is the second largest market for automotive telematics.”
North America is estimated to remain the second-largest region for the automotive telematics market. The region’s growth is mainly driven by stringent government regulations and the presence of prominent OEMs Ford Motor Company (US), General Motors (US), and Fiat Chrysler Automobiles (US). The automotive market in the US has favored passenger cars with advanced comfort and safety technologies. The US is the largest market in the region and accounts for more than two-thirds of the overall market, followed by Mexico and Canada. With the increasing penetration of luxury cars and the upcoming availability of 5G connection, which will enable more advanced telematics solutions, the need for telematics solutions is anticipated to rise in this region. In addition to this, the regulatory landscape and government programs encourage the use of telematics for environmental and safety reasons. For instance, To measure hours of service, commercial vehicles must carry electronic logging devices (ELDs), according to the governments of the US and Canada. As a result, OEMs and telematics suppliers partnered to develop compliance solutions. OEMs are also looking to develop alliances with telematics providers due to the rising popularity of connected car platforms and subscription-based services to improve their products and maintain their competitiveness in the North American market. In the US, around 80% of cars are connected with the increasing advancement in 5G technology. Telecom companies are working with automakers, including Toyota, General Motors, and Porsche, to build practical 5G solutions. AT&T has partnerships with more than 30 automotive OEMs using its network, such as BMW, Ford, Chevrolet, Jaguar, and Honda. The growth of telematics in premium SUVs and pickup trucks is driven by a strong emphasis on technology and innovation in the automotive industry, particularly in the premium segment, where vehicles are offered with advanced features and connectivity options.
Inquire Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=245073008
Key Market Players:
The major players in Automotive Telematics Companies include Robert Bosch GmbH (Germany), Continental AG (Germany), AT&T Inc (US), LG Electronics. (South Korea), and Verizon (US).
Recent Developments
In January 2024, Continental AG and Google Cloud partnered at IAA Mobility, presenting a new era of personalized travel at CES 2024. Google Cloud’s generative AI voice assistant integrates into Continental’s Smart Cockpit High-Performance Computer (HPC) to create a natural and intuitive interaction between user and assistant. Its features include conversational navigation, driver personalization, and in-car control, allowing users to ask detailed vehicle-related questions, discover places of interest, and engage in back-and-forth conversations for a more helpful travel experience.
In November 2023, Robert Bosch GmbH unveiled its innovative solutions of advanced intelligent driving solutions for China at the 6th China International Import Expo (CIIE 2023). The new production models in China will be equipped with end-to-end navigation assistance for high-speed and advanced applications.
In March 2023, Continental AG announced its partnership with HERE Technologies to power all IVECO’s commercial vehicles across Europe with “Intelligent Speed Assistance” (ISA) and fuel-saving functions. These are delivered through Continental’s eHorizon platform, aggregating and delivering HERE map content, with data exchange enabled by Continental’s scalable 4G/5G telematics control unit.
Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=245073008
Browse Adjacent Market: Automotive and Transportation Market Research Reports & Consulting
Related Reports:
In-vehicle Infotainment Market – Global Forecast to 2028
Connected Car Market – Global Forecast to 2026
Automotive Interior Market – Global Forecast to 2028
Automotive Smart Display Market – Global Forecast to 2025
About MarketsandMarkets™:
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact:
Mr. Aashish MehraMarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com
Research Insight: https://www.marketsandmarkets.com/ResearchInsight/automotive-telematics-market.asp
Visit Our Website: https://www.marketsandmarkets.com/
Content Source: https://www.marketsandmarkets.com/PressReleases/automotive-telematics.asp
Logo: https://mma.prnewswire.com/media/2297424/MarketsandMarkets_Logo.jpg