Automotive Telematics Market

[260 Pages Report] The automotive telematics market is projected to grow from USD 9.0 Billion in 2024 to USD 16.1 Billion by 2030, at a CAGR of 10.1%. This growth is attributed to the increased vehicle production with enhanced safety features like eCall in Europe and other countries like Japan, China, and the US. The market adoption rate of embedded telematics is expected to expand, fueling the market for automotive telematics solutions during the forecast period.

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Market Dynamics

DRIVER: Increasing adoption of connected car services

The connected car market has grown significantly due to recent developments in the telecom industry. Implementing 5G networks in major countries and cities has driven the demand for connected car services. The 5G network has enabled advanced features such as real-time traffic updates, remote diagnostics, and autonomous driving. Recent partnerships between telecom service providers and OEMs have increased the adoption of services related to connected features. For instance, in June 2023, Targa Telematics signed a partnership agreement with Renault. This partnership with companies was to integrate Targa Telematics's developed "Renault Easy Connect for Fleet" platform in Renault and Dacia vehicle models.

Satellite technology is also contributing to the growth of connected car technology. The integration of satellites in connected and autonomous vehicles has been directly supported by many countries of United Nation’s 2030 Sustainable Development Goals (SDGs). These countries have set SDG 3 target plans to reduce global deaths and injuries from road traffic accidents by 2030. Moreover, due to the increase in consumer needs for vehicle features and functions. The automakers have started providing embedded and integrated systems in the mid-segments and premium vehicles, which significantly generate real-time data that needs interpreting tools such as telematics devices that drive the market. Furthermore, consumer acceptance of advanced connected car features plays a crucial role in this trend, as drivers become more accustomed to and reliant on technology for enhanced safety, convenience, and performance.

RESTRAINT: Lack of Standardization

Considering the telematics market, the automotive industry faces various challenges due to inconsistencies in the standardization and regulation set by different regions, making it challenging to work together in telematics devices. For instance, OEMs develop their telematics system, which does not interact seamlessly with other third-party applications or services, which limits the use of different external applications in the vehicles. This has resulted in difficulty accessing a unified experience across various vehicles and telematics services. The fragmentation also poses problems in data sharing and integration, as well as in real-time traffic updates or vehicle diagnostics. For instance, dedicated short-range communication (DSRC) technology in Europe cannot easily be incorporated with other platforms, such as the Global Positioning System (GPS) found in North America, affecting the creation of a single telematics system. Consequently, manufacturers and users can improve and adopt innovations in the automotive telematics industry with uniform standards.

OPPORTUNITY: 5G/6G and artificial intelligence will create futuristic growth opportunities

The emergence of 5G/6G technology has created significant opportunities for the automotive telematics industry, which has enhanced speed, low latency, and high bandwidth., Telematics devices working on 5G/6G are usually offered by OEMs in luxurious and premium vehicles; in addition, because of a shift in the number of people purchasing premium cars with features, there has been an increase in sales of both premium and luxurious vehicles. According to MarketsandMarkets analysis, there was a rise in sales of premium cars from 2021 until 2023 by 10.5%, whereas luxury vehicle sales increased by 35% within the same period. Hence, this increase in sales of premium and luxurious vehicles is creating new opportunities for advancement in telematics devices in vehicles that detect vehicle maintenance, enhance user experience, remote diagnostics, and in-car infotainment systems. 

With the increase in 5G/6G infrastructure, the telematics device has led to the development of artificial intelligence (Al) in connected vehicles, where it processes large amounts of data collected from the surroundings to enhance its operational efficiency and decision-making ability. The likes of Tesla (US) have started using AI-based features in vehicles, which have advanced features such as Autopilot, consequently improving safety and self-driving through data collected from millions of cars. In addition, AI makes predictive maintenance possible in automotive telematics, thus allowing fleet managers to foresee and avert potential problems before they grow into unaffordable repairs or breakdowns. Therefore, combining 5G/6G technology with AI drives the automotive telematics market.

CHALLENGE: Cybersecurity

The telematics industry proliferates in the automotive sector, but cybersecurity remains a significant challenge. Cyberattacks will likely attack telematics solutions such as their software, apps, and Bluetooth. There were some incidents reported for cyberattacks with the major OEMs. For instance, in Chrysler's Jeep vehicle in 2015, two researchers could hack into the car, which led to software upgrading in 1.4 million vehicles. Tesla S and Nissan Leaf models also faced a cyber-attack case in February 2016. Hence, various stakeholders are working on cybersecurity systems to make them safer by integrating cybersecurity and threat detection systems with data analytics and Al. In collaboration with a leading car manufacturer, Viasat developed the first-ever advanced in-car connectivity system with military-grade security features.

Regulators are preparing minimum standards for vehicle software and cybersecurity in various countries. For instance, UN Regulations R155 and R156 were regulated in June 2024 by the United Nations Economic Commission for Europe (UNECE) to reduce cybercrimes in connected vehicles. In UN R155, the automaker needs to install the Cybersecurity Management System (CSMS) System in the vehicle that identifies and lowers cyber threats throughout a vehicle's lifecycle. Meanwhile, the UN R156 was regulated by the automakers for the Software Update Management Systems (SUMS), where the automakers should regularly process the software update to the vehicle. Hence, regulations would reduce the cyber security concerns in connected cars globally.

Automotive Telematics Market Ecosystem.

The major OEMs of the Automotive Telematics Market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in  Telematics Service Providers (TPS) are AT&T Inc (US), Verizon (US), Geo Tab Inc. (Canada), Mix Telematics (South Africa), and  Microlise Limited (UK). Adding more, the major players in hardware suppliers are Robert Bosch GmbH (Germany), Continental AG (Germany), LG Electronics (South Korea), Harman International (US), and Aptiv Plc (Ireland).

Embedded Systems will lead the automotive telematics market during the forecast period.

The embedded form of automotive telematics is estimated to have the largest market share by 2030. Embedded telematics offers various advanced features and additional benefits compared to integrated telematics. These systems offer seamless integration with the vehicle's onboard electronics, providing real-time data insights, navigation assistance, and remote-control functionalities without additional hardware or aftermarket installations. Moreover, embedded telematics services enhance vehicle security, improve driver safety, and optimize operational efficiency, catering to the evolving preferences of modern consumers and fleet operators. Luxury carmakers like Mercedes-Benz and BMW offer embedded telematics systems as standard or optional features, providing customers with advanced connectivity and convenience. Additionally, mainstream automakers such as Ford and Toyota increasingly integrate embedded telematics services into their vehicle lineup, offering functionalities like remote vehicle access, stolen vehicle tracking, and predictive maintenance alerts. Furthermore, the growing demand for connected car services, regulatory mandates, and technological advancements drive the adoption of embedded telematics solutions globally..

Passenger cars are expected to witness the largest share and fastest growth in the telematics aftermarket.

Passenger cars represent the largest segment of vehicles on the road and hold the largest market for aftermarket telematics devices. The growing consumer demand for real-time navigation, vehicle diagnostics, driver behavior monitoring, and emergency assistance in passenger vehicles has increased the demand for telematics devices in cars, offering a cost-effective way for owners of older vehicles to add modern features without purchasing a new car. Several automotive OEMs offer portable devices in the aftermarket. OEMs such as Delphi Automotive (UK) (with Delphi Connect), Ford Motor Company (US) (with Sync Connect), and Verizon are offering portable aftermarket devices for telematics solutions. Also, the increase in ride-sharing services and small fleet operations using passenger cars has contributed to the demand for aftermarket telematics. These devices help fleet managers monitor vehicle usage, optimize routes, and ensure driver safety, increasing their adoption in passenger vehicles.

Moreover, several automotive stakeholders offer portable devices in the aftermarket. Companies such as Delphi Automotive (UK) with Delphi Connect, Ford Motor Company (US) with Sync Connect, and Verizon are offering portable aftermarket devices for telematics solutions. The installation of telematic units in passenger cars is trending, which will drive this market to have the fastest growth rate in the coming years. Hence, the rise in the ride-sharing market and the upgradation of old vehicles with new connected features are driving the demand for aftermarket devices in passenger cars.

Asia Pacific is the largest region in the automotive telematics market. 

Asia Pacific is expected to be the most lucrative market for automotive telematics. In the Asia Pacific region, China holds the most significant share, >45% of the market share, in the production of vehicles. According to MarketsandMarkets analysis, the passenger car production in Asia Pacific is expected to grow from ~57 million units in 2024 to ~62 million units by 2030, with India witnessing the fastest growth rate due to changes in consumer buying behavior for premium and luxurious features. India’s primary vital players are MG Motor, Maruti Suzuki, Hyundai, and Tata Motors, who are actively integrating telematics solutions into their vehicles to cater to the increasing demand. Also, key players from the telecom industry, such as Vodafone Idea, Airtel, and Jio, are offering their robust connectivity solutions and services for the advanced features offered in premium and luxurious vehicles.

China constructed the largest 5G network in the world using cutting-edge technologies. By the end of March 2023, the nation had more than 2.64 million 5G base stations. The rapid advancement of 5G-based telematic cars is fueled by the domestic government's strong support and investment in 5G infrastructure development, which has created an environment conducive to the growth of connected vehicles. Additionally, the increasing demand for safer and more efficient transportation solutions has propelled automotive manufacturers to integrate 5G technology into their vehicles. Major OEMs such as BYD, Geely, and SAIC Motor have been at the forefront, collaborating with telecom companies like Huawei and China Mobile to develop and deploy 5G-enabled telematics systems. One prominent collaboration is the partnership between Huawei and SAIC Motor to develop the "HiCar" system, integrating 5G technology with intelligent vehicle systems for seamless connectivity and enhanced user experience. Geely also partnered with China Mobile to launch the world's first 5G-based remote driving service, allowing users to control their vehicles remotely via a mobile app.

Hence, leading OEMs' efforts to integrate telematics solutions and collaborations between automotive manufacturers and telematics service providers will drive the automotive telematics market during the forecast period. These factors encourage automotive manufacturers to expand production capacity and offer telematics-equipped vehicles in mid- and high-range vehicle categories. Global telematics providers such as Octo Telematics, LG Electronics, Geotab, and AT&T Inc. in Asia Pacific are expected further to accelerate developments in the advanced automotive telematics market.

Key Market Players

The Automotive Telematics market is consolidated with players. The major players in Telematics Service Providers (TPS) are AT&T Inc (US), Verizon (US), Geo Tab Inc. (Canada), Mix Telematics (South Africa), and  Microlise Limited (UK). Adding more, the major players in hardware suppliers are Robert Bosch GmbH (Germany), Continental AG (Germany), LG Electronics (South Korea), Harman International (US), and Aptiv Plc (Ireland) are the prominent players in the Automotive telematics market. These companies adopted new product launches, partnerships, and joint ventures to gain traction in the Automotive telematics market.

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Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company’s specific needs.

The study segments the Automotive Telematics Market:

Automotive Telematics Market, By Services

• Emergency Call
• Stolen Vehicle Assistance
  • Stolen Vehicle Tracking
  • Stolen Vehicle Slowdown
  • Remote Ignition Block
  • Theft Alarm Notification
• Insurance Risk Assessment (Usage Based Insurance)
• On-Road Assistance (Breakdown Assistance)
• Remote Diagnostics
• Others

Automotive Telematics Market, By Fleet Management Services

• Fleet Tracking and Geofencing
• Routing and Scheduling
• Vehicle Maintenance and Diagnostics
• Fleet Analytics and Reporting
• Others

Automotive Telematics Market, By Vehicle Type

• Passenger cars
• Light Commercial Vehicles
• Trucks
• Buses

Automotive Telematics Aftermarket, By Vehicle Type

• Passenger cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Automotive Telematics Market, By Form

• Embedded
• Integrated

Automotive Telematics Market, By Connectivity

• Satellite
• Cellular
  • 5G
  • 4G/3G

Automotive Telematics Market, By Offerings

• Telematics Control Units
  • Hardware
  • Software

Electric & Hybrid Vehicle Telematics Market, By Vehicle Type

• Battery Electric Vehicles (BEVs)
• Plug-in Hybrid Vehicles (PHEVs)
• Fuel-cell Electric Vehicles (FCEVs)

Electric & Hybrid Vehicle Telematics Market, By Services

• Emergency Call
• Stolen Vehicle Assistance
  • Stolen Vehicle Tracking
  • Stolen Vehicle Slowdown
  • Remote Ignition Block
  • Theft Alarm Notification
• Insurance Risk Assessment (Usage Based Insurance)
• On-Road Assistance (Breakdown Assistance)
• Remote Diagnostics
• Others

Automotive Telematics Market, By Region

• Asia Pacific
• Europe
• North America
• Rest of the World

Recent Developments

• In January 2024 at CES 2024, a new era of personalized travel was presented during IAA Mobility by Continental AG and Google Cloud teaming up. The generative Al voice assistant by Google Cloud is integrated within Continental’s Smart Cockpit High-performance Computer (HPC), thus creating a natural and intuitive interaction between users and assistants. Its features include conversational navigation, driver personalization, and in-car control, allowing users to ask detailed vehicle-related questions, find out the places of interest, and have back-and-forth conversations for a more enriching traveling experience.
• In January 2024, Continental AG, the Aurora Innovation company, developed hardware designs and architectures. At CES 2024 in Las Vegas, Continental will demonstrate its newest technologies. The Aurora Driver hardware uses Continental products, including sensors, automated driving Control Units (ADCL 151’s high-performance computers), and telematics units.
• In November 2023, during the 6th China International Import Expo, Robert Bosch GmbH unveiled its cutting-edge intelligent driving solutions specifically tailored for the Chinese market. Complete navigation support will be offered on new production models from their inception to the end to enable fast-tracking and complicated operations.
• In March 2023, Continental AG announced its partnership with HERE Technologies to power all IVECO’s European commercial vehicles with “Intelligent Speed Assistance” (ISA) and fuel-saving functions. These are delivered through Continental’s eHorizon platform, which aggregates and provides HERE map content. Data exchange is enabled by Continental’s scalable 4G/5G telematics control unit.
• In March 2023, Robert Bosch GmbH announced that the Maserati GranTurismo Folgore model is equipped with its charging services in the European and Asia Pacific regions The charging services can be easily integrated into the infotainment. Once registered for the services, users can display information about the charging points in their navigation system or the app. Bosch also provides information about electricity tariffs and terms for charging stations. The company already offers access to 450,000 public charging points in 30 European countries.

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