Automotive Telematics Market for ICE & Electric Vehicle, By Service (eCall, On-road Assistance, Insurance risk assessment, Remote Diagnostics), Form (Embedded & Integrated), Connectivity, Aftermarket and Region - Global Forecast to 2030
[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
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Report Attribute |
Details |
Market size available for years |
2018–2030 |
Base year considered |
2023 |
Market Growth forecast |
USD 16.11 billion by 2030 from USD 9.04 billion in 2024 at a CAGR of 10.1% |
Forecast period |
2024–2030 |
Forecast units |
Value (USD Million/Billion) |
Segments Covered |
By Service, Connectivity, Form, Offerings, Vehicle Type, Electric & Hybrid Service, Electric & Hybrid Vehicle, Fleet Management Services, Telematics Aftermarket and Region |
Geographies covered |
Asia Pacific, North America, Europe, and Rest of the World. |
Top Players |
Robert Bosch GMBH (Germany), Continental AG (Germany), AT&T Inc (US), LG Electronics. (South Korea), and Verizon (US). |
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.
Frequently Asked Questions (FAQ):
What is the current size of the Automotive Telematics Market?
The automotive telematics market is estimated to be worth USD 9.0 billion in 2024 and is projected to reach USD 16.1 billion by 2030 at a CAGR of 10.1%.
Which telematics service will lead the automotive telematics market?
On-road assistance service is expected to lead the automotive telematics market.
What are the key market trends impacting the growth of the automotive telematics market?
Increasing sales of luxury cars and Increased R&D by automakers to offer advanced telematics solutions is expected to boost the automotive telematics market. Also, global telematics providers are collaborating with OEMs to develop products tailored to customer needs.
Which form of telematics (embedded and integrated) will likely be implemented the most during the next six years?
Integrated telematics is estimated to be the fastest-growing market and is likely to be implemented the most in the upcoming years.
What are the critical challenges for the seamless growth of the automotive telematics market?
Cybersecurity and growing competitive rivalry from local companies are expected to present challenges for the automotive telematics market.
Which vehicle type dominates the Automotive telematics market?
The passenger cars segment market is estimated to dominate the automotive telematics market.
What are the trends in the Automotive telematics market?
Stringent government regulations for increasing on-roads safety and technological advancement in telematics with 5G/6G, and AI will generate opportunities for the automotive telematics market, which is expected to grow as the automotive telematics ecosystem develops.
Which electric & hybrid vehicle type is dominating the electric & hybrid vehicle telematics market?
The Battery electric vehicle is estimated to dominate the electric & hybrid vehicle telematics market during the forecast period. .
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Various secondary sources, directories, and databases have been used to identify and collect information for an extensive study of the Automotive Telematics Market. The study involved four main activities in estimating the current size of the Automotive Telematics Market: secondary research, validation through primary research, assumptions, and market analysis. Exhaustive secondary research was carried out to collect information on the market, such as the existing vehicle models & their light technologies, upcoming technologies, and trends. The next step was to validate these findings, assumptions, and market analysis with industry experts across the value chain through primary research. The top-down and bottom-up approach was employed to estimate the complete market size for different segments considered in this study.
Secondary Research
In the secondary research process, various secondary sources have been used to identify and collect information useful for an extensive commercial study of the Automotive Telematics Market. Secondary sources include company annual reports/presentations, press releases, and industry association publications such as publications of the Society of Indian Automobile Manufacturers (SIAM), Society of Manufacturers of Electric Vehicles (SMEV), Federation of Electric Vehicle Association (FEVA), Canadian Automobile Association (CAA), China Association of Automobile Manufacturers (CAAM), Automotive Component Manufacturers Association of India (ACMA), and European Automobile Manufacturers Association (EAMA) among others. Additionally, secondary research has been carried out to understand the penetration of telematics services by vehicle type, and historical production.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included industry experts such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have been conducted to gather insights such as ICE vehicle production and electric vehicle sales forecast, Automotive Telematics Market forecast and penetration rate, future technology trends, and upcoming technologies in Automotive Telematics. Data triangulation was then done with the information gathered from secondary research. Stakeholders from the demand and supply side have been interviewed to understand their views on the points mentioned above.
Primary interviews have been conducted with market experts from Automotive Telematics providers and technology providers across four major regions: North America, Europe, Asia Pacific, and the Rest of the World. The data from primary interviews has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales, manufacturing, and operations, to provide a holistic viewpoint in our report.
After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This and the in-house subject matter experts’ opinions have led us to the conclusions described in the remainder of this report.
Breakdown Of Primary Interviews: By Company Type & Designation
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Market Size Estimation
A detailed market estimation approach was followed to estimate and validate the value of the Automotive Telematics Market and other dependent submarkets, as mentioned below:
- Key players in the automotive telematics market were identified through secondary research, and their global market shares were determined through primary and secondary research.
- The research methodology included studying annual and quarterly financial reports, regulatory filings of major market players (public), and interviews with industry experts for detailed market insights.
- All industry-level penetration rates, percentage shares, splits, and breakdowns for automotive telematics were determined using secondary sources and verified through primary sources.
- All key macro indicators affecting the revenue growth of the market segments and sub-segments have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the validated and verified quantitative and qualitative data.
- The gathered market data was consolidated and added with detailed inputs, analyzed, and presented in this report.
Automotive Telematics Market: Bottom-Up Approach
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Automotive Telematics Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the market was split into several segments and sub-segments—using the market size estimation processes as explained above. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and determine the exact statistics of each market segment and sub-segment. The data was triangulated by studying various factors and trends.
Market Definition
Automotive Telematics: According to Wipro, telematics is a communication technology for the automobile industry based on information flowing to and generated from vehicles via wireless networks. It is the convergence of wireless communications, location technology, and in-vehicle electronics pushing the automobile industry into the information age. Vehicle telematics providers typically offer a combination of IoT vehicle telematics solutions, cloud, hardware, and software solutions, including GPS tracking, cloud-based platforms with easy integration for multiple partners, telematics sensors, fleet management software, a streamlined and accessible dashboard with visualizations, reporting capabilities, automated and configurable notifications and alarms, compliance parameters, and real-time AI integration for early warnings and instant insights.
Stakeholders
- Automotive OEMs
- Automotive telematics service providers
- Automotive components and raw material suppliers for Automotive Telematics
- Automobile organizations/associations and government bodies
- Automotive software manufacturers and providers
- Authorized service centers and independent aftermarket service providers
- National and Regional Environmental Regulatory Agencies or Organizations
Report Objectives
-
To define, describe, and forecast the automotive telematics market in terms of volume (‘000 Units) and value (USD Million) based on:
- Services (Emergency Calls, Stolen Vehicle Assistance, Insurance Risk Assessment (Usage Based Insurance), On-Road Assistance (Breakdown Assistance), Remote Diagnostics, and Others)
- Fleet Management Services (Operation Management, Vehicle Maintenance and Diagnostics, Fleet Analytics And Reporting, and Others)
- Vehicle type (passenger cars, light commercial vehicles, trucks, and buses)
- Form (Embedded and Integrated)
- Offerings (Telematics Control Unit (TCU) (Hardware and Software))
- Connectivity (Satellite (5G and 4G/3G) and Cellular)
- Aftermarket (passenger cars, light commercial vehicles, heavy commercial vehicles)
- Electric & Hybrid vehicle telematics market, by Services (Emergency Call, Stolen Vehicle Assistance, Insurance Risk Assessment (Usage Based Insurance), On-Road Assistance (Breakdown Assistance), Remote Diagnostics and Others)
- Electric & Hybrid vehicle telematics market, by vehicle type (BEVs, PHEVs, and FCEVs)
- Region (Asia Pacific, Europe, North America, and Rest of the World)
- To provide detailed information regarding major factors (drivers, restraints, opportunities, and challenges) influencing the market growth
- To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and expansions in the market
- To conduct a case study analysis, technology analysis, supply chain analysis, trade analysis, market ecosystem analysis, tariff and regulatory landscape analysis, and average selling price analysis
- To analyze the market share of key players in the market and conduct a revenue analysis of the top five players.
- To formulate the competitive leadership mapping of key players in the automotive telematics market
- To understand the dynamics of start-ups/SMEs prevalent in the market ecosystem of the Automotive Telematics market and distinguish them into progressive companies, responsive companies, dynamic companies, and starting blocks
- To analyze the recent new developments, expansion strategies, collaborations, partnerships, joint ventures, mergers & acquisitions, and other activities carried out by key players in the Automotive Telematics market.
Available Customizations
Along with the market data, MarketsandMarkets offers customizations in accordance with company-specific needs.
The following customization options are available for the report:
Automotive Telematics Market, By Telematics Control Unit
- 5G
- 4G/LTE
Automotive Telematics Market, By Aftermarket
- Telematics Control Unit (TCU)
- Navigation System
- Communication Devices (Bluetooth, Wi-Fi, 3G, 4G, 5G)
- Audio/Video Interface
- Can Bus
(Note: Countries included in the study: China, India, Japan, South Korea, Thailand, Germany, UK, France, Spain, Italy, Russia, US, Canada, Mexico, Brazil, Argentina, Iran, and South Africa.)
Growth opportunities and latent adjacency in Automotive Telematics Market
I am trying to understand the spending trends on automotive between different functions/domains like ADAS, infotainment, telematics etc