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Global Automotive Telematics Market Size, Segmentation, Industry Analysis and Growth, Market Research, Forecast Report, 2015 To 2025

  1. Published: December, 2018
  2. Format: Electronic (PDF)
  3. Number of pages: 70
  4. Industry: Automotive & Transportation

The global automotive telematics market is expected to grow significantly in coming years owing to increasing awareness regarding advantages of telematics and strict implementation of safety regulations by government. In addition, rapid digitization in the automotive sector is likely to drive the market. Availability of high-speed internet, advancements in smartphones and GPS systems, and increasing adoption of cloud technologies can have a positive impact on the market growth. Integrated transportation of vehicles is anticipated to gain traction across the globe due to high adoption of connected devices, such as tablets and smartphones and decline in connectivity cost. Need for efficient vehicular mass transportation is expected to grow due to growing rate of road accidents and rise in traffic on roads.

Technological advancements have resulted in development of several advanced systems, such as driving assistance systems, wireless safety communications, vehicular emergency warning systems, and Global Positioning System (GPS) navigation. Automotive telematics mainly comprises mass transportation and navigation systems. Mobile vehicle system integrated in private vehicles is connected to a stationary communication station, which provides visualization of vehicle position on digital maps. Increasing use of video telematics for tracking driver behavior is one of the leading trends in the market.

Other key features of automotive telematics are vehicle tracking for safety and control and vehicle insurance. Need for upgradation of vehicles with usage-based insurance (UBI) technology among customers in order to cut the insurance premium cost for low-risk drivers is a key driving factor   the market. The market is also projected to present novel growth opportunities for automotive suppliers due to increasing development of Human-Machine Interface (HMI). Furthermore, introduction of Wireless Access for Vehicular Environment (WAVE) and Intelligent Transportation Systems (ITS) are anticipated to open new avenues for informatics and telecommunication companies.

However, high installation cost of telematics infrastructure and concerns regarding data privacy and security are expected to challenge the market growth. In addition, several issues related to communication breakdown is likely to hinder the market growth.

Implementation of safety regulations by government organizations in the European Union, Brazil, and Russia has resulted in groping adoption of telematics in vehicles. North America is also expected to observe robust growth in forthcoming years due to presence of well-established infrastructure. U.S. is a major contributor to the regional growth on account of growing adoption of vehicle telematics system.

Asia Pacific is anticipated to witness significant growth in the years to come owing to presence of key automobile manufacturers and improving economic condition in the region. Emerging economies, such as China and India, are the key contributors to the regional growth. Japan has emerged as a leading user of the telematics systems in the region. In addition, China is expected to emerge highly lucrative in coming years owing to increasing implementation of government regulations regarding safety and security.

Some of the key players operating in the automotive telematics market include Teletrac Inc.; Fleetmatics Ireland Ltd.; Masternaut Ltd.; Mix Telematics; and ID systems Inc. Companies are focusing on implementation of advanced technologies, such as cloud and analytics, in order to gain a competitive edge in the market. Employment of advanced camera technology is likely to help in monitoring driver behavior and avoiding human error, which is a key factor causing road accidents. In addition, several players are providing in-cab monitoring system along with the onboard computer and web-based fleet management platform for monitoring driver behavior. For instance, Maruti Suzuki India launched 'Suzuki Connect', an advanced telematics solution system for Nexa cars. It is an integrated safety and connected car solution comprising features, such as driving behavior analysis, live vehicle status, emergency alerts, preventive maintenance calls, and vehicle tracking.

Moreover, companies are developing novel solutions to prevent cyber-attacks. For instance, ERM developed an integrated hardware-software product, which protects vehicles against ransomware and other cyber-attacks. The solution, called eCyber, is suitable for OEMs as well as the aftermarket.

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