Vehicle Telematics Market Size Worth USD 280.78 billion, Globally, by 2030 at a CAGR of 18.5%
Vehicle Telematics Market to Register 18.5% CAGR during 2023-2030; Qualcomm Announces the Launch of its New Snapdragon Automotive 5G Platform
Pune, India, Oct. 26, 2023 (GLOBE NEWSWIRE) — Market Overview:
The global vehicle telematics market size was USD 72.85 billion in 2022. The market is projected to grow from USD 85.36 billion in 2023 to USD 280.78 billion by 2030, exhibiting a CAGR of 18.5% during the forecast period. Vehicle telematics technology collects, stores, and analyses data with an aim to improve driver safety and improve the driving experience. It combines wireless telematics devices, onboard vehicular diagnostics, GPS systems, and other devices to record and transmit vehicle data such as vehicle maintenance and location speed. These advantages of vehicle telematics are aiding market augmentation. This information is provided by Fortune Business Insights, in its report titled, “Vehicle Telematics Market, 2023-2030.”
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|Forecast Period 2023 to 2030 CAGR||18.5 %|
|2030 Value Projection||USD 280.78 billion|
|Market Size in 2022||USD 72.85 billion|
|Historical Data for||2019-2021|
|No. of Pages||180|
Drivers & Restraints-
Improved Operational Efficiency for Fleet Management Companies to Foster Market Progress
Vehicle telematics comprises a combination of telecommunication systems and information technology to track the locations and movements of automobiles. Improved operational efficiency and fleet management companies are expected to enhance product demand. Telematics can help drivers reduce fuel consumption by maximizing their efficiency and track idle time.
Surging Demand for Vehicle Safety and Navigation Services to Aid Market Expansion
Rising congestion and traffic on roads have made the safety of people a top priority. Improving ADAS features in vehicles is a key factor aiding the vehicle telematics market growth. Automotive manufacturers are offering a wide range of safety features and investing in R&D for advancements in the ADAS system, which is further boosting market expansion. On the other hand, concerns regarding cybersecurity breaches and unauthorized access to vehicle data will hinder market growth in the forthcoming years.
Supply Chain Disruptions Hindered Market Growth During the Pandemic
The COVID-19 pandemic and resulting lockdowns severely impacted the automotive sector as factories were closed down and production decreased. In the automotive sector, manufacturers are dependent on third-party manufacturers for vehicle parts.
Strong Focus on Domestic Semiconductor Manufacturing Supported Industry Growth
This market was positively impacted during the pandemic due to the strong focus on domestic semiconductor manufacturing. The re-commencement of activities and lockdown relaxations enabled manufacturers to enhance their production activities. Semiconductor chipsets and wafers deployment increased rapidly in the consumer electronics sector.
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Fleet/Asset Management Segment to Dominate Attributable to Improved Operational Efficiency
The fleet/asset management segment is expected to dominate the market due to improved efficiency. Furthermore, the software allows users to locate vehicles on-demand and identify dangerous driver habits such as speeding, braking, and idling. These factors may promote industry progress.
Embedded Systems to Hold Dominant Market Share Attributable to Better User Experience
By technology, the market is categorized into tethered, integrated, and embedded.
The embedded segment is expected to hold a dominant market share due to better user experience. Furthermore, merging several hardware components into a single device enhanced response time and reduced cost. These factors enhanced segmental growth.
Passenger Cars Segment to Dominate Market Share due to Robust Demand for Connected Mobility Solution
As per vehicle type, the market is segregated into commercial vehicles and passenger cars.
The passenger cars segment is expected to dominate the market share due to robust demand for connected mobility solutions. Furthermore, there is rising demand for convenience and safety services such as real-time tracking, vehicle maintenance alerts, stolen vehicle recovery, and fuel & routing optimization.
Insurance Telematics Segment to Lead Backed by Growing Number of Accidents and Rising Popularity of UBI Solutions
As per service, the market is split into information and navigation, safety and security, fleet/asset management, insurance telematics, and infotainment systems. The insurance telematics segment captured the majority of the vehicle telematics market share in 2022. Rising concerns regarding vehicle safety and the growing number of accidents have boosted the demand for usage-based insurance solutions in the automotive sector. This, in turn, contributed to insurance telematics segment expansion. Insurance telematics monitors the driver’s driving habits by collecting and analyzing data through a mini GPS device.
Surging Demand for Connectivity within Vehicles to Aid Growth of Embedded Telematics Segment
According to technology, the market is arrayed into embedded, tethered, and integrated. The embedded segment dominated the market in 2022 owing to rising consumer demand for connectivity within vehicles. The embedded telematics system helps monitor vehicle performance and ensure continuous connectivity through a cellular modem installed in the vehicle. In the U.S., around 80% of new vehicles have embedded telematics installed in them.
OEM Segment to Lead due to Constant Upgrading of Telematics Software and Services
By sales channel, the market is segmented into OEM and aftermarket. The OEM segment captured the largest market share in 2022. Factory-fitted telematics devices are cost effective and hassle-free as compared to the alternative, thus aiding the OEM segment growth. Furthermore, the launch of advanced software and services is also driving segment proliferation.
The report covers provides a comprehensive review of the global market including drivers, restraints, opportunities, and threats affecting market dynamics. Market share, growth rate, and valuation of each region and segment are also documented in the report. Moreover, key players are listed along with the most recent developments undertaken by them to gather higher profits and revenues.
Rising Safety and Security Concerns to Foster Market Progress in North America
North America is anticipated to dominate the vehicle telematics market share due to rising safety and security concerns. The market in North America stood at USD 23.94 billion in 2021 and is expected to gain a huge portion of the global market share in the coming years. Furthermore, implementing several government norms is likely to enhance the industry’s progress.
In Asia Pacific, the increasing number of Telematics Service Providers (TSPs) in India and China is expected to increase the demand for vehicle telematics. As per the survey conducted by Tech Mahindra, 90% of Indian consumers prefer a four-wheeler equipped with telematics technology. This survey was conducted to analyze consumer behaviour and undertake effective steps.
Europe to Dominate Due to Rising Focus on Passenger Safety and Security
Europe is projected to account for the largest market share among all regions during the forecast period. The growing focus of authorities on the safety and security of passengers and drivers and the prevention of accidents is escalating market progression in the region. Moreover, strategic collaborations by leading players to strengthen market positioning will also contribute to regional market proliferation.
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Major Players Devise Acquisitions to Enhance Brand Positioning
Prominent companies operating in the market enter acquisitions to enhance their product offerings and elevate brand positioning. For example, Trimble announced the acquisition of an asset management software provider to private and government organizations in the U.S. in December 2021. This strategy may allow the players to offer clients advanced solutions, bolster their product offerings, and enhance their brand positioning. Furthermore, manufacturers deploy partnerships, mergers, novel product launches, innovations, and automated production techniques to bolster their market position.
Advanced Software Launches by Industry Leaders to Aid Market Augmentation
Leading players in the domain are participating in tactical moves such as partnerships, collaborations, mergers and acquisitions, and product launches to maximize profits and boost revenue generation. For instance, in July 2022, Ecotron, one of the leading manufacturers of electric and autonomous vehicle controllers announced the launch of its 5G telematics box with advanced features such as 5G communication, automotive Ethernet, C-V2X, and Wi-Fi.
Key Industry Development:
February 2023: Qualcomm, a leading semiconductor chip manufacturer, announced the launch of its new snapdragon automotive 5G platform (Snapdragon Auto 5G Modem-RF Gen 2) to its growing portfolio of Snapdragon Digital Chassis connected car technology at MWC (Mobile World Congress) 2023 in Barcelona.
List of Key Players Covered in Vehicle Telematics Market Report:-
- Robert Bosch GmbH (Germany)
- Webfleet Solutions B.V. (Netherlands)
- Mix Telematics (South Africa)
- Trimble (U.S.)
- Verizon (U.S.)
- Zonar Systems (U.S.)
- Octo Group S.p.A (Italy)
- Microlise Telematics Pvt. Ltd. (U.K.)
- Harman International (U.S.)
Vehicle Telematics Market Segmentation:-
- Information and Navigation
- Safety and Security
- Fleet/Asset Management
- Insurance Telematics
- Infotainment System
By Sales Channel
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
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Table of Contents:-
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