Automotive Telematics Market
Global Automotive Telematics Market to Grow at a CAGR of 18.5% during Forecast Period
Published | 20 September 2022
Global Automotive Telematics market is growing at a high CAGR because of the growth of the connectivity solutions trend as well as the increased convenience of vehicle diagnosis. However, risk of data hacking may act as a huge restraining factor for the market growth.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Automotive Telematics market was worth USD 69.15 billion in the year 2021. The market is projected to grow at a CAGR of 18.5%, earning revenues of around USD 220.37 billion by the end of 2028. The global automotive telematics market is booming because of the growth of the connectivity solutions trend as well as the increased convenience of vehicle diagnosis. However, the risk of data hacking may act as a huge restraining factor for market growth.
Growth of the Connectivity Solutions Trend
In the past few years, there has been an increase in the acceptability of cutting-edge technologies and gadgets in developed and developing countries, including mobile phones, computers, smartphones, tablets, telecoms, and various other modern goods. Smartphones have modified the definition of connectivity over time. People want to maintain their connections to the outside world while traveling. Since connectivity is now a need, automakers are incorporating connectivity features into their automobiles to increase sales. The things that computers and smartphones can perform are what consumers demand from their cars. As a result of the rising customer desire for connectivity 24 hours a day, seven days a week, even when traveling, the vehicle telematics industry is anticipated to expand at a promising rate.
Convenience of Vehicle Diagnosis
The market for vehicle telematics is predicted to increase faster thanks to advanced diagnostic systems. With the aid of telematics technology, passengers and ride-sharing companies can keep a better eye on drivers, manage payments based on route maps, and track the movement of vehicles through smartphones in a seamless and secure manner which aids in foreseeing potential car problems before they arise. With the aid of connectivity technologies, it is simple to track vehicle records, determine which vehicle has traveled the most and give services in accordance. Vehicle fuel consumption and smoke emissions are tracked by diagnostic systems. Thus, it is anticipated that the convenience of vehicle diagnosis through mobile applications will accelerate the market's rise.
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Risk of Data Hacking
The newest technology on the market is automotive telematics. Unlawful access to various vehicle connectivity solutions or a break into the in-car connectivity system is examples of factors that can hinder the automotive telematics business. There is a serious security issue since hackers can access data collected and stored by car computer systems. As a result, the possibility of automobile telematics systems being hacked is one of the reasons that is anticipated to impede the market growth of automotive telematics. As a result, the main obstacle to the expansion of the automotive telematics market over the forecast period is the risk of data hacking.
Embedded Segment Is Anticipated To Dominate The Market By Form Type
Based on form type, the market is segmented into embedded, integrated, and tethered. A greater revenue share for the embedded category is anticipated in the global market throughout the forecast period owing to a rise in vehicle mishaps and traffic accidents. In addition, with the rise of cloud-based technology and service plans, costs are optimized. Additionally, the logistics industry has seen a considerable increase in the demand for emergency and GPS navigation systems in recent years, which drives up the demand for embedded systems. For instance, in January 2021, Teletrac Navman introduced an AI dual-dashboard camera that can record and analyze 100% of driving time, hence reducing accidents. Due to the growing usage of integrated solutions by auto manufacturers, the integrated segment is anticipated to experience stable revenue growth over the forecast period. For instance, Omnitracs gives Volvo Trucks clients integrated telemetry that makes it easier to find assets and understand driver behavior.
North America Market is Expected to Hold The Largest Market Share During the Forecast Period
Based on region analysis, North America is expected to register the largest revenue share in the global automotive telematics market during the forecast period, owing to the high adoption of telematics by commercial vehicles and insurance companies, especially in the U.S. Market in Asia-Pacific is expected to register fastest revenue growth rate during the forecast period, due to rising demand for telematics solutions in fleet management. Telematics technology is being adopted by start-ups in China, Nio, FutureMove, and Qoros. Due to stringent automotive safety laws, the Europe market is anticipated to grow at a consistent revenue during the forecast period. The countries with the highest telematics demand are Germany and the UK. The primary motivation for users in UK to use telematics technology is its capacity to locate automobiles.
Impact of COVID-19 on Global Automotive Telematics Market
Numerous industries, notably the car and insurance sectors, have been significantly impacted by the COVID-19 pandemic. The pandemic has put an economic strain on the entire world due to the high cost of fully integrated telematics systems like dash cams, smart route planning, electronic logging devices (ELDs), and driver management. The decline in automobile sales has seriously hampered the growth of the automotive telematics market. However, telematics improves the customer experience, and the many benefits it provides to drivers, automakers, and insurance companies are predicted to significantly contribute to market growth during the forecast period.
Key players operating in the global automotive telematics market are Robert Bosch GmbH, Webfleet Solutions B.V., Zonar Systems, Octo Group S.p.A, Microlise Telematics Pvt. Ltd., CARTRACK, Masternaut Limited, Mix Telematics, Omnitracs, TomTom Telematics BV., Trimble Inc, VERIZON, Harman International, I.D.Systems, Inc., Teletrac Navman, Airbiquity Inc, and other prominent players. For instance, on 18 November 2021, to identify damage and smoke within the vehicle, Robert Bosch GmbH introduced its Ridecare services, including a sensor box. The sensor uses artificial intelligence and cloud-based data analysis to distribute information while deploying a sensor to determine whether a car has been damaged or has been smoked in.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Global Automotive Telematics market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Automotive Telematics market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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