Automotive Telematics Market

Automotive Telematics Market Outlook (2024 to 2034)

The global automotive telematics market is projected to increase from a value of US$ 51.85 billion in 2024 to US$ 240.84 billion by the end of 2034. The market has been forecasted to expand at a CAGR of 16.6% from 2024 to 2034.

As road fatalities continue to increase globally, automakers are incorporating advanced telematics systems like driver assistance features and cameras. These technologies help assess crash scenarios and enable drivers to take evasive actions. With 1.35 million deaths and 50 million injuries annually, there is a growing need for telematics.

A vehicle's location and movement can be tracked via telematics, a technique that combines onboard diagnostics equipment with the Global Positioning System (GPS). Vehicle speed and internal behavior can be recorded with the use of GPS and diagnostic systems. To track a vehicle's position and activity, telematics systems are mostly used by fleet management firms, auto insurance companies, and others. The Telematics Control Unit (TCU), the Telematics Cloud Server, and the Front End–the Web App and Mobile App–are the three main components of a vehicle telematics solution, contributing to the expansion of the automotive telematics market size.

The web server, application server, and database make up the cloud-based telematics server. Through a GPRS/cellular network and HTTPS, the data gathered by TCU is transmitted to a cloud-based telematics server. From there, end users may access the recorded data via a desktop or mobile application. Growing integration of real-time fleet monitoring systems in cars and the rising adoption of cloud-based technology for automotive telematics solutions are driving market growth.

• The market in the United States is projected to reach US$ 50.94 billion by the end of 2034.
• The Japan market is forecasted to expand at a CAGR of 18.3% from 2024 to 2034.
• Sales of embedded and integrated telematics systems are analyzed to rise at 17% CAGR from 2024 to 2034.

Report Attribute	Detail
Automotive Telematics Market Size (2024E)	US$ 51.85 Billion
Forecasted Market Value (2034F)	US$ 240.84 Billion
Global Market Growth Rate (2024 to 2034)	16.6% CAGR
North America Market Share (2024E)	26.8%
East Asia Market Value (2024E)	US$ 17.94 Billion
Integrated Segment Value (2034F)	US$ 103.08 Billion
Commercial Vehicles Segment Value (2034F)	US$ 86.84 Billion
Key Companies Profiled	Harman International Industries, Inc.; Magneti Marelli S.p.A; Airbiquity Inc.; Verizon Telematics, Inc.; TomTom N.V.; Masternaut Limited; Trimble Inc.; Visteon Corporation; Robert Bosch GmbH; Delphi Automotive Plc.; Webfleet Solutions B.V.; Mix Telematics; Trimble; Verizon; Zonar Systems; Octo Group S.p.A ; Microlise Telematics Pvt. Ltd. ; AT&T; TomTom N.V.; Visteon Corporation; Telefonica S.A; Aptiv PLC; Geotab Inc.

What’s Leading to Rising Adoption of Automotive Telematics Systems?

“Growing Preference Among Drivers for In-Car Mobile Communication Solutions”

With the auto industry aiming to capitalize on next-generation automotive functionalities, advanced communication techniques such as automotive telematics are witnessing broad acceptance in applications such as vehicular communication, security, mapping systems, and road infrastructure. Furthermore, optimized broadband networks, as well as the widespread usage of smartphones for communication, are supposed to propel the market forward.

Along with the ever-increasing prominence of in-car mobile communications among drivers, there has been a surge in demand for automotive telematics technology. Because assistive technologies like automotive telematics increase sales opportunities, automakers have begun incorporating the system into their products and promoting it as an updated version of their commodities.

“Rising Demand for Efficient Transportation Systems”

Increasing demand for more efficient transportation solutions has offered lucrative growth opportunities to the automotive industry. With manufacturers of the auto industry tapping into the next-gen automotive capabilities, smart technologies like automotive telematics are finding applications in vehicular communication, safety, road transportation, and mapping systems.

Established market players are entering into strategic mergers and acquisitions to reinforce their position on the map of the global automotive telematics industry.

“Heightened Demand for Vehicle Safety, Security, and Navigation Applications”

Governments, automakers, and car owners are increasingly concerned about the rising number of vehicle fatalities. To address this, governments worldwide are implementing stricter traffic and vehicle safety regulations. Automakers are also actively developing advanced safety systems for both active and passive protection in the next generation of vehicles.

Consumer demand for vehicles equipped with telematics and connected systems is growing, driven by the emphasis on connected vehicle technologies and navigation systems. These innovations offer enhanced route optimization and real-time traffic updates, improving the driving experience.

There is a growing need for technologies that provide insights into driving behavior and vehicle health. This information benefits fleet managers, automakers, and drivers by offering better vehicle management and maintenance capabilities.

What are the Challenges Automotive Telematics Manufacturers are Facing?

“High Installation Costs and Threat of Data Hacking”

Telematics technology is relatively new in the automotive industry. However, its growth may face challenges such as security risks, including illegal access and hacking of car connectivity systems. The primary concern is hackers gaining access to vehicle computer systems and the sensitive data they store, potentially hindering automotive telematics market growth.

Another obstacle to market expansion is the additional costs associated with installing connectivity in vehicles. Customers incur expenses for hardware, connectivity solutions, and telecom services, which can limit market adoption. The high cost of integrating telematics systems into cars is expected to impact the industry significantly.

Seamless and continuous internet connectivity is crucial for telematics functionality. Any disruptions in connectivity could affect the performance and reliability of telematics systems in vehicles.

Country-wise Evaluation

The United States market is expected to hold a major automotive telematics market share in North America.

Why is the United States a Key Player in This Business Space?

“Heavy Investments in Research into Telematics Systems to Improve Their Efficiency”

Attribute	United States
Market Value (2024E)	US$ 10.59 Billion
Growth Rate (2024 to 2034)	17% CAGR
Projected Value (2034F)	US$ 50.94 Billion

More people in the United States are primarily motivated to use telematics technology for its ability to locate automobiles. Technologies like AI, machine learning, and IoT are being increasingly integrated into automotive systems such as ADAS. This is a key automotive telematics market trend in the country.

Leading manufacturers are making substantial investments in the research and development of telematics for future vehicles. They are continually announcing new developments aimed at enhancing the capabilities and functionalities of their products in this field.

What is Pushing Sales of Automotive Telematics Systems in China?

“Increased Flexibility in Technology Use and High 4G Network Capabilities”

Attribute	China
Market Value (2024E)	US$ 12.97 Billion
Growth Rate (2024 to 2034)	14.5% CAGR
Projected Value (2034F)	US$ 50.08 Billion

Due to the rising demand for telematics in fleet management, China is projected to lead revenue growth in the East Asia region. Start-ups such as Nio, FutureMove, and Qoros are actively adopting telematics technology. The country's integration of automotive telematics has surged with technological advancements and digitization. Additionally, widespread 4G network coverage has enhanced technological adoption, bolstering automotive telematics usage.

Category-wise Analysis

The automotive telematics market is segmented into a variety of categories including product type and vehicle category. Embedded, integrated, and tethered are a few of the major sub-segments under product type.

Why are Integrated Car Telematics Systems Widely Popular?

“Strong Consumer Preference for Seamless Functionality and Comprehensive Solutions”

Attribute	Integrated
Segment Value (2024E)	US$ 20.79 Billion
Growth Rate (2024 to 2034)	17.4% CAGR
Projected Value (2034F)	US$ 103.08 Billion

Integrated car telematics systems are gaining popularity in the market due to strong consumer preference. These systems integrate multiple telematics components into a single solution, ensuring seamless functionality. Consumers favor these integrated solutions for their ability to offer advanced features such as cloud-based technology and real-time fleet monitoring.

Why Do Passenger Cars Account for Higher Automotive Telematics Deployment?

“High Driver Demand for Enhanced Entertainment, Safety, and Navigation Functionalities”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 34.12 Billion
Growth Rate (2024 to 2034)	16.3% CAGR
Projected Value (2034F)	US$ 153.99 Billion

Automotive telematics is increasingly integrated into the automobile industry, particularly in passenger vehicles. This technology enables the transmission of vehicle data to remote computer systems, combining informatics and telecommunications. Its adoption in passenger vehicles has surged, enhancing entertainment, safety, and navigation functionalities.

With benefits such as improved efficiency, diagnostics, and driver assistance, automotive telematics is expected to shape the future of transportation. The growing demand for connected cars underscores its importance and marks it as a significant trend in automotive telematics.

Business Rivalry

Key players in the automotive telematics market are leveraging new software to enable advanced damage detection systems, utilizing cloud and artificial intelligence methodologies. Suppliers are focusing on diverse products, including geo-location and location analytics solutions.

• In October 2023, Cummins launched commercial vehicle telematics software in collaboration with Microsoft, the Eclipse Foundation, and other industry partners.
• In September 2022, DriveWell Crash & Claims was introduced by Cambridge Mobile Telematics, a prominent developer of car telematics applications. The product is marketed as an extremely effective way to handle auto insurance claims.
• In August 2022, IDEMIA, a top producer of identity technology, finished its car Connectivity Manager Platform, which is regarded as the first extensive remote SIM access campaign in the car sector. using an agreement with Mercedes-Benz AG, the business was able to transfer over 700,000 cars from one mobile network application provider to another using over-the-air apps.

Fact.MR provides detailed information about the price points of key providers of automotive telematics solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Automotive Telematics Market Research

• By Product Type :

  • Embedded
  • Integrated
  • Tethered

• By Service :

  • Safety & Security
  • Information & Technology
  • Entertainment & Remote Diagnostics

• By Vehicle Type :

  • Passenger Cars
  • LCV Automotive
  • HCV Automotive

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa