APAC Telematics Market Size (2024 - 2029)

APAC Telematics Market Analysis

The APAC Telematics Market size is estimated at USD 26.22 billion in 2024, and is expected to reach USD 53.59 billion by 2029, growing at a CAGR of greater than 15.37% during the forecast period (2024-2029).

Telematics helps in usage-based insurance (UBI) by providing information to fleet management companies and automobile insurance companies to monitor the location and behavior of vehicles. Government initiatives towards road safety with mandatory navigation for commercial vehicles and Intelligent Transport System (ITS), rising demand for EVs, and increasing trend of connectivity with affordable sensor prices are mainly driving the growth in the Asia-Pacific telematics market. The development of 5G infrastructure in countries such as China, Japan, and South Korea will also boost the telematics industry in the Asia Pacific.

• Qualcomm Technologies introduced a feature for Snapdragon Car-to-Cloud Services - Connectivity-as-a-Service - that brings new technology collaborations to support out-of-the-box connectivity, integrated analytics, and a cloud and device developer environment aimed to deliver new technology features, content, and services globally. Cognizant will work with Qualcomm Technologies to integrate and tailor Snapdragon Car-to-Cloud Services for automakers, with the goal of delivering rich, immersive, personalized in-vehicle experiences, new connected solutions, and better on-demand services.
• With the increase in usage of connected car services driving the market, companies are making strategic partnerships to offer services at the doorstep. Indian AutoTech startup ReadyAssist announced its strategic partnership with iTriangle Infotech, a technology provider for vehicle tracking and fleet management for telematics solutions. The partnership will cross-leverage the companies' existing capabilities of telematics and service networks to bring installation, service, and warranty replacements of IoT devices to their customers at the doorstep.
• The Asia Pacific region has witnessed a substantial increase in vehicle ownership due to urbanization, improved living standards, and economic growth. With more vehicles on the road, there is a growing need for efficient vehicle management and maintenance solutions. According to IEA, in 2022, China witnessed the highest number of electric car sales across the Asia Pacific region, with around six million electric car sales, and nearly 28,000 electric cars were sold in 2022 in New Zealand. The growth in EVs is anticipated to drive the telematics market, as these advanced systems play a crucial role in managing and monitoring EV performance, enhancing optimization and efficiency of the driving experience.
• However, the higher cost of telematics systems, lack of standardization of products, and increasing cybersecurity threats are among the major factors restraining the growth of the market studied. Additionally, a lower awareness among individual commercial/passenger vehicles and small vehicle fleet operators also challenges the growth of the market studied.

APAC Telematics Industry Segmentation

Telematics refers to the set of technologies used to monitor a wide range of information for an individual vehicle or fleet. A Telematics system is able to gather the information, including driver behavior, location, engine diagnostics, vehicle activity, and help the fleet operators to visualize the data generated on the software platform to manage their resources.

The Asia Pacific Telematics Market is Segmented by type of vehicle (commercial (truck) LCV Vs. M/HCV, passenger (Car), by channel (OEM, newsprint, aftermarket), by Country (China, Japan, South Korea, Southeast Asia, and Rest of Asia Pacific). The report offers market forecasts and size in value (USD) for all the above segments.