Market Size of Automotive Telematics System Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 28.44 Billion |
| Market Size (2029) | USD 38.22 Billion |
| CAGR (2024 - 2029) | > 15.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia Pacific |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Automotive Telematics Market Analysis
The Automotive Telematics System Market size is estimated at USD 28.44 billion in 2024, and is expected to reach USD 38.22 billion by 2029, growing at a CAGR of greater than 15.30% during the forecast period (2024-2029).
- The Telematics system comprises electronic, electromechanical, and electromagnetic devices, usually silicon micro-machined components, operating in conjunction with computer-controlled devices and radio transceivers to monitor vehicle operations and precisely provide functional details. Most telematics systems offer stolen-vehicle assistance, such as locating a vehicle using a global positioning system (GPS).
- Moreover, by combining GPS with onboard diagnostics, it is possible to record and map the location of a car and its speed to cross-reference how a car is behaving internally. Insurance companies predominantly use such information. Additionally, telematics devices are used to manage a vehicle fleet efficiently. The services mentioned above offered by the telematics system have been considered in the scope of the market.
- Over the long term, The use of automotive telematics in electric vehicles (EVs) is also expected to propel the growth of the market in the future. The leading vendors are looking forward to leveraging the opportunities presented by introducing EVs into the market.
- Equipping new vehicles with e-Call, as a mandate from the European Commission, has also helped expand the European telematics market. The region is also home to several automotive telematics hardware suppliers in countries like Germany, the United Kingdom, and Italy.
- Safety constitutes a major part of the services offered by automotive telematics. Wireless vehicle safety communications telematics majorly enhances car safety and road safety. The electronic sub-system in a car is used to exchange safety information about road hazards, location, and speed of vehicles.
- In addition to wireless local area networks, emergency warning systems telematics are developed like collision warning for international harmonization and standardization of vehicle-to-vehicle, infrastructure-to-vehicle, and vehicle-to-infrastructure to provide real-time, short-range communication systems. Information from telematics is also used extensively in car-sharing and auto insurance purposes.
- The Asia-Pacific region is the largest market for automobiles in the world. Despite the Chinese market experiencing sluggish growth, which is the largest automobile market in the world, the region is expected to lead in the automotive telematics system market.
Automotive Telematics Industry Segmentation
An automotive telematics system is a technology that combines telecommunications and informatics to gather and transmit real-time data from vehicles to a central platform. This system enables remote monitoring and analysis of vehicle performance, location, driver behavior, and diagnostics, enhancing efficiency and safety and providing valuable insights for fleet management and vehicle owners.
The automotive telematics system market has been segmented based on service (infotainment and navigation, fleet management, safety and security, and diagnostics) and geography (North America, Europe, Asia-Pacific, and the Rest of the World).
The report offers market size and forecast in terms of value in USD for all the above segments.
| By Service | |
| Infotainment and Navigation | |
| Fleet Management | |
| Safety and Security | |
| Diagnostics |
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Automotive Telematics System Market Size Summary
The automotive telematics market is poised for significant growth, driven by the increasing integration of advanced electronic systems in vehicles. Telematics systems, which combine GPS, onboard diagnostics, and various electronic components, are essential for monitoring vehicle operations and enhancing safety features. These systems are widely used for stolen vehicle recovery, fleet management, and insurance purposes. The market is further bolstered by the rising adoption of electric vehicles, where telematics play a crucial role in optimizing performance and ensuring safety. Regulatory mandates, such as the European Commission's e-Call requirement, have also contributed to the expansion of telematics in regions like Europe, where numerous hardware suppliers are based.
The Asia-Pacific region, despite challenges in the Chinese market, remains a leading force in the automotive telematics sector due to its large automotive market and growing demand for fuel-efficient vehicles. Initiatives like India's AIS 140 regulation, which mandates vehicle tracking and emergency systems, are expected to accelerate the adoption of telematics in the region. The market is characterized by fragmentation, with major players like Continental AG, DENSO Corporation, and Robert Bosch GmbH holding significant shares. Strategic partnerships and acquisitions, such as Geotab's collaboration with Free2Move and Targa Telematics' acquisition of Viasat Group Spa, are shaping the competitive landscape, driving innovation, and expanding the reach of telematics solutions globally.
Automotive Telematics System Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Safety and Security to Witness Faster Growth
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1.1.2 Others
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1.2 Market Restraints
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1.2.1 Disturbances in Supply Chain Due to Chip Shortage
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1.2.2 Others
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Infotainment and Navigation
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2.1.2 Fleet Management
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2.1.3 Safety and Security
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2.1.4 Diagnostics
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.1.3 Rest of North America
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2.2.2 Europe
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2.2.2.1 Germany
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2.2.2.2 United Kingdom
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2.2.2.3 France
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2.2.2.4 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 Japan
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2.2.3.3 India
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2.2.3.4 Rest of Asia-Pacific
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2.2.4 Rest of the World
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2.2.4.1 Brazil
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2.2.4.2 Saudi Arabia
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2.2.4.3 Other Countries
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Automotive Telematics System Market Size FAQs
How big is the Automotive Telematics System Market?
The Automotive Telematics System Market size is expected to reach USD 28.44 billion in 2024 and grow at a CAGR of greater than 15.30% to reach USD 38.22 billion by 2029.
What is the current Automotive Telematics System Market size?
In 2024, the Automotive Telematics System Market size is expected to reach USD 28.44 billion.
