Automotive Telematics Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis

[Research Report] The automotive telematics market accounted for US$ 42,410.97 million in 2022 and is expected to grow at a CAGR of 17.8% from 2022 to 2030. It is projected to account for US$ 1,57,485.12 million in the year 2030.

 

Analyst Perspective:

The global automotive telematics market has been segmented into five major regions— North America, Europe, APAC, the MEA, and SAM. The global automotive telematics market is driven by increasing luxury vehicle production and sales with the emergence of connected vehicles around the globe. According to the European Automotive Manufacturers Association Report, vehicle production in 2022 reached ~85.4 million units, an increase of 5.7% compared to 2021.

Automotive telematics consists of GPS devices, software, or systems that use V2X communications to improve road safety and real-time tracking, enhance system efficiency, and offer better mobility. It uses data collected through short-range communication and peer-to-peer and vehicle-to-vehicle communication to analyze what other vehicles, bikers, pedestrians, and others are doing and detect potential risks. Technological advancements and a growing focus on safety and convenience are among the major driving factors of the automotive telematics market in North America. According to the Centre for Automotive Research Organization, the automotive industry's total size in the global economy was ~US$ 2.8 trillion in 2022, accounting for 3% of the global economic GDP. The automotive industry in North America generates more than US$ 500 billion in annual sales of vehicles. It employs over 1.7 million people in the US, as per the National Automobile Dealers Association (NADA) report 2022. According to the same source, the automotive ecosystem (including direct, indirect, and induced value added) generates more than US$ 1 trillion annually in the US, i.e., 4.9% of the US GDP. The US is leading in the North America automotive telematics market. The growing concern about mitigating greenhouse gas emissions and controlling carbon footprint positively influences the Europe automotive telematics market. The increasing advancement in the telecom infrastructure and growing technological development in the automotive sector also drive the connected vehicle market in Europe. Germany, France, and the UK significantly contribute to the Europe automotive telematics market. According to the European Automobile Manufacturers’ Association, or ACEA, Europe and North America account for ~34.6% of the total automotive manufactured worldwide. CARTRACK, Teletrac Navman, Geotab, MiX Telematics, TomTom Telematics B.V., Trimble Inc., Harman International Industries Inc., and Omnitracs are the key market players present in the global automotive telematics market. In addition to these players, several other players are also functioning globally, contributing significant revenue shares year on year.

Market Overview:

Automotive telematics combines hardware and software solutions, including GPS systems, onboard vehicle diagnostics, wireless telematic devices, and other solutions to transmit the record and vehicle data. Telematic devices control several parameters, such as location, speed, maintenance requirements, and services. Automotive telematics is a system of monitoring vehicles such as cars, automotive equipment, trucks, and other assets with the help of GPS technologies. Increasing automotive sales and production with built-in advanced telematics systems across the globe is driving market growth. According to the European Automobile Manufacturers Association Report, in 2022, ~85.4 million vehicles were produced globally, an increase of 5.7% compared to 2021.

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Automotive Telematics Market: Strategic Insights

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Market Driver:

Growing Demand for Vehicle Rental Services

Automotive telematics solutions are widely installed across rental vehicles to track fuel consumption and vehicle location and offer safety to drivers. The rising adoption of the vehicle rental business across the globe is a major driving factor for the growth of the automotive telematics market. As per The Insight Partners, the car rental business of luxury cars was valued at around US$ 29.5 billion in 2022. The car rental market in the US generated US$ 56.3 billion in revenue in 2022, which increased by 9.8% compared to 2021. Such rental businesses have created massive demand for the adoption of telematics solutions around the globe. In car rental, telematics is used for fleet management—mainly for tracking and diagnostics of vehicles. The technology has also enabled car-sharing services, which empower companies to track vehicle usage and bill customers accordingly. Fleet telematics provides a wealth of asset information. With GPS tracking and onboard diagnostic reading capabilities, telematics collects data directly from an asset to provide detailed information about asset usage, driver behavior, fuel consumption, and diagnostic trouble codes (DTCs). Such rising adoption of vehicle rental services among end users is driving the growth of the global automotive telematics market.

Segmental Analysis:

Based on the offering, the global automotive telematics market is divided into hardware, software and services. Among these, the hardware segment held the largest share in 2022, owing to rising demand for vehicle tracking devices, logistics, and transportation. The net transportation assets, such as vehicles and equipment, were valued at US$ 10.68 trillion in 2022. The public sector transportation owns a value of ~US$ 5.96 trillion, and the private sector owns nearly US$ 4.71 trillion globally. The value of the transportation assets, infrastructure, and other equipment increased by 6.5% in 2022 compared to 2021. Such increases in the transportation and logistics sector around the globe have created massive demand for the automotive hardware segments in the automotive telematics market.

Regional Analysis:

The automotive telematics market in Canada is growing moderately owing to the rising demand from original vehicle manufacturers. Canada has the presence of five major automotive manufacturers: Ford Motors, Fiat Chrysler, Toyota, General Motors, and Honda. These companies require several automotive telematic devices to manufacture the final vehicle for consumers in Canada. These leading players are expanding their operations and increasing their plants' production capacities to meet the domestic vehicle demand. In November 2020, General Motors planned to invest more than US$ 0.73 billion in Canada to expand its pickup truck manufacturing facilities. These pickup trucks are integrated with GPS tracking devices made by the OEMs. Also, in June 2023, General Motors planned to invest more than US$ 280 million in building heavy-duty commercial IC engine heavy-duty pickup trucks in Toronto, Canada. The increase in investments by OEMs in Canada fuels the growth of the automotive telematics market.

An increase in vehicle production and sales significantly contributes to the automotive gears market in Canada. As per the OICA Report in 2022, more than 1.22 million vehicles were produced in Canada, an increase of 10% compared to 2021. Thus, rising sales of commercial vehicles and increasing expansion of automotive plants in the country are likely to stimulate the automotive telematics market growth in the country during the forecast period.

Key Player Analysis:

Verizon Communications Inc., Geotab Inc., Omnitracs, Samsara Inc., Lytx Inc., TomTom International BV, Harman International, Denso Corp, and Valeo are key players in the automotive telematics market.

Automotive Telematics Market Regional Insights

The regional trends and factors influencing the Automotive Telematics Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automotive Telematics Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Automotive Telematics Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Automotive Telematics Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Automotive Telematics Market are:

1. Verizon Communication Inc.
2. Geotab Inc.
3. Omitracs LLC
4. Samsara Inc.
5. Motive Technologies Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

 

Recent Developments: 

Companies in the global automotive telematics market highly adopt inorganic and organic strategies such as product launches. A few recent developments by key the automotive telematics market players are listed below:

Year	News	Region
Mar-2022	ORBCOMM Inc., a global provider of Internet of Things (IoT) solutions, announced that it has added new feature enhancements to its data-driven truck telematics solution to improve the visibility, efficiency, safety and experience for fleets, drivers and their customers.	North America
May-2021	Onboard technology from Lytx, a leading provider of machine vision and artificial intelligence-powered video telematics, is made available on all model-year 2022 or newer Volvo trucks as a factory-installed option. The integration of this technology reinforces Volvo Trucks’ vision Towards Zero Accidents and commitment to offering the latest safety features for its customers.	North America