Automotive Telematics Market: Increasing Technological Advanced and Rapid Uses of the Telematics
Posted: Jun 13, 2019
The global automotive telematics market is projected to witness robust growth in the coming years, according to a report by Transparency Market Research (TMR). The presence of a large vendor pool makes the automotive telematics market fragmented in nature. As the applications of telematics are highly diverse, even specific to automotive, the market is expected to offer lucrative opportunities to both new entrants and established players. Building alliances and collaborations is expected to be key growth strategies adopted by vendors in the global automotive telematics market. Players are seen allocating resources towards product and technology innovation in order to strengthen their product portfolio.
The leading four players in the global automotive telematics market, viz., Agero Inc., I.D.Systems, Inc., Airbiquity Inc., and TomTom International held roughly 38% of the overall market share. Leading players are seen focusing on launch of advanced products and a diversified product in order to gain traction in the global automotive telematics market.
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Between the forecast period of 2017 and 2025, TMR analysts project the global automotive telematics market to exhibit a robust 22.1% CAGR. The market was estimated to be worth US$10.15 bn in 2016, and is forecasted to reach a value of US$75.79 bn by 2025.
Wide adoption of vehicle tracking in the transportation sector could be responsible for this application segment’s dominance. Vehicle tracking held approximately 30% share in the global automotive telematics market in 2016, and this trend is expected to continue over the forecast period.
In terms of geography, Asia Pacific accounted for 33.5% share of the global market in 2016. Swift growth in the automotive sector is anticipated to bolster growth of this regional market over the forecast period.
Favorable Government Policies to Boost Automotive Telematics Market
Several countries across the globe are actively focusing on strengthening safety factors of vehicle. This is providing an impetus to the global automotive telematics market. For example, global regulatory mandates (such as GLONASS in Russia, eCall in EU, and SVT in Brazil) require the use of safety telematics as well as the installation in all the new European vehicles and commercial vehicles of basic telematics control units (TCUs) since 2015 and other countries since 2016. Such initiatives undertaken by authorities across countries are expected to bolster the global automotive telematics market to a large extent.
OEM’s to Adopt Automotive Telematics, Amplifying Market Sales
Original Equipment Manufacturers (OEM), due to the multiple advantages of the system, have increasingly incorporated state-of - the-art telematics services in all categories. Telematics technology is capable of transforming vehicles into information stations, which ultimately make users ' lives easier and safer. Modern telematics services have camera technology in place to monitor driver compliance, as a major factor for road fatalities has become a human error.
Various vendors like MiX Telematics provide the on-board computer and the web-based management fleet platform used to monitor driver behavior, and in-cable monitoring system as an integrated solution. In addition, a sustainable focus on the use of green energy vehicles should create opportunities for electric and automotive telematics vehicles in general and in particular. This is likely to boost opportunity in the global automotive telematics market in the coming years.
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Transparency Market Research (TMR) is a U.S.-based provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materia