Published: August 22, 2016 | Dublin, US
According to a recent report published by Research & Markets, global automotive telematics market is estimated to reach $55.97 billion by 2022 at a CAGR of 21% between 2016 and 2022.
A telematics system consists of both the hardware and the software that incorporates some form of cellular communication which allows the vehicle to communicate with the cars on the road, i.e. vehicle-to-vehicle (V2V), roadside infrastructure, i.e. vehicle-to-infrastructure (V2I), and Vehicle-to-device systems (V2X).
Growing awareness about driver safety, decreasing cost of connectivity, increasing market penetration rate of smartphones, and stringent automotive safety regulations are some of the reasons fueling the market growth. However, the market consists of certain constraints such as increasing hacking/privacy concerns, lack of cellular coverage, and low awareness about telematics which are hampering its overall growth.
Factors such as government regulations to install an integrated SIM for safety and security of passenger and vehicle, shared data plans, reliability, faster data transfer rate, and web-based apps have contributed to the market sales. However, between 2016 and 2022, integrated connectivity is expected to grow at a faster rate, by 24% in comparison to other connectivity solutions. Increasing market penetration of smartphones and its apps along with low hardware costs are some of the factors that are contributing to the integrated connectivity market growth.
The increased demand for connected cars has led OEM’s and telecom operators to offer a variety of services for the users and therefore the market is categorized by four main services: safety & security, information & navigation, entertainment, and remote diagnostics. Information and navigation services held the highest share in 2015 because of factors like wide application in developed countries such as the US and Japan, speed, reliability, ease, and cost-effectiveness.
Application of telematics in passenger cars accounted for a major share and OEMs were the chief distributors of telematics in 2015. This report provides the revenue of the key regions – North America, Europe, Asia-Pacific (APAC), and Rest of the World (ROW). The analysis had identified that North America was the maximum revenue generating segment in 2015. Between 2016 and 2022, the automotive telematics market in APAC is expected to grow at a faster rate of 22.1% in comparison to other regions. Factors such as well-established automotive industry, increasing disposable income, and growing awareness of telematics are some of the factors contributing to the market growth in APAC.
Some of the prominent key players in the industry are Robert Bosch GmbH, Continental AG, AT&T Inc., Verizon Communications Inc, TomTom NV, Mix Telematics Ltd, Octo Telematics SpA, Delphi Automotive PLC, Airbiquity Inc., and Wireless AB. These companies are aiming for business expansion through mergers & acquisitions, partnerships, and product launches to prevent the new entrants from capturing/entering the market.
Source: Research & Markets