With the top four players accounting for a cumulative share of just over 38% in 2016, the global automotive telematics market exhibits a highly fragmented vendor landscape. The leading companies are Agero, Inc., Airbiquity, Inc., TomTom International B.V., and I.D. Systems, Inc. In order to gain competitive edge, a majority of companies operating in the global automotive telematics market are focusing on product innovation. Besides this, the investment in technological developments has increased, with the leading market players seeking to emerge at the fore, finds Transparency Market Research (TMR) in a new study.
Companies are also seeking mergers and acquisitions to expand their regional footprint and product portfolio. Strategies adopted by these companies aimed at bolstering business have a profound impact on the overall market operations. According to TMR, the global automotive telematics market is projected to exhibit a CAGR of 22.1% between 2017 and 2025. At this pace, the market’s valuation is expected to reach US$75.79 bn in 2025 from US$10.15 bn in 2016.
Based on application, the global automotive telematics market was led by the vehicle tracking segment, which held just over 30% of the market in 2016. Besides this, the market is also expected to witness rising demand from the fleet management and satellite navigation segment. Regionally, Asia Pacific emerged dominant in 2016 with a share of 33.5% in the overall market in 2016.
Increasing Demand for Telematic Solutions in Passenger Vehicles to Aid Growth
“The market is primarily gaining from the increasing demand for advanced telematics solutions in vehicles,” observed the TMR report’s author. Telematics, navigation technology, audio-video solutions, Bluetooth, WiFi, intelligent driving solutions are a few of the advanced telematics solution witnessing rising demand from consumers. In addition, the demand for vehicle tracing has surged significantly giving impetus to the global automotive telematics market.
“Considering that the automotive telematics market is ancillary to the automotive industry, growth witnessed in the vehicle production will positively influence the market,” said a lead TMR analyst. Therefore in response to the increasing demand for high-performing passenger vehicles in the last few years, the global automotive telematics market has witnessed accelerated pace of gains. Besides this, the market is forecast to benefit from the recent technological advancements.
Rising Opportunities in Asia Pacific to Boost Market in Future
The rising demand from Asia Pacific is forecast to create lucrative opportunities for the overall market. The automotive industry in countries such as India, China, Japan, and Russia is forecast to grow at a rapid pace. Aided by this, the automotive telematics solutions manufacturers will witness considerable opportunities to capitalize on in the near future.
Furthermore, with the increasing disposable income, consumers around the world are likely to demand for more advanced vehicle models. As automobiles have ceased being just transport machines, the demand for advanced telematics solutions is expected to rise in the near future. Spurred by these factors, the global automotive telematics market will exhibit robust growth in the coming years.
Stringent Regulations to Adversely Impact Automotive Telematics Market
On the downside, stringent regulations implemented across various nations around the world and corporate average fuel economy standards (CAFÉ) in the U.S. are inhibiting the market to an extent. With original equipment manufacturers (OEMs) finding it difficult to cope with stringent standards set up by governments across nations, adverse impacts are likely on the automotive telematics market. A majority of the smaller market players are also reeling under high research and development expenditure.
This review is based on a TMR report, titled “Automotive Telematics Market (Application - Vehicle Tracking, Fleet Management, Satellite Navigation, and Vehicle Safety Communication; Vehicle Type - Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles) - Global Industry Analysis, Market Size, Share, Growth, Trends and Forecast 2017 - 2025.”
The report segments the global automotive telematics market as:
Global Automotive Telematics Market: By Application
- Vehicle Tracking
- Fleet Management
- Satellite Navigation
- Vehicle Safety Communication
Global Automotive Telematics Market: By Vehicle Type
- Passenger Vehicles
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Global Automotive Telematics Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of Middle East and Africa
- Latin America
- Rest of Latin America