Global Automotive Telematics Market: Snapshot
The automotive telematics market has gained the traction from innovations in the technology and increasing uses of the telematics solutions in vehicles. Various factors such as the preference of consumers to the infotainment and some of the advanced features of the vehicle. Additionally, growing demand for telematics such as satellite navigation, emergency warning, automatic driving assistance systems, the internet, integrated hand-free calling facilities, and Wi-Fi is fuelling the growth of the global automotive telematics market.
Furthermore, other aspects of the systems such as automobile insurance and easy tracking are fuelling the growth of the market. The factors such as high fuel efficiency, comparatively low carbon emissions, improved traffic flow, safe driving, efficient productivity from drivers, and fast and cheap road transport are boosting adoption of the automotive telematics in the transportation industry.
However, stringent regulations imposed by numerous governments and average fuel economy standard regulations are limiting the growth of the market. Nevertheless, higher investments by the numerous players for the product improvement and innovation are offering lucrative opportunities for growth over the forecast period. Additionally, adoption of new launching technologies is offering immense opportunities for new entrants in the market for automotive telematics.
The global automotive telematics market registered revenue of US$10.15 bn in 2016 and is expected to expand with a CAGR of 22.1% over the forecast period from 2017 to 2025 to attain the value of US$75.79 bn by the end of 2025.
Growing Demand for Advanced Technology in Transportation to Fuel Uptake
On the basis of application, automotive telematics market is segmented into vehicle tracking, satellite navigation, fleet management, and vehicle safety communication. Among these, the vehicle tracking segment is dominating the global market for automotive telematics in 2016 with the share of 30% in the overall market. With this pace, the segment is expected to remain dominant over the forecast period thanks to the high adoption from the transportation sector. The technology makes the location tracking of the vehicle easier.
On the basis of vehicle type, automotive telematics market is segmented into a passenger vehicle, light commercial vehicle, and heavy commercial vehicle. Among these, the segment of passenger vehicle dominated the global market and accounted for the dominant share of 55.3%. This growth is attributable to the growing demand for the technologies such as satellite navigation and smart driver assistance, and safety communication.
Developing Countries to Offer Growth Opportunities
On the basis of region, the global automotive telematics market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Of these, Asia Pacific dominated the global market for automotive telematics and accounted for the 33.5% of the global share in 2016. North America is the second-leading segment of the automotive telematics market. The growth of the market in the Asia Pacific region is attributable to the high demand from the developing countries such as China, India, and Russia. Additionally, the booming automotive industry which is demanding for advanced technologies to improve the driving experience.
Some of the key players operating in the global automotive telematics market are Trimble, Inc., TomTom International B.V., Masternaut Limited, Telogis, Continental AG, Visteon Corporation, and Airbiquity, Inc.
Global Automotive Telematics Market: Overview
This market research study analyzes the automotive telematics market on global basis and provides estimates in terms of revenue (US$Bn) from 2016 to 2025. It describes the market dynamics affecting the industry and analyzes their impact through the forecast period. Moreover, it highlights the significant opportunities for market growth in the next eight years. The market is segmented on the basis of geography into Europe, North America, Asia Pacific, Middle East and Africa (MEA), and Latin America. Thesesegments have been estimated in terms of revenue (US$Bn). In addition, the report has been segmented based on application, which includes, vehicle tracking, fleet management, satellite navigation, vehicle safety communication and others. By vehicle type the market is categorized into passenger vehicles, light commercial vehicles and heavy commercial vehicles. For better understanding of the automotive telematicsmarket, the study comprises market attractiveness analysis, where vehicle types are benchmarked based on their market scope, growth rate and market attractiveness. Competitive rivalry is projected to be high among key players to acquire higher share of the market in the coming years.
Global Automotive Telematics Market: Trends and Opportunities
Telematics in vehicles involves the receiving, sending and storing information with the help of telecommunication devices ensuring effective control on remote objects. In addition, vehicular telematics is the combination of applications of telecommunication and informatics in vehicles. Telematics is a versatile field, which includes vehicular technologies, telecommunications, road safety and transportation, instrumentation, wireless communications, sensors, internet and multimedia services in automobiles.In telematics, global navigation satellite system (GNSS), which is an integral part of automotive navigation systems offers integrated services with the help of computers and mobile communications.
The growing demand for advanced telematics components in automobiles is driving the automotive telematics market currently. Navigation technology, telematics, audio-video solutions, WiFi, Bluetooth, safety and security and intelligent driving solutions are few of the advanced telematics solution largely being demanded by the consumers. In addition, tracking of vehicles, trailer and container tracking, wireless safety communications, satellite navigation, mobile data, emergency warning system for vehicles and auto insurance are the major applications of telematics, which is driving the demand for the usage of telematics in vehicles, globally.
Global Automotive Telematics Market: Key Segments
The global automotive telematics market is fragmented with few medium and large companies. Entry into this market is not restricted as there is no monopoly of business and the market has huge scope and opportunity. However, setting up of manufacturing units for automotive telematics require huge capital and resource, which is not feasible for most of the small and medium sized companies. Increasing private equity investments and merger and acquisitions of companies in the automotive sector has been of great influence to the automotive telematics market. Significant growth in the automotive sector coupled with economic reforms in major developing countries has been able to bolster the growth of this market. Asia Pacific, Middle East and Africa, and Latin America are key markets for the future and are expected to provide huge opportunities to the global automotive telematics manufacturers because of the growth in the automotive sector and increasing demand for infotainment and wireless vehicle safety communication in vehicles.
Global Automotive Telematics Market: Competitive Landscape
The report also provides company market share analysis of the various industry participants. Acquisition is the main strategy being widely followed by leading market players. In case of an acquisition, the acquirer takes advantage of existing synergies. As a result, both companies are expected to emerge more profitable and stronger than before. Key players in the global automotive telematics market have been profiled and their company overview, financial overview, business strategies and recent developments have been covered in the report. Major market participants profiled in this report include: Trimble, Inc., Masternaut Limited, TomTom International B.V., Telogis, Visteon Corporation, Continental AG, Airbiquity, Inc. and Agero, Inc.
The global automotive telematics market is segmented as below:
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
The report provides a cross-sectional analysis of by application segment and by vehicle type segment with respect to the above mentioned regions.