What is Vehicle Telematics?
Telematics is a process of monitoring vehicles such as a cars, trucks, ships, and heavy equipment for location and motion. By integrating a GPS system and onboard diagnostics it is possible to monitor and map the movement of any vehicle.
Integrating communication with telematics and 3G networks can be used to forward both communication and data between the vehicle and the central management system.
Telematics is basically used in the automotive industry to perform operations, telematics can include wireless communications, telecommunications, electrical engineering, vehicular technologies, road transportation, and computer science.
How Telematics works
Data received by the telematics device, such as vehicle speed, GPS position, the g-force which is measured by the default accelerometer, are sent to the data center. Then the data gets decoded. A wide range of data can be put together with the help of telematics device and the sensor or hardware, such as speed, position, trip time/distance, driving, and harsh braking, idling, fuel consumption, seat belt, battery voltage, vehicle fault, and other related data.
This collected information is stored into the fleet management software system and the cloud, which can access from a mobile device or desktop computer. Using the fleet management software user can view and export reports to gain business intelligence.
The automotive industry uses vehicle telematics to manage onboard communication services and applications used in buses, cars, trucks, and other vehicles using telematics devices and GPS receivers installed in every vehicle.
The global vehicle telematics market size is anticipated to grow from USD xx billion to USD xx billion at a CAGR of xx% over the forecast period. The growing security concerns from consumers and the stable need for vehicle tracking and fuel efficiency is likely to boost the vehicle telematics growth.
The growing use of electronic devices such as Smartphone’s and tablets are also projected to be the key factor of market growth. Government safety regulations increasing the use of telematics also expected to fuel the growth of the market.
The global vehicle telematics market is segmented into solutions, application, and region. On the basis of the solution, the market has been sub-segmented into fleet management, a navigation system, location-based system, insurance telematics, infotainment systems, remote alarm monitoring solution, safety and security, and others. In between these segments, the fleet management segment has accounted for the largest global vehicle telematics market share as compared to other segments. Features provided by fleet management segment such as driver behavior, assistance system, tracking time, vehicle performance, and vehicle & driver security are the major parameters fuelling the market growth. Whereas, the insurance telematics segment accounted for the fastest growing segment during the forecast period. Insurance telematics is emphasized on smart technology to recognize their users driving habit, owing to this the market is expected high CAGR into coming years.
On the basis of type, the market has been classified as commercial vehicles and passenger cars. Based on service, the market is categorized into consulting & design, integration & deployment, maintenance & training services. Based on the product, the market sub-segmented as hardware and software.
In terms of geography, the vehicle telematics market is categorized into Europe, North America, South America, Asia Pacific, and MEA. Among these, the North America region was the leading position and had more than 35% of the total market share, owing to the high penetration of technology in the region. Likewise, the Asia Pacific region is expected to be the highest global vehicle telematics market share over the forecast period, due to the rising investment in information technology and transportation infrastructure, growing development and trade in connectivity networks such as Bluetooth, WI-Fi, satellite communication, and cellular networks.
The global telematics market is highly fragmented in nature and it is anticipated to increase at a fast-paced CAGR during the prediction period. The market includes a huge number of well-established market players with highly integrated operations across the global industry value chain. These market players intend to optimize their business growth and improve their position at the regional and global and regional level market, by deploying a number of growth aspects. The launch of new software, hardware, web application products, marketing of brands, joint ventures & collaborations, mergers, and acquisitions were the key strategic moves deployed by the key players operating in the global telematics market.
Leading players operating in the global vehicle telematics market include LG Electronics Inc., Inseego Corporation, HARMAN International Industries Inc., Denso Corporation, Continental AG, Visteon Corporation, and others.