The demand for connected automobiles, rising demand for safety and security features in passenger cars, and expanding adoption of entertainment systems in passenger cars are the primary drivers propelling the growth of the passenger vehicle telematics market. The development of the market is also being supported by an increase in government programmes to encourage advanced driver assistance systems (ADAS). The market is also predicted to grow over the course of the forecast period due to technological advancements in telematics systems, such as Big Data and sophisticated prescriptive analytics.

To meet consumer demands for efficiency, comfort, and safety in contemporary vehicles, the passenger vehicle telematics market is required. The use of passenger vehicle telematics solutions enables drivers to make knowledgeable decisions while driving by providing real-time monitoring of road conditions, traffic and navigational data, vehicle diagnostics, driver behaviour analysis, and more. The development of infotainment systems, rising interest in connected vehicles, and rising demand for safety and security feature all point to this market experiencing rapid growth in the coming years. The expansion of this market is also being aided by governmental regulations that require the installation of these systems in new cars.

The goal of passenger vehicle telematics is to send, collect, and analyse vehicle data for usage in passenger cars using telecommunications and information technology. To remotely monitor the operation, location, and status of vehicles, it incorporates communication and computer technologies such as embedded devices, GPS navigation (GPS), and cellular networks.

The market for passenger vehicle telematics is anticipated to increase at a CAGR of 16.92% from USD 5.14 billion in 2021 to USD 16.43 billion by 2031. This market's expansion can be ascribed to rising consumer demand for connected automobiles, infotainment systems, and safety and security features in passenger cars, as well as rising demand for infotainment features in passenger cars.

The passenger vehicle telematics market is confronted with a number of difficulties, including high implementation and maintenance costs, data security and privacy concerns, insufficient telecom infrastructure in some places, and a lack of system compatibility. A further major issue for this sector is the lack of consumer knowledge about telematics. The market for passenger vehicle telematics could suffer from the aforementioned factors.

A number of expansion prospects for this industry, however, may arise from the growing use of 5G technology and advanced analytics. In order to outperform rival items, several market participants are now concentrating on creating technologically superior products. For the market for passenger vehicle telematics, this is anticipated to open up lucrative potential.

Segment Analysis

The Remote Message Processing System Type emerged as the Most Lucrative Segment

The market is divided into remote message processing systems, brake systems, transmission control systems, and others based on type. Because they can supply details about the location and condition of the vehicle, remote message processing systems are predicted to rule the market among these types.

The Most Prominent Application is the Passenger Cars

The market is divided into commercial and passenger cars based on their intended uses. Due to their rising market demand, passenger cars are anticipated to dominate the industry. The industry is also being driven by the rising installation of safety and infotainment features in passenger vehicles.

The North American Region to render Ample Financing Opportunities

The North American, Europe, Asia Pacific, South America, and Middle East & African geographic segments of the worldwide passenger vehicle telematics market have been established. Owing to the combination of significant players like Denso Corporation, Volkswagen AG, and Robert Bosch GmbH, North America is predicted to lead the market among all these areas.

COVID-19 Impact and Market Status

Both the demand for and the volume of new cars produced have decreased as a result of the COVID-19 epidemic. The market for passenger vehicle telematics has suffered as a result. Lockdowns have also been implemented by governments in numerous nations to stop the disease's spread, which has hampered the production of telematics systems for passenger cars as well as the supply chain. Despite this, the sector is anticipated to experience a robust comeback once circumstances return to normal and demand for linked cars rises.

Major companies including Denso Corporation, Continental AG, Robert Bosch GmbH, NXP Semiconductors (NXP), and TomTom International BV are all actively participating in the passenger vehicle telematics sector. To stay competitive, these businesses are concentrating on the introduction of new products as well as partnerships and alliances.

Recent Developments in the Passenger Vehicle Telematics Market

• A new telematics control unit was introduced by Denso Corporation in March 2020 to assist fleet firms in lowering operating expenses.
• The assets of eCall-Europe GmbH, which runs a cloud-based telematics solution provider for connected commercial vehicles in Europe, were bought by Continental AG in February 2020, according to an announcement made by the company.
• In order to deliver in-vehicle telematics solutions for the next line of vehicles, Ford Motor Company and Robert Bosch GmbH established a strategic cooperation in March 2020.
• The next-generation security solution for connected automobiles was introduced by NXP Semiconductors in February 2020. It is based on a new secure data analytics platform and includes improved safety features.

Passenger Vehicle Telematics Market Scope

Key Segments of the Global Passenger Vehicle Telematics  Market

Type Overview, 2021-2031 (USD Billion)

• Remote Message Processing System
• Brake System
• Transmission Control System

Application Overview, 2021-2031 (USD Billion)

• Passenger Cars
• Commercial Vehicles

Regional Overview, 2021-2031 (USD Billion)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa

• UAE
• South Africa