A combination of informatics and telecommunications platforms together forms telematics. Telematics is the basis of vehicle automation and includes functions such as GPS tracking & navigation, wireless safety communication, integrated hands-free cell phone communication, and automatic driving assistance. It also includes heavy equipment tracking, vehicle condition tracking by insurance providers, emergency assistance, safety guidance, and fuel consumption & maintenance monitoring.

The global telematics market worth $61.27 Billion by 2030, growing at a CAGR of 16.2%

Rising use of advanced network communication systems

Increasing the use of advanced network communication systems is one of the major contributions to the growth of the global telematics market. Trending technology of including smartphone applications based on iOS and Android platforms is expected to change the current scenario of vehicle connectivity. Earlier, Bluetooth was the only medium of connecting smartphones to the vehicle wirelessly; however, in the coming years, the rising adoption of smart infotainment systems and navigations systems across entry-level, mid-level as well as luxury cars is to be witnessed. Increasing demand for safety & security features such as lane assist, fatigue alert, collision avoiding systems are expected to bring telematics in the picture. Furthermore, supporting government regulations regarding the implementation of automotive telematics is expected to drive the market over the forecast period.

Data security concern

Data security is one of the major concerns of telematics providers and is expected to hinder the market growth. In telematics, data is stored and monitored across various areas which include the real-time location of the vehicle and heavy equipment, diver information, driver performance, and vehicle details. Increasing penetration of the internet and overall demand for connectivity has resulted in a high risk of hacking and data breach. The database where all the information is stored is highly susceptible to hacking which may hamper the growth of the market.

Navigation service holds a significant market share

Navigation, diagnostics, on-demand infotainment, fuel management, maintenance, and security are some of the services analyzed in this market. Among these, the navigation service is expected to have a significant market share during the analysis period. The navigation-based system enables the user to get real-time traffic, road status, weather and information in the local areas. Navigation systems such as GPS have gained tremendous popularity across the world over the past few years on account of the high complexity of roads. Online availability of real-time traffic information has resulted in GPS and GNSS being widely implemented in vehicles.

Europe holds the largest market share in the global market

Geographic regions included in the global telematics market study are North America, Asia Pacific, Europe, South America, and Middle East & Africa along with its major countries. Among these regions, Europe is expected to have the largest share in the global market in a given forecasted period. There are more than 256 million passenger cars on Europe’s roads today. The European Union government is taking several initiatives such as eCall to bring quick support in case of an accident and collision. In 2015, this regulation was made mandatory for all new cars to be equipped with eCall technology. Rising awareness for the safety of the driver, the cumulative market infiltration rate of mobiles and smartphones, and rigid automotive safety norms are a few factors boosting the market growth.

Key Market Players

•    Magneti Marelli S.P.A.
•    Tomtom International Bv.
•    Qualcomm Technologies, Inc.
•    Intel Corporation
•    Trimble Inc.
•    Robert Bosch GmbH
•    Continental AG
•    LG Electronics
•    Verizon
•    Harman International
•    Delphi Automotive PLC
•    Visteon Corporation
•    Others

telematics market Scope

Key Segment Of The telematics market

By Technology (USD Billion)            
    •    Embedded
    •    Portable
    •    Hybrid
By Service, (USD Billion) 
    •    Navigation
    •    Diagnostic
    •    On Demand Infotainment
    •    Maintenance
    •    Security
By Application (USD Billion) 
    •    Commercial
    •    Automotive
    •    It & Telecommunication
    •    Healthcare
Regional Overview, (USD Billion) 
    North America
      •    US
      •    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