Global Automotive Telematics Market to Reach $17 B by 2021

Thursday 22 March 2018, Amsterdam

According to a market research report, now available on ASDReports, titled “Global Automotive TelematicsMarket – Analysis and Forecast (2017-2021)”, the global automotive telematicsmarket is estimated to reach $17 billion by 2026. The growing importance of connectivity and safety, has led to the integration of computer processing and wireless communication technologies forming a system called telematics. Besides this, increasing market penetration of smartphones, increased availability of bandwidth, growing demand for plug-in vehicles, and low cost of connectivity are proliferating the market sales. In addition, the rise of government regulations in the European Union, Russia, and Brazil with respect to safety and high growth opportunities in the emerging economies such as China and India are also propelling the overall market growth.

The market intelligence report provides a detailed analysis of the key growth drivers and restraining forces of the global automotive telematics market, with an extensive insight into various forms of developments, trends, and the key participants in the market. The automotive telematics ecosystem comprises companies from extremely diverse backgrounds such as automotive component suppliers, middleware and platform developers and solutions providers. All of these key players collaborate and partner with each other to enhance their product offerings, and to deliver the most cutting-edge telematics systems to their OEM clients. Furthermore, these OEMs have collaborated with telematics solution providers to provide full-fledged infotainment offerings to the end users. Moreover, partnerships, joint ventures, and agreements among telematics systems manufacturers and solutions providers have helped both types of players to grow symbiotically.

A telematics device, usually referred to as a black box, contains a GPS antenna and receiver, an accelerometer, and an integrated SIM card. Telematics device can be used for providing a plethora of services which are based upon connectivity. Telematics provide connectivity for eCall technology, which is used for alerting emergency services when a vehicle is involved in a crash or accident. It can be used to beam real time information to drivers including traffic updates, weather information, and entertainment contents, among others. Data collected by telematics devices can be used for telematics-based insurance, enabling the drivers to pay premiums as per their driving habits. Fleet tracking companies use telematics for tracking their vehicles and observe driving behavior. The data from black-box informs about driving time, driving speed, mileage, motorway miles, and sudden braking and acceleration of the vehicle.Telematics is a communication technology that can be either provided through an integrated communication module or a smart phone and hence the market has been classified into embedded, tethered, and integrated on the basis of connectivity. During the forecast period, the market for integrated connectivity is expected to grow at a faster rate as compared to other connectivity solutions. Increasing market penetration of smartphones and its apps along with low hardware costs are some of the factors that are contributing to the integrated connectivity market growth.The passenger cars segment dominated the global automotive telematics market in 2016. The stringent governmental regulations, high production volume of passenger cars, and growing demand for connectivity solutions and infotainment features in passenger vehicles will be the major factors driving the market growth. The OEM channel segment currently accounts for the highest share of the total market share in the global automotive telematics market. The market for OEM is driven by significant factors such as reliability standards, stringent governmental regulations, and increasing partnerships with the service providers for better product offerings such as 4G LTE internet connectivity.

Growing awareness about driver safety, decreasing cost of connectivity, increasing market penetration rate of smartphones, and stringent automotive safety regulations are some of the reasons fuelling the market growth. Geographically, Asia-Pacific dominated the global automotive telematics market in 2017. The market is experiencing a rapid growth since the last few years owing to the high demand for the premium and luxury vehicles, thus giving a much-needed thrust to the automotive telematics market. The presence of automobile manufacturers such as General Motors, Volkswagen, Ford, BMW, and Audi, is boosting the growth of the automotive telematics market in APAC.

The market report includes a thorough analysis of the market trends and size, along with market estimation based on the key geographical regions. Providing detailed financial analysis of the key players in the market, the report provides individual SWOT analysis of each company. Some of the key players analyzed in the report are as Robert Bosch GmbH (Germany), Continental AG (Germany), AT&T Inc(The U.S), Verizon Communications Inc. (The U.S), TomTom NV (The Netherlands), Teletrac Navman (The U.K), Mix Telematics Ltd (South Africa), Octo Telematics SpA (The U.K), Delphi Automotive PLC (The U.K), Airbiquity Inc. (The U.S), and Wireless Car AB (Sweden). The key strategies being adopted by the market players to attain their respective market shares in this emerging domain are joint ventures, collaborations, partnerships, contracts, and product launches.

The report addresses the following questions about the global automotive telematics vehicles market:

• What is the global automotive telematics market size in terms of revenue and volume from 2016-2021?
• What is the dominant type of connectivity used in automotive telematics?
• What is the revenue generated by the different connectivity systems, vehicle type, and distribution channel of automotive telematics market?
• Which vehicle type will lead by volume in the global automotive telematics market by the end of the forecast period?
• What is the revenue generated by the different distribution channel in the global automotive telematics market in the period 2016-2021?
• What will be the different factors driving the market during the forecast period?
• What are the major factors challenging the growth of the global automotive telematics market?
• What kind of new strategies are being adopted by the existing market players to make a mark in the industry?
• Which region will lead to the global automotive telematics market by the end of the forecast period?