Automotive Telematics Market Size Worth Around US$ 236.40 Bn by 2032

The automotive telematics market size is expected to be worth around US$ 236.40 billion by 2032 from US$ 52 billion in 2022 and expanding growth at a CAGR of 16.40% from 2023 to 2032.

The automotive telematics market growth is primarily driven by technological advancements focusing on improving the passenger’s overall in-vehicle experience and allowing for more interactivity within and among other automobiles. Furthermore, the automotive telematics market is being driven by rise in safety awareness, stringent vehicle safety standards, and the affordability of automotive telematics system features. However, installing a few modern telematics infrastructure systems in vehicles is still costly.

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The automotive telematics market is expected to grow with the rising vehicle production and safety standards around the world. The rise in telematics software integration in autonomous and connected vehicles is expected to drive the global automotive telematics market. The consumer preference for advanced driver assistance systems in automobiles is expected to boost the growth of automotive telematics market during the forecast period.

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Scope of the Automotive Telematics Market

Report Coverage	Details
Market Size in 2023	USD 60.27 Billion
Revenue Projection by 2032	USD 236.40 Billion
Growth Rate	CAGR of 16.40% From 2023 to 2032
Largest Market	North America
Fastest Growing Market	Europe
Base Year	2022
Forecast Period	2023 to 2032
Companies Mentioned	CARTRACK, Masternaut Ltd., Teletrac Navman, TomTom Telematics B.V., MiX Telematics, Trimble Inc., Harman International Industries Inc., Omnitracs, VERIZON, Airbiquity Inc.

Regional Snapshot

North America is the largest segment for automotive telematics market in terms of region. The automotive telematics market in Asia-Pacific is expected to be propelled by major automotive electronics components manufacturing industries in China, Japan, and India.

Europe region is the fastest growing region in the automotive telematics market. The presence of large original equipment manufacturers (OEMs) in Europe, who have major facilities for connected vehicle research and development, is expected to boost the automotive telematics market across Europe.

Market Dynamics

Drivers

Better driver and vehicle safety

According to World Health Organization (WHO), every year around 1.3 million people die due to road accidents. This had increased the importance of vehicle safety equipment. The automotive telematics provides the accurate location of passengers and driver. The automotive telematics system can be connected to smartphone with the help of application. By using the application, the Global Positioning System (GPS) tracks the current location of vehicle. This had helped fleet managers to track their goods with accurate information. Thus, the safety of driver and vehicle is propelling the growth of the automotive telematics market during the forecast period.

Restraints

High installation costs

The ideal devices of automotive telematics are plug-and-play, meaning they can be plugged into the vehicle diagnostic port fast and effortlessly. The cost of installation could be negligible. The installation of some of the gadgets of automotive telematics may necessitate the use of technician. The installation charges would be greater if the device requires hardwiring and retrofitting. The cost of automotive fleet telematics system is also affected by the monthly subscription charge. As a result, the overall cost of installing is high, which is restricting the growth of automotive telematics growth during the forecast period.

Opportunities

Rise in trend of connectivity solutions

Over the time, the smartphones have shifted the concept of connectivity to the different level. Even while traveling, people want to be connected to the outside world. The automobile manufacturers are incorporating connectivity solutions into their vehicles to promote sales as now connectivity has become an important need for the people. The consumers want their automobiles to perform functions similar to those performed by computers and smart phones. As a result, the automotive telematics market is expected to grow due to rising customer desires and need to be connected 24/7 even while traveling. Thus, the rising trend of connectivity solutions is providing lucrative opportunities for the growth of automotive telematics market during the forecast period.

Challenges

Threat of data hacking

Automotive telematics is the new technology in the market. The unauthorized access to various vehicle connectivity solutions or a break into the in-vehicle connectivity system is examples of factors that can limit the automotive telematics industry. The hackers have access to automotive computer systems as well as the data they collect and store, which is a big security problem. As a result, one of the factors that are likely to hinder the market growth of automotive telematics is the potential of automotive telematics systems being hacked. Thus, the threat of data hacking is the major challenge for the growth of automotive telematics market during the forecast period.

Report Highlights

Based on the product type, the embedded automotive telematics segment dominated the market in 2020 with highest market share 60%. The embedded automotive telematics is a component of software that allows a vehicle to connect to the internet. It includes data exchange between telecommunications devices, computers, and GPS satellite systems.
Based on the services, safety and security automotive telematics segment is estimated to be the most opportunistic segment during the forecast period. This is attributed to the transmission of information with security and safety from one device to other.
Based on the sales channel, the original equipment manufacturer (OEM) segment accounted highest revenue share in 2020.