Vehicle Telematics Hardware Market By Type (2G, 3G, 4G, 5G) , By Application (Passenger Car, Commercial Vehicle) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Vehicle Telematics Hardware Market
The vehicle telematics hardware market was valued at $91.3 million in 2023 and is projected to reach $244.3 million by 2033, growing at a CAGR of 10.6% from 2024 to 2033.
Vehicle telematics hardware comprises the equipment and physical elements pertaining to telematics systems of automotives. Telematics is a system of vehicle tracking technology that facilitates seamless communication between vehicles and external systems, providing critical information about vehicle performance. Different components of vehicle telematics hardware include GPS receiver, control unit, communication module, sensors, and data storage solutions. The hardware forms the bedrock for the establishment of competent telematics systems which facilitate vehicle safety and connectivity.
With the implementation of indispensable regulatory measures regarding the integration of telematics systems, the demand for vehicle telematics hardware is witnessing a notable surge in the market. In addition, rapid surge in urbanization has boosted the requirement for efficient road traffic management through telematics solutions, driving the growth of the vehicle telematics hardware market. Furthermore, surge in demand for fleet management services is propelling the market development. In recent times, the trend of video telematics is gaining prominence in the vehicle telematics hardware market. Manufacturers are striving to develop efficient camera systems with advanced attributes such as cloud connectivity, driver surveillance, 360° video capturing, and AI assistance.
However, the procurement and installation of telematics hardware requires significant expenses, which deters several budget-sensitive vehicle owners and small-scale fleet management operators from investing in them. This factor acts as a major restraint for the development of the vehicle telematics hardware market. Moreover, lack of efficient connectivity infrastructure in rural areas hampers the growth of the market. Despite the restraints, surge in awareness among individuals regarding vehicle safety is boosting the deployment of telematics and presenting lucrative opportunities for the market expansion. Statistica, a global data and business intelligence platform, predicts more than 400 million connected cars to be under operation by 2025. This figure is anticipated to be amplified in the coming future, presenting new avenues for market development.
Segment ReviewThe vehicle telematics hardware market is segmented into type, application, and region. On the basis of type, the market is divided into 2G, 3G, 4G, and 5G. As per application, it is bifurcated into passenger car and commercial vehicle. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of type, the 4G segment dominated the market in 2023.
As per application, the commercial vehicle segment acquired a high stake in the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe major players of the global vehicle telematics hardware market include ACTIA, Aptiv PLC, BOSCH, Continental AG, Denso Corporation, Harman, Lear Corporation, LG Electronics Inc., Marelli, Valeo, Visteon, Zonar, Omnitracs, Brigade, Nauto, ALD Automotive, Danlaw, Astrata Group, Samsara, and Cal Amp. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy Type2G
3G
4G
5G
By ApplicationPassenger Car
Commercial Vehicle
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market Players
ACTIA
Aptiv PLC
BOSCH
Continental AG
Denso Corporation
Harman
Lear Corporation
LG Electronics Inc.
Marelli
Valeo
Visteon
Zonar
Omnitracs
Brigade
Nauto
ALD Automotive
Danlaw
Astrata Group
Samsara
Cal Amp