The Global Vehicle Telematics Hardware Market 3rd Edition

The Global Vehicle Telematics Hardware Market 3rd Edition

The Global Vehicle Telematics Hardware Market is a strategy reportfrom Berg Insight covering both the aftermarket and OEM segmentsfor passenger cars and commercial vehicles. This strategic researchreport from Berg Insight provides you with 150 pages of uniquebusiness intelligence including 5-year industry forecasts and expertcommentary on which to base your business decisions.

The Global Vehicle Telematics Hardware Market 3rd Edition

Telematics is a broad term that may be applied to a wide range of vehicle connectivity solutions.Berg Insight’s definition of a telematics system in this report is an automatic system designed forpassenger cars and commercial vehicles that incorporates some form of cellular/GNSS or RFcommunication technology. The connected car has been a major trend in the automotiveindustry for many years. All of the world’s leading carmakers have now launched mass-marketconnectivity services in key regions. The OEM initiatives can be seen as competition foraftermarket solutions, but there is still a growing demand for different forms of aftermarkettelematics services. The addressable market for aftermarket telematics solutions is significant.

At the end of 2022, an estimated 1.52 billion vehicles were registered worldwide. Berg Insighthas found that 47.3 million aftermarket telematics hardware devices were sold globally during2023 for a total market value of approximately € 2.2 billion. Asia-Pacific is the largest geographicalmarket, achieving shipments of about 17.1 million in 2023. The shipments of aftermarkettelematics hardware in Europe and North America accounted for 11.6 million and 11.2 millionrespectively. Berg Insight forecasts that global shipments of aftermarket telematics devices willgrow at a compound annual growth rate (CAGR) of 8.0 percent in the next five years to reach69.3 million in 2028. Revenues from sales of aftermarket telematics devices are forecasted togrow from € 2.2 billion in 2023 to € 3.1 billion in 2028, representing a CAGR of 6.8 percent.

Teltonika was the market leader in terms of aftermarket hardware sales with a market share ofabout 6.8 percent, reaching annual sales of € 153 million in 2023. Xirgo Technologies was therunner-up with a market share of around 4.4 percent in terms of sales. Additional top playersinclude Jimi IoT, Queclink and CalAmp. Jimi IoT ranked third in terms of sales with a marketshare of about 4.2 percent while Queclink and CalAmp ranked fourth and fifth with a marketshare of roughly 3.0 percent each. Notable vendors further include ERM Advanced Telematicsfrom Israel; Positioning Universal and Danlaw from North America; Suntech International,Gosuncn RichLink, Neoway Technology, Sinocastel, Coban Electronics, Gosafe, Kingwo andATrack from Asia-Pacific; Meta System, Ruptela and Munic from Europe; and Maxtrack fromLatin America.

Automotive manufacturers can choose between connectivity options such as embedded andhandset-based when creating connected car services, which are not mutually exclusive.Embedded solutions use cellular communications hardware inside the vehicle, whereashandset-based solutions use a tethered device such as the driver’s smartphone for connectivity.This report mainly focuses on embedded telematics solutions. Several categories of telematicsapplications are now offered by most leading vehicle manufacturers. Examples include eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, over-the-air updates,connected navigation and infotainment, fleet management, Wi-Fi hotspots, concierge servicesand convenience applications. The drivers behind the adoption of OEM telematics are bothcommercial and regulatory. There are also numerous OEM telematics offerings from commercialvehicle manufacturers, provided either independently or in collaboration with third partiesincluding leading aftermarket telematics providers. These OEM solutions are expected toachieve increased adoption and to an increasing extent be delivered as standard.

Berg Insight estimates that global shipments of OEM telematics hardware for both passengercars and commercial vehicles reached 68.4 million units in 2023 at a total market value of € 8.6billion. Berg Insight estimates that nearly 74 percent of all new passenger cars and commercialvehicles sold worldwide in 2023 were equipped with an OEM-embedded telematics system, upfrom nearly 72 percent in 2022.

The design and development of OEM telematics systems are complex as these have to integratewith vehicle systems, fulfil strict quality standards and ensure performance during the longlifecycle of a vehicle model. For this reason, the OEM telematics equipment suppliers aregenerally established automotive suppliers that develop their solutions in cooperation with carmanufacturers. Berg Insight has identified LG Electronics as the market leader in terms of OEMtelematics shipments with a market share of about 26 percent. The company has contracts with leading automotive brands such as General Motors and Volkswagen. Continental and Harmanwere the runners-up with market shares of about 16 and 10 percent respectively. Other OEMtelematics hardware vendors include Valeo, Marelli, Denso, Actia, Lear, Bosch, Gosuncn WeLink,Huawei, Neusoft Corporation, Lianyou Technology, Hyundai Mobis, Visteon and Aptiv.