Global Consumer Telematics Systems Market - 2022-2029

Global Consumer Telematics Systems Market - 2022-2029

Market Overview

Consumer telematics systems market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 35.1% during the forecast period (2022-2029).

High-end communication services and technologies enabling the real-time movement of enormous volumes of data into and out of passenger vehicles and vans might be called consumer telematics. Consumer telematics ensures many practical functions, including traffic updates, local searches for landmarks, GPS navigation, concierge services and many more. It also offers clients updated in-vehicle services. Passenger automobiles offer unique connectivity options for better tracking and monitoring.

In addition to giving customers pertinent information, telematics also ensures they have better control over accessories, improving the riding experience. Numerous businesses worldwide are already using sophisticated telematics to assess problems with passenger transportation remotely. With the help of telematics, operators can spot possible problems before their clients even realize they exist. The telematics market is driven in several ways by the widespread use of smartphones and pertinent governmental directives, which call for increased safety testing and connectivity prices.

Market Dynamics

The market for consumer telematics systems is primarily driven by expanding cloud-based service acceptance and rising mobile communication usage. However, the increase in telematics system cyberattacks is anticipated to temper market expansion.

The growing adoption of cloud-based services

Consumer telematics refers to communication systems and services that allow for the real-time transfer of significant amounts of data in passenger automobiles. Vendors are concentrating on delivering superior vehicle tracking products and services to increase consumer safety. Soon, the demand for consumer telematics is anticipated to benefit from the growth of cloud-based services that offer customers a highly tailored experience.

Vendors also place a strong emphasis on creating interactive consumer feedback systems that make use of cloud-based data. There are opportunities for market expansion due to the high demand for more individualized solutions that reduce cognitive driver load through the filtration of intelligent data. High-speed internet technologies like 4G and 3G and the drop in connectivity prices could also significantly increase market demand.

The increased usage of mobile communications

Consumer telematics refers to communication systems and services that allow for the real-time transfer of significant amounts of data in passenger automobiles. Vendors are concentrating on delivering superior vehicle tracking products and services to increase consumer safety. The development of a beneficial relationship between property and casualty insurers & policyholders has been made possible by using mobile communications.

The developments in machine-to-machine (M2M) communication or telematics, which produce data that helps policyholders calculate the risks and benefits of following safe driving practices, have been particularly pronounced in the auto/motor insurance business. With real-time triggers and alerts, telematics and related analytical tools are anticipated to help automate and streamline claim processes. It is expected to significantly increase consumer telematics market demand and assist insurers in cutting costs.

The rising cyber attacks

Data provided via telematics systems are vulnerable to hacking and theft by cybercriminals, which can be a serious issue for both consumers and vehicle manufacturers. In several instances, OEM telematics systems have been compromised to seize total control of the vehicle, including steering, braking and acceleration.

For instance, in March 2018, Chinese security experts found over a dozen flaws in BMW's telematics system that let hackers gain complete control of the vehicle's functionality. Cyberattacks may hamper the development of the worldwide telematics business by pirates and worries about privacy and security.

COVID-19 Impact Analysis

The pandemic's economic impact is evident in how organizations formulate strategic cost-cutting initiatives. To increase cash flow, companies owning car assets are contemplating sale and leaseback options. Supply chain execution, reliance on labor, working capital management, liquidity & solvency management and regulatory & policy changes are the main risk considerations for market participants in consumer telematics systems.

Due to COVID-19 crisis limits on end users, including vehicle manufacturers, insurance companies and fleet owners, 2020 is predicted to be a poor performance year for the consumer telematics systems market. Due to the limited operational activity and the end users' increased attention to the origination's key strengths, the demand from end users has decreased. However, the long-term outlook is anticipated to be favorable due to the industry's robust growth.

Segment Analysis

By vehicle type, the consumer telematics systems market is segmented into passenger vehicles, commercial vehicles and others.

The rising applications of telematics in commercial vehicles

In 2021, the commercial vehicle segment represented the biggest revenue share. In commercial vehicles, telematics has several uses, including navigation, communication and traveler safety. Monitoring travel speed, abrupt braking and acceleration enhance fleet safety & driver behavior.

GPS technology can reduce petroleum theft by tracking vehicle gasoline usage, a significant loss source for tanker owners in nations like India. Such elements encourage commercial vehicle telematics demand, fueling this segment's revenue growth.

Geographical Analysis

The presence of major telematics players in North America

With numerous consumer telematics goods and programs, North America is anticipated to become the dominant regional market. For instance, Telefonica Centroamerica Inversiones was purchased by America Movil, SAB in January 2019. A deal was finalized on January 24, 2019. Additionally, to reduce the stress of calculating fuel tax credits (FTC), Mix Telematics, a global provider of fleet and asset management solutions, teamed with Nuonic, one of the most cutting-edge data analytics companies, in August 2018.

Due to growing LTE connectivity, numerous key competitors in the market, technological improvements and expanding auto sales, U.S. now holds a monopoly on the worldwide consumer telematics market. Additionally, U.S. is home to 60% of the major participants in the consumer telematics business, including AT&T, Verizon and Cisco Systems Inc. Another aspect driving North America consumer telematics systems industry is U.S.'s growing 4G LTE service connectivity.

Competitive Landscape

Several major firms use mergers and acquisitions techniques to maintain their industry competitiveness. A few other crucial tactics most businesses use to support company growth and increase market growth rate include new product releases and facility expansion.

For instance, in December 2018, Mix Telematics, a leading global provider of fleet and asset management solutions, unveiled Mix Now, a self-service fleet management tool that makes it easy for business owners to track and effectively manage their vehicles.

Additionally, in November 2018, Harman unveiled Poland's brand-new Automotive Telematics plant.

Major global consumer telematics systems market companies include AT&T, Verizon, Vodafone Group PLC, Harman International, Cisco Systems Inc, Robert Bosch GmbH, Qualcomm Inc, Teletrac Navman, Telefonica and Mix Telematics.

Mix Telematics

Overview: A pioneering global provider of fleet and mobile asset management systems, MiX Telematics was established in 1996. Enterprise fleets, small fleets and consumers can find security, efficiency and safety solutions through the company's products & services. MiX Telematics is the top provider of telematics services in U.S. and internationally, using the Software-as-a-Service (SaaS) delivery model to serve clients in more than 120 nations. MiX Telematics actively manages more than 750 000 mobile assets, which is constantly increasing. MiX Telematics has a worldwide network of over 130 fleet partners and more than 1000 employees. It has offices in Mexico, Brazil, Australia, UAE, Uganda, Brazil, UK and South Africa.

Product Portfolio: For clients worldwide, MiX Telematics creates and deploys connected fleet and mobile asset management systems. Telematics is regarded interchangeable with fleet telematics or vehicle GPS tracking systems in the fleet and logistics sector.

Key Development: Monks Contractor, a waste management firm situated in UK, stated on November 24, 2021, that they had chosen Mix Telematics as their new telematics partner. Through the relationship, they will access real-time vehicle monitoring information, knowledgeable customer assistance tailored to their business and comprehensive Hours of Service (HOS) compliance management for connected vehicles in their fleet.

Why Purchase the Report?
• Visualize the composition of the consumer telematics systems market segmentation by technology, vehicle type, solution offered, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the consumer telematics systems market by analyzing trends and co-development deals.
• Excel data sheet with thousands of consumer telematics systems market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players.

The global consumer telematics systems market report would provide access to an approx. 61 market data table, 69 figures and 211 pages.

Target Audience 2022
• Consumer Telematics Systems Software Providers/ Buyers
• Industry Investors/Investment Bankers
• Insurance & Research Institutes
• Emerging Companies
• Critical Infrastructure Software Manufacturers