Electric Vehicle Telematics Market - Forecasts from 2024 to 2029

Electric Vehicle Telematics Market - Forecasts from 2024 to 2029

The electric vehicle telematics market is anticipated to reach US$13.504 billion by 2029, at a CAGR of 10.24%, from US$8.294 billion in 2024.

As the global demand for electric automobiles increases, the electric vehicle (EV) telematics market is forecasted to expand. Telematics is a method of monitoring a vehicle. By combining a GPS with onboard diagnostics, it's possible to record – and map – exactly where a car is and how fast it's travelling and cross-reference that with how a car is behaving internally. The market shows the possibility of growing into an influential market as it plays a significant role in impressing positive impacts on the international economy.

The hardware category is estimated to attain the maximum market share in the global electric vehicle telematics market's solution segment. In contrast, the battery electric vehicle (BEVs) category will grow significantly in the vehicle solution segment. The heavy category of the vehicle weight segment is also estimated to grow at a greater rate than the light vehicle category.

The need for Electric Vehicle Telematics is slowly increasing. It will become a necessity as it offers a wide range of possibilities, such as effective route management, energy and charge reporting, GPS vehicle tracking, battery health monitoring, and all the other aspects of the equation. Telematics can be integrated with all solutions of vehicles and vehicle fleets in various ways; the three primary capabilities of telematics include wireless communication, location services, GPS location tracking, and a computing platform for system control and interface to automotive electronic systems.

Rapid urbanization, fast industrial growth, and advancement in telematics services/devices are leading the way for vehicle health monitoring and communication solutions. The rising trend of usage of telematics in electric vehicles is boosting the demand for telematics software and devices. This, in turn, is compelling OEMs to produce telematics-equipped vehicles or provide telematics devices to make them more user-friendly and to improve services worldwide.

The key players are trying to commercialize the use of Telematics systems in vehicles. Car telematics has the potential to increase road safety, improve driving behavior, align insurance premiums with actual needs via usage-based insurance (UBI), and boost the car insurance industry's profitability. All these benefits are fueling the global electric vehicle telematics market.

Electric Vehicle Telematics Market Drivers:

Growing production of EVs across the globe

One of the major driving factors for the electric vehicle telematics market growth is estimated to be the growing demand and production of EVs worldwide. With the developing global EV landscape, the total demand for electric vehicle telematics solutions is expected to grow significantly. In the recent few years, the global production of EVs expanded, majorly due to its increasing demand, the development of EV infrastructure, and the introduction of new technologies in the sector.

The International Energy Agency, in its global electric car stock report, stated that in 2022, Europe had about 4.4 million BEVs and about 3.4 million PHEVs. In contrast, the USA had about 2.1 million BEVs and 0.9 million PHEVs. The global stock of EVs grew massively in 2023, when the total recorded BEV stock in Europe was about 6.7 million, and that of PHEVs was 4.5 million. The USA's total BEV and PHEV stock in 2023 was recorded at about 3.5 million and 1.3 million, respectively.
Constant development in batteries.

The increasing popularity of high-charge capacity-enabled batteries is expected to boost the demand for electric vehicles in the market. To provide long-term power, manufacturers have emphasized the development of innovative batteries, which are expected to propel the market's growth. In addition, constant research and development in the field of lithium-sulfur, metal-air, and aluminum-ion batteries are set to boost the electric vehicle telematics market growth during the forecast period.

Electric Vehicle Telematics Market Restraint:

Privacy and Security issues.

The rising safety and privacy concerns associated with breaking methods, GPS systems, and user driving patterns may hinder the market's growth. The linked system can access confidential information such as family details, medical history, routes taken, and addresses. The breach of such confidential information may cause a hindrance to the market. For instance, in China and North America, violation of data privacy is very prevalent, so the regulations are very stringent.

Electric Vehicle Telematics Market Geographical Outlook
Asia Pacific is forecasted to hold a major share of the global Electric Vehicle Telematics Market.

Asia Pacific region is projected to grow considerably due to the presence of prominent key players in the region. The region is among the biggest producers and consumers of EVs globally in multiple categories, like commercial EVs, electric buses, light electric vehicles, and passenger electric vehicles. With the increase in the regional production of electric vehicles across multiple countries, majorly in countries like China, Japan, India, and Vietnam.

China is among the biggest producers of electric vehicles globally, and its total electric car stock is increasing. The International Energy Agency, in its report, stated that in 2022, the total BEV stock of China was recorded at about 10.7 million, which grew to about 16.1 million in 2023. Similarly, the total PHEV stock of China in 2022 was recorded at about 3.1 million, which expanded to about 5.8 million in 2023.

The region is also among the biggest consumers of electric vehicles worldwide. The EV sales report by the International Energy Agency stated that in 2022, a total of 4.40 million BEVs were sold in China, which increased to about 5.4 million in 2023. Similarly, about 48,000 units of BEVs were sold in India in 2022, which grew to about 82,000 units in 2023.

The Electric Vehicle Telematics Market Products Offered by Key Companies:

TekMindz is a global organization offering technological solutions for multiple organizations, such as businesses, enterprises, startups, and governments, across North America, EMEA, and APAC. The company focuses mainly on the healthcare and e-governance industries. Its services include consulting, application, digital services, and product engineering. TekMindz offers EV telematics, which can predict possible vehicle breakdowns, manage travel time, and monitor vehicle diagnostics.
Electra EV, or Electrodrive Powertrain Solutions Pvt. Ltd., is an Indian EV powertrain solution provider that offers battery systems, traction power & control systems, and EV powertrain manufacturing solutions. The company also provides technological products and solutions like traction units, battery packs, On-board chargers, vehicle control units, and telematics. The telematics solutions offered by the company feature 2.5m GPS accuracy, with class 10 GPRS reliability. This telematics system includes a panic button interface and zero antenna technology.

The Electric Vehicle Telematics Market Key Developments:

In August 2024, Daimler Buses and ChargePoint partnered to deliver easy and seamless integration of vehicle data. The partnership aims to seamlessly integrate telematics and charger management systems for Setra and Mercedes-Benz buses. The organizations' partnership also aims to enable a fast and cost-effective onboarding system for fleet operators, which further aims to offer real-time insights.
In May 2024, Planet Electric launched the industry's first-ever weight sensor telematics systems for EVs. The technology provides real-time updates on cargo weight and its impact on an electric vehicle's driving range, further enhancing the efficiencies of EV logistics fleets.

The Electric Vehicle Telematics Market is segmented and analyzed as:

By Solution

Hardware
Software
Services

By Vehicle Solution

Battery Electric Vehicles (BEVs)
Plug-In Hybrid Electric Vehicles (PHEVs)
Hybrid Electric Vehicles (HEVs)

By Vehicle Weight

Light
Heavy

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
Japan
China
India
South Korea
Others