Global Vehicle Telematics Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Vehicle Telematics Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Telematics is a communication technology for the automobile industry based on information flowing to and generated from vehicles via wireless networks. Vehicle telematics is used to describe vehicle onboard communication services and applications that communicate with one another via GPS receivers and other telematics devices. It is the convergence of wireless communications, location technology, and in-vehicle electronics pushing the automobile industry into the information age.

Market Overview:

The latest research study on the global Vehicle Telematics market finds that the global Vehicle Telematics market reached a value of USD 28118.0 million in 2022. It’s expected that the market will achieve USD 54627.11 million by 2028, exhibiting a CAGR of 11.7% during the forecast period.

Vehicle Telematics Market Trends

Vehicle Telematics changes the driving experience of consumers because it improves the safety of passengers. Some automobile manufacturers are integrating telematics into vehicles to promote automobile sales.

The commercial vehicle sector is expected to occupy the largest market share.

According to vehicle types, the market is divided into Passenger Vehicles and commercial vehicles. The rapid industrialization and development of the transportation and logistics industry are expected to create multiple growth opportunities for the telematics market of commercial vehicles and improve the working efficiency and safety of commercial vehicle drivers. Advances in data analysis and cloud computing can track vehicles, monitor driver behavior, manage fleet operations, and provide informative solutions. In recent years, transportation departments have paid more and more attention to vehicle telematics. For example, the Indian government has made it mandatory to equip all public transport vehicles with tracking equipment.

Europe, North America, and Asia-Pacific all achieved different degrees of growth.

Due to the continuous improvement of industrialization and a large number of commercial vehicles, North America occupies a dominant position in the global market. The increasing attention of drivers, passengers, and vehicles to safety and security issues and accident prevention promotes the growth of the telematics market. The U.S. government signed a contract with Geotab to equip 217,000 vehicles with fleet management technology. Several insurance companies in North America are using telematics solutions to minimize risks by tracking usage, security, and maintenance. The European Commission has mandated that all new passenger cars and commercial vehicles be equipped with a telematics eCall system from 2018. It is expected that this will reduce the response time of emergency vehicles and save passengers' lives in case of serious accidents. There are many emerging economies in the Asia-Pacific region with the largest population size, and they have great consumption potential in the field of Vehicle Telematics. With the emergence of the Internet of Things technology and new services such as car sharing in Asia-Pacific, the demand for Vehicle Telematics such as V2X, Fleet/Asset Management, and Remote Alarm & Incident Monitoring Solutions is increasing.

Vehicle Telematics Market Drivers

Smartphone vehicle telematics uses GPS and mobile phone sensors to collect data about drivers' behaviors and location patterns and applies them to urban transportation, insurance, fleet logistics, automobiles, and other vertical markets. This information helps to analyze key indicators such as location, geographical area, driving style, performance, and points of interest.

Use smartphones and tablets to replace traditional computer-based in-vehicle telematics systems, thus reducing product costs, such as the cost of adopting UBI technology, while retaining the benefits of use-based insurance. The data collected through it is highly accurate, and the insurance company does not need to pay for the manufacturing and distribution of UBI hardware.

Nowadays, telematics solutions such as fuel theft monitoring, automobile insurance telematics, and eco-driving assistance are provided through monitoring tools in smartphone applications. Therefore, improving the penetration of smartphones is beneficial to the market development of vehicle telematics.

Vehicle Telematics Market Challenges

The vehicle telematics system is a developing market in the automotive field. These telematics systems are composed of visual displays and wireless audio systems, which can provide drivers and passengers with safety, security, car entertainment, and information services. These vehicle services will generate additional costs in the form of telecommunication services, hardware, and connectivity solutions, which may limit the growth of the market. Fully integrated telematics solutions have higher upfront costs than other technologies, such as electronic recording equipment (ELD), intelligent route planning, driving recorders, and advanced driver management.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview:

Continental is one of the major players operating in the Vehicle Telematics market, holding a share of 5.9% in 2022.

Continental AG (Continental) is an automotive company that manufactures and sells brake systems, systems, and components for powertrains and chassis, vehicle electronics, instrumentation, infotainment solutions, tires, and technical elastomers. The company offers tires and provides tire replacement solutions for a range of customers, from passenger cars through trucks, buses, and construction site vehicles to special vehicles, bicycles, and motorcycles. Continental markets its offerings under Elektrobit, VDO, Uniroyal, Phoenix and Matador, and other brands. It serves customers in Asia, Europe, North America, and other regions. The company has manufacturing plants across the world. Continental is headquartered in Hanover, Niedersachsen, Germany.

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic, and active safety technology solutions to the global automotive and commercial vehicle markets.

Segmentation Overview:

Among different product types, Infotainment Systems segment is anticipated to contribute the largest market share in 2027.

Fleet/Asset Management is a series of processes that allows organizations to see and manage all information associated with their vehicles and other assets, from acquisition through to end of life. Fleet management aims to maximize efficiency, increase productivity and improve safety for an organization's vehicles and drivers. Often this achieved using a combination of vehicle tracking, reporting on fuel consumption, monitoring of driver behavior and management of vehicle maintenance. Vehicle Asset managing driver records e.g. Driving licence number, points accrued, insurance, named drivers etc. Tracking and creating car maintenance schedules e.g. Servicing, MOT, Car Tax renewals. Monitoring fuel usage e.g. mileage claims, fuel allowance and costs.

Navigation Systems are used to locate addresses and provide directions to end destinations. Data is received from the satellites and displayed in the panel for the driver.

The Infotainment Systems can be described as a combination of vehicle systems which are used to deliver entertainment and information to the driver and the passengers through audio/ video interfaces, control elements like touch screen displays, button panel, voice commands, and more.

Insurance Telematics is a method used to collect information about mileage and driving habits. Insurers generally use telematics data to offer personalized driving feedback, safe-driving rewards or potential cost savings on your car insurance policy for safe driving.

Safety and security of automobiles are two of the most critical areas of Automobile engineering. Automotive Safety can be described as those measures for protecting the environment from the automotive. While measures for protecting the automobile from the external environment and intrusions can be classified as Automotive Security.

The remote alarm & incident monitoring solutions usually include cloud vehicle networking system and local vehicle anti-theft system. The local anti-theft system comprises a sensor system, a control system, a local early warning system and a remote control alarm system, wherein the sensor system is used for acquiring vehicle anti-theft early warning data in real time, and the control system is used for acquiring and transmitting the vehicle anti-theft early warning data to the cloud vehicle networking system, and controlling the local early warning system and/or the remote control alarm system to send an alarm signal according to the judgment data returned by the cloud vehicle networking system.

V2X systems are intended to improve the safety, comfort and convenience of vehicles by allowing them to communicate with virtually anything that can be instrumented. This increased situational awareness enables more intelligent and connected solutions. V2X communication goes beyond active safety sensing and perception systems, available in many vehicles today, which support features such as lane keeping and collision avoidance based on data from radars, cameras, ultrasonic sensors and lidars. In a V2X scenario, vehicles can receive wireless transmissions from other moving vehicles, from traffic signals, from weather reporting networks, and even from bicyclists and pedestrians to better understand and interact with the world around them.

Application Overview:

The market's largest segment by application is the segment Commercial Vehicles, with a market share of 68.57% in 2021.

Key Companies in the global Vehicle Telematics market covered in Chapter 3:

Athlon
AT&T
Robert Bosch Gmbh
Alphabet
Continental
Emkay
Michelin
Visteon Corporation
ARI
ALD Automotive
Arvento
Vodafone Group Plc.
Aptiv PLC
Trimble
Harman International industries
omnitracs
TomTom
LeasePlan
Octo
Mix Telematics
Telefonica S.A
Valeo S.A

In Chapter 4 and Chapter 14.2, on the basis of types, the Vehicle Telematics market from 2018 to 2029 is primarily split into:

Fleet/Asset Management
Navigation& Location Based Systems
Infotainment Systems
Insurance Telematics
Safety & Security
Remote Alarm & Incident Monitoring Solutions
V2X

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Vehicle Telematics market from 2018 to 2029 covers:

Passenger Vehicles
Commercial Vehicles

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)