Automotive Embedded Telematics Market Size - By Component (Hardware, Services, Connectivity), By Solution (Safety & Security, Information & Navigation, Entertainment, Remote Diagnostics), By Application (Passenger Vehicle, Commercial Vehicle), Forecast 20

Automotive Embedded Telematics Market Size - By Component (Hardware, Services, Connectivity), By Solution (Safety & Security, Information & Navigation, Entertainment, Remote Diagnostics), By Application (Passenger Vehicle, Commercial Vehicle), Forecast 2024 - 2032

Automotive Embedded Telematics Market size is poised to record over 15% CAGR from 2024-2032, driven by crucial role in the development and deployment of autonomous vehicles for providing the necessary data for navigation, control, and safety. Shared mobility services like ride-hailing and car-sharing are increasingly deploying telematics to optimize fleet operations and improve user experience. The growing ability of telematics systems to contribute to sustainability efforts by enabling more efficient driving practices while reducing fuel consumption and monitoring emissions to lower the environmental impacts of vehicles will also boost the market growth.

The automotive embedded telematics industry is segmented into component, solution, application and region.

By component, the industry value from the hardware segment may record significant CAGR from 2024 to 2032. On account of the strong need for providing real-time data on vehicle health and performance, telematics systems are highly favored as they enable predictive maintenance while reducing the downtime and repair costs. Telematics hardware further allows insurance companies to offer UBI policies that base premiums on actual driving behavior in addition to rewarding safe driving and providing cost savings for consumers.

Based on application, the automotive embedded telematics industry from the commercial vehicle segment will expand up to 2032. Telematics solutions help commercial vehicle operators to comply with regulations, such as Hours of Service (HoS) and the Electronic Logging Device (ELD) mandates. With the surging adoption of electric commercial vehicles, telematics systems will further play a crucial role in managing the battery health, optimizing charging schedules as well as tracking the energy consumption, adding to the segment growth.

Regionally, the North America automotive embedded telematics industry size will witness significant CAGR through 2032, due to the evolving regulatory frameworks to ensure the safety, security, and privacy of telematics data. The rise of 5G technology is enhancing the capabilities of telematics systems while providing faster and more reliable connectivity. Mandates for eCall systems in new vehicles will also drive the adoption of telematics solutions across the region.