Automotive Telematics System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Automotive Telematics System Market has been segmented based on Service (Infotainment and Navigation, Fleet Management, Safety and Security, and Diagnostics) and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

Market Snapshot

automotive telematics system market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: >5.2 %

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Market Overview

The global automotive telematics system market is expected to register a CAGR of 5.2%, during the forecast period, 2020-2025.

The market is primarily driven by technological improvements, aimed at enhancing the overall in-vehicle experience of the passengers and bringing about a greater degree of interaction within and among the vehicles.

Additionally, the market is driven by strict safety norms, increased safety awareness, and affordability to adopt few features of the telematics systems. However, the installation of a few advanced telematics infrastructure in the vehicles continues to be expensive.

The use of automotive telematics in EVs is also expected to propel the growth of the market in the future. The leading vendors are looking forward to leveraging the opportunities presented by the introduction of electric vehicles (EVs) in the market.

Equipping new vehicles with e-Call, as a mandate from the European Commission, has also helped in expanding the telematics market in Europe. The region is also home to several automotive telematics hardware suppliers located in the countries, like Germany, the United Kingdom, and Italy.

Safety constitutes a major part of the services offered by automotive telematics. Wireless vehicle safety communications telematics majorly enhance car safety and road safety. The electronic sub-system in a car is used for the purpose of exchanging safety information about road hazards, location, and speed of vehicles.

In addition to wireless local area networks, emergency warning systems telematics are developed like collision warning, for international harmonization and standardization of vehicle-to-vehicle, infrastructure-to-vehicle, and vehicle-to-infrastructure to provide real-time, short-range communication systems. Information from telematics is also used extensively in car-sharing and for auto insurance purposes.

Scope of the Report

Telematics system comprises electronic, electromechanical, and electromagnetic devices, usually silicon micro-machined components, operating in conjunction with computer-controlled devices and radio transceivers, to monitor vehicle operations and provide the functional details precisely. Majority of the telematics systems offer stolen-vehicle assistance, such as locating a vehicle using GPS. 

Moreover, by combining a GPS system with on-board diagnostics, it is possible to record and map the location of a car is, as well as its speed, to cross-reference how a car is behaving internally. Such information is predominantly used by insurance companies. Additionally, telematic devices are used to manage a vehicle fleet efficiently. The above-mentioned services offered by telematics system have been considered in the scope of the market.

The automotive telematics system market has been segmented based on service and geography.

By Service
Infotainment and Navigation
Fleet Management
Safety and Security
Diagnostics
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Rest of the World
Brazil
Saudi Arabia
Other Countries

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Key Market Trends

Safety and Security to Witness Faster Growth

Tracking stolen vehicles, automatically alerting the help centers in case of accidents, driver monitoring, and remote locking/unlocking of vehicles are the typical applications offered under the safety and security features of telematics devices.

To reduce road accidents, governments are further raising the bar for the safety evaluation of the vehicles, as well as to reduce the turnaround time for medical help to vehicle operators, in case of emergencies.

Additionally, players in the automotive industry have been consistently working to improve vehicle safety and security features, by enhancing vehicle telematics technology, to meet the growing regulation standards in the respective regions.

  • In July 2018, STMicroelectronics announced that it developed next generation, cost-effective, digit-input automotive audio amplifiers (namely FDA803D and FDA903D) for vehicle safety equipment, such as telematics and emergency e-call equipment, acoustic vehicle alerting systems (AVAS) in hybrid and electric vehicles, and also enhanced high-end infotainment systems. These devices hold certifications by ISO 26262 ASIL (Automotive Safety Integrity Level). 

The above trends toward the development of vehicle telematics and growing safety standards in the automotive industry are likely to drive the automakers to incorporate more safety and security features in their new vehicle models, as a standard. Therefore, it is expected that there will be a faster growth in the market for telematics devices used for vehicle safety and security applications, during the forecast period.

Automotive Telematics System_segment

Asia-Pacific Expected to Capture Major Market Share

Asia-Pacific is one of the fastest emerging markets, due to its growing demand for fuel-efficient vehicles, along with the navigation feature (such as GPS) as a standard option to tackle issues, like growing fuel prices, increasing number of accidents, and vehicle thefts.

India recently released its first ARAI (Automotive Research Association of India) certified AIS (Automotive Industry Standard) 140 – a compliant vehicle telematics and emergency button solution.

  • The AIS 140 regulation is in line with the Indian Ministry of Road Transport and Highways (MoRTH) 2016 dictat.
  • The implementation of AIS 140 regulation began from April 1, 2018, and it mandated a vehicle tracking device and one or more emergency buttons in all the existing and new public service vehicles.

The implementation of such regulations toward improving vehicle safety and security features, across the Asia-Pacific countries, is expected to propel faster adoption of vehicle telematics during the forecast period.

Automotive Telematics System_geography

Competitive Landscape

The global automotive telematics market is highly fragmented, due to the presence of many regional players. However, some of the major players, like Continental AG, DENSO Corporation, Ficosa International SA, Magnetic Marelli SpA, and Robert Bosch GmbH, among others, have captured significant shares in the market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Infotainment and Navigation

      2. 5.1.2 Fleet Management

      3. 5.1.3 Safety and Security

      4. 5.1.4 Diagnostics

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Rest of North America

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 Japan

        3. 5.2.3.3 India

        4. 5.2.3.4 Rest of Asia-Pacific

      4. 5.2.4 Rest of the World

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Saudi Arabia

        3. 5.2.4.3 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles

      1. 6.2.1 Continental AG

      2. 6.2.2 Robert Bosch GmbH

      3. 6.2.3 Clarion Co. Ltd (Faurecia Clarion Electronics)

      4. 6.2.4 ACTIA Group

      5. 6.2.5 Octo Telematics

      6. 6.2.6 Magnetic Marelli SpA

      7. 6.2.7 Valeo Group

      8. 6.2.8 NavInfo Co. Ltd

      9. 6.2.9 Ficosa International SA

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Automotive Telematics System Market market is studied from 2018 - 2026.

The Automotive Telematics System Market is growing at a CAGR of >5.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Ficosa International SA, ACTIA Group, Robert Bosch GmbH, Continental AG, Magnetic Marelli SpA are the major companies operating in Automotive Telematics System Market.

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