Automotive Telematics System Market Size

Automotive Telematics Market Analysis

The Automotive Telematics System Market size is estimated at USD 28.44 billion in 2024, and is expected to reach USD 38.22 billion by 2029, growing at a CAGR of greater than 15.30% during the forecast period (2024-2029).

• The 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 precisely provide functional details. Most telematics systems offer stolen-vehicle assistance, such as locating a vehicle using a global positioning system (GPS).
• Moreover, by combining GPS with onboard diagnostics, it is possible to record and map the location of a car and its speed to cross-reference how a car is behaving internally. Insurance companies predominantly use such information. Additionally, telematics devices are used to manage a vehicle fleet efficiently. The services mentioned above offered by the telematics system have been considered in the scope of the market.
• Over the long term, The use of automotive telematics in electric vehicles (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 introducing EVs into the market.
• Equipping new vehicles with e-Call, as a mandate from the European Commission, has also helped expand the European telematics market. The region is also home to several automotive telematics hardware suppliers in 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 enhances car safety and road safety. The electronic sub-system in a car is used to exchange 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 auto insurance purposes.
• The Asia-Pacific region is the largest market for automobiles in the world. Despite the Chinese market experiencing sluggish growth, which is the largest automobile market in the world, the region is expected to lead in the automotive telematics system market.