NEW YORK, April 12, 2022 /PRNewswire/ -- The automotive telematics market is estimated a grow by 65.76 mn units from 2019 to 2024. In addition, the report projects that the market will decelerate at a CAGR of 16% during the forecast period.
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Automotive Telematics Market: Driver and Challenge
The growing popularity of EVs is driving the growth of the automotive telematics market. Government bodies across the world are taking initiatives to promote the adoption of electric vehicles (EVs). These types of vehicles reduce air pollution significantly, as they do not emit harmful pollutants such as particulates, carbon monoxide, hydrocarbons, and volatile organic compounds. Many international and regional players are focusing on the development of EVs, which is driving their adoption. In addition, governments provide various benefits and rewards. For example, in China, firms that are engaged in the manufacturing of EVs can claim subsidies from the government. International companies that have their EV manufacturing units in the country also have the right to claim subsidies and benefits provided by the government. These factors significantly increase the adoption of EVs. Other emerging economies such as India are also adopting the incentives route to gain traction in the EVs adoption and are targeting EVs adoption.
The high cost associated with telematics services will challenge the automotive telematics market during the forecast period. Initial costs when setting up telematics include license, setup, and installation fee, along with the payment for customization and integration with current systems. The license fee needs to be renewed periodically, which adds to the overall cost. In addition, integration or customization can be more expensive than the price of telematics devices and license fees. Hidden costs can also pose a challenge to the growth of the market. Companies also charge in situations involving vehicle replacement and end-contractual equipment termination. The high cost of automobile-embedded telematics makes it challenging for automotive manufacturers to keep their product prices low. As customers are looking for products that give them high value for money, it has become difficult for manufacturers to shift the pricing pressure onto their customers.
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Automotive Telematics Market: Segmentation Analysis
By application, the market has been segmented into commercial vehicles and passenger cars. The commercial vehicles segment will have significant market share growth during the forecast period. With the incorporation of intelligent vehicle systems, this segment has been witnessing rapid technological advances. The growing demand for better fuel efficiency and safety is driving the adoption of telematics in the CVs segment.
By type, the market has been segmented into embedded, smartphone integration, and tethered. The embedded segment dominated the global automotive telematics market in 2019. The segment is expected to increase its share further by 2024, owing to the increase in offerings from automotive OEMs.
By geography, the market has been segmented into APAC, Europe, MEA, North America, and South America. APAC will have the highest market share growth during the forecast period.
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Automotive Telematics Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2019 |
Forecast period |
2020-2024 |
Growth momentum & CAGR |
Decelerate at a CAGR of 16% |
Market growth 2020-2024 |
65.76 mn units |
Market structure |
Fragmented |
YoY growth (%) |
18.35 |
Regional analysis |
APAC, Europe, MEA, North America, and South America |
Performing market contribution |
APAC at 40% |
Key consumer countries |
blank |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Agero Inc., Airbiquity Inc., Continental AG, LG Electronics Inc., Panasonic Corp., Robert Bosch GmbH, TomTom International BV, Trimble Inc., Verizon Communications Inc., and and Visteon Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of Contents
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Application
Market Segmentation by Type
Customer landscape
Geographic Landscape
Drivers, Challenges, and Trends
Vendor Landscape
Vendors covered
Appendix
About Technavio
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SOURCE Technavio
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