The telematics solutions market is projected to reach USD 62.6 billion by 2025 from an estimated USD 29.9 billion in 2020, at a CAGR of 15.9%
NEW YORK, April 15, 2020 /PRNewswire/ -- Increase in demand for safety services and connectivity solutions in vehicles is the significant factor for the telematics solutions market growth globally.
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The telematics solutions market is projected to reach USD 62.6 billion by 2025 from an estimated USD 29.9 billion in 2020, at a CAGR of 15.9% during the forecast period. All the car makers such as Ford, BMW, Audi, Volvo, Hyundai, Toyota, and others are offering some kind of telematics services in their vehicles. Considering the activities from the supply side, the market is expected to demonstrate promising growth over the forecast period.
One of the major trends witnessed in the telematics solutions market is the increasing number of collaborations and partnerships among different systems providers, OEMs, telematics service providers, and other stakeholders. For instance, in December 2019, Avis Budget Group Inc. entered into a partnership with Verizon Communications Inc. to launch an all-in-one digital travel assistant exclusively for customers of Avis Budget Group Inc. and Payless Car Rental Inc., using Verizon's nationwide 4G LTE network. Increasing demand for improved safety features in vehicles and more efficient road traffic is the primary reason driving the growth of the telematics solutions market.
Passenger Car Segment is expected to remain the largest segment by vehicle type.
Passenger Car market is mainly driving because of an increase in demand for safety and convenience telematics services.The US, Canada and most of the European are economically stable and have a high standard of living and disposable income which leads to the demand for high-end telematics services and connectivity solutions.
Infrastructure availability in such countries attract the global OEMs and Tier 1 to test and develop more telematics services for autonomous cars also supportive government policies help them to test vehicle on the road.As people have high standards of living and disposable income in these countries, they would like to spend more on safety and comfort features.
The demand for self-driving cars in developed countries, making the OEMs introduce advanced telematics technologies and services which is expected to increase the market of passenger car market.
HCV segment is expected to remain the largest segment by Aftermarket
The demand for substantial commercial vehicle telematics services in the aftermarket is expected to continue its increase in the near future due to technological advancement and an increase in demand for fleet management services in trucks and buses.The large fleet owners are majorly using fleet management services for commercial vehicles and they prefer those services from the third party instead of OEMs as it is more convenient way for them to avail services as per their needs.
Fleet amangement services help fleet owners to cut down their cost of business by increasing fuel efficiency and decreasing break down of vehicles.Moreoevr, legislation for road safety, security, and tracking of vehicles globally is expected to propel the market demand in the forecast period.
For example, in April 2018, the Government of India passed a regulation stating that all commercial vehicles meant for public transport with seating capacity over six should have GPS tracking devices installed in them.
The North America market is expected to register the fastest growth after the Asia Pacific during the forecast period.
The North America telematics solutions market is estimated to be the fastest-growing OE market after Asia-Pacific.In North America, the telematics services such as advance diagnostic system would boost the telematics market.
In advanced diagnostics, an inbuilt mechanism relays real-time messages to the driver and the automobile dealer in case of any issues that are likely to affect the vehicle, which will help predict potential automobile issues before they take place.Moreover, an increase in demand for Insurance risk assessment, driver behavior and fleet management services for commercial vehcicle is one of the important drivers for the telematics market in North America.
For instance, in North America, nearly every vehicle insurance company is either using or plans to use some sort of telematics solution, as it enables the insurance companies to minimize risk through monitoring of different aspects such as maintenance, usage & security etc.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
• By Company Type: Telematics Service Provider- 30%, Telematics Hardware Providers - 30%, and OEM - 40%
• By Designation: C Level - 20%, D Level - 30%, and Others - 50%
• By Region: North America - 30%, Europe - 50%, and the Asia Pacific - 15%, Rest of the World – 5%
The telematics solutions market comprises major manufacturers such as Robert Bosch GmbH (Germany), AT&T INC. (US), Continental AG (Germany), LG Electronics (South Korea), and Verizon (US) among others.
Research Coverage:
The study segments the telematics solutions market and forecasts the market size based on Services [automatic crash notification, emergency calling, navigation & infotainment, on-road assistance, remote diagnostics, fleet management, insurance risk assessment, driver behavior billing services, and others], By Form Factor [embedded, tethered and integrated], Components [telematics control unit, a navigation system, communication devices, audio/video interfaced and CAN bus}, Vehicle Type [passenger Car, LCV, bus and truck), Connectivity [satellite and cellular], By Aftermarket [passenger car aftermarket, LCV aftermarket, bus aftermarket and truck aftermarket], Fleet Management Service [consulting, implementation and maintenance], Region [Asia Pacific, Europe, North America, and RoW]. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall telematics solutions market and the sub-segments.This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
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