Global Automotive Telematics Market Report (2022 to 2027) - Government Mandates on Connected Cars and Telematics Services Presents Opportunities - ResearchAndMarkets.com

The "Automotive Telematics Market by Service (ACN, eCall, RSA, Remote Diagnostics, Insurance Risk Assessment, Driver Behavior, Billing), Form & Vehicle Type, Component, Connectivity, Aftermarket, Fleet Management Service, Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The automotive telematics market is projected to reach USD 15.5 billion by 2027 from an estimated USD 8.8 billion in 2022 at a CAGR of 12.1% during the forecast period.

The passenger Car Segment is expected to remain the largest segment by vehicle type.

The passenger Car market is expected to grow due to an increase in demand and mandates for safety and convenience telematics services. The North America and European region are developed nations with high incomes and greater technology adoption rates which increases the demand for telematics services and connectivity solutions.

Infrastructure in these regions are a major reason that attract the global OEMs to test and develop more telematics services for autonomous. Increasing demand for autonomous cars in developed countries is making the OEMs introduce advanced telematics systems and solutions which is expected to boost the market of passenger car market.

The passenger Car segment is expected to remain the largest segment by Aftermarket.

The demand for substantial car telematics services for passenger cars in the aftermarket is expected to grow due to technological advancement, launches of various connected services aftermarket platforms and rolling out of safety and insurance mandates. For instance, in 2017, HARMAN announced an Aftermarket Connected Automotive Platform that can support connected applications and transform any existing vehicle with telematics capabilities. The new solution is available to automotive OEMs, dealers, specialty automotive retailers, and mobile carriers.

Aftermarket fills the technological gap, offering the ability to upgrade the connectivity of vehicles to intelligent safety systems that rely on real-time data, with the connected head units that integrate smartphones with vehicle entertainment systems, to keep the drivers safe.

As connected car are equipped with telematics units, the growing penetration of connectivity in cars is expected to drive the telematics market. Services such as fleet management, on-road assistance, navigation and driver behavior are experiencing higher adoption in passenger cars as they prove beneficial to fleet owners with real-time data.

The Asia-Pacific is expected to register the fastest growth during the forecast period.

The Asia-Pacific automotive telematics market is estimated to be the fastest-growing. In the Asia-Pacific region, the telematics services such as on-road assistance system is expected to have the largest market share and insurance risk assessment service is expected to see the fastest growth in the Asia-Pacific region.

The insurance risk assessment will see larger growth due to increasing government mandates, in countries like India which has recently introduced such mandates. Factors such as the development of advanced communication devices, penetration of advanced ADAS features and government mandates are expected to drive the penetration of telematics in vehicles in Asia pacific.

For instance, Japan is one of the first countries to invent and implement most ADAS in cars. Japanese automotive companies are continuously developing advanced electronics/devices for telematics and vehicle connectivity technologies.

For instance, in 2021, Suzuki Motor Corporation (Suzuki), Subaru Corporation (Subaru), Daihatsu Motor Co. Ltd. (Daihatsu), Toyota Motor Corporation (Toyota), and Mazda Motor Corporation (Mazda) reached an agreement to jointly develop technical specifications for next-generation vehicle communications devices.

Such developments are expected to drive advancements in telematics systems. Various projects related to the development of 5G infrastructure in countries such as China, Japan, and South Korea is going to be major factor for the telematics industry in the Asia Pacific. Considering the above-mentioned factors and scenarios, it can be said that the Asia Pacific will be a major market for the automotive telematics industry in the coming years.

Market Dynamics

Drivers

• Growth in Entertainment, Safety & Security, and Navigation Services
• Rising Demand for Raw Diagnostic Data for Interpretation & Analysis to Improve Vehicle Performance
• Increasing Adoption of Connected Car Services

Restraints

• Lack of Standardization
• Lack of Seamless Connectivity

Opportunities

• Potential of 5G and AI
• Government Mandates on Connected Cars and Telematics Services

Challenges

• Cybersecurity

Companies Mentioned

• Actsoft Inc.
• Additional Companies/Players
• Airbiquity Inc.
• Airiq Inc.
• Aptiv plc
• Astrata Europe Bv
• At&T Inc.
• Box Telematics Limited
• Calamp Corp.
• Continental Ag
• Garmin, Ltd.
• Harman International Corporation
• Intel Corporation
• LG Electronics
• Magneti Marelli Ck Holdings Co., Ltd.
• Masternaut Ltd.
• Mix Telematics
• Octo Telematics
• Panasonic Corporation
• Qualcomm Technologies Inc.
• Robert Bosch GmbH
• Teletrac Navman Us Ltd.
• The Descartes Systems Group Inc.
• Trimble Inc.
• Verizon
• Visteon Corporation
• Webfleet Solutions

For more information about this report visit https://www.researchandmarkets.com/r/xfnej9

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