Telematics Market Trends

Market Overview:

The Telematics Market industry is projected to grow from USD 42.6 Billion in 2023 to USD 133.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.5% during the forecast period (2023 - 2032).

The telematics market is the integrated use of telecommunications and informatics for sending, receiving and storing information to control remote objects. With the global use of advanced technology, the telematics market had widened its horizon to vehicle technologies, electrical engineering, computer science, and many more. The telematics market is largely driven by Wireless Connectivity in automobiles, the industrial sector, and many others. Due to the various initiatives taken by the government for on-road public safety, the growth of the telematics market has increased many folds. Because of the changing market scenario, many crucial businesses are changing, their business strategy and starting to dealing cost-effectively.

Now the companies are keeping a keen insight on product development, acquisition, and mergers. Many big giants are investigating a lot of capital in the research and development of innovative telematics solutions.

COVID 19 Analysis

The global pandemic of COVID 19 has badly impacted the lives of the people. It not only affected the health sector but also crushed the economic sector. Due to the downfall of the businesses economies have shifted towards forced recession across the globe. The shutdown of various manufacturing sectors and lack of labor had affected the telematics solutions market badly. It is expected that the companies will recover during the end of the first quarter and starting of the first quarter in the coming year.

To get out of this deep loss spiral, businesses have to strategize accordingly. They have to see what are their opportunities in the global market, and what can be the expected threat which is very much done by the telematics solutions market. They have analyzed their potential customers and planned their business strategies accordingly.

Market Dynamics:

Drivers

The increasing growth of the telematics solution market is possible because of the emerging advancement in digital technology. The telematics solutions market has made possible communication between humans and machines and they are expected to grow further during the forecasted period. Artificial Intelligence which is the root cause in transportation, automation, construction, and industrial applications is one of the fastest-growing technology.

Opportunities

Telematics solutions are evolving in themselves and covering all the broader areas such as infrastructure, automotive, road, and health, and much more behavior the telematics market Industry is at the boom. It is also increasing its logistics and transport sector because of the growing demand shortly. It is expected to grow with a high CAGR of 20% soon which has many opportunities in the global market.

Threats

Telematics solutions with various opportunities in the global market also come with many threats and restraints. The most prominent restraint is the high initial cost and the high maintenance cost of the telematics market products. Since telematics solutions is a concept based on technology, it attracts various cyber-attacks. Hence businesses should take proper cybersecurity-related measures.

Value Chain Analysis

The telematics solution is the new technology trend. With the help of the telematics solutions market, accidents have reduced many times as it reports speeding and aggressive braking. It helps in improving the performance categorize drivers and their behaviour included. It ensures road safety for the fleet of vehicles. The new trend of telematics solutions also helps in in-cab coaching device that gives instant feedback regarding driving skills.

The telematics solutions market has shown a new way in the world of driving. Because of the increasing standards of telematics solutions, now businesses are spending a lot in research and development for the production of new products and to improve the existing products. So that they can make good quality cost-effective products to increase their profit margins.

Telematics Market Segment Insights:

By Technology

the telematics market is bifurcated into embedded, portable, and hybrid. Embedded telematics solutions are witnessing the most significant growth opportunities. Embedded telematics solutions are integrated into vehicle electronics, eliminating the need for separate hardware installations. This reduces the cost of deployment and maintenance, making them more attractive to both vehicle manufacturers and consumers.

By Service

the telematics market is bifurcated into navigation, diagnostics, on-demand infotainment, maintenance & security. Navigation dominates the market; other services are also growing in popularity. Diagnostics is gaining traction as vehicle manufacturers and fleet managers seek to proactively identify and address potential vehicle issues. On-demand infotainment is also becoming more popular as consumers demand more personalized and connected entertainment experiences in their vehicles. Maintenance & security services are also gaining traction as telematics devices can be used to monitor vehicle health, track stolen vehicles, and provide remote assistance in case of emergencies.

By Application

the telematics market is categorized into commercial, automotive, IT and telecommunication, healthcare, and government. Commercial telematics holds a prominent position. Automotive telematics is gaining traction, fueled by consumer demand for connected vehicle experiences and customized insurance solutions. IT and telecommunication companies are leveraging telematics to optimize network performance and streamline field operations. Healthcare providers are increasingly embracing telematics for tasks such as remote patient monitoring and tracking medical equipment. Also, governments are integrating telematics to enhance traffic management, bolster public safety, and monitor environmental conditions.

By Region

Asia-Pacific is ruling the market. The market is fiercely competitive, with a few major players dominating the majority of the market share. Manufacturers are intensifying efforts to enhance the relevance of their products, emphasizing innovation to gain a competitive edge. China is anticipated to be the most lucrative market in the region, followed by Japan and India, due to the increasing popularity of electric vehicles and autonomous vehicular technologies.

The automotive industry is experiencing a surge in electronic safety aids, such as Advanced Driver Assistance Systems (ADAS) and Mobility-as-a-Service (MaaS) providers, fueling the demand for telematics. The global automotive landscape is being shaped by the concepts of CASE (Connected, Autonomous, Electric, and Sharing) cars, necessitating high-speed data transmission, analysis, and cloud-based implementation.

China's evolving regulations for autonomous driving, including the requirement for devices similar to aircraft black boxes in connected cars, reflect the country's commitment to shaping the industry. China's dominance in global automotive microcontrollers and microprocessors gives it a strategic advantage in manufacturing telematics control units (TCUs). The country's substantial investment in the 5G infrastructure market further supports the local production of 5G TCUs, serving as a recovery measure from the COVID-19 outbreak.

Regional Analysis:

The global telematics research market is dominated by North America due to its high adoption of technology in recent years. Among all the countries in North America, the United States holds the major share for its growth mainly in commercial telematics. Not only this, high demand for a premium car with great comfort and advanced safety features has driven high growth in the global telematics research market.

Europe region is giving tough competition to North America and hence gets the second position globally. Europe region is leading due to the advancement in the automobile industry.  As the Asia-Pacific region is the fastest-growing region in all the perspectives, it holds the third position in the global market share of the telematics research market. This is also because of the increase in initiatives taken by the government.

Competitive Landscape:

There are many giant key players in the telematics research market across the globe. Some of these giants are mentioned below:

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  Verizon Communication Inc. (U.S.)

  
  


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  HARMAN International Industries Inc. (U.S.)

  
  


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  Tom-Tom International BV (Netherlands)

  
  


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  AT&T (U.S.)

  
  


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  Vodafone Group Plc. (U.K)

  
  


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  Ford Motor Company (U.S.)

  
  


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  BMW Group (Germany)

  
  


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  Telefonica SA (Spain)

  
  


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  Mix Telematics (South Africa)

  
  


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  Trimble Navigation Ltd. (U.S.)

  
  


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  Tantalum Corporation (U.K.)

  
  


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  NXP Semiconductors (Netherlands)

  
  


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  Calamp Corp. (U.S.)

  
  


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  ORBCOMM Inc. (U.S.)

  
  

Recent Developments:

For instance, Minda Corporation, the leading firm of the Spark Minda group, entered into a technology license agreement with LocoNav in November 2022 to white-label telematics software. Through this partnership, Spark Minda will incorporate LocoNav’s software for their own telematic devices to provide OEMs with an integrated solution.

MiX Telematics announced it has teamed up with Hino data services partner network leveraging on Hino Trucks’ Edge in August 2022. This collaboration is aimed at making it possible for MiX customers in North America who operate Hino trucks to access their Hino truck data so as to help them manage their vehicles and fleets.

March 2022 – Geotab and Stallantis subsidiary Free2move joined hands to bring about smart telematic services. For this reason, Geotab plans to create a unified MyGeotab platform, bringing together Geotabs servers and Free2moves servers that will offer uninterrupted service. The forum would be introduced among Stallantis' eligible car brands in North America, like Ram, Dodge, Jeep, and Chrysler.

For example, in July 2022, Edelweiss General Insurance unveiled Switch under the IRDAI Sandbox initiative, which is an on-demand full-coverage vehicle insurance product. The switch is a fully digital mobile telematics-based auto insurance policy that detects motion and automatically activates coverage when the vehicle moves.

In March 2022 Phillips Connect released some statements regarding the use of smarter trailers by fleets and drivers. These include new intelligent nose box gateways, backup cameras, and the Utility Connect trailer telematics system launched by Utility, showcasing its potential market growth.

In February 2002 LG was awarded a contract by a classified Premium European finished car manufacturer for connected car telemetry implementation. According to this agreement, LG will focus on delivering vehicle-to-everything (V2X) systems-compliant hardware/software that can be integrated into advanced 5G networks. LG will also offer Dual Sim Dual Active (DSDA) technology for connected cars and autonomous driving features, taking its steps forward into the Society of Autonomous Engineers (SEA's) Level 4 Autonomous driving technology sometime soon in the future.

Report Overview:

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  Telematics market research report consists of the following:

  
  


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  Market overview

  
  


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  COVID 19 Analysis

  
  


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  Market Dynamics of Telematics market

  
  


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  Value Chain Analysis

  
  


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  Market Segmentation of Telematics market

  
  


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  Regional Analysis

  
  


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  Competitive Landscape

  
  

This report tells about the various growth opportunities available in the global market for the telematics solution market. This also captures the ill effects of the global pandemic of COVID 19 on the overall life of businesses. This report also covers various functions of the telematics solutions in the past. The estimation of future growth of the telematics solution market in the coming years is forecasted and mentioned.

Technology

Application programming interface, yard navigation, social media integration, direct connections with customers, photo reporting, video, OEM/Factory-Fit, improved prognostics for vehicle maintenance, cloud enablement.

Uses

Telematics solution market is used by smart components manufacturers, government agencies, electronic components manufacturers, value-added resellers, auto parts sellers, research firms, automation, and control networking technologies vendors, component manufacturers (sensors and controls), and many others.