Automotive OEM Telematics Market Overview:
As per MRFR analysis, the automotive OEM telematics market size was estimated at 39.04 (USD Billion) in 2022. The automotive OEM telematics market industry is expected to grow from 41.71 (USD Billion) in 2023 to 75.79 (USD Billion) by 2032. The automotive OEM telematics market CAGR (growth rate) is expected to be around 6.86% during the forecast period (2024-2032).
Key Automotive OEM Telematics Market Trends Highlighted
Market Trends
- The automotive OEM Telematics market is experiencing significant growth, driven by increasing demand for connected cars and the proliferation of advanced driver-assistance technologies (ADAS).
- The increasing adoption of 5G technology is further fueling growth, enabling faster data transfer and improved connectivity.
- Cloud computing is also playing a crucial role, providing secure data storage and processing capabilities.
Key Market Drivers
- Rising demand for vehicle safety features and convenience services
- Government regulations mandating telematics systems for emergency response and vehicle safety
- Growing popularity of subscription-based services and over-the-air updates
- Increasing adoption of electric and autonomous vehicles
Opportunities to be Explored or Captured
- Development of innovative telematics solutions for emerging markets
- Integration of telematics with other vehicle technologies, such as infotainment systems and ADAS
- Expansion of telematics services beyond passenger cars to commercial vehicles and fleets
- Leveraging data analytics to improve customer experience and personalize services
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive OEM Telematics Market Drivers
Increasing Demand for Vehicle Connectivity and Safety Features
The growing demand for connected and autonomous vehicles is a major driver of the automotive OEM Telematics market. Telematics systems enable vehicles to communicate with each other and with the infrastructure around them, providing a range of safety and convenience features. For instance, telematics systems can be used to provide real-time traffic updates, collision warnings, and emergency assistance. As the demand for these features continues to grow, the automotive OEM Telematics market is expected to expand significantly in the coming years.
In addition to safety features, telematics systems also offer a range of convenience features, such as remote vehicle diagnostics, stolen vehicle tracking, and keyless entry. These features are becoming increasingly popular with consumers, and they are expected to continue to drive the growth of the automotive OEM Telematics market. Furthermore, government regulations in many countries are mandating the installation of telematics systems in new vehicles, which is also contributing to the growth of the market.
Overall, the increasing demand for vehicle connectivity and safety features is a key driver of the automotive OEM Telematics market. As the demand for these features continues to grow, the market is expected to expand significantly in the coming years.
Growing Adoption of Electric Vehicles
The growing adoption of electric vehicles (EVs) is another major driver of the automotive OEM Telematics market. EVs require several specialized telematics features, such as battery management and charging station location services.
As the adoption of EVs continues to grow, the demand for these telematics features is expected to increase, which will in turn drive the growth of the automotive OEM Telematics market. In addition, EVs are often equipped with a range of advanced driver assistance systems (ADAS), which rely on telematics data to function.
ADAS features such as lane departure warning, adaptive cruise control, and automatic emergency braking can help to improve safety and reduce the risk of accidents. As the adoption of ADAS features continues to grow, the demand for automotive OEM Telematics systems is expected to increase.
Expansion of the Automotive Aftermarket
The expansion of the automotive aftermarket is also contributing to the growth of the automotive OEM Telematics market. The aftermarket consists of businesses that provide products and services to vehicle owners after they have purchased their vehicles.
Telematics systems are becoming increasingly popular in the aftermarket, as they can be used to provide a range of services, such as remote diagnostics, stolen vehicle tracking, and usage-based insurance. As the aftermarket continues to expand, the demand for automotive OEM Telematics systems is expected to increase.
Automotive OEM Telematics Market Segment Insights:
Automotive OEM Telematics Market Vehicle Type Insights
The global automotive OEM telematics market segmentation by vehicle type includes passenger cars, commercial vehicles, construction equipment, and agricultural equipment. The passenger cars segment held the largest market share in 2023, and it is expected to continue its dominance during the forecast period. The growing popularity of connected cars and the increasing adoption of advanced driver assistance systems (ADAS) are driving the growth of this segment.
The commercial vehicles segment is also expected to witness significant growth, owing to the increasing demand for fleet management solutions and the need for improved safety and efficiency in the transportation industry.
The construction equipment segment is expected to grow steadily, driven by the increasing adoption of telematics solutions to improve productivity and safety on construction sites. The agricultural equipment segment is also expected to witness moderate growth, as farmers increasingly adopt telematics solutions to optimize their operations and improve yields.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive OEM Telematics Market Connection Type Insights
Embedded telematics, tethered telematics, and smartphone-based telematics are the three main types of connection types in the market. Embedded telematics is anticipated to hold the greatest market share in 2023, with a revenue of USD 19.61 billion.
Smartphone-based telematics is predicted to experience the highest growth rate of 9.2% between 2024 and 2032, with a projected revenue of USD 12.34 billion by 2032. Tethered telematics accounted for most of the revenue in 2023 at USD 19.78 billion, while it is expected to decline to USD 15.47 billion by 2032, representing a CAGR of -2.7%. This decline is primarily due to the increasing popularity of embedded and smartphone-based telematics systems.
Automotive OEM Telematics Market Functionality Insights
The functionality segment plays a crucial role in the global automotive OEM telematics market, driving market growth and shaping industry dynamics. Remote Diagnostics and Repair remains a key driver, enabling real-time vehicle diagnostics and repairs, reducing downtime and improving efficiency.
Vehicle tracking and monitoring systems enhance fleet management, optimize logistics, and ensure vehicle security. Stolen Vehicle Recovery solutions have gained prominence, leveraging GPS tracking and advanced technologies to locate and recover stolen vehicles.
Advanced driver assistance systems (ADAS) enhance safety and reduce accidents, featuring lane departure warnings, adaptive cruise control, and blind-spot monitoring. Infotainment and Connectivity services offer entertainment, navigation, and communication features, enhancing the driving experience and fostering passenger engagement.
Automotive OEM Telematics Market Data Source Insights
The automotive OEM telematics market is segmented by data source into on-board diagnostics (OBD) ports, sensors, camera and radar systems, and internet of things (IoT) devices. OBD ports are expected to account for the largest revenue share in 2023, due to their widespread adoption as a standard feature in vehicles.
Sensors are expected to witness the highest growth rate over the forecast period, owing to the increasing demand for advanced driver assistance systems (ADAS) and autonomous driving technologies. Camera and radar systems are also expected to witness significant growth, as they are becoming essential for autonomous driving and other safety features.
IoT devices are expected to play a growing role in the market, as they enable vehicles to connect with the internet and other devices, allowing for remote diagnostics, over-the-air updates, and other services. The increasing adoption of IoT devices is driven by the growing demand for connected cars and the need to improve vehicle safety and efficiency.
Automotive OEM Telematics Market Deployment Model Insights
The global automotive OEM telematics market is segmented based on deployment model into OEM-installed, aftermarket-installed, and cloud-based. OEM-installed telematics systems are integrated into vehicles during manufacturing and are typically offered as standard or optional features.
Aftermarket-installed telematics systems are installed in vehicles after they have been manufactured and are typically purchased and installed by consumers or businesses. Cloud-based telematics systems are hosted on remote servers and can be accessed by users through a variety of devices, including smartphones, tablets, and laptops.
The OEM-installed segment is expected to account for the largest share of the Global Automotive OEM Telematics Market in 2023, owing to the increasing adoption of telematics systems by automakers as standard features in new vehicles.
The aftermarket-installed segment is expected to grow at a faster rate than the OEM-installed segment over the forecast period, due to the growing popularity of aftermarket telematics systems among consumers and businesses. The cloud-based segment is expected to grow at a significant rate over the forecast period, due to the increasing adoption of cloud-based services in the automotive industry.
Automotive OEM Telematics Market Regional Insights
The regional segmentation of the global automotive OEM telematics market presents diverse market dynamics and growth opportunities. North America, with its established automotive industry and high adoption of advanced technologies, is projected to maintain its dominance in the global market, accounting for a significant revenue share in 2023.
Europe, driven by stringent emission regulations and increasing demand for connected vehicles, is expected to witness steady growth, followed by the Asia-Pacific region. Emerging markets such as South America and the Middle East and Africa (MEA) offer promising opportunities for market expansion due to rising vehicle production and growing consumer demand for in-vehicle connectivity.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive OEM Telematics Market Key Players and Competitive Insights:
Major players in the automotive OEM telematics market are constantly developing new technologies and features to stay ahead of the competition. Some of the key strategies used by these players include focusing on research and development, expanding their product portfolio, and forming partnerships with other companies.
Leading players also emphasize customer service and support to build customer loyalty and satisfaction. The Automotive OEM Telematics Market Competitive Landscape is highly fragmented with many players operating in both regional and global markets. This fragmentation makes it challenging for smaller players to compete with larger, more established companies. However, the increasing demand for connected cars and the growing adoption of telematics services are expected to provide ample growth opportunities for all players in the Automotive OEM Telematics Market.
One of the leading companies in the market is Continental AG. The company offers a wide range of telematics solutions including telematics control units, connectivity modules, and software applications. Continental AG has a strong presence in both Europe and Asia and is expanding its reach into other regions.
The company has formed partnerships with several major automakers including BMW, Mercedes-Benz, and Volkswagen. Continental AG is focused on developing new technologies and features to stay ahead of the competition and maintain its position as a leading player in the Automotive OEM Telematics Market.
Another major player is Harman International Industries. The company offers a comprehensive suite of telematics solutions including infotainment systems, navigation systems, and remote diagnostics. Harman International Industries has a strong presence in North America and Europe and is expanding its reach into other regions.
The company has formed partnerships with several major automakers including Ford, General Motors, and Toyota. Harman International Industries is focused on developing new technologies and features to stay ahead of the competition and maintain its position as a leading player in the Automotive OEM Telematics Market.
Key Companies in the Automotive OEM Telematics Market Include:
- Harman International
- Robert Bosch GmbH
- Denso Corporation
- Samsung Electronics Co
- TomTom International BV
- Visteon Corporation
- Continental AG
- Fujitsu Limited
- Hyundai Mobis
- Mitsubishi Electric Corporation
- Nokia Corporation
- Panasonic Corporation
- Delphi Technologies
- Aptiv Plc
- Qualcomm Technologies Inc.
Automotive OEM Telematics Market Developments
The global automotive OEM telematics market is poised to witness significant growth over the forecast period, driven by increasing demand for connected vehicles, advancements in telematics technology, and growing adoption of autonomous driving systems.
The market is expected to reach a valuation of USD 41.71 billion by 2023, expanding at a CAGR of 6.86% from 2024 to 2032. Key trends shaping the market include the proliferation of 5G networks, the rise of cloud-based telematics solutions, and the integration of artificial intelligence (AI) and machine learning (ML) technologies.
Government regulations mandating the adoption of telematics systems in commercial vehicles are further propelling market growth. Recent developments include the launch of new telematics platforms by major automotive OEMs, strategic partnerships between telematics providers and technology companies, and the emergence of new use cases such as predictive maintenance and remote diagnostics.
Automotive OEM Telematics Market Segmentation Insights
Automotive OEM Telematics Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Construction Equipment
- Agricultural Equipment
Automotive OEM Telematics Market Connection Type Outlook
- Embedded Telematics
- Tethered Telematics
- Smartphone-based Telematics
Automotive OEM Telematics Market Functionality Outlook
- Remote Diagnostics and Repair
- Vehicle Tracking and Monitoring
- Stolen Vehicle Recovery
- Advanced Driver Assistance Systems (ADAS)
- Infotainment and Connectivity
Automotive OEM Telematics Market Data Source Outlook
- On-board Diagnostics (OBD) Ports
- Sensors
- Camera and Radar Systems
- Internet of Things (IoT) Devices
Automotive OEM Telematics Market Deployment Model Outlook
- OEM-installed
- Aftermarket-installed
- Cloud-based
Automotive OEM Telematics Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
39.04 (USD Billion) |
| Market Size 2023 |
41.71 (USD Billion) |
| Market Size 2032 |
75.79 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.86% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Harman International, Robert Bosch GmbH, Denso Corporation, Samsung Electronics Co, TomTom International BV, Visteon Corporation, Continental AG, Fujitsu Limited, Hyundai Mobis, Mitsubishi Electric Corporation, Nokia Corporation, Panasonic Corporation, Delphi Technologies, Aptiv Plc, Qualcomm Technologies Inc. |
| Segments Covered |
Vehicle Type, Connection Type, Functionality, Data Source, Deployment Model, Region |
| Key Market Opportunities |
1.     Increased connectivity 2.     Autonomous driving 3.     Predictive maintenance 4.     Fleet management 5.     Personalized driving experiences |
| Key Market Dynamics |
1.     Increased vehicle connectivity 2.     Growing demand for safety and security features 3.     Rise of electric vehicles 4.     Technological advancements in infotainment systems 5.     Expansion of shared mobility services |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global automotive OEM telematics market was valued at USD 41.71 billion in 2023 and is projected to reach USD 75.79 billion by 2032, exhibiting a CAGR of 6.86%.
Asia Pacific is expected to dominate the market, accounting for the largest share during the forecast period.
Increasing demand for connected vehicles, growing adoption of advanced driver assistance systems (ADAS), and government regulations are the key growth drivers of the market.
Major applications of automotive OEM telematics include infotainment, navigation, safety and security, remote diagnostics, and fleet management.
Major players in the market include Continental AG, Robert Bosch GmbH, Harman International, Denso Corporation, and Qualcomm Technologies.
The global automotive OEM telematics market is projected to grow at a CAGR of 6.86% from 2024 to 2032.
The global automotive OEM telematics market is projected to reach USD 75.79 billion by 2032.
2023 is the base year considered for the global automotive OEM telematics market forecast.
