Advancements in Technology Driving the Automotive Telematics Market

Global Automotive Telematics Market

Rising Demand for Advanced Tracking & Navigation Solutions Drives Market Growth

The Automotive Telematics market is garnering significant traction. Surging demand for commercial vehicles integrated with telematics assistant systems drives the market growth. Telematics solutions have a significant impact on the transportation and logistics industry, supporting higher productivity via an easy-to-use web-based interface. 

The rising demand for telematics displaying essential details & maintenance alerts, and vehicle health diagnosis drives the market growth. Besides, the rising uptake of Automotive Telematics and the growing awareness for vehicle safety boosts the market size, helping fleet managers to plan more effectively and maximize vehicle utilization.

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With the penetration of the internet and digitization across the automotive industry, the market is projected to reach significant heights. In this regard, Market Research Future (MRFR) states that the global Automotive Telematics market is poised to reach a substantial revenue growth by 2030, growing at a phenomenal CAGR during the assessment period (2022 – 2030).

Telematics, the Convergence of Telecommunications and Informatics

Telematics offers remote communication and information processing, combining telecommunications and informatics.With the rising uses of the internet and communication technologies, telematics has gained significant prominence. Today, telematics has become critically important to successful fleet operations. The Automotive Telematics market is estimated to witness tremendous demand in the next few years due to the emergence of driverless or autonomous cars. 

Lack of Awareness for Telematics Obstruct the Market Growth

The lack of awareness for vehicle telematics advantages is a major factor impeding market growth. Many automakers have started integrating telematics solutions in entry-level vehicles to broaden their customer base. This would support the market growth during the review period, demonstrating significant growth opportunities. 

COVID- 19 Impacts on the Market

The recent COVID-19 pandemic affected the Automotive Telematics industry severely. Pandemic-led logistics problems posed major challenges, such as obtaining raw components and attracting workforces from quarantine required to develop telematics systems and delivering end products to the market.

However, the market is gradually picking up and is expected to grow exponentially further in 2021 and beyond. Also, the market is projected to witness many innovative product launches during the years to come. 


The market is segmented into system types, vehicle types, applications, distribution channels, and regions. The type segment is sub-segmented into embedded, integrated, and tethered. The system segment is sub-segmented into driving assistance systems, telematics control units, global positioning systems (GPS), vehicle tracking systems, vehicular emergency warning systems, and others.

The vehicle type segment is sub-segmented into lightweight commercial vehicles (LCV), heavy commercial vehicles (HCV), passenger cars, and others. The application segment is sub-segmented into vehicle tracking, fleet management, satellite navigation, vehicle safety communication, and others. The distribution channel segment is sub-segmented into OEM and aftermarket. The region segment is sub-segmented into Asia Pacific, Americas, Europe, and rest-of-the-world.

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Regional Analysis

North America accounts for the dominating region in terms of Automotive Telematics market share. Increased sales of vehicles integrated with advanced telematics, the strong presence of major telematics providers in this region, and high spending on systems are major trends driving the Automotive Telematics market growth. 

Also, the presence of leading OEM players and growing transportation & logistics industries push the region’s Automotive Telematics market size. Increasing awareness about driver safety & fleet management, government regulations to improve road safety and the proliferation of 5G & LTE technology and smartphones substantiate the region’s Automotive Telematics market value.

Competitive Analysis:

Highly competitive, the Automotive Telematics market appears fragmented due to the presence of several well-established players. These players incorporate strategic approaches such as mergers & acquisitions, collaborations, expansion, and technology/product launches to gain a larger competitive share. 

For instance, on Aug.17, 2021, Road Ready, an advanced telematics & smart fleet technology company, launched a new 5G Ready telematics system for commercial transportation. As the industry transitions to 5G, fleets equipped with 5G Ready systems would be able to operate their systems continuously without worrying about downtime caused by the next network upgrade. 

The new 5G Ready system is optimized for advanced networks and designed to operate on 5G networks, eliminating the risk of service disruption when the current 4G network is phased out in the years to come.

Players leading the market are Trimble, Inc. (US), TomTom International BV ( Netherlands), Masternaut Limited (France), Telogis (US), Continental AG (Germany), Visteon Corporation (US), Airbiquity, Inc. (US), Delphi Automotive PLC (UK), AT&T Inc. (US), Robert Bosch GmbH (Germany), Harman International Industries, Inc. (US), Trimble Inc. (US), and Verizon Communications, Inc. (US), among others.

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