The global automotive embedded telematics market size was USD 8.73 billion in 2017. It is anticipated to expand at a CAGR of 20.9% over the forecast period. Rising integration of wireless communication with automotive, the need for fleet management, and the extensive adoption of advanced driver assistance systems are expected to fuel the market growth. The installation of these systems in passenger and commercial vehicles is expected to reduce road accidents and offer a greater level of passenger security.
Stringent government policies pertaining to the installation of vehicle safety systems are anticipated to play a noticeable role in driving the market growth. The rising emphasis laid on research and development initiatives and safety rating upgrades are also contributing to the market expansion.
An increase in sales of passenger vehicles, Sports Utility Vehicles (SUVs), and high-end luxury vehicles is expected to be a significant growth driver for the automotive embedded telematics market. The automobile manufacturers are integrating these systems with a view to enhance vehicle safety and security. For instance, Toyota launched the Toyota Safety Connect and Toyota Fleet Management that offers an array of beneficial features and services including emergency assistance, stolen vehicle locator, automatic collision notification, roadside assistance, and monitoring of driver behavior.
The need for safety and operational efficiency is expected to encourage companies to adopt embedded telematics technologies. Furthermore, these technologies help users to aggregate comprehensive vehicle information related to vehicle components, physical proximity to other vehicles, and roadside devices. The aggregated information can be used to improve troubleshooting in the event of a mishap or component malfunction, thereby, improving the efficiency of logistics.
The leading companies are investing in research and development (R&D) to design, develop, and test the systems. They form partnerships to strengthen their competencies and to share resources and expertise. Furthermore, collaborations strengthen a company’s operational capacity.
The telematics hardware comprises Telematics Control Unit (TCU), Wi-Fi module, display screen, speaker, GSM/GPRS module, and amplifiers, among others. Growing focus on Pay-As-You-Drive (PAYD) vehicle insurance services is expected to drive the adoption of hardware over the forecast period. Improved functionalities such as fault diagnostics, field support, and GPS tracking are anticipated to further drive the adoption over the forecast period.
The demand for the services segment is likely to witness a rise in the forthcoming years owing to the increase in service content. Demand for navigation services is expected to rise since these units offer real-time traffic updates and such vital information vital for improved drive experience.
The escalated frequency of road accidents emphasizes the dire need for effective implementation of safety and security solutions with reference to automotive and passenger safety. Smart locking systems and stolen vehicle tracking systems are among the most widely used security solutions that make use of embedded telematics systems. This requirement is ultimately anticipated to drive the automotive embedded telematics systems market over the forecast period.
Remote vehicle diagnostics help the user detect and resolve vehicle malfunctions and thereby work towards preventing or reducing vehicle downtime. The diagnostics process involves determining single or multiple issues with a selective set of tools and performing minimal tests. The introduction of cloud diagnostic solutions is further expected to contribute to the use of remote diagnostic solutions in automotive embedded telematics systems.
The increasing penetration of international automotive brands for instance- BMW and Ford- in developing regions, is expected to encourage the adoption of automotive embedded telematics systems in vehicles for entertainment and navigation applications. Moreover, the connectivity of mobile devices with these systems is anticipated to encourage its demand for passenger cars. Furthermore, the demand for mid-sized cars is expected to boost market growth over the forecast period.
The commercial vehicles segment is projected to witness substantial growth in the forthcoming years, owing to the development of transport infrastructure, chiefly in developing regions. The development is expected to encourage the adoption of embedded telematics systems for navigation and communication applications. Moreover, automotive embedded telematics are also used for monitoring driver behavior in various commercial vehicles such as trucks, vans among others.
North America and Europe are well-established and dominant regional markets that exhibit the pervasive application of automotive embedded telematics systems. The installation of advanced safety systems has been mandated by governments through various regulations. For instance, the European Road Safety Action Programme (ERSAP) issued a regulation to incorporate the eCall technology for driver assistance in new vehicles. North America and Europe are expected to account for a considerable market share on account of their stringent road safety standards and regulations focused predominantly on passenger safety.
Asia Pacific is expected to witness notable growth owing to the increase in disposable incomes in emerging economies such as China and India, which in turn, leads to a rise in vehicle sales. The rise in vehicle sales and disposable incomes generates a complementary demand for advanced automotive solutions such as stolen vehicle tracking and vehicle diagnostic systems highly beneficial in navigation and telematics applications. Technological advancements such as upgraded graphic user interfaces, voice recognition capabilities, and intuitive touchscreens are also anticipated to act as growth drivers for this market over the forecast period.
The leading market players include Ford Motor Company, Continental AG, General Motors Company, TomTom Telematics BV, Hyundai Motor Company, Toyota Motor Corporation, MiX Telematics International Ltd., INFINITI Motor Company Ltd., BMW Group, and Verizon Connect. Top companies are extensively investing in research and development to proffer and develop differentiated and cost-effective solutions pertaining to vehicle safety and security.
The companies are also establishing impeccable production infrastructure. For instance, Continental AG and Toyota Motor have established a formidable market presence on account of their strong R&D capabilities and production facilities. These companies place special emphasis on product innovation and effective distribution through strong network partners in multiple countries such as the U.S., Germany, India, and Brazil, among others.
Report Attribute |
Details |
Market size value in 2020 |
USD 13.75 billion |
Revenue forecast in 2025 |
USD 37.69 billion |
Growth Rate |
CAGR of 20.9% from 2018 to 2025 |
Base year for estimation |
2017 |
Historical data |
2014 - 2016 |
Forecast period |
2018 - 2025 |
Quantitative units |
Revenue in USD billion and CAGR from 2018 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Component, solution, application, and region. |
Regional scope |
North America; Europe; Asia Pacific; Latin America; and MEA |
Country scope |
U.S.; Canada; Germany; U.K.; India; Japan; China; and Brazil |
Key companies profiled |
Ford Motor Company; Continental AG; General Motors Company; TomTom Telematics BV; Hyundai Motor Company; Toyota Motor Corporation; MiX Telematics International Ltd.; INFINITI Motor Company Ltd.; BMW Group; and Verizon Connect. |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive embedded telematics market report based on component, solution, application, and region:
Component Outlook (Revenue, USD Million, 2014 - 2025)
Hardware
Service
Connectivity
Solution Outlook (Revenue, USD Million, 2014 - 2025)
Safety & Security
Information & Navigation
Entertainment
Remote Diagnostics
Application Outlook (Revenue, USD Million, 2014 - 2025)
Passenger Cars
Commercial Vehicles
Region Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa (MEA)
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The recent COVID-19 pandemic that has been ravaging numerous countries across the globe has adversely affected the overall sensor, control, and automation industry. While the capital investments in the automation sector have been lethargic before the pandemic, they are expected to be put on hold or postponed for at least a year. However, the recent standstill in industrial manufacturing and production is anticipated to act as a wake-up call for the manufacturing sector on its reliance on human labor. This, in turn, is expected to highlight the advantages of robotics and automation helping a greater adoption in the post-pandemic period. As IoT, industrial automation, and digitalization are expected to become increasingly relevant to post-pandemic Tier 1 manufacturers, it may eventually turn into an opportunity especially in evolving supply chains. The report will account for Covid19 as a key market contributor.
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