Automotive Embedded Telematics Market Size, Share & Trends Analysis Report By Component, By Solution (Remote Diagnostics, Information & Navigation), By Application, And Segment Forecasts, 2018 - 2025

Report Overview

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.

Component Insights

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.

Solution Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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.

Automotive Embedded Telematics Market Report Scope

Segments Covered in the Report

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)