The global automotive telematics market is poised to experience a significant boost over the forecast period. Introduction of integrated telematics along with policies for driver safety and the rising importance of smartphones are the influencing factors for the market. Telecom operators are expected to have immense scope owing to the potential for risk management over the next six years. An integrated transportation network of shared and private cars as well as other modes of transportation is made available by mobility integrators in the global market.
Systems such as automatic driving systems, vehicular emergency warning systems, driving assistance systems, Global Positioning System (GPS) navigation, and wireless safety communications have been generated by automotive telematics systems. The system built on informatics and telecommunications is compressed into Intelligent Transportation Systems (ITS) and Wireless Access for Vehicular Environment (WAVE).
Vehicular mishaps and rising occurrences of road accidents are expected to drive the global automotive telematics market through the next six years. The requirement of safety measures has significantly increased owing to a rise in the number of vehicles. The market is expected to witness a significant boost owing to serious concerns for minimizing human casualties and vehicular damages. Major issues such as disoriented transits need for effective vehicular mass transportation, and traffic congestions have occurred due to increased traffic on the road. Through intuitive vehicular guidance, automotive telematics systems are anticipated to offer a solution over the forecast period.
The global automotive telematics market is estimated to face a few complexities owing to communication breakdowns and error rates. The telematics systems are extremely sensitive to the extent that a single error could cause heavy and serious breakdowns. Based on the information collected by sensors, key monitoring decisions are taken by the control unit. In case of a communication breakdown, these automotive systems are expected to tackle system failures over the forecast period owing to complete reliance on digital networks. The worldwide acceptance of telematics is resulted from the emergence of regulatory initiatives taken by the government for security and safety.
The market is expected to offer immense opportunities in Human-Machine Interface (HMI) development to automotive suppliers over the forecast period. Installation of black boxes for security and safety services, pay-per-use, generation of subscription revenues, and free premium services for entertainment and navigation applications are estimated to be the other short-term benefits provided by the global automotive telematics market through the next six years.
Automotive telematics has scope in navigating systems as well as mass transportation systems. The mobile vehicle system in individual vehicles is in communication with a stationary communication system. Supplementary characteristics of automatic telematics systems are usage of primary input devices, efficient utilization of power, and visualization of vehicle position on digital maps. Other promising aspects of the system such as trailer tracking and automobile insurance are expected to fuel the global market. Immense opportunities for new entrants as well as existing players in the global automotive telematics market owing to the development of diverse and variant telematics systems is expected to drive the market over the next six years.
On the basis of services, the global automotive telematics market can be categorized into information & navigation, safety & security, remote diagnostics, and entertainment. On the basis of the type of system, the market can be divided into tethered, embedded, and integrated systems. The automotive telematics systems consist of modules such as location technology, wireless communications, and in-vehicle electronics, which are used for Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), and Vehicle-to-Devices (V2D) communication.
North America is expected to have a significant share of the global automotive telematics market, followed by Europe. In the vehicle category, Japan and the U.S. are the key users of the automotive telematics system. Emerging markets such as India and China are estimated to boost the global automotive telematics over the next six years.
The market consists of stakeholders such as the Telematics Service Providers (TSPs), automotive sector, telecom sector, information technology, and hardware manufacturers. Major vendors in the global automotive telematics market are ID Systems Inc., Autotrac, Teletrac Inc., Trimble Navigations, and Omnitracs LLC, FleetmaticsIrL Limited, DigiCore, MiX Telematics, Masternaut Limited, Telogis, and TomTom Telematics.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.