The global vehicle telematics market is expected to grow considerably owing to increasing security concerns of users. The constant need for car tracking and fuel-efficiency is expected to fuel market growth. Increasing use of smart-phone and tablets are also expected to be the major growth factor for the vehicle telematics market. Government safety rules and regulations favoring the use of telematics are further expected to provide positive avenues to market growth. Growing use of embedded systems has increased the demand for vehicle telematics systems in personal and commercial vehicles. Increase in safety of the car, driver, and passenger is the main advantage of vehicle telematics that has played a vital role in improving this market.
Automobile manufacturers use the combination of any of the devices such as smartphones and tethered., and embed the system to enhance intelligence and connectivity. Various car telematic applications are offered by most of the manufacturers such as roadside assistance and e-call, vehicle diagnostics, stolen vehicle tracking, route optimization, traffic information, navigation & infotainment, and convenience applications. Convenience application depends upon remote control of vehicle functions such as vehicle preconditioning, checking door lock/unlock, and last parking position. It also provides leasing and rental fleet management, road charging, and electronic toll collection. Telematics provide increased safety awareness, strict safety norms, affordability, and technological advancement. Technological advancements for lowering carbon emissions through telematics is expected to favor the vehicle telematics market over the forecast period. Vehicle telematics technologies result in the cost savings and enhance safety for vehicle and the driver.
Heavy vehicles used in transportation and logistics are expected to be the key end-user segment of the vehicle telematics market. The industry is now using vehicle telematics for the purpose of tracking and safety of the truck and goods. Transportation and fleet industries are becoming more dependent and conversant upon vehicle electronics. Additionally, developments in wireless networks between vehicles are anticipated to provide new avenues for the vehicle telematics market.
Vehicle telematics provides three different kinds of applications to the consumer: Bundled basics and security services, pay-per-use and freemium services, and premium subscription services. Bundled services are basic services and are related to the security of the car, emergency call services, and operational efficiency. The cost of the bundled basics and security services are built in the vehicle price. Pay-per-use and freemium services are related to entertainment, navigation, and similar application that are supported by advertising and paid with each use. The revenue generated by pay-per-use is shared among the content provider, vehicle manufacturers, and telecom operators. For premium subscription services the carmaker and the service provider share the revenue generated depending upon the type of the data required by the consumer. Introduction of third-generation telematics is expected to contribute considerably to market growth. Third generation service would be a combination of valuable inputs about vehicle surrounding and Driver Interactive Vehicle Application (DIVA) and Vehicle Relationship Manager (VRM), voice-activated web service, and information related to the performance of the vehicle.
Some of the key players include AirIQ Inc., OnStar Corporation LLC., ETAS Group, Agero Inc., WebTech Wireless Inc., Qualcomm Inc., DigiCore Holdings Ltd., Wireless Matrix Corporation and Trimble Transport & Logistics. BMW and General Motors are expected to be key players in the vehicle telematics market. General Motors is using vehicle telematics from the last decade. Some of the other major players who offer embedded vehicle telematics on a broader scale are PSA, Hyundai, Toyota, Volvo, Renault, Volkswagen, Audi,. Magneti Marelli (Italy), Delphi (UK), Continental (Germany), and Robert Bosch (UK) are the major hardware providers for the vehicle telematics devices. Asia Pacific is expected to grow at a considerable rate over the forecast period owing to increasing disposable income in countries such as China and India. Additionally, presence of key vehicle manufacturers in the region is also expected to favor the vehicle telematics market.
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The global electronics devices market (including consumer electronics and industrial electronics devices) is expected to be impacted significantly by COVID-19 as China is one of the major suppliers for the raw materials (used to manufacture devices) as well as the finished products. The industry is on the brink of facing a reduction in production, disruption in supply, and price fluctuations. While this can vastly encourage local manufacturers to step up and address the growing demand, the scarcity of raw material can still pose a challenge to this industry. The sales of prominent electronic companies is expected to be affected in the near future. The report will account for Covid19 as a key market contributor.