The global automotive telematics market revenue stood at $27.7 billion in 2019 and it is predicted to rise to $149.9 billion by 2030. According to the forecast of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 16.6% during 2020–2030 (forecast period). The market is being driven by the soaring requirement for greater vehicle safety and more efficient road traffic, mushrooming deployment of connected vehicles, and the implementation of favorable government regulations regarding the adoption of automotive telematics systems across the world.
Road accidents are one of the leading causes of deaths all over the world. According to the World Health Organization (WHO), road crashes claim the lives of 1.3 million people every year. Furthermore, the organization found that road accidents cost many countries around 3% of their gross domestic product (GDP). Thus, the rising incidence of these accidents is fueling the demand for greater vehicle and passenger safety and also more efficient and smoother road traffic.
As telematics solutions massively improve the safety of vehicles by providing drivers with a safer driving option, their popularity is soaring sharply because of the growing prevalence of road crashes. The other major factor propelling the expansion of the automotive telematics market is the increasing adoption of connected cars across the world. Connected cars provide various benefits to users such as vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) interfaces. Furthermore, the incorporation of telematics solutions in connected cars is very necessary, as these vehicles are equipped with V2I and V2V connectivity, which are two of the major components of automotive telematics solutions.
Additionally, connected cars are equipped with systems and features such as real-time traffic monitoring, automobile diagnostics, roadside assistance, smartphone connectivity, and traffic and collision warnings, which further boost their popularity and fuel the growth of the market. Based on system type, the automotive telematics market is divided into integrated, embedded, and tethered categories. Out of these, the integrated category is expected to register the fastest growth in the market throughout the forecast period.
This will be because of the surging sales of electric vehicles and burgeoning requirement for internet connected infotainment units in premium and mid-range passenger vehicles. Geographically, Europe and North America held the cumulative share of more than 65% in the automotive telematics market in 2019. North America was the largest region in the market during the last few years, and it is predicted to retain its market dominance during the forecast period as well. This is credited to the surging incorporation of the in-vehicle connected technology in the region.
Whereas, the Latin America, Middle East, and Africa (LAMEA) region is predicted to be the fastest growing region in the market in the forthcoming years. This is ascribed to the fact that the market is still at the early growth stage in the emerging economies of LAMEA such as Mexico and Brazil and thus, relies heavily on infrastructure development projects and government policies. The market is also predicted to register rapid expansion in the Asia-Pacific (APAC) region in the upcoming years, mainly because of the rising customer demand for the incorporation of safety features in automobiles in the region.
Hence, it can be safely said that the market will grow massively in the coming years, primarily because of the surging requirement for greater vehicle safety and the mushrooming deployment of connected vehicles across the world.
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