Study: Global automotive telematics market soaring
The global automotive telematics market is projected to grow at a rate of 23% from now to 2024, attaining a market size of $152.7 billion. A new report, Global Automotive Telematics Market (2018-2024), published by KBV Research, cites factors in this growth, including people’s expectations to stay connected to internet 24/7, expanding connectivity solutions provided in vehicles, and transformation of vehicles into communication devices. New high-tech devices, smartphones, high-speed internet, numerous applications, and open sources such as Android systems have transformed the concept of connected vehicles.
Major factors driving the telematics market include safety and security concerns, 24/7 connectivity, superior driving features, online vehicle diagnostics and maintenance alerts, and advanced connectivity solutions. On the other hand, some of the restraints associated with the telematics market are the additional expenses borne by the consumer in adding the telematics services, threat of hackers breaching security and accessing data or threatening the vehicle system, non-availability of uninterrupted and seamless connectivity, and lack of awareness among consumers in certain regions.
To analyze the market in detail, it was studied with respect to commercial (light, medium, and heavy commercial vehicle), referred to as commercial telematics; and passenger vehicle, referred to as consumer telematics. For all segments, both the commercial and consumer telematics were analyzed. In 2017, the commercial telematics segment dominated the global telematics market by type with market revenue of $28.4 billion. This segment is projected to grow with a CAGR of 18.2% during the forecast period (2018-2024).
Based on applications for the commercial telematics segment, the market is divided into fleet management, insurance, infotainment, navigation, V2V & V2I, tele health, and remote alarm and monitoring. Fleet management was the highest revenue-generating segment in 2017.
In terms of end user, the telematics market is separated into logistics and transportation, individuals and car rental, insurance, healthcare, media and entertainment, automobile manufacturers and dealers, and government agencies. Logistics and transportation was the largest revenue-generating segment in the overall telematics market by end user and is expected to continue to be the maximum revenue-generating segment throughout the forecast period, 2018-2024.
Based on geography, the market is segmented into North America, Europe, Asia Pacific (APAC), Latin America, and Middle East and Africa (LAMEA). For commercial as well as consumer telematics, North America was the highest revenue-generating segment in 2017.
The report presents quantitative insights providing a clear picture of the market potential in segments across the globe with country wise analysis in each discussed region. The key influencing factors of the global automotive telematics market are discussed in the report along with company profiles of Verizon Communications Inc., AT&T Inc., Ford Motor Company, BMW AG, Robert Bosch GmbH, Valeo S.A, Harman International Industries, Incorporated, Vodafone Group Plc, and TELEFÓNICA, S.A.