Automotive OEM Telematics Market is projected to reach USD 711.7 billion by 2030 from USD 64.7 billion in 2020, at an approximate CAGR of 27.1%. Telematics is the process of monitoring location and movement of a vehicle by combining Global Positioning System (GPS) and on-boards diagnostics systems. With the help of GPS and diagnostics system, it is possible to record the speed and internal behaviour of vehicles. Automotive OEM telematics is an amalgamation of telecommunication and information technology that provides various services, such as navigation and safety and security to vehicles. The main function of telematics is vehicle tracking, trailer tracking, container tracking, car sharing, emergency warning systems for vehicles and others. Telematics systems are mainly adopted by automobile insurance companies, fleet management companies, to monitor location and performance of a vehicle. Vehicle telematics solution comprises of three vital parameters - Telematics Control Unit (TCU), Telematics cloud server, and the front end- web app and mobile App. The cloud-based telematics server consists of a web server, an application server, and a database. The information collected by TCU is sent to cloud-based telematics server through a GPRS/cellular network over HTTPS and later the data stored in the telematics server can be accessed by end users using either a desktop or mobile application. 

Market Segmentation:

On the basis of channel, the automotive OEM telematics market can be bifurcated into OEM and aftermarket. Based on the type of vehicle, the market can be classified into passenger car, commercial vehicle, and two wheeler. According to application, the automotive OEM telematics market can be segmented into fleet management, navigation & location-based system, infotainment system, insurance telematics, safety & security, V2X, and others. By connectivity solution, the market is categorised into embedded, integrated, and tethered solutions. Geographically, the global automotive OEM telematics market can be broadly divided into five regions mainly North America, Asia Pacific, Europe, and RoW.

Market Dynamics and Factors:

Rising awareness, advancements in smartphones, high speed internet connectivity, and developed GPS technology have changed the telematics business rapidly. Moreover, increasing awareness about driver’s safety and growing influence of safety regulations imposed by various governments have made telematics an essential component for vehicles. For instance, in April 2018, government of India passed a rule for all public transport vehicles over six-seater capacity to have a tracking device installed in them. Additionally, in December 2017, the Ministry of Industry and Information Technology and the Standardization Administration of China mutually established national guidelines for the development of telematics systems in the country. Furthermore, better acceptance of advanced technologies and gadgets, such as mobile phones, laptops, smart phones, tablets, telecommunications and many other technological goods in developed and developing regions is also attributing to the growth of the automotive telematics market across the globe. However, certain factors like high installation costs and threat of data hacking are restraining the market growth of the global automotive OEM telematics market.

Geographic Analysis:

North America dominates the automotive OEM telematics market in terms of market share and is expected to maintain this dominance during the forecast period. North America is the most advanced market in terms of premium telematics services with a significantly high attach rate. For instance, General Motors has offered telematics services for more than two decades, offering the technology as an integral part of its value proposition in North America. BMW introduced its connected drive service in North America in 1997. The Asia Pacific region is anticipated to witness the fastest market growth during the forecast period. For instance, China is projected to dominate the APAC automotive OEM telematics market owing to increasing government regulations pertaining to safety and security. Other developed markets such as Japan and South Korea are also contributing significantly to the automotive OEM telematics market growth of the APAC region by exhibiting higher attach rates.     

Competitive Scenario:

The key players operating in the global automotive OEM telematics market are -  

Agero Inc., Intel Corporation, LG Electronics, Panasonic Corporation, Qualcomm Technologies Inc., Trimble Inc., Robert Bosch GmbH, Delphi Technologies, NTT Docomo, Inseego Corp, Vodafone Automotive SpA.

Automotive OEM Telematics Market Report Scope