Automotive Telematics Market To Grow At 12.1% CAGR Till 2027

Mobility Outlook Bureau
21 Nov 2022
10:30 AM
2 Min Read

Increasing demand for autonomous cars in developed countries push the OEMs to introduce advanced telematics systems and solutions


Safety and convenience telematics services will propel the automotive telematics market to reach $5.5 billion by 2027 from an estimated $8.8 billion in 2022. 

According to the latest report by ResearchAndMarkets, the Automotive Telematics Market, by Service (ACN, eCall, RSA, Remote Diagnostics, Insurance Risk Assessment, Driver Behavior, Billing), Form & Vehicle Type, Component, Connectivity, Aftermarket, Fleet Management Service, Region, is expected to witness a CAGR of 12.1% till 2027. 

The report noted that the passenger car market is expected to grow due to an increase in demand and mandates for safety and convenience telematics services. Developed nations in North America and European regions with high incomes and greater technology adoption rates increase the demand for telematics services and connectivity solutions.

Infrastructure in these regions is a major reason that attracts the global OEMs to test and develop more telematics services for autonomous, the report noted. 

In addition, the increasing demand for autonomous cars in developed countries is making the OEMs introduce advanced telematics systems and solutions, which is expected to boost the passenger car market.


The demand for substantial car telematics services for passenger cars in the aftermarket is expected to grow due to technological advancement, launches of various connected services aftermarket platforms and the rolling out of safety and insurance mandates. For instance, in 2017, Harman announced an aftermarket connected automotive platform that can support connected applications and transform any existing vehicle with telematics capabilities. The new solution is available to automotive OEMs, dealers, speciality automotive retailers, and mobile carriers.

Aftermarket fills the technological gap, offering the ability to upgrade the connectivity of vehicles to intelligent safety systems that rely on real-time data, with the connected head units that integrate smartphones with vehicle entertainment systems to keep the drivers safe.

As connected cars are equipped with telematics units, the growing connectivity penetration is expected to drive the telematics market, the report observed. Services such as fleet management, on-road assistance, navigation and driver behaviour are experiencing higher adoption in passenger cars as they prove beneficial to fleet owners with real-time data. 

Asia-Pacific To Grow Faster 

The Asia-Pacific automotive telematics market is estimated to be the fastest-growing. In the Asia-Pacific region, the telematics services such as on-road assistance system are expected to have the largest market share, and insurance risk assessment service is expected to see the fastest growth in the Asia-Pacific region.

The insurance risk assessment will see larger growth due to increasing Government mandates in countries like India, which has recently introduced such mandates. In addition, factors such as the development of advanced communication devices, penetration of advanced ADAS features and Government mandates are expected to drive the penetration of telematics in vehicles in Asia pacific.

ResearchAndMarkets noted that Japan is one of the first countries to invent and implement most ADAS in cars. Japanese automotive companies continuously develop advanced electronics/devices for telematics and vehicle connectivity technologies.

For instance, in 2021, Suzuki Motor Corporation, Subaru Corporation, Daihatsu, Toyota Motor Corporation and Mazda Motor Corporation reached an agreement to jointly develop technical specifications for next-generation vehicle communications devices.

Such developments are expected to drive advancements in telematics systems. Furthermore, various projects related to the development of 5G infrastructure in countries such as China, Japan, and South Korea will be a major factors for the telematics industry in the Asia Pacific. Considering the above-mentioned factors and scenarios, the Asia Pacific will be a major market for the automotive telematics industry in the coming years, the report noted. 

Courtesy: ResearchAndMarkets. Photo is representational; courtesy: Continental.

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