Stringent Standards Drive Automotive Telematics Market To Reach $ 811.82 Bn by 2030

Mobility Outlook Bureau
16 Apr 2022
10:29 AM
2 Min Read

The current trend of vehicle telematics, especially in the transportation industry, is expected to boost market revenue growth during the forecast period.

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Increasing technological advancements to improve passengers' driving experience will drive the global automotive telematics market to reach $ 811.82 billion by 2030. 

According to Emergen Research, the global automotive telematics market size reached $ 100.70 billion in 2021 and is expected to register a significantly rapid revenue CAGR of 26.1% till 2030.  

Key Drivers

According to the report, increased fleet efficiency and improved safety boost automotive telematics market revenue growth. Vehicle telematics offers an advanced customer experience by keeping the vehicle fleet moving on schedule. For instance, Global Positioning System (GPS) tracking solution enables users to track fleet positions and avoid traffic. It provides an alternative way to minimise the delay. In addition, vehicle telematics tracks drivers' behaviour in real-time and discourages unsafe behaviour while good drivers are rewarded, ensuring safety.

However, power dependence and the high cost of telematics devices act as restraints to market growth. Devices require power sources to function. Battery-powered trackers are needed to keep on charging all the time to avoid the possibility of being out of charge during emergencies. 

The cost of many telematics devices, such as dashcams and smart route planning, is high. Automotive telematics records various information of the users and can track vehicle movement, which makes it vulnerable to hacking, and this makes users hesitant to use it.

Major companies in this space include Trimble Inc., AirIQ Inc., Actsoft, Verizon, Airbiquity Inc., Ctrack, Masternaut, Mix Telematics, TomTom International and I D Systems Inc. 

COVID-19 pandemic has been having a wide-ranging impact on various industries, including car and insurance companies. Pandemic has created economic pressure, and this has acted as a constraint for the telematics market as the price of fully integrated telematics solutions such as dash cams, smart route planning, electronic logging devices (ELDs), and driver management are high. 

In addition, sales of cars have declined, which significantly hampered automotive telematics market growth. However, telematics improves customer experience, and many benefits provided to drivers, car companies, and insurance carriers are expected to contribute substantially toward revenue growth during the forecast period. 

Trends, Innovations

The current trend of vehicle telematics, especially in the transportation industry, is expected to boost market revenue growth during the forecast period. Vehicle telematics works by installing a device with a SIM card, and it provides access to accurate vehicle information such as location, tyre pressure, idling time, and speed in real-time. As a result, many US-based insurance companies are increasingly adopting vehicle telematics to help the insured save on their policies. In addition, many companies use vehicle telematics for safe-keeping and locating their fleet vehicles. 

North America

Market growth in North America is attributed to the increasing use of telematics by insurance companies. Increasing demand for various telematics solutions such as fleet management and navigation systems for commercial vehicles, especially in the US, substantially contributes to market revenue growth.

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