Vehicle Telematics Market Report Scope

 Global Vehicle Telematics Market Highlights Over 2023 - 2033

The global vehicle telematics market is estimated to garner a revenue of ~USD 215,000 million by the end of 2033 by growing at a CAGR of ~18% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 75,000 million in the year 2022. The market is primarily driven by rise in count of connected cars.  In 2021, there were around 237 million connected cars worldwide, and the count is expected to reach nearly 400 million by 2025.

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The rising demand of semiconductor chips owing to its prolonged shortage is to accelerate its growth of semiconductor companies. In 2021, more than 1 trillion semiconductors were sold 2021. In addition, the alarming requirement to reduce fuel consumption and the growing need for safety assistance in the automobile is to elevate the growth of the vehicle telematics market.

Global Vehicle Telematics Market: Growth Drivers and Challenges

Growth Drivers

• Soaring Need for Automobiles with Advanced Safety Features

With the rising cases of accidents, owing to one’s mistake or others, the need of advanced safety features is growing and turned out to be of significant importance. In the United States, around 45% wish to have blind spot warning system, and about 51% expect to have backup warning from the vehicle.

• Need to Minimize the Fuel Consumption

Telematics helps drivers to reduce consumption of fuel by tracking their unused time and increasing their efficiency. With the rising prices and shortage of fuel, need to minimize its usage is also rising. In 2020, the fuel demand from transportation sector of both OECD and non-OECD regions was equal. Moreover, by 2040, the demand in non-OECD region is likely to increase twice, from about 47 quadrillion btu (British thermal units) in 2012 to 94 quadrillion btu.

• Increase in Demand for Semiconductor Chips and its Production

There had been a shortage of semiconductor chips in past few years, which has increased its demand across the market. The pandemic break favored the manufacturers to boost the production of semiconductor chips. The global sale of semiconductor reached almost half a trillion dollars in 2021.

• Rise in Number of Automobiles with Connectivity Solution

Nowadays, with the increase in IoT and 5g adoption, people expect their car to perform all the functions similar to their computers and mobile phone which is making connectivity solutions the need of an hour. Therefore, manufacturers are embedding the new vehicles with connectivity solutions. By 2030, more than 2 billion connected cars are expected to exist worldwide.

• Increasing Popularity of Movement and Location Tracking Feature

The feature is useful to protect the vehicle from dangers and aids to contact for assistance in emergency circumstances. Currently, there are around 78 million cars on road, embedded with tracking technology and nearly 98% of cars are likely to have this technology in the next few years.

Challenges

• Concerns Associated with Telematics’ Data Vulnerability

• High Installation Cost of Getting Connectivity Feature in a Car

• Lack of Interoperability in Devices Produced by Different Manufacturers

The telematics system contains a huge volume of sensitive data which portends risk to it. The complexity of the telematics system leaves room for an error in cybersecurity. During the transfer between the telematics sensors, hacker might breach the network and make the data accessible to them. Thus security concerns involved in vehicle telematics system is expected to hinder market growth.

The vehicle telematics market is segmented and analyzed for demand and supply by vehicle type into passenger cars and commercial vehicles. The passenger car segment is expected to hold the largest market size by the end of 2033. The growth is expected on the account of increasing demand of passenger cars which is prompting the sale of passenger cars. In 2020, globally, around 65 million passenger cars were sold. Furthermore, the rising sale of the electric passenger cars is to propel the growth of the segment. Globally, there were around 16 million electric cars on the road in 2021. In the first quarter of 2022, nearly 2 million electric passenger cars were sold.

Global Vehicle Telematics Market Regional Synopsis

Regionally, the global vehicle telematics market is studied into five major regions including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2033. Rising instances of fatalities caused by vehicle accident, is prompting the demand of safety feature in the automobiles. In 2021, nearly 43,000 people died in vehicle traffic crashes. Furthermore, the increased production of semiconductor in North America owing to its higher demand is to boost the market growth in the region. Average demand for semiconductor chips rose by nearly 17% in 2021 than 2019 and semiconductor production was increased by approximately 90% in 2021. Further, the higher usage of fuel by vehicles in the United States is to increase the need to reduce fuel consumption.  In 2020, nearly 40% of U.S. oil was consumed by light-duty vehicles.

Market Segmentation

Our in-depth analysis of the global vehicle telematics market includes the following segments:

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Key Companies Dominating the Global Vehicle Telematics Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global vehicle telematics market that are included in our report are Bosch Global Software Technologies, Bridgestone Mobility Solutions B.V., Trimble, Octo Group S.p.A., Verizon, MiX Telematics, Zonar Systems, Harman International, Microlise Limited, On Star Corporation, Qualcomm Technologies, Inc., and others.

Global Vehicle Telematics Market: Latest Developments

• May, 2022: Bosch Global Software Technologies announces a 5-year partnership with Astrata for advancing fleet management system. The partnership aims to minimize the shortages and enables Astrata to broaden its supply chain all over the world.

• December, 2021: Trimble announced the acquisition of AgileAssets, asset management provider to private and government organizations including road authorities and state level transportation agencies.

Key Reasons to Buy Our Report

• The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.

• It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis and challenges that impact the market growth.

• The report includes detailed company profiles of the major players dominating the market.

• We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.

• We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal. 

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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