Key Market Overview:
Automotive embedded telematics market size was worth over USD 4.8 Billion in 2022 and is estimated to reach over USD 21.5 Billion by 2030, growing at a CAGR of 20.6% during the forecast period (2022-2030).
Automotive embedded telematics refers to the integration of telecommunications and informatics technology into vehicles for the purpose of exchanging data and providing remote services. The technology typically involves the use of onboard computing devices and wireless communication systems to collect, process, and transmit information related to a vehicle\'s performance, location, and status. The ultimate goal of automotive embedded telematics is to improve safety, efficiency, and convenience for drivers and passengers combined with the enhancement of the overall driving experience.
Further, such telematics plays a vital role in terms of monitoring a vehicle\'s speed, location, and movements by alerting the driver in case of an emergency or providing real-time information to emergency services in the event of a crash. Also, several factors are offered by telematics such as the aid to optimize routes and reduce fuel consumption, and track vehicle maintenance and performance which leads to cost savings and reduced emissions. Moreover, such telematics provides real-time traffic updates, hands-free communication, and entertainment features to improve the driving experience. Thus, automotive embedded telematics are used in various applications such as vehicle tracking and theft prevention, remote diagnosis and maintenance, infotainment and connectivity, and fleet management due to mentioned factors.
Most major automakers now offer telematics systems as standard or optional features in their vehicles and the trend is expected to continue as the demand for connected and autonomous vehicles grows. Furthermore, the emergence of the Internet of Things (IoT) and advancements in wireless communication technology are creating new opportunities for the development and integration of telematics systems in vehicles.
Automotive Embedded Telematics Market Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||4.77 Billion|
|By Type||Metal Film Precision Resistors, Wire Wound Precision Resistors, Metal Foil Precision Resistors, and Others|
|By Application||Test & Measurement Equipment, Medical Equipment, Semiconductors, Telecommunication, Industrial Automation, Military Equipment, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||TE Connectivity, Bourns, Yageo, KOA Corporation, Panasonic, Stackpole Electronics, Caddock Electronics, Riedon, Ohmite, Welwyn Components, TT electronics, Vishay Intertechnology, Stackpole Electronics Inc|
The increased demand for connected services and vehicles among consumers in terms of features such as infotainment, navigation, and real-time vehicle diagnostics drives the automotive embedded telematics market growth. Further, rising awareness of the features of telematics such as improved road safety, reduced fuel consumption, and enhanced vehicle performance supports the large market adoption among original equipment manufacturers (OEMs) and consumers. The rising adoption of Advanced Driver Assistance Systems (ADAS) such as autonomous driving, lane departure warnings, and adaptive cruise control boosts the demand for such embedded telematics. Moreover, the growing demand for electric vehicles (EVs) that largely rely on telematics systems for remote diagnostics, battery management, and charging management also accelerates the demand for such telematics.
The high costs of hardware and installation mainly restrict the wide adoption among customers in terms of such embedded telematics systems. Also, the privacy concerns around the collection and use of driving data hamper the demand for telematics services. Thus, privacy concerns along with the cybersecurity threats to telematics systems hamper the market growth due to the risks to personal data and vehicle systems. Moreover, the presence of competitive alternatives, especially smartphone-based telematics solutions that offer similar services at lower costs mainly restricts the market growth.
The scope of improvements in existing telematics solutions in terms of artificial intelligence (AI) and machine learning (ML) is anticipated to create favorable opportunities for market growth during the forecast period. Further, the rising adoption of over-the-air (OTA) software updates, which reduce the need for physical visits to garages and simplify the upgrade process is also projected to create lucrative opportunities for market growth.
Automotive Embedded Telematics Market Segmentation:
The component segment is bifurcated into hardware and software. The hardware segment contributed the largest shares to the market growth in 2021. The large preference for GPS modules for real-time location tracking and navigation services and the Telematics Control Unit (TCU) to manage and control the flow of data between different components of the telematics system mainly supports segment growth. Moreover, the use of antennas to transmit and receive data from the cellular network and GPS satellites. Thus, the increased focus on seamless and integrated driving experience by consumers boosts the adoption of such telematics systems in terms of integrating hardware components such as display units, sensors, antennas, and others. Furthermore, the software segment is also anticipated to support the market growth in terms of volume. OEMs opt for solutions offered by market players such as Verizon Connect, TomTom Telematics BV, and others to support the adoption of such software.
The service segment is separated into information & navigation, safety & security, remote diagnostics, and entertainment. The information & navigation and entertainment segments are expected to contribute significant shares to the market growth during the forecast period. The growing expenditures by OEMs in terms of improved navigation with real-time traffic updates, voice-controlled directions, and dynamic re-routing along with collision avoidance systems, emergency call services, and vehicle diagnostics & maintenance reminders support the segment growth. Further, increased demand among consumers in terms of in-car multimedia systems with features such as audio streaming, hands-free calling, and access to a wide range of music and video content supports the integration of telematics for improved in-car entertainment through features such as live TV and gaming.
By Vehicle Type
The vehicle type segment is separated into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment contributed the largest shares to the market growth in 2021. A large adoption of passenger cars among the population allows OEMs to increase expenditures on product innovations in terms of such automotive embedded telematics to improve the overall driving experience and safety of consumers. Also, such telematics offer interfaces for advanced driver assistance systems (ADAS), such as lane departure warnings, automatic emergency braking, and theft detection within car dashboards or systems. Moreover, insurance businesses also have the opportunity to usage-based insurance plans that leverage telematics data to calculate insurance premiums based on driving behavior and habits.
The regional segment comprises North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Europe accounted for the largest share contribution to the market growth in 2021. The large presence of market players and established customer base supports the automotive embedded telematics demand in the European region. Also, the increased awareness and adoption of technological advancements by consumers support the market demand in terms of navigation systems, infotainment, and vehicle maintenance.
Furthermore, North America is also anticipated to support the market growth during the forecast period in terms of value. The implementation of several government initiatives and regulations in terms of passenger and road safety supports the market demand in this region.
Automotive Embedded Telematics Market Competitive Landscape:
The automotive embedded telematics industry has a highly competitive landscape with several major players and startups competing for market share. The market players offer a range of telematics solutions, including GPS navigation, infotainment systems, connected vehicle services, and advanced driver assistance systems (ADAS). The competition in the market is expected to witness an increase as new entrants such as tech companies and startups enter the space and bring innovative products and services to market. Following are market players currently functioning in the market circumstances–
• Continental AG
• TomTom Telematics BV
• MiX Telematics International Ltd.
• BMW Group
• Verizon Connect
• Teletrac Navman Group
• Ford Motor Company
• Masternaut Limited
• Robert Bosch GmbH
• In June 2020, Ford Commercial Solutions introduced Ford Telematics, a web-based platform and subscription service aimed at improving fleet management and optimization for commercial vehicle customers.
• In November 2020, General Motors integrated its OnStar system with Motorq software to give fleet managers real-time vehicle visibility.
• In January 2021, Qualcomm Technologies and General Motors announced their collaboration to provide advanced technologies for future vehicles, continuing their long-standing relationship in multiple cellular generations.
• In September 2022, Hyundai Motor Group selected TomToms maps and real-time traffic data to support their entire European lineup in the coming years.
• In December 2022, BMW and AirConsole joined forces to bring casual gaming to BMW vehicles through AirConsoles platform on the BMW Curved Display, which is streamed and controlled with smartphones.