Automotive telematics market has already surpassed the valuation of US$ 64 billion and is expected to witness a whooping double-digit CAGR of over 21.5% during 2021-2028, projects a recent study published by ResearchMoz.
The transportation industry is rapidly growing towards a tech-driven space as most automakers are integrating telecommunication and vehicle technologies with their automotive designs. Right from routing and navigation, and driver assistance, to fleet management and vehicle safety, automotive telematics is rapidly advancing towards more innovative and advanced tech features. The study projects that this will redefine the new trends in the automotive telematics market in the coming years.
The next step in gaining popularity among leading players and stakeholders in the automotive telematics market is to launch the Internet of Vehicles IoV. Integrating next-generation sensors to intelligently process driver data and information is rapidly becoming common yet lucrative in the competitive landscape of the market, states the new study. It also highlights the increasing use of cloud-based servers to further enhance the functional capabilities of next-generation automotive telematics solutions.
Rise of 5G to Give Another Boost for Market Growth
The arrival of the 5G technology has already changed the vehicle manufacturing landscape. In the automotive telematics market, 5G is opening up a new window of opportunities for service providers to improve their connectivity capabilities. It will also enable original equipment manufacturers to access vehicle data from the fleet on the street at a better speed, owing to the lack of latency in 5G networks.
In the coming years, end users in the automotive telematics market that offer Mobility as a Service (MaaS) are expected to benefit massively from the rise of 5G networks in the automotive telematics market. 5G is expected to help companies offering transportation and mobility services in various applications including tracking real-time travel and estimations on time of arrival. With the potential of 5G in enhancing automotive telematics, its application is expected to impact the MaaS industry positively in the coming years.
Leading players in the automotive landscape market are assessed thoroughly during the creation of this report. Companies featured in the report include Cartrack, Continental AG, Magnetic Marelli SpA, TomTom telematics BV, Teletrac Navman, Trimble Inc., Zonar Systems, MiX Telematics, HARMAN International, DENSO Corporation, Omnitracs, Verizon Connect, Telectrac Navman, Airbiquity Inc., I.D. Systems, TomTom Telematics B.V., Ficosa International SA, and Masternaut Limited.
Leading market players are resorting to strategies to enter collaborative agreements with connectivity solution providers. As connectivity remains an integral part of the modern automotive telematics market, collaborations with telecommunication companies to boost the speed of data transfer and improve the quality of vehicle data, suggests the report.
“Diagnostic features, navigations, geofencing, and real-time traffic monitoring are among the most popular applications of automotive telematics among consumers, especially young drivers. However, they also raise questions about cyber security and threats of data theft with modern automotive telematics solutions. Also, high installation cost also remains among their primary concerns.
Manufacturers in the automotive telematics market must focus on offering strong cyber security features with their services to gain the trust of young users. Also, promoting safety and vehicle diagnostics are important features for improving drivers’ on-road experience and can prove to be a lucrative strategy to gain momentum in the consumers’ market for automotive telematics,” says a lead analyst at ResearchMoz.
ResearchMoz studies all the important data and information to reach qualitative and quantitative growth prospects of the automotive telematics market. The study creates a compete outlook of the global market and provides actionable insights for market players to create a foolproof plan for consolidating a strong position in the market.
Here are the key takeaways from the report:
- The global market value was over US$ 64.5 billion by the end of 2021, and it is expected to surpass the US$ 400 billion mark by the end of 2028.
- The sales and price analysis of regional market projects that the demand for automotive telematics is expected to remain significantly high in North America.
- The adoption of automotive telematics is expected to remain high in terms of fleet management applications, followed by insurance and security applications.
- Prevalence of advanced connectivity services and government regulations about driver safety and vehicle security is expected to boost global adoption of automotive telematics in the coming years.