Telematics system is gaining immense popularity globally owing to various benefits provided by the system such as entertainment and information content, cost saving, safety, and security, among others. According to the market intelligence report by BIS Automotive titled, ‘Global Automotive Telematics Market- Analysis and Forecast (2017-2021)’, the market is expected to garner a value of $17 billion by the end of the year 2021. This significant market value is attributed to the increase in the safety and security regulations, rising disposable incomes, lower costs of connectivity, and increased market penetration rates of smartphones which are propelling the growth of the market. The prominent market players are coming up with development strategies and showing an inclination towards the strategies such as partnerships, agreements, collaborations, product launches, merger, and acquisitions, among others.
Telematics is a form of communication technology that can be provided either through an integrated communication module or a smartphone and hence, based on connectivity, the market is classified into embedded, tethered, and integrated connectivity. Moreover, the system consists of hardware and software which incorporate some form of cellular communication, allowing the transfer of data between the car and its surroundings. Further, the decreasing cost of connectivity and increasing availability of bandwidth such as 3G and 4G are expected to escalate the market growth during the forecast period.
Based on the distribution channels, the telematics system market is segmented into the Original Equipment Manufacturers (OEMs) and aftermarket. At present, OEM channel is leading the global market of telematics system due to the various factors such as reliability standards, stringent governmental regulations, and increasing partnerships and collaborations between the major market players and OEMs for better product offerings such as 4G LTE internet connectivity. Based on vehicle type, the market has been segmented into passenger cars and commercial vehicles. The rising demands from fleet management services and increasing adoption of telematics technology in the insurance industry are expected to drive the market growth of passenger cars and commercial vehicles.
However, the rising hacking and privacy concerns, low awareness regarding the telematics industry across the globe are inhibiting the growth of the automotive telematics system. Moreover, the growing demands for connected cars, increased adoption of telematics in the insurance industry and the growth from the emerging nations are further fuelling the market of the telematics system. Geographically, Asia-Pacific (APAC) is dominating the market owing to the established automotive manufacturers, high growth in the automotive production, and rapidly growing sales in the domestic market along with the rising awareness among the consumers about the several advantages provided by the telematics system. BIS Automotive has conducted an extensive research on the global automotive telematics market and compiled the observation and insight in this report. The market intelligence report aims at providing an in -depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.
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