The global vehicle telematics market is expected to reach $98.27 billion by 2026, according to a new report by Reports and Data.
Vehicle telematics systems, comprised of telecommunication and informatics, provide crucial information for drivers, such as information about live traffic status and weather forecasts. The vehicle monitoring systems allow drivers to stay updated with the real-time performance and safety of the vehicle. Information collected by the telematics system is beneficial in critical circumstances, for instance, to communicate instantaneously with the police for prompt action in case of an accident. Telematics systems assist automotive companies, insurers and drivers with the highest safety features.
The safety and security services of vehicle telematics comprise automatic crash notification, emergency and medical assistance, which are anticipated to stimulate market growth in the forecast period. As a component of the automatic crash notification service, the telematics control unit (TCU) monitors several crash sensors of the vehicle and, in the occurrence of a crash, directs the details of the vehicle location and crash severity and also sends a voice call to the telematics call center so that emergency services can be dispatched to the scene of the accident.
Legislation and regulations introduced by governments across the globe pertaining to the increased usage of telematics to improve road safety are projected to propel the market growth in the upcoming years.
Smartphone integration via apps in telematics systems enables the drivers to access various features such as unlocking of doors in case you lose your keys, locking the car door, or honking the horn or flashing the lights if the driver is having trouble finding their car.
Privacy concerns among consumers due to the sharing of the vehicle location via GPS and onboard diagnostics may create hindrances in the growth of the market.
Further key findings from the report include:
- By service type, safety and security held the largest market share in 2018 and is expected to have a CAGR of 18.1% in the forecast period. These are the primary services provided by means of telematics as well as the main driving factor responsible for the conceptualization of vehicle telematics.
- Embedded vehicle telematics is projected to grow at the fastest rate in the forecast period.
- The passenger vehicle segment contributed to the largest market share in 2018 and is expected to grow at a rate of 17.9% in the forecast period.
- Hardware dominated the vehicle telematics market in 2018 and is projected to maintain its market dominance in the forecast period.
- The market in North America is predicted to lead the market during the forecast period.
- Key participants include AirIQ Inc., OnStar Corporation LLC., ETAS Group, Agero Inc., WebTech Wireless Inc., Qualcomm Inc., DigiCore Holdings Ltd., Wireless Matrix Corporation, Trimble Transport & Logistics and Minda Corporation Ltd., among others.
To access the full report, click here.