Aftermarket Car Telematics - 5th Edition

Proactive Customer Management: Integrating CRM Solutions through Aftermarket Car Telematics

Telematics is a broad term that may be applied to a wide range of automotive connectivity solutions. The definition of an aftermarket car telematics solution in this report includes telematics devices created by a company other than the carmakers and are retrofitted into cars mainly via OBD-II and blackbox devices based on both cellular/GNSS and RF technology. The connected car is a major trend in the automotive industry and virtually all of the world’s leading carmakers have launched mass-market services in key regions. The OEM initiatives can be seen as competition for the aftermarket solutions, but there is still a growing demand for different forms of aftermarket car telematics services.

Shipments of aftermarket car telematics devices reached 26.7 million in 2023

 Aftermarket telematics still has a dominant position on the market in many parts of the world. Several categories of aftermarket car telematics applications have become popular including roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, usage-based insurance, dealer and inventory management, Wi-Fi hotspot as well as convenience applications targeting consumers. The addressable market for aftermarket car telematics solutions is significant. At the end of 2022, there were an estimated 1.36 billion passenger cars and light trucks registered worldwide. Even though aftermarket car telematics services face competition from smartphone-only solutions and OEM solutions, the aftermarket car telematics market is still in a growth phase.

The analyzer estimates that total shipments of aftermarket car telematics systems reached 26.7 million units worldwide in 2023. Growing at a compound annual growth rate of 7.7 percent, shipments are expected to reach 38.7 million units in 2028. The number of aftermarket car telematics systems in active use is forecasted to grow at a compound annual growth rate of 9.0 percent from 87.7 million in 2023 to 135.1 million worldwide in 2028. The penetration rate will at the same time grow from 6.3 percent in 2023 to 8.6 percent at the end of the forecast period. The market is characterised by a great diversity of players interacting in a complex value chain that spans multiple industries. The car telematics companies targeting the aftermarket car sector include specialists focusing on this application area only as well as general telematics players that serve a broad range of applications including also for example fleet management for commercial vehicles.

The leading aftermarket car telematics solution providers have reached installed bases in the millions. Examples of leading car telematics solution vendors include OCTO Telematics, Procon Analytics, StarLine, Spireon, Targa Telematics, Ituran, PassTime GPS, Vodafone Automotive, Tracker Connect, Maxtrack and Carsystem. The most common go-tomarket strategy is to partner with insurance companies, dealers, OEMs, MNOs and vehicle finance companies. Leading companies delivering telematics hardware and related services to the aftermarket car telematics market include Teltonika, Jimi IoT, Queclink, Danlaw, Positioning Universal, Xirgo Technologies, ERM Advanced Telematics, Suntech International, Meta System, Munic and Gosuncn RichLink.

Highlights from the report

• Insights from 30 new executive interviews with market leading companies.
• Comprehensive overview of the aftermarket car telematics value chain and key applications.
• In-depth analysis of market trends and key developments.
• New profiles of 104 aftermarket car telematics solution providers.
• Summary of the involvement of vehicle OEMs and mobile operators.
• New data on car populations and new car registrations worldwide.
• Market forecasts by region lasting until 2028.

The report answers the following questions

• What types of aftermarket car telematics products are offered on the market?
• Which are the leading providers of aftermarket car telematics technology?
• What business models are available for players entering the car telematics space?
• How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
• How are mobile operators approaching the aftermarket car telematics market?
• Which are the dominant technology form factors?
• Will car OEM telematics solutions outcompete aftermarket car telematics in the long term?
• Which are the major drivers and barriers for car telematics adoption?
• Which are the key future trends in this industry?