Middle East & Africa Automotive Telematics Market Forecast to 2030 - Regional Analysis - by Offering, Connectivity, Vehicle Type, and Application

The Middle East & Africa automotive telematics market was valued at US$ 2.83 billion in 2022 and is expected to reach US$ 9.29 billion by 2030; it is estimated to register a CAGR of 16.0% from 2022 to 2030.

Mounting Adoption of IoT and AI in Fleet Management Bolsters Middle East & Africa Automotive Telematics Market

IoT-enabled telematic devices optimize customer services and enhance vehicle maintenance management. With an IoT-integrated automotive telematics platform, communication and data retrieval become easy via smartphone applications and help in condition monitoring of the vehicle. Several companies are adopting the Sixt, and mobility service providers have adopted IoT-enabled automotive telematics systems via applications to optimize business operations. With this, app, customers connected more than 280,000 vehicles and connected with around 1.5 million drivers across 110 countries globally.

The rising adoption of IoT and connected cars is a major trend in the Middle East & Africa automotive telematics market. Several leading players are partnering with IoT solutions providers to enhance automotive capabilities. For instance, Aeris IoT and Sify solution provider integrated their IoT solutions for connected cars that minimize idle time and offer real-time vehicle tracking. Aeris IoT solutions providers have integrated the IoT Network, and the company has optimized more than 600 carriers across 190 countries. Further, Axon Telematics, a supplier of telematics solutions, partnered with Aeris to deploy an automotive telematics product to manage the real-time vehicle location.

Axon deployed its product that collects drivers' behavior data to help insurers determine the vehicle's real-time location and provides a self-activation and self-installation system for vehicle policyholders. The logistics and transportation industry is implementing IoT for real-time vehicle location tracking. The growing adoption of smart tracking and environment monitoring (STEM) devices among consumers and transportation companies drives the growth of the Middle East & Africa automotive telematics market. IoT-enabled devices track real-time GPS locations and help manage ambient temperature, pressure, humidity, goods mishandling, and several other parameters. It assures the smooth handling of goods throughout the transportation supply chain. Further, rising advancements in telematics gateways helped transportation and logistics companies optimize routing for better efficiency, monitoring the fleet's health, and improving the overall safety of the drivers.

Middle East & Africa Automotive Telematics Market Overview

In the Middle East & Africa, countries such as the UAE and Saudi Arabia are witnessing a growing interest in connected vehicles. Luxury car markets in the UAE are embracing connected features, including advanced infotainment systems and telematics services. These technologies cater to the affluent consumer base and align with the region's focus on modernization and smart city initiatives. Saudi Arabia, the largest automotive market in the Middle East, is also showing increasing adoption of connected vehicle technologies. The connected vehicle industry in Africa is in its nascent stages but holds significant potential. South Africa, with its well-developed automotive sector, is leading the way in integrating connectivity features into vehicles.

The growing number of passenger cars and commercial vehicles on the road and the increasing integration of automated technologies within vehicles are positively affecting the Middle East & Africa automotive telematics market. In January 2023, BMW announced the establishment of a car manufacturing plant in Africa. It marks a significant development in the automotive industry and reflects the company's commitment to expand its presence in the region. The significant investment of US$ 150 million underscores BMW's dedication to the project and its confidence in the African automotive market's growth potential. The growth in vehicle production and rising investments by the key players in the automotive industry is expected to create ample opportunity for the Middle East & Africa automotive telematics market growth.

Middle East & Africa Automotive Telematics Market Revenue and Forecast to 2030 (US$ Million)

Middle East & Africa Automotive Telematics Market Segmentation

The Middle East & Africa automotive telematics market is categorized into offering, connectivity, vehicle type, application, and country.

Based on offering, the Middle East & Africa automotive telematics market is bifurcated into hardware and software & services. The hardware segment held a larger market share in 2022. The hardware is further sub segmented into telematics control units, navigation system, in-vehicle infotainment units, and others.

In terms of connectivity, the Middle East & Africa automotive telematics market is categorized into integrated, tethered, and embedded. The embedded segment held the largest market share in 2022.

By vehicle type, the Middle East & Africa automotive telematics market is bifurcated into passenger cars and commercial cars. The passenger cars segment held the largest market share in 2022.

By application, the Middle East & Africa automotive telematics market is segmented into infotainment, remote diagnosis, navigation (GPS), safety and security, and others. The infotainment segment held the largest market share in 2022.

By country, the Middle East & Africa automotive telematics market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Saudi Arabia dominated the Middle East & Africa automotive telematics market share in 2022.

Verizon Communications Inc, ORBCOMM Inc, Trimble Inc, Valeo SE, TomTom NV, Denso Corp, Luxoft Switzerland AG, and Harman International Industries Inc are among the leading companies operating in the Middle East & Africa automotive telematics market.

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