The Global Vehicle Telematics Hardware Market 3rd Edition

Telematics is a broad term that may be applied to a wide range of vehicle connectivity solutions. The definition of a telematics system in this report is an automatic system designed for passenger cars and commercial vehicles that incorporates some form of cellular/GNSS or RF communication technology. The connected car has been a major trend in the automotive industry for many years. All of the world’s leading carmakers have now launched mass-market connectivity services in key regions. The OEM initiatives can be seen as competition for aftermarket solutions, but there is still a growing demand for different forms of aftermarket telematics services.

The addressable market for aftermarket telematics solutions is significant. At the end of 2022, an estimated 1.52 billion vehicles were registered worldwide. The analyst has found that 47.3 million aftermarket telematics hardware devices were sold globally during 2023 for a total market value of approximately € 2.2 billion. Asia-Pacific is the largest geographical market, achieving shipments of about 17.1 million in 2023. The shipments of aftermarket telematics hardware in Europe and North America accounted for 11.6 million and 11.2 million respectively. The analyst forecasts that global shipments of aftermarket telematics devices will grow at a compound annual growth rate (CAGR) of 8.0 percent in the next five years to reach 69.3 million in 2028. Revenues from sales of aftermarket telematics devices are forecasted to grow from € 2.2 billion in 2023 to € 3.1 billion in 2028, representing a CAGR of 6.8 percent.

Shipments of aftermarket and OEM telematics hardware reached 116 million units in 2023

Teltonika was the market leader in terms of aftermarket hardware sales with a market share of about 6.8 percent, reaching annual sales of € 153 million in 2023. Xirgo Technologies was the runner-up with a market share of around 4.4 percent in terms of sales. Additional top players include Jimi IoT, Queclink and CalAmp. Jimi IoT ranked third in terms of sales with a market share of about 4.2 percent while Queclink and CalAmp ranked fourth and fifth with a market share of roughly 3.0 percent each. Notable vendors further include ERM Advanced Telematics from Israel; Positioning Universal and Danlaw from North America; Suntech International, Gosuncn RichLink, Neoway Technology, Sinocastel, Coban Electronics, Gosafe, Kingwo and ATrack from Asia-Pacific; Meta System, Ruptela and Munic from Europe; and Maxtrack from Latin America.

Automotive manufacturers can choose between connectivity options such as embedded and handset-based when creating connected car services, which are not mutually exclusive. Embedded solutions use cellular communications hardware inside the vehicle, whereas handset-based solutions use a tethered device such as the driver’s smartphone for connectivity. This report mainly focuses on embedded telematics solutions. Several categories of telematics applications are now offered by most leading vehicle manufacturers. Examples include eCall and  roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, over-the-air updates, connected navigation and infotainment, fleet management, Wi-Fi hotspots, concierge services and convenience applications. The drivers behind the adoption of OEM telematics are both commercial and regulatory.

There are also numerous OEM telematics offerings from commercial vehicle manufacturers, provided either independently or in collaboration with third parties including leading aftermarket telematics providers. These OEM solutions are expected to achieve increased adoption and to an increasing extent be delivered as standard. Figure 1: Shipments of OEM and aftermarket telematics devices (World 2022-2028) The analyzer estimates that global shipments of OEM telematics hardware for both passenger cars and commercial vehicles reached 68.4 million units in 2023 at a total market value of € 8.6 billion. Also the estimation says that nearly 74 percent of all new passenger cars and commercial vehicles sold worldwide in 2023 were equipped with an OEM-embedded telematics system, up from nearly 72 percent in 2022.

The design and development of OEM telematics systems are complex as these have to integrate with vehicle systems, fulfil strict quality standards and ensure performance during the long lifecycle of a vehicle model. For this reason, the OEM telematics equipment suppliers are generally established automotive suppliers that develop their solutions in cooperation with car manufacturers. The analyst has identified LG Electronics as the market leader in terms of OEM telematics shipments with a market share of about 26 percent. The company has contracts with leading automotive brands such as General Motors and Volkswagen. Continental and Harman were the runners-up with market shares of about 16 and 10 percent respectively. Other OEM telematics hardware vendors include Valeo, Marelli, Denso, Actia, Lear, Bosch, Gosuncn WeLink, Huawei, Neusoft Corporation, Lianyou Technology, Hyundai Mobis, Visteon and Aptiv.

The report answers the following questions

• Which are the leading providers of aftermarket telematics devices?
• Which are the leading vendors of OEM telematics devices?
• Which are the drivers and barriers on the global vehicle telematics hardware market?
• How will the global vehicle telematics hardware market evolve over the next five years?
• How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
• Which are the dominant technology form factors?
• Will OEM telematics solutions outcompete aftermarket vehicle telematics in the long term?
• Which are the key future trends in this industry?

Highlights from the report

• Insights from 30 new executive interviews with market leading companies.
• Comprehensive overview of the vehicle telematics hardware value chain and key applications.
• In-depth analysis of market trends and key developments.
• New profiles of 102 aftermarket and OEM vehicle telematics hardware vendors.
• Summary of the involvement of vehicle OEMs and mobile operators.
• New data on vehicle populations and new vehicle registrations worldwide.
• Market forecasts by region lasting until 2028