Automotive Telematics Market Report 2025

The automotive telematics market size has grown exponentially in recent years. It will grow from $164.09 billion in 2024 to $209.6 billion in 2025 at a compound annual growth rate (CAGR) of 27.7%. The growth in the historic period can be attributed to strong economic growth in emerging markets, growth in vehicle ownership, increased occurrences of vehicle theft, and high adoption of connected cars.

The automotive telematics market size is expected to see exponential growth in the next few years. It will grow to $547.51 billion in 2029 at a compound annual growth rate (CAGR) of 27.1%. The growth in the forecast period can be attributed to rising demand for electric vehicles (EV), supportive government regulations, and increasing concerns about vehicle safety. Major trends in the forecast period include the use of artificial intelligence (AI), product innovations, collaborations and acquisitions, new technology development, telematics-based insurance, use of cloud technology and adoption of self-installed telematics devices.

An uptick in car accidents is driving the growth of the automotive telematics market moving forward. Car accidents, which include collisions with other vehicles or stationary objects, can be mitigated by automotive telematics that provide real-time feedback to drivers. Major automobile manufacturers are increasingly integrating telematics systems to enhance the safety of vehicles and their drivers. For example, in February 2023, a report from Statistisches Bundesamt, a Germany-based federal statistical authority, indicated that around 21,600 individuals were injured in road traffic incidents in 2023, marking an increase of approximately 900 injuries, or 5%, compared to 2022. Furthermore, the number of fatalities in traffic accidents rose by 13, reaching a total of 167 in February 2023. Thus, the rise in car accidents is propelling the growth of the automotive telematics market.

The growth of the automotive telematics market is further supported by the rising demand for electric vehicles (EVs) during the forecast period. The automotive industry has witnessed a rapid adoption of various technologies, especially in the realm of electric vehicles. Automotive telematics, integrated with cutting-edge technologies, facilitates new product innovations by capturing and transmitting vehicle and owner data. China, with the largest and fastest-growing EV market globally, delivered 2.4 million EVs to customers in mainland China in H1 2022, constituting 26% of all car sales in the country, as reported by ZD NET, a UK-based business technology news website. The demand for electric cars in China doubled within a year, making up 10% of car sales in H1 2021 and reaching 26% in H1 2022. Additionally, data from the International Energy Agency (IEA) highlighted a substantial surge in EV sales, reaching 10.2 million units in 2022, nearly double the previous year's figures. The global sales projection for electric cars in 2023 is estimated to reach 14 million units, reflecting a remarkable growth rate of 35%. Hence, the increasing demand for electric vehicles is poised to drive the automotive telematics market.

Major companies in the automotive telematics market are adopting a strategic partnership approach to improve technology integration and broaden their market reach. A strategic partnership usually involves a collaborative relationship between two or more organizations, where they pool their resources, expertise, and efforts to achieve shared goals or objectives. For example, in May 2023, Admiral Group plc, a UK-based financial services company, teamed up with Ford Smart Mobility, a US-based company focused on mobility services investment, and Redtail Telematics, a UK-based manufacturer of customized telematics products, to introduce a connected car telematics solution. This product enables eligible Ford vehicle owners to share driving data collected from their vehicles via the FordPass app. Customers can grant permission for data sharing through their in-vehicle screen, facilitating a more personalized and cost-effective insurance experience.

Prominent companies operating in the automotive telematics market are placing a strong emphasis on the development of cutting-edge solutions, exemplified by the introduction of the AI-Powered Telematics Solution. This strategic focus is geared towards meeting the evolving demands of the industry and gaining a competitive advantage. The AI-Powered Telematics Solution represents a fusion of advanced artificial intelligence with telematics functionalities, providing a unified platform for streamlined vehicle tracking, utilization, safety, and maintenance planning. In October 2023, Nauto, a leading US-based company specializing in AI-powered safety and operations excellence for commercial vehicles, unveiled its Telematics Solution, featuring enhanced telematics capabilities. These capabilities offer valuable insights into vehicle tracking, utilization, misuse, and maintenance planning. Nauto's latest solution integrates telematics with advanced AI-powered features focused on driver and vehicle safety, all within a single device and software platform. The integration of telematics and AI aims to reduce the number of devices in commercial vehicle cabs, offering fleet operators a means to cut costs and optimize operational efficiency. Notably, Nauto has enhanced safety features by incorporating detectors that provide specific alerts differentiating between pedestrians, bicyclists, and motorcyclists, thereby improving risk detection for these vulnerable road users (VRUs). This innovation underscores major companies' commitment to technological advancements, meeting industry demands, and delivering solutions that contribute to the safety and efficiency of automotive telematics.

In May 2022, Otonomo Technologies, an Israeli car data exchange platform, successfully acquired The Floww for $69 million. This acquisition aims to merge The Floww's vehicle telematics tools with Otonomo's mobility intelligence platform. The Floww, headquartered in the UK, specializes in vehicle telematics solutions.

Major companies operating in the automotive telematics market include Samsung Electronics Co., Ltd, Robert Bosch GmbH, Michelin Group, Valeo Group, TomTom N.V., Vontier, Trimble Inc., Continental AG, NavInfo Co. Ltd, Ficosa International SA, Mahindra Truck and Bus (MTB), Mitsubishi Fuso Truck, Hyundai, Geely Lynk & Co, Shenzhen Eelink Communication Technology Co., Ltd, 22 DOTS, TruckTrack GmbH, INTRANAV, FLEETIZE - Telematics, Exatrek, Visualix, Trackee.io, IoT Venture GmbH, In Car Telematics, Masternaut, Teletrac Navman, Verizon Connect, Movolytics, QUARTIX, Vodafone Fleet Telematics, RAM Tracking, Samsara, OCTO Automotive, MiX Telematics, Telematika, Kazan Telematics, TrackGPS, Mapon, Intellishift, Linxup, Damoov, Cambridge Telematics, ISAAC Instruments, Frotcom, Argus Telematics, Iveco, Autotrac, Mercedes-Benz, Omnilink, Volkswagen, Teltonika Telematics, Location Solutions Telematics LCC, Norconsult Telematics, FMS Tech, Advanced Telematics Solutions, Ctrack Matrix.

North America was the largest region in the automotive telematics market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive telematics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive telematics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Automotive telematics encompasses fleet monitoring and vehicle tracking via global positioning system (GPS), serving as a crucial management tool for commercial and government fleets. This system gathers data on speed, fuel consumption, tire pressure, and more. It aids in tracking automobiles, trucks, equipment, and assets, displaying their movements on digital maps.

Vehicles in the automotive telematics market include commercial cars, passenger vehicles, and two-wheelers. Commercial cars are primarily used for transporting goods or materials, often with the main focus being on cargo capacity rather than passenger space. Connectivity solutions vary from embedded, integrated to tethered setups. Automotive telematics finds applications in fleet or asset management, navigation systems, infotainment, insurance telematics, safety and security, among others. These solutions are distributed through different channels such as original equipment manufacturers (OEMs) and aftermarket services.

The automotive telematics market research report is one of a series of new reports that provides automotive telematics market statistics, including automotive telematics industry global market size, regional shares, competitors with an automotive telematics market share, detailed automotive telematics market segments, market trends and opportunities, and any further data you may need to thrive in the automotive telematics industry. This automotive telematics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Automotive telematics includes revenue earned by entities by black box telematics device, smartphone-based telematics device, Bluetooth-powered telematics device, OBD-ii port telematics device, and OEM telematics device. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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