South & Central America Automotive Telematics Market Forecast to 2030 - Regional Analysis - by Offering, Connectivity, Vehicle Type, and Application

The South & Central America automotive telematics market was valued at US$ 1.95 billion in 2022 and is expected to reach US$ 6.14 billion by 2030; it is estimated to register a CAGR of 15.4% from 2022 to 2030.

Rising Adoption of Connected Cars Fuels South & Central America Automotive Telematics Market

The automobile industry has fundamentally transformed the connected car market in recent years. Vehicles in this dynamic industry are distinguished by their advanced sensor, communication, and software capabilities, which allow them to link to the internet, other vehicles, infrastructure, and numerous digital platforms. This has resulted in increasing consumer demand for connectivity and convenience. Consumers now expect seamless integration of their smartphones, access to navigation and entertainment apps, and the ability to monitor and control their vehicles remotely.

Businesses and industries are further exploring the potential of connected fleets for improved logistics, fuel efficiency, and vehicle management. The rising adoption of car connectivity for exchanging data with external systems for infotainment automated safety features drives the South & Central America automotive telematics market growth. Volkswagen Group's connected car sales increased by 12% in 2022. BMW Group reported sales of 2.5 million units of connected cars, showing a growth of 8.4% in 2021 compared to 2020. The growth in connected car sales has created a massive demand for automotive telematics solutions. The connected cars consist of several telematics solutions such as GPS tracking devices, buzzers, and input and output devices.

South & Central America Automotive Telematics Market Overview

The passenger car & commercial vehicle industry in SAM is improving steadily, as it has been witnessed that previously, most countries were strongly affected by the economic crisis and currency fluctuations. The overall passenger car & commercial vehicle industry is boosted by the slow but continuous recovery of the Brazilian market. It accounts for a significant market share in terms of production, sales, and exports. Growing production of vehicles and rising investment by OEMs to expand their presence in the region are significant factors driving the South & Central America automotive telematics market in SAM.

The investments made by OEMs to establish their presence in the region are driving the market. For instance, in November 2023, Nissan Auto Japanese car manufacturer planned to invest more than US$ 575.22 million in between 2023 to 2025 for the expansion of in its automotive plant in Brazil. Such, rising investment by the key players for the automotive plant expansion is driving the South & Central America automotive telematics market growth.

South & Central America Automotive Telematics Market Revenue and Forecast to 2030 (US$ Million)

South & Central America Automotive Telematics Market Segmentation

The South & Central America automotive telematics market is categorized into offering, connectivity, vehicle type, application, and country.

Based on offering, the South & Central America 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 South & Central America automotive telematics market is categorized into integrated, tethered, and embedded. The integrated segment held the largest market share in 2022.

By vehicle type, the South & Central America 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 South & Central America 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 South & Central America automotive telematics market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America automotive telematics market share in 2022.

Denso Corp, Harman International Industries Inc, Luxoft Switzerland AG, Omnitracs LLC, TomTom NV, Trimble Inc, and Valeo SE are among the leading companies operating in the South & Central America automotive telematics market.

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