Cars vs Smart Cars? – Future of Automotive Telematics Industry


Arizton's automotive telematics market report provides detailed analysis of market size, growth, enablers, restraints, trends and forecast details. The automotive telematics industry is segmented by product, vehicle, installation, application, and geography. Automotive telematics is a method of monitoring vehicles by using GPS and onboard diagnostics, which is then, tracked using computerized maps. It is a combination of telecommunications and informatics.

The CAGR is predicted to grow more than 15% and countries which are driving the demand in the global automotive telematics industry are China, Japan, India, and South Korea.

The increasing use of ADAS (Advanced Driver Assistance System) and telematics, the growing popularity of truck platooning, increasing demand for efficient connectivity in EVs, and increasing sales of luxury cars are the major growth enablers of the automotive telematics industry. This automotive telematics report offers market share analysis in terms of unit volume and revenue. The remote diagnostics is the largest segment dominating the automotive telematics industry with a growing CAGR of more than 30% in the forecast period.

Major vendors in the automotive telematics industry are LG electronics, HARMAN international, Denso, and Continental AG.

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Top 3 Trends and Drivers of the automotive telematics industry:

Rise of Connected cars in Automotive telematics industry

The increasing adoption of connected vehicle technology in a commercial vehicle is playing an important role in the automotive telematics industry. The traditional approaches to maintenance are being reduced due to this approach. For example, BMW vehicles connect to Deutsche Telekom’s SmartHome app to offer users control for their home heating and lighting. Sensors are connected to vehicles and these transmit data to the OEMs, this telemetry data will offer remote diagnostic services to fleet managers.  This type of remote diagnostics helps in enhancing and taking informed decisions regarding vehicle maintenance.

The productivity of the fleet is increased and the vehicle downtime, parts failures are reduced due to this connected vehicle technology in the automotive telematics industry. The real-time location tracking and vehicle platooning by connected car technology helps in tracking the vehicles and faster delivery of goods.

Read: India Electric Two-Wheeler Market - Industry Outlook and Forecast 2020-2025

Increasing use of advanced sensors and cloud technologies in vehicles

The road safety is a major concern and many countries have started to implement mandatory security features to increase safety of the commuters and pedestrians. The vehicles are equipped with passive safety features, sensor guided features, and proximity sensors. But even then also, the delay in response of the driver has been causing some accidents and failure rate. So the vendors are trying to convert the existing passive safety features to  safety electronic features and sensor based technologies.

Some of the emerging sensor based technologies are recognition of road signs, collision avoiding maneuvers, driver face-expression detection, pre crash deployment of airbags and seatbelts, obstacle detection and so on. These sensors not only sense the obstacles but also react to them by avoiding it, taking control of vehicle etc. if needed. These sensors ensure the safety of the commuters.

Growing popularity of autonomous vehicles

There is a structural shift in terms of demand-side behaviour in the automotive industry. The new car ownership models such a carpooling, cab services, rentals are increasing in number due to several reasons like traffic congestion, environmental concerns and so on. To adapt to these changes, the OEMs are focussing on driverless, autonomous vehicle concept. The OEM players like Audi, Ford, Bosch, Delphi, and Continental has already started projects to commercialize the concept of autonomous vehicles. Also other non-automotive companies like Google and Apple are also investing in development of autonomous vehicles. The currently tested autonomous vehicles are in Heathrow airport which has a dedicated facility for driverless vehicles that drive passengers from the parking space to the terminal. Also in 2015, Daimler received a permit and license to test its autonomous truck on freeways in Germany.

Read: Electric Vehicle Charging Infrastructure Market - Global Outlook and Forecast 2021-2026

The collaboration with electronic and communication expertise is also increased due to this autonomous vehicles. Tesla, Volkswagen, Ford are few of the notable companies who are into R&D for autonomous vehicles. The government regulatory bodies such as NHTSA states that the OEM providers need to provide support for autonomous vehicles for a minimum of 10 years post launching. The autonomous vehicles are also ensured that they are not subjected to any cyber threats or any failures, these factors enhance the growth of global automotive telematics industry during the forecast 2018-2024.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

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