Vehicle Telematics Market is Estimated to Grow at a CAGR of 15.8% from 2022 to 2028
As stated in our extensive report; the Global Vehicle Telematics Market accounted for USD 64.2 Billion in 2021.
Increased NGTP usage, the spread of telematics technology because of decreasing sensor and connectivity prices and expanding regulatory mandates for installing vehicle monitoring in commercial vehicles are the drivers propelling the Vehicle Telematics Market. Additionally, fleet managers may forecast vehicle health and driving behaviors based on vehicle usage, resulting in fewer maintenance requirements and cost-effectiveness. AI and machine learning capabilities also enable autonomous dispatching and routing. The Vehicle Telematics sector is expanding significantly due to all of these factors. In addition, the increasing demand for smartphones and the uptake of telematics products and services present a potential market.
Factors Influencing Global Vehicle Telematics Market Growth
The growth of the Global Vehicle Telematics Market can be attributable to the following:
1. NGTP allows customers to access new services without having to modify any internal technological infrastructure. Due to this, original equipment manufacturers can now provide further services for new and old automobiles. As a result, the market is expanding due to the growing demand for Next-generation Telematics Protocol (NGTP).
2. With telematics systems being adopted quickly during the projection period, there has been an increasing need for insurance coverage based on Vehicle Telematics. This demand is likely to grow as well.
3. The expansion of the sector and the market’s revenue are anticipated to be supported by the proliferation of smart devices like smartphones and tablets.
4. Due to fleet operators’ increasing use of this system, the fleet management segment is anticipated to grow quicker in revenue throughout the projected period.
5. This market’s predicted revenue growth will be aided by consumer demand for advanced telematics passenger car services such as vehicle-finder services, stolen-vehicle recovery, fuel & routing optimization, real-time tracking, and vehicle-maintenance warnings.
6. By situating themselves along the insurance value chain, automakers can save costs and open up new profitable channels by implementing telematics systems in vehicles, which will spur market expansion.
7. The commercial vehicle category is anticipated to have a significantly higher revenue share in this market during the forecast period due to the expanding transportation and logistics industries’ abundance of prospects for commercial Vehicle Telematics.
On the other hand, the Vehicle Telematics Market may be constrained by costly installation costs and worries about data hacking.
North America region Dominates the Global Market
Geographically, North America holds the largest market share in the Vehicle Telematics Market and will likely continue this trend in the coming years. In 2021, the Vehicle Telematics Market in North America was anticipated to be dominated by the United States. The region’s market is being driven by the widespread use of telematics by commercial vehicles, particularly in the United States. Demand for telematics is rising throughout the area due to the growing driver and passenger concerns about security, safety, and accident avoidance. Government rules that promote the use of auto telematics are also anticipated to fuel market revenue development.
The entire Vehicle Telematics industry has benefited from expanding demand for Next-Generation Telematics Protocol (NGTP), growing telematics use in business fleets, and rising safety concerns among car users.
The well-known players of the Global Vehicle Telematics Market include Trimble Inc. (US), Visteon Corporation (US), Airbiquity Inc. (US), Aplicom Oy (Finland), Scorpion Automotive Ltd., iTriangle Infotech Pvt. Ltd. (India), Shenzhen Concox Information & Technology Co. Ltd. (China), MINDA Corporation Ltd. (India), Idem Telematics GmbH (Germany), Road Track, ACTIA Group (France), LAVINTA BUANA SAKTI (Indonesia), Microlise Limited (UK), BOX Telematics (UK), REDTAIL Telematics Corporation (UK) and others.