Owing to emergence of
Industry 4.0, wherein all industries are profusely driven by technology and powerful
economic substance sweeping into the automotive sector, owing to heavy demand
for vehicles, there is a discernible surge in the telematics solutions market
size. The amalgamation of GPS tracker devices, the Internet, and other
in-vehicle technologies have become inevitably important, especially because of
the torrential demand for integration of smartphones with vehicles.
Furthermore, telematics enables insights pertaining to on-board diagnostics of
the vehicles that include informations such as speed of the car, location, and internal
behavior of the engine through the engine control module, which also allows the
user to identify service requirement. The growing demand for enhancing the
efficiency of vehicles is creating an augmented demand for telematics
solutions, because this technology can give access to information related to fuel
consumption, which in turn, also decreases the CO2 emissions. This aspect is
highly backed by corporate social responsibilities (CSR), pertaining to the
environment, which is making it important for organizations
to adopt fuel-saving technologies such as telematics.
The upcoming years are
poised to witness the growth of the autonomous and semi-autonomous vehicles
segment of the automotive industry, due to which market players will experience
some lucrative opportunities to increase their telematics solutions market
share. Also, telematics solutions market size is increasing, owing to necessity
to reduce the number of accidents, as the technology extracts the greatest
possible safety from the vehicles. Telematics solutions are also useful in
tracing a lost or stolen car.
Apart from that,
logistics companies are always looking to increase their efficiency through
optimum fleet management, and telematics solutions help in coordinating work
vehicles which results in improved efficiency and reduced cost.
In 2018, the telematics
solutions market size was evaluated at $18.98 billion, and it is projected to
increase at a CAGR of 14.95%, during the forecast period 2019-2025, according
to the telematics solutions market report.
This report provides
detailed information about the telematics solutions market size by type and
applications along with the detailed profiling of telematics solutions market
share by top 5 companies and startups that are striving to rise ahead of the
curve in this niche industry.
North America Subjugated
the Industry with High Telematics Solutions Market Share of 33.67% in 2018:
The contemporary
technological regime in North American countries such as the U.S., Mexico, and
Canada is creating revenue scope for a gamut of technology-based markets, and
so is the case with the booming telematics solutions market, which is further
bolstered by propitious prominence of autonomous vehicles in the lucrative
marketplace of the region.
The telematics solutions
market scope in North America in 2018 can be further gauged by high production
of vehicles in major markets of the U.S., Mexico, and Canada.
Table 1 – Production of
Vehicles in North American Countries
Sr. No. |
Country |
Production of Vehicles (In Numbers) |
1 |
Canada |
2,020,840 |
2 |
Mexico |
4,100,525 |
3 |
The U.S. |
11,314,705 |
Data Source –
International Organization of Motor Vehicle
Manufacturers (OICA)
The above figures
conspicuously make up for a lucrative North America automotive industry which
is a major telematics solutions marketplace.
Another factor driving growth
of the telematics solutions market players in North America countries is the
exuded safety of vehicles that the governments demand. For instance, in the U.S.,
a Federal agency named the National Highway Traffic Safety Administration
(NHTSA) regulates the safety of vehicles and related equipment. Resultantly, it
becomes imperative for the automotive industry in the U.S. to walk that extra
mile in order to ensure safety, which in turn, escalates the telematics
solutions market scope.
The growing concern pertaining
to accidents of heavy-duty vehicles are further driving the need for
integrating advanced telematics in trucks. According to NHTSA, 36,750 people
died in motor vehicle crashes in 2018. While the figure saw a 1% decline as
compared to 2017, but the major chunk of accidents were attributed to trucks
and older drivers of age 65 or more. In this scenario, the telematics solutions
market companies are at advantage because this technology aids to the safety of
vehicles.
Telematics Solutions
Market – Global Scenario and Growth Drivers:
· The Key
Application in the Telematics: Passenger Vehicles to Grow at a CAGR of 16.87%
through to 2025–
The economic boom across the world has increased
the disposable income of working income, which has made passenger vehicle a
commonplace in each middle-class household. The FY 2018 saw the production of
70,498,388 number of cars across the globe, according to OICA. The emerging
markets such as Brazil will play a major role in catapulting the production of
passenger vehicles in the upcoming years, and the forecast period will witness
a growth of the telematics solutions market in the segment.
· The Growth of
the Car Rental Services Expanding the Telematics Solutions Market Size –
Owing to the convenience factor, 24X7
availability of cars, and cost affordability, the car rental
market witnessed a boom in 2018 and was evaluated at $64.47
billion and is projected to expand at a CAGR of 11.53% through to 2025. Also, the
GPS and its integration with smartphones play a vital and round the clock
function in the operations of car rental services, which in turn, requires
telematics solutions. Henceforth, the car rental market growth will lead to an
expansion of the telematics solutions market size.
· The Growing
Concern Pertaining to Fuel Consumption and CO2 Emissions Catapulting the Telematics Solutions
Market Demand–
In 2017, the fuel consumption of light-duty
vehicles improved by 0.7%, according to the International Energy Association
(IEA). However, according to the Global Fuel Economy Initiation (GFEI) 2030
targets which are a part of sustainable development goals (SDGs) by the United
Nations (UN), an annual improvement of 3.7% is required. This is making
automotive companies equip vehicles with technologies such as telematics
solutions that can help in reducing the fuel consumption, thereby reducing CO2 emissions. Telematics solutions are found to be useful to handle
the global concern of CO2 emissions, as it provides data that can help in
reducing fuel consumption, and the forecast period will witness increased
incorporation of this technology in vehicles, which is expanding the telematics
solutions market share.
· The Advent of
Autonomous and Semi-Autonomous Vehicles Increase Telematics Solutions Market
Revenue–
The growth prospects for the telematics
solutions market in the semi-autonomous
and autonomous vehicles segment of the automotive industry can
be fathomed by growing self-driving
truck market size across the world. According to the American
Trucking Association, the shortage of truck drivers was around 50,000 by the
end of 2017. This shortage can surpass 174,000 by the end of 2026. This is to
say that the self-driving trucks will be an utmost necessity, during the
forecast period while the passenger vehicles segment will witness a progressive
disruption through the autonomous vehicles trend. The inculcation of telematics
solutions will become imperative for navigation, safety, and consistent
monitoring in these self-driving vehicles. Hence, the trend of autonomous
vehicles will augment the telematics solutions market size.
Telematics Solutions
Market Top 10 Companies:
The top 10 companies
striving to increase their telematics solutions market share are Robert Bosch
GmbH, Inseego, LG Electronics Inc., Continental AG, Harman International,
Verizon Wireless, DENSO Corporation, Qualcomm Incorporated, Magneti Marelli
S.p.A., and Masternaut Telematics Company.
· In May 2019,
Michelin announced the acquisition of Masternaut Telematics Company. This
acquisition is envisioned to capture the telematics solutions market in Europe.
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Related Reports:
A. Indian Commercial Telematics
Market
B. Consumer Telematics Systems
Market
https://www.industryarc.com/Report/104/consumer-telematics-devices-systems-market.html
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