Telematics Solutions Market by Service (ACN, eCall, RSA, Remote Diagnostics, Insurance Risk Assessment, Driver Behavior, Billing & Other), Form & Vehicle Type, Component, Connectivity, Aftermarket, Fleet Management Service, Region - Global Forecast to 2025
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Telematics solutions enable transmission of data extracted from different electronic control units (ECUs) fitted in the vehicle to identify the codes and send them to the data center for monitoring and checking vehicle performance against set standards. The adoption rate of telematics solutions is growing gradually due to concerns over maintenance notifications, duration of maintenance services and reduced overall operational costs. The consistent increase in global vehicle production is also expected to promote the deployment of telematics systems in vehicles during the forecast period.
Market Drivers:
- Growth in entertainment, safety & security and navigation services
- Rising demand for raw diagnostic data for interpretation & analysis to improve vehicle performance
- Increasing adoption of connected cars services
Market Restraints:
- Lack of standardization and seamless connectivity
- Concerns over cybersecurity
Top 10 Players:
- Robert Bosch GmbH: Founded in 1886 and headquartered in Stuttgart, Germany, Robert Bosch GmbH supplies technology and services to the mobility and IoT sectors. The company operates through four business segments—Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The company offers telematics solutions, vehicle management solutions, preventive diagnostics solutions, and telematics plugs through its Mobility Solutions segment.
- AT&T: Established in 1983 and headquartered in Texas, US, AT&T operates under the following business segments- internet, phones, voice, business TV, IoT, and cybersecurity. Under the IoT segment the company provides vehicle solutions, including fleet management, location services and navigation, emergency services, driver notifications, etc. It offers these solutions through its Mobility Solutions business segment.
- Continental AG: Established in 1871 and headquartered in Hanover, Germany, Continental’s Automotive group comprises three divisions—Chassis & Safety, Powertrain, and Interior. It provides fleet management solutions and tolling and telematics under sub segment of interior and cabin and telematics, flex light, CUTE, OBD-BT-Dongle, and Telematics Gateway under sub segment of connected car component.
- LG Electronics: Established in 1958 and headquartered in Seoul, South Korea, LG specializes in manufacturing and selling of consumer electronics, mobile communications, home appliances, and vehicle components. Vehicle Components segment includes Telematics services such as emergency rescue, location tracking of stolen vehicles, and long-distance vehicle diagnostics.
- Verizon: Established in 2000 and headquartered in New York, US, Verizon provides its telematics solutions under the brand name of Verizon Connect. This brand falls under the Corporate & Other segment. Some of the solutions include fleet tracking, commercial navigation, route optimization, roadside assistance, personal vehicle solution, geospatial mapping, and enterprise fleet management. Verizon Connect portfolio includes Verizon Telematics, Fleetmatics, and Telogis.
- Harman International
- Aptiv PLC
- Visteon Corporation
- Magneti Marelli CK Holdings
- Webfleet Solutions
Top Applications:
- Automatic crash notification
- Emergency calling
- Navigation & infotainment
- On-road assistance
- Remote diagnostics
- Vehicle tracking/recovery
- Eco driving
- Driver behaviour
- Fuel efficiency
- Geo fencing
- Fleet management segment is expected to register the highest growth rate in the market during the forecast period
- Advanced fleet management services provide improved fuel economy, driver behaviour monitoring and collection of critical data with regards to mileage, speed, braking style and fuel consumption
- Apart from fleet management, segments such as insurance risk assessment, driver behaviour and billing services are expected to demonstrate major growth rate in the market
[180 Pages Report] Estimated at USD 29.9 billion in 2020, the telematics solutions market size is projected to reach USD 62.6 billion by 2025, growing at a CAGR of 15.9% during the forecast period. An increase in efforts by the government for developing an intelligent transportation system, developments in 5G connectivity, increasing demand for smartphone features in the car and automated driving technologies along with passenger safety features will boost the demand for telematics solutions market.
Fleet Management segment is estimated to be the fastest-growing market during the forecast period
The fleet management segment for commercial vehicles is expected to hold the fastest market share owing to a decrease in the cost of running of business and fuel efficiency. Fleet management software helps running a business seamlessly by providing a plan for more efficient routes, lower excess fuel usage and eliminate risky driver habits by identifying the causes. Fleet management systems allow users to locate company vehicles on-demand, gather and store engine error codes and detect dangerous driver habits such as speeding, harsh braking, and idling. This data is invaluable for companies and it helps businesses to cut costs throughout their operation. In the forecasted period, it is expected that Asia Pacific will lead the market due to the high usage of fleet management services in commercial vehicles in China, Japan and South Korea.
Embedded System is expected to lead the market during the forecasted period
The Embedded system is expected to hold the largest market for the telematics solutions market. The growth of embedded telematics solutions is attributed to various disruptive factors such as government mandates, cost optimization of service plans, and growth of cloud-based services. Many telematics services cannot be used efficiently without having an embedded connectivity solution in the car such as eCall, remote diagnostics, and many more which is increasing the adoption of embedded connectivity. Government regulations are the principal reason for the growth of embedded connectivity. Europe has already mandated eCall since March 2018. Brazil and Russia will start mandating the fitment of embedded telematics. In the longer run, it is expected that China will also introduce similar mandates for telematics, which, coupled with its rise in vehicle sales, would ensure that it becomes the leading market for embedded telematics globally.
Asia Pacific region is expected to lead the OE market during the forecast period
The Asia Pacific market is expected to lead the market during the forecast period especially in China, followed by Japan and South Korea. The Asia Pacific market growth is majorly driven by upcoming government rules and regulations for telematics, increase in fleet management, and rise in concern regarding safety & security are the key factors that significantly contribute toward the growth of China, India and Southeast Asia automotive telematics solutions market. Moreover, a rise in the trend of connectivity solutions are expected to boost the growth of the APAC telematics solutions market. Also, vehicle diagnose due to the telematics systems is expected to fuel the market in Asia Pacific in the forecasted period for telematics solutions market
Key Market Players
The global telematics solutions market is dominated by major players such as Robert Bosch GmbH (Germany), AT&T INC. (US), Continental AG (Germany), LG Electronics (South Korea), and Verizon (US). These companies have strong distribution networks at a global level and offer an extensive product range. These companies adopt strategies, such as new product developments, collaborations, and contracts & agreements to sustain their market position.
Scope of the Report
|
Report Metric |
Details |
|
Market size available for years |
2018–2025 |
|
Base year considered |
2019 |
|
Forecast period |
2020–2027 |
|
Forecast units |
Volume (Thousand Units) & Value (USD) |
|
Segments covered |
By Service, Form, Vehicle Type, Components, Aftermarket, Connectivity, Service Type (Fleet Management) and Region |
|
Geographies covered |
North America, Asia Pacific, Europe and Rest of the World |
|
Companies covered |
Robert Bosch GmbH (Germany), AT&T INC. (US), Continental AG (Germany), LG Electronics (South Korea) and Verizon (US) |
This research report categorizes the given market based on service, form, vehicle type, aftermarket, components, connectivity, service type (fleet management) and region
Based on the Service, the market has been segmented as follows:
- Automatic Crash Notification
- Emergency Calling
- Navigation
- On-Road Assistance
- Remote Diagnostics
- On-Road Assistance
- Vehicle Tracking/Recovery (Fleet Management)
- Insurance Risk Assessment
- Driver Behaviour
- Billing Services
- Others(Fuel efficiency Guidance, Geo-Fencing, Eco Driving)
Based on the Hardware, the market has been segmented as follows:
- Telematic Control Unit
- Navigation Systems
- Communication Devices
- Audio/Video Interface
- CAN Bus
Based on the form type, the market has been segmented as follows:
- Embedded
- Tethered
- Integrated
Based on the Vehicle Type, the market has been segmented as follows:
- Passenger Car
- LCV
- Truck
- Bus
Based on Connectivity, the market has been segmented as follows:
- Satellite
- Cellular
Based on Aftermarket, the market has been segmented as follows:
- Passenger Car Aftermarket
- LCV Aftermarket
- HCV Aftermarket
Based on Service Type (Fleet Management), the market has been segmented as follows:
- Consulting
- Implementation
- Maintenance
Based on the region, the market has been segmented as follows:
- Asia Pacific
- China
- India
- Japan
- South Korea
- Thailand
- Rest of Asia Pacific
- North America
- US
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Russia
- Rest of the Europe
- Rest of the World
- Argentina
- Brazil
- Iran
- South Africa
- Rest of the RoW
Critical Questions:
- Many companies are operating in the telematics solutions market space across the globe. Do you know who are the front leaders, and what strategies have been adopted by them?
- Fast-paced developments in telematics services such as fleet management, insurance risk assessment, and driver behavior offered by leading services and solution providers are expected to change the dynamics of the telematics solutions market. How will this transform the overall market?
- Analysis of your competition that includes major players in the telematics solutions ecosystem. The major players include Robert Bosch GmbH (Germany), AT&T INC. (US), Continental AG (Germany), LG Electronics (South Korea), and Verizon (US) among others.
- Discussion on your client’s imperatives based on our existing research on the telematics solutions market and its ecosystems.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
TABLE OF CONTENT
1 INTRODUCTION
1.1 OBJECTIVES
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.4 LIMITATIONS
1.5 STAKEHOLDERS
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.2 SECONDARY DATA
2.2.1 KEY SECONDARY SOURCES FOR BASE NUMBERS
2.2.2 KEY DATA FROM SECONDARY SOURCES
2.3 PRIMARY DATA
2.3.1 SAMPLING TECHNIQUES & DATA COLLECTION METHODS
2.3.2 PRIMARY PARTICIPANTS
2.4 MARKET SIZE ESTIMATION
2.5 MARKET BREAKDOWN
2.6 ASSUMPTIONS AND RISK ASSESSMENT & RANGES
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 YEARS CONSIDERED FOR THE STUDY
5.3 CURRENCY & PRICING
5.4 MARKET DYNAMICS
5.4.1 DRIVERS
5.4.2 RESTRAINTS
5.4.3 OPPORTUNITIES
5.4.4 CHALLENGES
5.5 REVENUE MISSED/SHIFT: OPPORTUNITIES FOR TELEMATICS MANUFACTURES
5.5.1 TELEMATICS: MOST LIKELY SCENARIO
5.5.2 TELEMATICS: OPTIMISTIC SCENARIO
5.5.3 TELEMATICS: PESSIMISTIC SCENARIO
6 TELEMATICS SOLUTIONS MARKET, BY SERVICES
6.1 INTRODUCTION
6.2 AUTOMATIC CRASH NOTIFICATION
6.3 EMERGENCY CALLING
6.4 NAVIGATION & INFOTAINMENT
6.5 ON-ROAD ASSISTANCE
6.6 REMOTE DIAGNOSTICS
6.7 VEHICLE TRACKING/RECOVERY ( FLEET MANAGEMENT)
6.8 INSURANCE RISK ASSESSMENT
6.9 DRIVER BEHAVIOUR
6.10 BILLING SERVICES
6.11 OTHERS(FUEL EFFICIENCY GUIDANCE, GEO FECING, ECO DRIVING)
7 TELEMATICS SOLUTIONS MARKET, BY FORM FACTOR
7.1 INTRODUCTION
7.2 EMBEDDED
7.3 TETHERED
7.4 INTEGRATED
8 TELEMATICS SOLUTIONS MARKET, BY COMPONENTS
8.1 INTRODUCTION
8.2 TELEMATICS CONTROL UNIT (TCU)
8.3 NAVIGATION SYSTEM
8.4 COMMUNICATION DEVICES (BLUETOOTH, WIFI, 3G, 4G, 5G)
8.5 AUDIO/VIDEO INTERFACE
8.6 CAN BUS
9 TELEMATICS SOLUTIONS MARKET, BY VEHICLE TYPE
9.1 INTRODUCTION
9.1.1 PASSENGER CARS
9.1.2 LCV
9.1.3 TRUCK
9.1.4 BUS
10 TELEMATICS SOLUTIONS MARKET, BY CONNECTIVITY
10.1 INTRODUCTION
10.1.1 Satellite Technology
10.1.2 Cellular Technology
11 TELEMATICS SOLUTIONS MARKET, BY AFTERMARKET
11.1 INTRODUCTION
11.1.1 PASSENGER CAR AFTERMARKET
11.1.2 LCV AFTERMARKET
11.1.3 BUS AFTERMARKET
11.1.4 TRUCK AFTERMARKET
12 TELEMATICS SOLUTIONS SERVICES MARKET, BY TYPE
12.1 INTRODUCTION
12.1.1 Consulting
12.1.2 Implementation
12.1.3 Maintenance
13 TELEMATICS SOLUTIONS MARKET, BY REGION
13.1 INTRODUCTION
13.2 ASIA PACIFIC
13.2.1 China
13.2.2 India
13.2.3 Japan
13.2.4 South Korea
13.2.5 Thailand
13.2.6 Rest of Asia Pacific
13.3 EUROPE
13.3.1 France
13.3.2 Germany
13.3.3 Italy
13.3.4 Spain
13.3.5 UK
13.3.6 Russia
13.3.7 Rest of Europe
13.4 NORTH AMERICA
13.4.1 US
13.4.2 Canada
13.4.3 Mexico
13.5 REST OF THE WORLD (ROW)
13.5.1 Iran
13.5.2 Brazil
13.5.3 Argentina
13.5.4 South Africa
13.5.5 Rest of Row
14 COMPETITIVE LANDSCAPE
14.1 OVERVIEW
14.2 MARKET RANKING ANALYSIS
14.3 PRODUCT COMPARISON MAPPING, BY KEY COMPETITORS
14.4 COMPETITIVE LEADERSHIP MAPPING, BY SERVICE
14.4.1 VISIONARY LEADERS
14.4.2 INNOVATORS
14.4.3 DYNAMIC DIFFERENTIATORS
14.4.4 EMERGING COMPANIES
14.5 STRENGTH OF PRODUCT PORTFOLIO
14.6 BUSINESS STRATEGY EXCELLENCE
14.7 WINNERS/TAIL ENDERS
14.8 COMPETITIVE LEADERSHIP MAPPING, BY HARDWARE
14.8.1 VISIONARY LEADERS
14.8.2 INNOVATORS
14.8.3 DYNAMIC DIFFERENTIATORS
14.8.4 EMERGING COMPANIES
14.9 STRENGTH OF PRODUCT PORTFOLIO
14.1 BUSINESS STRATEGY EXCELLENCE
14.11 WINNERS/TAIL ENDERS
14.12 COMPETITIVE SCENARIO
14.12.1 NEW PRODUCT DEVELOPMENT
14.12.2 EXPANSION
14.12.3 ACQUISITIONS
14.12.4 SUPPLY CONTRACT/PARTNERSHIP
15 COMPETITIVE PROFILE
15.1 ROBERT BOSCH GMBH
15.2 CONTINENTAL AG
15.3 LG ELECTRONICS
15.4 VERIZON
15.5 HARMAN INTERNATIONAL
15.6 DELPHI AUTOMOTIVE PLC
15.7 VISTEON CORPORATION
15.8 MAGNETI MARELLI S.P.A.
15.9 TOMTOM INTERNATIONAL BV
15.10 QUALCOMM TECHNOLOGIES INC.
15.11 INTEL CORPORATION
15.12 ADDITIONAL COMPANY PROFILES
15.12.1 Trimble Inc
15.12.2 AT&T
15.12.3 MiX Telematics
15.12.4 Octo Telematics
15.12.5 Airbiquity Inc.
15.12.6 Masternaut Limited
15.12.7 CalAmp.
15.12.8 The Descartes Systems Group Inc.
15.12.9 Astrata Group
15.12.10 AirIQ Inc.
15.12.11 Garmin Ltd.
15.12.12 Box Telematics
15.12.13 Act soft
15.12.14 Teletrac Navman
16 APPENDIX
16.1 INSIGHTS FROM INDUSTRY EXPERTS
16.2 DISCUSSION GUIDE
16.3 KNOWLEDGE STORE: MARKETSANDMARKETS SUBSCRIPTION PORTAL
16.4 AVAILABLE CUSTOMIZATION
16.5 RELATED REPORTS
16.6 AUTHOR DETAILS
The study involved four major activities in estimating the current size of the telematics solutions market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The bottom-up and top-down approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications [such as publications of vehicle sales’ OEMs, Canadian Automobile Association (CAA), country-level automotive associations and trade organizations, and the US Department of Transportation (DOT)], telematics magazine articles, directories, technical handbooks, World Economic Outlook, trade websites, and technical reports have been used to identify and collect information useful for an extensive commercial study of the telematics solutions market.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from different key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have been conducted to gather insights such as vehicle production forecast, connected car market forecast, future technology trends, and upcoming technologies in the related car industry. Data triangulation of all these points was done with the information gathered from secondary research as well as model mapping. Stakeholders from demand as well as supply-side have been interviewed to understand their views on the points mentioned above.
Primary interviews have been conducted with market experts from both the demand- (OEMs) and supply-side (telematics services and hardware providers) players across four major regions, namely, North America, Europe, Asia Pacific, and Rest of the Worl. Approximately 40% and 60% of primary interviews have been conducted from the demand and supply sides, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales and operations, to provide a holistic viewpoint in our report.
After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the total market size. These methods were also used extensively to determine the size of various sub-segments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size-using the market size estimation processes as explained above-the market was split into several segments and sub-segments. To complete the whole market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives
- To define, describe, and forecast the telematics solutions market, in terms of value (USD million), based on the following segments:
- By Services [automatic crash notification, emergency calling, navigation, on-road assistance, remote diagnostics, fleet management, insurance risk assessment, driver behavior billing services, and others]
- By Form Factor [embedded, tethered and integrated]
- By Components [telematics control unit, navigation system, communication devices, audio/video interfaced and CAN bus}
- By Vehicle Type [passenger Car, LCV, bus, and truck)
- By Connectivity [satellite and cellular]
- By Aftermarket [passenger car aftermarket, LCV aftermarket, bus aftermarket and truck aftermarket]
- By Service Type (Fleet Management) [consulting, implementation and maintenance]
- By Region [Asia Pacific, Europe, North America, and RoW]
- To understand the market dynamics (drivers, restraints, opportunities, and challenges) of the telematics solutions market
- To analyze the market ranking of key players operating in the telematics solutions market
- To understand the dynamics of the telematics solutions market competitors and distinguish them into visionary leaders, innovators, emerging companies, and dynamic differentiators according to their product portfolio strength and business strategies
- To analyze recent developments, alliances, joint ventures, mergers & acquisitions, new product launches, and other activities carried out by key industry players in the telematics solutions market
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance to the company’s specific needs.
Telematics Solutions Market, By Cellular
- 4g/lte
- 5g
Telematics Solutions Market, By Vehicle Type Country Wise
- Passenger Car
- LCV
- Truck
- Bus
Note: North America (US, Canada and Mexico), Europe (France, Germany, Spain, Italy, UK, Russia and Rest of Europe), Asia Pacific (China, India, South Korea, Thailand and Rest of Asia Pacific) and RoW (Iran, Brazil, Argentin, South Africa and Rest of RoW)
- Triangulate with your Own Data
- Get Data as per your Format and Definition
- Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
- Any level of Personalization
- What are the Known and Unknown Adjacencies Impacting the Telematics Solutions Market
- What will your New Revenue Sources be?
- Who will be your Top Customer; what will make them switch?
- Defend your Market Share or Win Competitors
- Get a Scorecard for Target Partners
Growth opportunities and latent adjacency in Telematics Solutions Market
I am trying to understand the spending trends on automotive between different functions/domains like ADAS, infotainment, telematics etc