by The APAC Automotive Telematics Market is estimated to be valued at US$ 22275.64 Mn or Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive telematics refers to communication systems installed in vehicles that provide safety and security features by transmission of vehicle data to smartphones, embedded systems or external servers. It involves the integration of wireless telecommunications and vehicular technologies to enable various services such as accident notification, vehicle diagnostics, navigation, infotainment and more. The major products include fleet/asset management, satnav, infotainment, insurance telematics, and safety & security. The increasing adoption of connected vehicles technology and need for enhanced driving experience are fueling the growth of APAC automotive telematics market.
Market Dynamics:
The growth of the APAC automotive telematics market can be attributed to two major drivers-
Firstly, rising demand for safety features equipped vehicles due to increasing number of road accidents is augmenting the market growth. According to Global Status Report on Road Safety published by WHO, road accidents account for over 70,000 deaths annually in India. The adoption of telematics and emergency call systems help determine vehicle location and aid rescue operation in case of accidents.
Secondly, the adoption of autonomous and semi-autonomous vehicles fitted with advanced navigation, diagnostics and connectivity features is also boosting the market. Major automakers are focusing on development of self-driving cars which will significantly rely on communication through vehicle telematics.
Segment Analysis
The APAC automotive telematics market is dominated by the original equipment manufacturers (OEM) segment which held around 80% share of the market in 2022. The OEM segment is dominant as most telematics services are pre-installed by automakers in new vehicles. Features like vehicle diagnostics, navigation, emergency calls, and remote diagnostics are primarily delivered through OEM telematics control units.
PEST Analysis
Political: The governments in various APAC countries are supporting the development and adoption of connected car technologies through initiatives and regulations related to vehicle safety and security. This is promoting the growth of telematics solutions.
Economic: The rising disposable incomes and economic growth in major APAC markets like China and India have increased the sales of new vehicles which is driving the demand for telematics services from OEMs.
Social: Younger consumers are more receptive towards innovative vehicle technologies. The concept of connected mobility is gaining traction among consumers in the region which is favorable for telematics providers.
Technological: Advanced technologies like 5G networks, AI and cloud computing are enabling the development of more sophisticated telematics solutions in APAC. Features like over-the-air updates and predictive maintenance can now be delivered through enhanced connectivity.
Key Takeaways
The Global APAC automotive telematics market Size is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing vehicle production and sales in major Asian economies like China, India, and Japan.
Regional analysis: Among regions, China held the largest share of over 35% in the APAC Automotive Telematics Market in 2022 owing to the large vehicle production base in the country. India is expected to experience the fastest growth during the forecast period supported by growing adoption of telematics solutions across commercial vehicles for fleet management applications.
Key players: Key players operating in the APAC automotive telematics market include Denso Corporation, Panasonic Corporation, Clarion, Masternaut Limited, Continental AG, Qualcomm Technologies, Inc. LG Electronics, Harman International Industries, Inc., Trimble Inc., and I.D. Systems. These players are focusing on partnerships, collaborations, and development of advanced intelligent telematics control units to strengthen their position in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
