Telematics in Automotive Market Growth, Innovation & Investment Trends

Telematics in Automotive Market Dynamics, Competitive Forces & Strategic Pathways

The telematics in automotive market is anticipated to grow from USD 26.56 billion in 2025 to USD 116.88 billion by 2034, with a compound annual growth rate (CAGR) of 18.23% during the forecast period from 2025 to 2034.

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Introduction

The telematics in automotive market is a prominent segment of the fleet management industry. This industry deals in developing telematics solutions for tracking automotives. There are several types of telematics solutions developed in this sector consisting of embedded telematics, integrated telematics, tethered telematics and some others. These solutions are based on different systems including driving assistance system, telematics control unit, global positioning system, vehicle tracking system, vehicular emergency warning and some others. It finds numerous applications in vehicle tracking, fleet management, satellite navigation, vehicle safety communication and some others. The rising cases of car theft activities across the world has boosted the market expansion. This market is expected to rise significantly with the growth of the automotive sector around the world.

• According to the Asis Security Organization, around 308888 car theft cases in U.S. during 2019 that increased to 789444 in 2023.

Highlights of the Telematics in Automotive Market

• North America held the dominant share of the telematics in automotive market due to the rising trend of connected car services in this region.
• Asia Pacific is expected to grow with a significant CAGR due to the technological advancements in automotive sector in this region.
• The vehicle tracking segment dominated the market due to the growing incidences of car theft around the world.
• The fleet management segment led the market due to rise in number fleet operators across the globe.

Telematics in Automotive: Trends and Stats

• The rising trend of connected vehicles solutions around the world has increased the application of telematics systems.
• Most of the fleet operators globally have started adopting advanced telematics solutions in their vehicles for precise tracking.
• According to the National Insurance Crime Bureau, around 48445 Hyundai Elantra were stolen globally in 2023.
• According a report of Co-operative Group Limited, around 72,888 vehicle theft cases occurred between January and September 2024.

Industry Leader Announcement

In September 2024, Ben Klarich, the Head of CSV Sales and Marketing UK at Continental Automotive made an announcement stating that,” We are thrilled to bring RAC's cutting-edge telematics to the UK commercial vehicle industry. This partnership represents a significant step forward in our commitment to enhancing fleet efficiency, safety, and compliance across the sector. By combining both Continental Automotive and the RAC's industry expertise, we aim to deliver unparalleled value to our customers and empower them to optimize their operations."

Regional Insights

North America held the lion’s share of the market. In North America, the market is driven by the presence of numerous automotive manufacturers such as General Motors, Cadillac, Ford, Chevrolet, Dodge and some others. Also, the rising cases of car thefts along with technological advancements in tracking devices is driving the industrial growth.

In North America, the U.S. and Canada are the major contributors of this industry. In U.S., this market is driven by the rise in number of fleet operators. In Canada, this industry has gained traction due to the government initiatives to adopt telematics for tracking vehicles.

Competitive Landscape

The telematics in automotive market is a highly fragmented industry with the presence of numerous dominant players. Some of the prominent companies in this industry comprises of Trimble, inc. (US), Masternaut Limited (France), TomTom international B.V. (Netherlands), Telogis (US), Visteon Corporation (US), Continental AG (Germany), Airbiquity, inc. (US) and some others. These market players are constantly engaged in developing telematics solutions for automotive sector and adopting several strategies to maintain their dominant position in this industry.

• According to the Visteon, the revenue of body and electrification electronics segment in 2023 was US$ 314 million that increased to US$ 525 million in 2024.

Telematics in Automotive Market Segmentation

By System

• Driving Assistance System
• Telematics control unit
• Global Positioning System (GPS)
• Vehicle Tracking System
• Vehicular Emergency Warning
• Others

By Type

• Embedded
• integrated
• Tethered

By Type

• Passenger car
• LCV
• HCV

By Distribution Channel

• OEM
• Aftermarket

By Application

• Vehicle Tracking
• Fleet Management
• Satellite Navigation
• Vehicle Safety Communication
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa