Automotive Telematics: A Game-Changer for the Automotive
Industry
Automotive telematics is a technology that integrates
telecommunications and informatics to provide information and services to
drivers and passengers of vehicles. This technology is rapidly transforming the
automotive industry by improving vehicle safety, reducing fuel consumption,
enhancing driver experience, and providing valuable data for businesses.
One of the key benefits of automotive telematics is its
ability to improve vehicle safety. Telematics systems can detect and alert
drivers of potential hazards on the road, such as sudden braking or swerving.
This can help prevent accidents and reduce fatalities on the road. In addition,
telematics can also help track stolen vehicles, increasing the likelihood of
recovery.
Another advantage of automotive telematics is its ability to
reduce fuel consumption. Telematics systems can monitor a vehicle's speed,
acceleration, and braking patterns to optimize fuel efficiency. This not only
helps drivers save money on fuel costs, but it also reduces emissions, making
it an eco-friendly solution.
Automotive telematics also enhances the driver experience by
providing real-time traffic information, weather updates, and entertainment
options. Drivers can stay connected and entertained during long drives, making
the journey more enjoyable.
Finally, businesses can benefit from automotive telematics
by using the data generated by these systems to optimize their operations.
Telematics can provide valuable insights into driver behavior, vehicle
performance, and fuel consumption patterns. This data can be used to improve
logistics and route planning, reduce maintenance costs, and increase
productivity.
Dynamics of Automotive Telematics Market
Drivers in Automotive
Telematics Market
The automotive telematics market is driven by various
factors, including the growth in entertainment, safety & security, and
navigation services. Safety is a primary concern due to the increasing
congestion and traffic on roads, leading to extensive development and
incorporation of advanced features in telematics solutions. The enhancement of
ADAS features in cars is the primary driver for the telematics solutions market
as these features ensure improved levels of safety. Additionally, governments
in various countries are mandating various ADAS and safety features, leading to
an increased demand for telematics solutions.
The demand for other telematics services, such as automatic
crash notification, on-road assistance, and driver behavior, is also
increasing, which is estimated to drive the telematics solutions market. The
rise in demand for connected, autonomous, and intelligent technologies in
vehicles is driving the global automotive telematics market, primarily for
fleet management and vehicular tracking. Furthermore, automotive telematics
companies are developing new cloud technologies to securely manage vehicle
data, leading to an increase in demand for telematics solutions.
Restraints in
Automotive Telematics Market
However, the lack of standardization in telematics is a
significant restraint for the market. Software and system developers face
multiple issues accessing relevant data related to vehicles due to the absence
or misrepresentation of critical information. This is because of the lack of
standardization and interoperability metrics in devices produced by different
manufacturers. Additionally, the usage of information technologies is divided
into several interrelated stages, leading to the potential inefficiency of the
system due to any errors while integrating these stages of information technologies.
Hence, the standardization of several hardware devices, platforms, and
protocols for efficient exchange of desired information is a challenge that
needs to be addressed during the forecast period.
Opportunities in
Automotive Telematics Market
The future potential of 5G and AI offers a range of
opportunities for the automotive industry. Wireless connectivity is crucial for
telematics solutions, and the development of 5G by many telecom industry
players is set to increase safety and efficiency. With low latency and the
ability to build 1 million connections per square km, 5G can offer 99.9%
reliability, making V2V and V2I connectivity faster and more efficient than
previous network generations. The use of a wide range of radio spectrum
frequencies also allows for more connections without interference.
As the use of telematics solutions continues to grow, the
automotive industry has seen an explosion in the use of AI. Machine learning
used to implement AI is expected to grow at the fastest rate than other
technologies in the sector, with various applications such as speech and
gesture recognition, driver monitoring, and engine control units.
The integration of IoT into vehicles is also increasing
vehicle efficiency and safety, with telematics capabilities becoming
increasingly popular among consumers. Third-party and aftermarket service
providers are also developing solutions for the automotive industry, with a
focus on reducing operating costs and achieving sustainability goals.
The emergence of Industry 4.0 has led to the adoption of
telematics systems such as vehicle tracking, fleet management, and vehicle
safety communication. The expansion of 5G technology has enabled rapid and
real-time data transmission, fueling the demand for autonomous technologies.
OEMs are also focused on transforming production processes to become
customer-centric, efficient, and flexible, which is expected to drive the
automotive telematics market in the future.
The need for safety during fleet operations is also driving
the demand for telematics systems, with emergency warning systems, GPS
navigation, and autonomous driving assistance improving driver and cargo
safety. The launch of new telematics solutions, such as Geotab's integrated
solution for General Motors, has also helped fleet managers gain access to
vehicular data and improve their fleet management system.
Challenges in
Automotive Telematics Market
Although there have been significant advancements in
telematics solutions, cybersecurity remains a major challenge that needs to be
addressed. Telematics solutions involve hardware, software, mobile apps, and
Bluetooth, each of which can be vulnerable to hacking and cyberattacks. There
have been numerous instances where cybersecurity breaches have caused serious
problems for customers, companies, and governments. For instance, two
researchers attacked Chrysler jeep, which resulted in the company recalling and
upgrading the software of 1.5 million vehicles across various countries. In
response, regulators are developing minimum standards for vehicle software and
cybersecurity. For instance, the European Data Act, which was introduced in
2022, applies to connected and autonomous vehicle testing and deployment,
requiring them to meet certain industry standards for cybersecurity. The Act
also provides regulations on how companies can access and use data, especially
non-personal data. Under the new rules, drivers can request that any data
generated on the performance of their vehicle be sent to a repair shop of their
choice, potentially reducing the cost of services.
Telematics systems rely on a cloud-based telematics server,
which comprises a web server, application server, and database. The TCU
collects information that is then sent to the cloud-based telematics server via
a GPRS/cellular network over HTTPS. End users can access the data stored in the
telematics server using either a desktop or mobile application. The growth of
the automotive telematics market is driven by several factors, including the
integration of real-time fleet monitoring systems in vehicles, increasing use
of cloud-based technology, and government regulations for vehicle telematics.
Additionally, the ease of vehicle diagnosis due to telematics systems is a
significant growth factor. However, the threat of data hacking, high
installation costs, and lack of seamless internet connectivity hinder market
growth. Nonetheless, the market presents significant opportunities for growth,
including the development of intelligent transportation systems, improved
performance of autonomous vehicles, and enhanced business decisions for fleet
owners.
Ecosystem of Automotive Telematics Market
The automotive telematics market ecosystem is composed of
raw materials suppliers, component/part manufacturers, telematics solution
providers, and original equipment manufacturers (OEMs). Telematics is a method
of monitoring vehicles and assets by using connected technologies to track
their position, condition, wear and tear, and movements. Telematics
manufacturers and system integrators obtain hardware and software from
suppliers and design telematics solutions based on OEM requirements, which OEMs
then directly deploy and install in their vehicle models.
The maintenance segment is expected to experience the
fastest growth in the automotive telematics market during the forecast period
due to the increasing adoption of telematics systems worldwide. The maintenance
market enables seamless operation of platforms by providing long-lasting
systems and platforms while identifying and eliminating safety hazards. North
America is expected to lead the market due to the high usage of telematics
services in commercial vehicles and government mandates such as the electronic
logging device (ELD) mandate for commercial vehicles in the US.
During the forecasted period, cellular connectivity is
expected to dominate the automotive telematics market. The growth of cellular
connectivity in automotive telematics is due to various disruptive factors such
as the government's push for 5G, increasing cellular connectivity in the Asia
Pacific regions, and the growth of cloud-based services. Many cellular
telematics services are more affordable than satellite-based connectivity
solutions, making them a more attractive option. Increasing internet
penetration, the introduction of 5G, and government regulations are also
contributing to the growth of cellular connectivity. In the longer run, it is
expected that India and China will drive the rise in the use of cellular
connectivity solutions for vehicles, making it the leading market for cellular
telematics globally.
The global automotive telematics market has been divided
into three segments based on technology: embedded, tethered, and integrated.
The integrated segment is expected to have the largest market share due to the
increased adoption of telematics systems in Europe and North America. Premium
and mid-segment vehicle manufacturers are integrating telematics systems into
their vehicles, and OEMs prefer integrated technologies over embedded ones.
Regarding application, the global automotive telematics
market has been classified into vehicle tracking, fleet management, satellite
navigation, vehicle safety communication, and others. During the forecast
period, the vehicle tracking segment is expected to dominate the market. Modern
vehicles have telematics vehicle tracking as a basic feature, and fleet
operators and ride-sharing companies rely on it to carry out their operations.
The ride-sharing and car rental services market's expansion is expected to
increase the segment in the coming years. The demand for telematics in car
insurance is being driven by an increase in vehicle theft cases. According to Interpol's
latest available data from 2019, approximately 90,000 vehicles were reported
stolen worldwide.
During the forecast period, the Asia Pacific region is
expected to dominate the global automotive telematics market. The rise in
adoption of 5G services, expansion of the connected car devices market, and
increased investments in road infrastructure are driving the market growth
worldwide. Consumers are increasingly aware of the safety of vehicles, which
has led major OEMs to add infotainment systems and enhanced safety and security
features to their mid-range vehicles. Countries in Asia Pacific, such as China,
India, and others, are making significant investments in telecommunication and
road infrastructure, further fueling market growth.
Although Europe and North America are highly developed
regions in the market, they have a smaller consumer base and lower vehicle
production, placing them below Asia Pacific in terms of revenue generation. The
market in Europe is driven by the growth of the road safety market and the
implementation of various road safety regulations in the region. As of July
2022, all new vehicles in the EU, including passenger cars and utility
vehicles, must be fitted with a 'black box' to record technical data, but not
yet for two-wheeled motor vehicles.
Dominating Companies in Automotive Telematics Market
- ROBERT BOSCH GMBH
- AT&T INC.
- CONTINENTAL AG
- LG ELECTRONICS
- VERIZON
- HARMAN INTERNATIONAL CORPORATION
- APTIV PLC
- VISTEON CORPORATION
- MAGNETI MARELLI CK HOLDINGS CO., LTD.
- WEBFLEET SOLUTIONS
- INTEL CORPORATION
- ASTRATA EUROPE BV
- PANASONIC CORPORATION
- GARMIN, LTD.
- MIX TELEMATICS
- TRIMBLE INC.
- AIRBIQUITY INC.
- CALAMP CORP.
- THE DESCARTES SYSTEMS GROUP INC.
- QUALCOMM TECHNOLOGIES INC.
- AIRIQ INC.
- ACTSOFT INC.
- TELETRAC NAVMAN US LTD.
- MASTERNAUT LTD.
- OCTO TELEMATICS
- BOX TELEMATICS LIMITED
- Agero Inc
- Clarion Co., Ltd.
- Delphi Technologies
- Denso Corporation
- Embitel Technologies
- Luxoft
- Inseego Corp.
- Microlise Limited
- NTT Docomo Inc.
- Omnitracs, LLC
- TomTom International B.V.
- Valeo
Recent Developments in Automotive Telematics Market
- In 2021, TomTom, a leading provider of navigation and
mapping solutions, announced that it had entered into an agreement to sell its
telematics business to Bridgestone Europe NV/SA, a subsidiary of Bridgestone
Corporation. The acquisition is expected to help Bridgestone expand its digital
mobility solutions and connected services offerings.
- In 2020, Verizon Communications Inc. announced that it had
completed the acquisition of BlueJeans Network, a leading provider of video
conferencing solutions. The acquisition is expected to help Verizon enhance its
telematics offerings by integrating BlueJeans' video conferencing technology
into its fleet management platform.
- In 2019, Trimble Inc., a leading provider of GPS technology,
announced that it had acquired Kuebix, a cloud-based transportation management
system provider. The acquisition is expected to help Trimble expand its
transportation and logistics offerings, including its telematics solutions.
- In 2019, Geotab, a leading provider of telematics solutions
for fleet management, announced a partnership with Ford Motor Company. The
partnership is expected to help Geotab expand its reach into the automotive
market by integrating its telematics solutions with Ford's vehicles.
- In 2018, Continental AG, a German automotive manufacturing
company, announced that it had acquired Kathrein Automotive GmbH, a leading
provider of automotive telematics and connectivity solutions. The acquisition
is expected to help Continental enhance its telematics offerings by integrating
Kathrein's connectivity technology into its existing platform.
- In 2021, Verizon announced the acquisition of a startup
called Skyward, which provides drone operations management software. The
acquisition is expected to help Verizon expand its telematics offerings and
create new opportunities for businesses to leverage drones for delivering goods
and services.
- In 2020, Aptiv and Hyundai Motor Group announced the formation
of a joint venture called Motional. The partnership aims to develop and
commercialize driverless vehicle technology, and bring fully autonomous
vehicles to market by 2022.
- In 2020, Microsoft and TomTom announced a partnership to
bring TomTom's maps, traffic data and navigation software to Microsoft's Azure
cloud computing platform. The partnership aims to help automakers create
smarter, more connected cars.
- In 2019, Geotab, a telematics provider, acquired BSM
Technologies, a provider of GPS fleet tracking and telematics solutions for
government and enterprise fleets. The acquisition expands Geotab's presence in
the North American market and strengthens its position as a leader in
telematics solutions.
- In 2019, BMW and Daimler announced a joint venture to
develop autonomous driving technology. The partnership aims to create a
scalable platform that can be used by multiple automakers, and accelerate the
development of autonomous driving technology.
- In 2018, Continental, a German automotive supplier, acquired
Argus Cyber Security, an Israeli cybersecurity firm specializing in automotive
security. The acquisition aims to strengthen Continental's capabilities in
protecting vehicles from cyber attacks, as connected cars become increasingly
prevalent.
In conclusion, automotive telematics is a game-changer for
the automotive industry. It provides numerous benefits, including improved
vehicle safety, reduced fuel consumption, enhanced driver experience, and
valuable data for businesses. As technology continues to advance, we can expect
to see even more innovative solutions in the field of automotive telematics.
1.
Research Sources
We at Zettabyte Analytics have a
detailed and related research methodology focussed on estimating the market
size and forecasted value for the given market. Comprehensive research
objectives and scope were obtained through secondary research of the parent and
peer markets. The next step was to validate our research by various market
models and primary research. Both top-down and bottom-up approaches were
employed to estimate the market. In addition to all the research reports, data
triangulation is one of the procedures used to evaluate the market size of
segments and sub-segments.
Research Methodology
1.1. Secondary Research
The secondary research study involves various sources and databases used
to analyze and collect information for the market-oriented survey of a specific
market. We use multiple databases for our exhaustive secondary research, such
as Factiva, Dun & Bradstreet, Bloomberg, Research article, Annual reports,
Press Release, and SEC filings of significant companies. Apart from this, a
dedicated set of teams continuously extracts data of key industry players and
makes an extensive and unique segmentation related to the latest market
development.
1.2. Primary Research
The primary research includes gathering data from specific domain
experts through a detailed questionnaire, emails, telephonic interviews, and
web-based surveys. The primary interviewees for this study include an expert
from the demand and supply side, such as CEOs, VPs, directors, sales heads, and
marketing managers of tire 1,2, and 3 companies across the globe.
1.3. Data Triangulation
The data triangulation is very important for any market study, thus we
at Zettabyte Analytics focus on at least three sources to ensure a high level
of accuracy. The data is triangulated by studying various factors and trends
from both supply and demand side. All the reports published and stored in our
repository follows a detailed process to obtain a reliable insight for our
clients.
1.4. In-House Verification
To validate the segmentation
and verify the data collected, our market expert ensures whether our research
analyst is considering fine distinction before analyzing the market.
1.5. Reporting
In the end,
presenting our research reports complied in a different format for straightforward
valuation such as ppt, pdf, and excel data pack is done.