The advent of smartphones has changed the definition of connectivity by enabling an always-on connection to the Internet.
This is a key highlight of a study that reviewed the impact of smartphones as key drivers of technologies that are driving automobile sales.
According to the new report, “Global Automotive Telematics Market (2018-2024)”, published by KBV Research, the global Automotive Telematics market is expected to attain a market size of $152.7 billion by 2024, growing at a CAGR of 23.0% during the forecast period.
This tech lifestyles trends have made inroads into the automotive sector where automobile manufacturers strongly believe that providing connectivity solutions in their vehicles will boost their automobile sales.
But beyond the market size, people now expect to stay connected to Internet 24×7, according to the authors.
This tech lifestyles trends have made inroads into the automotive sector where automobile manufacturers strongly believe that providing connectivity solutions in their vehicles will boost their automobile sales.
Automotive industry is going through a phase of digital revolution, authors of the report say underlining that in the next few years to come, automobiles will transform into communication devices.
New hi-tech devices, smartphones, high-speed Internet, numerous applications and open sources such as Android systems have transformed the concept of connected vehicles, the report says.
The major factors driving the telematics market are safety and security concerns, 24 x 7 connectivity, superior driving features, online vehicle diagnostics & maintenance alerts, advanced connectivity solutions and others.
On the other hand, some of the restraints associated with telematics market are the additional expenses borne by the consumer for availing the telematics services, threat of hackers breaching the security and accessing data or causing nuisance to the vehicle system, non-availability of uninterrupted & seamless connectivity and lack of awareness among consumers in certain regions.
Telematics is used for both commercial as well as passenger vehicles. In order to analyze the market in detail, it has been studied with respect to commercial (light, medium and heavy commercial vehicle), referred to as commercial telematics and passenger vehicle, referred to as Consumer telematics.
The major factors driving the telematics market are safety and security concerns, 24 x 7 connectivity, superior driving features, online vehicle diagnostics & maintenance alerts, advanced connectivity solutions and others.
In 2017, Commercial Telematics segment dominated the Global Telematics Market By Type with market revenue of $28.4 Billion. This segment would grow with a CAGR of 18.2% during the forecast period (2018-2024), according to the report authors.
Based on applications for commercial telematics segment, the market is segmented into Fleet Management, Insurance, Infotainment, Navigation, V2v & V2i, Tele health and Remote alarm & monitoring. Fleet management was the highest revenue-generating segment in 2017.
In terms of End user, Telematics market is segmented into various types such as Logistics & Transportation, Individuals and car rental, Insurance, Healthcare, Media & Entertainment, Automobile manufacturers & dealers and Government agencies. Logistics & Transportation was the largest revenue-generating segment in the overall Telematics market by End user, and would continue to be the maximum revenue generating segment throughout the forecast period, 2018- 2024.
Based on geography, the market is segmented into North America, Europe, Asia Pacific (APAC), Latin America, and Middle East & Africa (LAMEA). For both, commercial as well as consumer telematics, North America was the highest revenue-generating segment in 2017.
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