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Owing to emergence of Industry 4.0, wherein all industries are profusely driven by technology and powerful economic substance sweeping into the automotive sector, owing to heavy demand for vehicles, there is a discernible surge in the telematics solutions market size. The amalgamation of GPS tracker devices, the Internet, and other in-vehicle technologies have become inevitably important, especially because of the torrential demand for integration of smartphones with vehicles. Furthermore, telematics enables insights pertaining to on-board diagnostics of the vehicles that include informations such as speed of the car, location, and internal behavior of the engine through the engine control module, which also allows the user to identify service requirement. The growing demand for enhancing the efficiency of vehicles is creating an augmented demand for telematics solutions, because this technology can give access to information related to fuel consumption, which in turn, also decreases the CO2 emissions. This aspect is highly backed by corporate social responsibilities (CSR), pertaining to the environment, which is making it important for organizations to adopt fuel-saving technologies such as telematics.

The upcoming years are poised to witness the growth of the autonomous and semi-autonomous vehicles segment of the automotive industry, due to which market players will experience some lucrative opportunities to increase their telematics solutions market share. Also, telematics solutions market size is increasing, owing to necessity to reduce the number of accidents, as the technology extracts the greatest possible safety from the vehicles. Telematics solutions are also useful in tracing a lost or stolen car.

Apart from that, logistics companies are always looking to increase their efficiency through optimum fleet management, and telematics solutions help in coordinating work vehicles which results in improved efficiency and reduced cost.

In 2018, the telematics solutions market size was evaluated at $18.98 billion, and it is projected to increase at a CAGR of 14.95%, during the forecast period 2019-2025, according to the telematics solutions market report.

This report provides detailed information about the telematics solutions market size by type and applications along with the detailed profiling of telematics solutions market share by top 5 companies and startups that are striving to rise ahead of the curve in this niche industry.

North America Subjugated the Industry with High Telematics Solutions Market Share of 33.67% in 2018:

The contemporary technological regime in North American countries such as the U.S., Mexico, and Canada is creating revenue scope for a gamut of technology-based markets, and so is the case with the booming telematics solutions market, which is further bolstered by propitious prominence of autonomous vehicles in the lucrative marketplace of the region.

Another factor driving growth of the telematics solutions market players in North America countries is the exuded safety of vehicles that the governments demand. For instance, in the U.S., a Federal agency named the National Highway Traffic Safety Administration (NHTSA) regulates the safety of vehicles and related equipment. Resultantly, it becomes imperative for the automotive industry in the U.S. to walk that extra mile in order to ensure safety, which in turn, escalates the telematics solutions market scope.

The growing concern pertaining to accidents of heavy-duty vehicles are further driving the need for integrating advanced telematics in trucks. According to NHTSA, 36,750 people died in motor vehicle crashes in 2018. While the figure saw a 1% decline as compared to 2017, but the major chunk of accidents were attributed to trucks and older drivers of age 65 or more. In this scenario, the telematics solutions market companies are at advantage because this technology aids to the safety of vehicles.

Telematics Solutions Market – Global Scenario and Growth Drivers:

The Key Application in the Telematics: Passenger Vehicles to Grow at a CAGR of 16.87% through to 2025–

The economic boom across the world has increased the disposable income of working income, which has made passenger vehicle a commonplace in each middle-class household. The FY 2018 saw the production of 70,498,388 number of cars across the globe, according to OICA. The emerging markets such as Brazil will play a major role in catapulting the production of passenger vehicles in the upcoming years, and the forecast period will witness a growth of the telematics solutions market in the segment.

The Growth of the Car Rental Services Expanding the Telematics Solutions Market Size –

Owing to the convenience factor, 24X7 availability of cars, and cost affordability, the car rental market witnessed a boom in 2018 and was evaluated at $64.47 billion and is projected to expand at a CAGR of 11.53% through to 2025. Also, the GPS and its integration with smartphones play a vital and round the clock function in the operations of car rental services, which in turn, requires telematics solutions. Henceforth, the car rental market growth will lead to an expansion of the telematics solutions market size.

The Growing Concern Pertaining to Fuel Consumption and CO2 Emissions Catapulting the Telematics Solutions Market Demand–

In 2017, the fuel consumption of light-duty vehicles improved by 0.7%, according to the International Energy Association (IEA). However, according to the Global Fuel Economy Initiation (GFEI) 2030 targets which are a part of sustainable development goals (SDGs) by the United Nations (UN), an annual improvement of 3.7% is required. This is making automotive companies equip vehicles with technologies such as telematics solutions that can help in reducing the fuel consumption, thereby reducing CO2 emissions. Telematics solutions are found to be useful to handle the global concern of CO2 emissions, as it provides data that can help in reducing fuel consumption, and the forecast period will witness increased incorporation of this technology in vehicles, which is expanding the telematics solutions market share.

The Advent of Autonomous and Semi-Autonomous Vehicles Increase Telematics Solutions Market Revenue–

The growth prospects for the telematics solutions market in the semi-autonomous and autonomous vehicles segment of the automotive industry can be fathomed by growing self-driving truck market size across the world. According to the American Trucking Association, the shortage of truck drivers was around 50,000 by the end of 2017. This shortage can surpass 174,000 by the end of 2026. This is to say that the self-driving trucks will be an utmost necessity, during the forecast period while the passenger vehicles segment will witness a progressive disruption through the autonomous vehicles trend. The inculcation of telematics solutions will become imperative for navigation, safety, and consistent monitoring in these self-driving vehicles. Hence, the trend of autonomous vehicles will augment the telematics solutions market size.

Telematics Solutions Market Top 10 Companies:

The top 10 companies striving to increase their telematics solutions market share are Robert Bosch GmbH, Inseego, LG Electronics Inc., Continental AG, Harman International, Verizon Wireless, DENSO Corporation, Qualcomm Incorporated, Magneti Marelli S.p.A., and Masternaut Telematics Company.

In May 2019, Michelin announced the acquisition of Masternaut Telematics Company. This acquisition is envisioned to capture the telematics solutions market in Europe.