Passenger Vehicle Telematics Market - By Technology, By Communication Technology (Cellular, Satellite) By Service Offering (Safety and Security, Infotainment & Navigation, Remote Control and Monitoring), Forecast, 2024 - 2032

Passenger Vehicle Telematics Market Size

The Passenger Vehicle Telematics Market size was valued at USD 26.5 billion in 2023 and is estimated to register a CAGR of over 13% between 2024 and 2032. This growth is driven by rising demand for connected vehicles and increasing focus on road safety and security.
 

Consumers are seeking advanced features in their vehicles, such as in-car connectivity, infotainment, and real-time diagnostics, which in turn is driving the market demand for telematics systems. These systems enhance road safety by providing functionalities such as emergency response, object detection, and vehicle tracking. In January 2024, Bosch, in collaboration with Qualcomm, introduced a new central vehicle computer integrating both cockpit and ADAS (Advanced Driver Assistance Systems) functionalities. This platform supports features such as object detection, intelligent navigation, and vehicle tracking, offering a scalable solution for automakers across different market segments.
 

Moreover, innovations in communication technologies, such as 5G, have enhanced the functionality and reliability of telematics systems, making them more attractive to consumers and manufacturers. The proliferation of smartphones and other mobile devices facilitates the integration of telematics systems with mobile applications, enhancing user experience and accessibility. For instance, in April 2024, Continental introduced CoSmA, a smart device-based access solution that transforms mobile devices such as smartphones or smartwatches into car keys, providing a convenient user experience in line with the digital age.
 

The market faces challenges such as data security and privacy, and regulatory compliance. Telematics systems collect vast amounts of data, including location, driving behavior, and vehicle diagnostics, necessitating robust cybersecurity measures to protect this information from breaches and misuse. Navigating the complex and evolving landscape of global regulations related to telematics and data privacy poses additional challenges for companies operating in this space, due to stringent regulations across geographies.
 

Passenger Vehicle Telematics Market Trends

The adoption of new technologies such as AI and machine learning (ML) is growing within telematics systems to enhance predictive analytics, driver behavior analysis, and real-time decision-making capabilities. The rollout of 5G networks is significantly improving the capabilities of telematics systems, providing faster data transmission, reduced latency, and improved reliability, facilitating real-time updates and better connectivity for smart features. As electric vehicle (EV) adoption rises, telematics systems are being tailored to meet the specific needs of EVs, such as battery monitoring, route planning for charging stations, and energy consumption analysis.
 

Additionally, the usage-based insurance (UBI) model, where insurance premiums are based on actual driving behavior data collected through telematics, is gaining traction among its end-users. This model is supported by telematics systems' ability to provide detailed and accurate driving metrics, which insurers use to offer personalized policies. Moreover, there is a growing demand for telematics solutions in fleet management, driven by the need for efficient tracking, maintenance, and operational optimization.
 

Passenger Vehicle Telematics Market Analysis

Based on technology, the market is divided into embedded, tethered, and integrated. In 2023, the embedded segment accounted for a market share of over 45%. Embedded telematics systems are crucial for integrating advanced safety features such as collision detection, emergency response, and real-time vehicle diagnostics. These features are becoming standard in modern vehicles to enhance driver and passenger safety, which is driving the growth. There is a growing consumer demand for seamless connectivity and integration of telematics systems with infotainment, navigation, and smart home devices.
 

Moreover, this technology provides a reliable and integrated solution that meets these consumer expectations. In May 2024, Geotab and Rivian partnered to deliver embedded telematics solutions. Geotab will utilize embedded telematics in Rivian’s commercial vehicles to enable the seamless integration of vehicle data into the MyGeotab platform to cater to customer expectations.
 

Based on service offering, the passenger vehicle telematics market is segmented into safety & security, infotainment & navigation, remote control & monitoring, and others. Remote control & monitoring is expected to witness a significant growth rate of over 15% during the forecast period. This service allows users to remotely interact with their vehicles, access real-time information, and control certain vehicle functions from a distance. Owing to this feature, passengers or drivers can lock or unlock their vehicles. Growth in vehicle thefts coupled with the increasing demand for real-time tracking of vehicles is expected to fuel market demand in the coming years.
 

In 2023, North America dominates the passenger vehicle telematics market with around 35% of the market share. The region has been at the forefront of automotive technology, fostering innovation in telematics solutions. Countries such as the U.S. and Canada witnessed the early adoption of telematics, creating a strong foundation for market expansion. Moreover, government regulations mandating safety features such as airbags, anti-lock brakes, and, more recently, advanced driver assistance systems (ADAS) have driven the demand for telematics.
 

Further, the presence of large passenger fleets in the region has boosted the demand for telematics solutions to optimize operations, reduce costs, and improve efficiency. For instance, in January 2024, Agero expanded its Crash Response technology, which alerts emergency services and dispatches support after a crash is detected. This technology helps in reducing response times and secondary costs associated with accidents in the region.
 

Moreover, the implementation of strict EU regulations and local policies, such as the eCall mandate, requires new vehicles to be equipped with systems that can automatically call emergency services in the event of a serious accident. This has significantly boosted the adoption of telematics systems across Europe, enhancing safety and security features in vehicles. OEMs are increasingly pushing for embedded telematics systems in vehicles, especially in developed markets such as Europe.
 

Passenger Vehicle Telematics Market Share

AirIQ Inc. and Continental dominate the remote vehicle diagnostics industry with a market share of over 14% in 2023. AirIQ offers a suite of GPS-based tracking systems that cater to various industries, including transportation, logistics, and construction. Their technology helps clients enhance operational efficiency, reduce costs, and improve asset security through advanced features such as live tracking, geofencing, and detailed reporting. With a strong focus on customer service and technology, AirIQ aims to deliver reliable and scalable solutions that address the evolving needs of its clients in the asset management sector.
 

Continental’s automotive technologies encompass a wide range of products, including braking systems, advanced driver assistance systems, and connectivity solutions. The company is dedicated to enhancing vehicle safety, efficiency, and comfort, and is involved in developing sustainable technologies and future mobility solutions.
 

Passenger Vehicle Telematics Market Companies

Major players operating in the passenger vehicle telematics industry are:

• Agero Inc
• Continental AG
• Fleet Complete
• Geotab Inc
• LG Electronics
• MiX Telematics
• Octo Telematics
• OnStar Corporation
• Qualcomm Incorporated
• Verizon Connect
   

Passenger Vehicle Telematics Industry News

• In March 2024, Agero expanded the deployment of crash response technology. The expansion enables Agero to roll out its critically important Crash Response offering, which immediately works with emergency services to dispatch support after a crash has been detected.
   
• In June 2024, LG brings 'living space on wheels' vision to life with LG AlphaWare for SDVs. The company encompasses augmented/mixed reality, WebOS, AI, and 5G telematics technology combined to bring smart life solutions to the in-vehicle environment.
   

The passenger vehicle telematics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Technology

• Embedded
• Tethered
• Integrated

Market, By Communication Technology

• Cellular telematics
• Satellite telematics

Market, By Service Offering

• Safety and security
• Infotainment and navigation
• Remote control and monitoring
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA