Telematics is on the rise Increase in electric vehicles expands revenue opportunities for telematics service providers
The global sales of electric vehicles forecast to rise to about 30 million units by 2025. As a result, connectivity solutions like telematics are expected to grow and reach $144,440.7 million by 2030.
With the eCall mandate having been put into action in 2018, all passenger vehicles are expected to be connected by 2025, and the penetration of telematics is set to increase significantly. These macro factors, coupled with trends, such as rising sales due to economic development, stricter regulations, and more importantly, the advent of autonomous vehicles, have driven the adoption of telematics services.
Global telematics market is predicted to reach $144,440.7 million by 2030
The number of connected cars with embedded telematics is likely to increase from 23 million in 2018 to 65 million by 2025, according to Frost & Sullivan's Analysis of Embedded Telematics in the Automotive Industry, Forecast to 2025.
According to Frost & Sullivan, the rising popularity of connected services among fleet owners has resulted in telematics becoming a key differentiator for original equipment manufacturers. The global commercial telematics market was valued at $27,069.2 million in 2017 and is projected to reach $144,440.7 million by 2030, registering a CAGR of 13.8 percent from 2018 to 2030.
New telematics systems from Hyundai's Ioniq and Kia's Niro already provide vehicle charging information, charging station locations, charger availability, and connection compatibility. The latest 4G Long-Term Evolution (LTE) is opening up additional opportunities by enabling remote services, over-the-air (OTA) updates, and advanced diagnostics.
Government regulations for vehicle telematics fuel the growth of the market
High production of electric vehicles isn't the only factor contributing to the new revenue opportunities for telematics service providers. Government rules and regulations for the safety, security, and tracking of vehicles in different regions also drive the growth of the global telematics market.
In 2018, India's government passed a rule that all the public transport vehicles over six-seater capacity should have a tracking device installed in them. The Ministry of Industry and Information Technology (MIIT) and the Standardization Administration of China (SAC) jointly established national guidelines for the development of telematics systems in December 2017.