by Market Overview:
The APAC Automotive Telematics Market involves connecting vehicles to the internet to provide innovative services such as safety, navigation, diagnostics, and infotainment. Some key use cases include emergency calling, driver behavior analysis, stolen vehicle tracking, and remote diagnostics. Automotive telematics helps improve road safety, user experience, and vehicle maintenance.
The global APAC Automotive Telematics Market is estimated to be valued at US$ 22,275.64 Mn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the APAC Automotive Telematics Market is driven by the rising demand for connected vehicles and increasing sales of luxury vehicles with telematics systems. According to MarketsandMarkets, the sales of connected vehicles in APAC are expected to grow from 15 million units in 2020 to over 62 million units by 2030. Rapid urbanization, growing mobile internet penetration, and expanding telematics service offerings by OEMs are also fueling the adoption of automotive telematics solutions in the region. However, data privacy concerns and high costs involved pose challenges to market growth.
Segment Analysis
The APAC automotive telematics market is dominated by the commercial vehicle segment. Commercial vehicles including trucks, buses, and logistics vehicles demand advanced telematics solutions in order to enhance fleet management capabilities. The use of telematics devices allows fleet operators to effectively track vehicle movement, monitor driver behavior, reduce operating costs, and assure road safety. Thus, the growing commercial transportation industry along with implementation of telematics regulations will continue to drive the demand for telematics devices from the commercial vehicle segment over the forecast period.
PEST Analysis
Political: Countries in the APAC region are introducing stringent vehicle safety regulations and norms regarding installation of telematics devices which is positively impacting the market growth. For instance, the Indian government has made installation of vehicle tracking systems mandatory for public vehicles.
Economic: Rapid economic development of countries such as China and India is augmenting the demand for commercial vehicles for transportation and logistics needs. This in turn is propelling the installation of telematics solutions.
Social: Rising concerns regarding road safety and efficient fleet management are encouraging transportation companies to adopt telematics technologies. Moreover, increased connectivity and use of smart devices is promoting the acceptance of connected vehicle technologies.
Technological: Introduction of advanced 4G and 5G network infrastructure is enabling technologies such as autonomous vehicles and connected solutions. Further, integration of AI, IoT and cloud platforms is augmenting the capabilities of telematics devices.
Key Takeaways
The APAC Automotive Telematics Market Share was valued at US$ 22275.64 Mn in 2023 and is expected to reach US$ 52467.32 Mn by 2030, expanding at a CAGR of 14% during the forecast period. Rapid motorization rate accompanied with large fleet size of vehicles primarily drives the demand of telematics solutions in the region.
Regional analysis indicates that China dominates the APAC automotive telematics market and captured over 30% of the regional revenue share in 2023 owing to presence of leading telematics vendors and stringent government regulations pushing adoption of advanced vehicle technologies. India is projected to witness fastest growth during the forecast period with CAGR of around 17% attributed to supportive government initiatives for connected vehicles and growing fleet & transport industry.
Key players operating in the APAC automotive telematics market are Denso Corporation, Panasonic Corporation, Clarion, Masternaut Limited, Continental AG, Qualcomm Technologies, Inc. LG Electronics, Harman International Industries, Inc., Trimble Inc., and I.D. Systems. Major players are focused on developing customized, cost-effective, and 5G-enabled telematics solutions through strategic partnerships to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
