Automotive Telematics to Be Worth $180B by 2025
Feb. 21, 2017—The global automotive telematics market is poised to grow at a CAGR of around 29.1 percent over the next decade, to reach approximately $180.4 billion by 2025, according to Accuracy Research LLP.
Some of the prominent trends that the market has witnessed include compact dependence on smart phones for applications, improvement of next-generation telematics protocol, increasing government concern in making road journey and every day travel safer, growth opportunities/investment opportunities.
Derek Kaufman, managing partner for the automotive aftermarket consultant group Schwartz Advisors LLC, said now is a prime time for shop owners to invest in telematics as a potential business model.
Kaufman wrote about telematics for the Auto Care Association (in a series of reports entitled “Telematics Trendline”), highlighting new telematics companies in each issue. As the telematics market continues to heat up, he said several companies are emerging as dominant forces and soon the technology will start to have a place in independent shops, as well as dealerships and fleets.
Even though telematics isn’t exactly a staple at independent shops and the model for how telematics will work remains unclear, Kaufman said it is still worth investing in small chunks and finding a system that fits your shop model and processes.
“It’s not that the ROI can’t be great enough,” he said. “It just has not been defined well enough. You find people getting into it for the novelty of it, and then are gone in three months. Like any marketing piece, it needs time to become part of your shop model long-term to show an ROI.”
Based on connectivity type, the report splits the market is categorized into embedded, integrated and tethered. As per vehicle type the market is segmented into commercial vehicles and passenger cars.
Depending on application the market is categorized into solutions and other services. Solutions include fleet/asset management solution, infotainment, insurance telematics, navigation and location-based solution, remote alarm and monitoring, and tele-health solutions. Services include design and consulting, maintenance and training and integration and deployment.
By end user the market is segmented into government agencies, healthcare, insurance, media and entertainment, transportation and logistics and vehicle manufacturers/dealers.
The industry report analyzes the market estimates and forecasts for all the given segments on global as well as regional levels presented in the research scope. The study provides historical market data for 2013, 2014 revenue estimations are presented for 2015 and forecasts from 2016 till 2025.
The study focuses on market trends, leading players, supply chain trends, technological innovations, key developments, and future strategies. With comprehensive market assessment across the major geographies such as North America, Europe, Asia Pacific, Middle East, Latin America and Rest of the world the report is a valuable asset for the existing players, new entrants and the future investors.