According to a new market report by Transparency Market Research, Automotive Telematics Market, was valued at USD 10.15billion in 2016, growing at a CAGR of 22.1% from 2017 to 2025 to account for USD 75.79billion in 2025.
With the rise in the purchasing power of people across the world, there has been a shift in preference of consumers. Automobiles are no longer considered as just transport machines. The consumers look forward to telematics solutions as well, in automobiles. For instance, advanced driver assistance system (ADAS) is gaining popularity and is largely being demanded by the consumers. It is a human-machine interface that is supposed to automate and enhance the vehicle system in order to assure safety, security and convenience to the driver and the passengers. Such technology is yet to bring a transition in the automotive sector of the under-developed and developing countries in the east.
Increasing Demand for Telematic Solutions in Passenger Vehicles to Aid Growth
The market is primarily gaining from the increasing demand for advanced telematics solutions in vehicles. Telematics, navigation technology, audio-video solutions, Bluetooth, WiFi, intelligent driving solutions are a few of the advanced telematics solution witnessing rising demand from consumers. In addition, the demand for vehicle tracing has surged significantly giving impetus to the global automotive telematics market.
Considering that the automotive telematics market is ancillary to the automotive industry, growth witnessed in the vehicle production will positively influence the market. Therefore in response to the increasing demand for high-performing passenger vehicles in the last few years, the global automotive telematics market has witnessed accelerated pace of gains. Besides this, the market is forecast to benefit from the recent technological advancements.
Rising Opportunities in Asia Pacific to Boost Market in Future
The rising demand from Asia Pacific is forecast to create lucrative opportunities for the overall market. The automotive industry in countries such as India, China, Japan, and Russia is forecast to grow at a rapid pace. Aided by this, the automotive telematics solutions manufacturers will witness considerable opportunities to capitalize on in the near future.
Furthermore, with the increasing disposable income, consumers around the world are likely to demand for more advanced vehicle models. As automobiles have ceased being just transport machines, the demand for advanced telematics solutions is expected to rise in the near future. Spurred by these factors, the global automotive telematics market will exhibit robust growth in the coming years.