Market report on aftermarket car telematics –Berg Insight

Press Release,30 November’ 2024

Berg Insight published the new market report Aftermarket Car Telematics – 5th Edition which analyses the latest developments on the market for applications such as stolen vehicle tracking (SVT), vehicle diagnostics, Wi-Fi hotspot, roadside assistance and convenience applications targeting consumers. This study provides business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

The addressable market for aftermarket car telematics solutions is significant. At the end of 2022, there were an estimated 1.36 billion passenger cars and light trucks registered worldwide. Even though aftermarket car telematics services face competition from smartphone-only solutions and OEM solutions, Berg Insight is of the opinion that the aftermarket car telematics market is still in a growth phase. Berg Insight estimates that total shipments of aftermarket car telematics systems reached 26.7 million units worldwide in 2023. Growing at a compound annual growth rate of 7.7 percent, shipments are expected to reach 38.7 million units in 2028. The number of aftermarket car telematics systems in active use is forecasted to grow at a compound annual growth rate of 9.0 percent from 87.7 million in 2023 to 135.1 million worldwide in 2028. The penetration rate will at the same time grow from 6.3 percent in 2023 to 8.6 percent at the end of the forecast period.

The market is characterised by a great diversity of players interacting in a complex value chain that spans multiple industries. The car telematics companies targeting the aftermarket car sector include specialists focusing on this application area only as well as general telematics players that serve a broad range of applications including also for example fleet management for commercial vehicles. The leading aftermarket car telematics solution providers have reached installed bases in the millions. Examples of leading car telematics solution vendors include OCTO Telematics, Procon Analytics, StarLine, Spireon, Targa Telematics, Ituran, PassTime GPS, Vodafone Automotive, Tracker Connect, Maxtrack and Carsystem. The most common go-to-market strategy is to partner with insurance companies, dealers, OEMs, MNOs and vehicle finance companies. Leading companies delivering telematics hardware and related services to the aftermarket car telematics market include Teltonika, Jimi IoT, Queclink, Danlaw, Positioning Universal, Xirgo Technologies, ERM Advanced Telematics, Suntech International, Meta System, Munic and Gosuncn RichLink.

Stolen vehicle recovery and security-related telematics applications are mature aftermarket car telematics applications. Regional market conditions such as a high level of vehicle crime influence the demand for stolen vehicle tracking and have made SVT solutions popular in countries such as Brazil, Argentina, China, Israel, Russia and South Africa. Vehicle theft has increased in the past years in many countries. For example, there were thefts of more than 1.0 million motor vehicles in the US in 2023 according to the National Insurance Crime Bureau (NICB). Berg Insight forecasts that the number of active aftermarket SVT units in use worldwide will reach 91.2 million in 2028, up from 58.2 million at year-end 2023.

Telematics has become an important part of the aftersales programmes of dealers and vehicle finance companies, enabling remote diagnostics and direct communication with drivers. There is a tremendous opportunity to turn a reactive way of managing customers into a proactive process by integrating CRM solutions, using data from cars intelligently. Collecting data from the fleet on the lot is also valuable for dealers in order to for example collect information about faulty components and software bugs as well as battery status. Direct-to-consumer car telematics offerings are available to varying degrees in many regions by companies such as Verizon, Mojio, Tail Light (Bouncie), Agnik (Vyncs), Protectus (CarLock) and Autobrain. Many direct-to-consumer car telematics providers have broadened their product portfolios to include additional telematics application areas such as fleet management as well as powering B2B2C telematics services.

Highlights from the report:
Insights from 30 new executive interviews with market leading companies.
Comprehensive overview of the aftermarket car telematics value chain and key applications.
In-depth analysis of market trends and key developments.
New profiles of 104 aftermarket car telematics solution providers.
Summary of the involvement of vehicle OEMs and mobile operators.
New data on car populations and new car registrations worldwide.
Market forecasts by region lasting until 2028.

This report answers the following questions:
What types of aftermarket car telematics products are offered on the market?
Which are the leading providers of car telematics technology?
What business models are available for players entering the car telematics space?
Which are the dominant technology form factors?
How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
How will car OEM telematics compete with aftermarket car telematics in the long term?
How will new technologies impact the market in the coming years?
Which are the major drivers and barriers for car telematics adoption?
Which are the key future trends in this industry?