Our Analysis
When telematics started out in the automotive industry around two decades ago, the primary concern was on safety and security. Today, though along with these two criteria, there is a high demand for services such as on-demand infotainment in cars, usage based insurance payments, and increased efficiency in handling of commercial fleet vehicles. Telematics provides the solutions for these demands by providing wireless data-connectivity on the go.
Analysis of the consumer telematics market revealed the growth of these segments in the market, for example fleet management is estimated to grow at a rate of 22% CAGR till 2018, driving the demand for commercial telematics system and services, the GPS navigations systems market is estimated to grow from $11.3 bn in 2013 to $ 39 bn by 2018. Such trends are also seen in other segments of the market chain such as aftermarket sales of telematics devices and services and also the embedded-telematics systems market is seeing good growth with Auto OEMs realizing the scope of growth in this field.
Governments in some countries are in the process of passing legislations to make emergency notification services in vehicles compulsory, which will drive the market further. Electric Vehicle(EV) segment is also seen as a market driver for telematics systems as telematics would have a major part to play in the whole EV system setup. All in all consumer telematics market is definitely on the rise with a lot of organizations entering into this market looking at the growth rate and the future scope of this market.
Competitive Landscape
Major automotive manufacturers such as BMW, GM, Ford, Toyota etc., realizing that telematics is no longer a niche market, have already started to roll out embedded telematics in their mass produced units. Aftermarket sales of telematics have seen a spurt in growth with a lot of organizations such as Trimble Navigations, Harman Infotainment, Agero Ltd. etc., to name a few have entered the market and generating impressive revenues. Use of telematics in fleet management also has seen a huge increase where companies like FleetMatics GPS, Verizon are major players.
Geographical analysis of the telematics market shows that while the U.S and Western Europe are still the major markets, fast growing economies like China, Brazil and India are growing at a rapid rate. Aftermarket sales in telematics in China for the passenger car market is burgeoning, as also is the use of telematics in fleet management in these countries
The telecom companies have started to realize the opportunities to generate revenues through data connections via in-built routers and antennas and also provide GPS connections, and there is growing competition in this field. Auto OEMs are another major industry which can collaborate with the major automotive manufacturers to gain a sizeable market share in the future.
The IndustryARC report on the Global Consumer Telematics Market identifies many such insights and M&A opportunities, besides providing a detailed analysis of the Global Consumer Telematics market.
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