Automotive Embedded Telematics Market

The automotive embedded telematics market was estimated to be USD 30.1 billion in 2023 and is projected to grow at a CAGR of 8.1% during the forecast period. An embedded system is a specialized computer hardware system driven by a microprocessor, designed to fulfill a dedicated function within a more extensive system or independently. Increasing demand for IoT applications, automotive electronics, and industrial automation is significantly driving the market growth.

Increasing demand for vehicle safety and security is driving demand in the market significantly. Real-time vehicle monitoring and the rise in connected vehicles for enhanced connectivity are driving the demand in the market significantly.

Growth Drivers

Increasing growth in the demand for electric vehicles and vehicle-safety features is driving growth of the market. Stringent safety norms by the government have a positive impact on the automotive embedded telematics market. The rise in the trend of vehicle electrification and increasing demand for ADAS features are driving growth in the market significantly. Increasing demand for infotainment and connected cars are fueling the growth in the market.

The shift from hardware-centric to software-defined vehicles and the use of cloud platforms and AI for predictive diagnostics are driving demand in the market significantly. Increasing implementation of advanced automotive technologies like wireless connectivity, driver monitoring systems, and smart cabin monitoring is driving growth in the market.

Segmentation

Market, By Type

·         Software

·         Hardware

Market, By Vehicle Type

·         Passenger car

·         Two-wheeler

·         Commercial Vehicles

Market, By Component

·         Transceivers

·         Sensors

·         Memory Devices

·         Microcontrollers

Market, By Application

·         Infotainment & Telematics

·         Safety & Security

·         Powertrain & Chassis Control

·         Body Electronics

·         Others

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Automotive Embedded Telematics Market by Vehicle Type

On the basis of the vehicle type, the automotive embedded telematics market is segmented into passenger cars, commercial cars, and wheelers. Passenger cars are the leading market segment and are expected to dominate during the forecast period due to high production and sales of passenger cars. Increasing demand for connected car features like infotainment, navigation, remote diagnosis, and safety systems.

Increasing demand for fleet management, real-time tracking, and better operational efficiency with cost savings, which is vital for logistics and transportation companies. OEMs are increasingly offering factory-installed embedded telematics in commercial vehicles, making adoption easier and more widespread.

Increasing demand for electric vehicles with additional safety features are driving the market towards significant success. Increasing demand for software defined vehicles is driving growth in the market significantly.

Automotive Embedded Telematics Market by Application

On the basis of the application, the automotive embedded telematics market is segmented into Infotainment & Telematics, Safety & Security, Powertrain & Chassis Control, Body Electronics, and others. Safety and Security is the leading segment in automotive telematics embedded market, and is expected to dominate the market during the forecast period. Increasing government effort to track the stolen vehicle in an efficient manner is key factor behind the market growth. Increasing demand for ADAS features, and rising importance of fleet management is driving the demand in the market significantly.

Automotive Embedded Telematics Market development is being driven by the increasing demand for connected and autonomous vehicles. Rising demand for connected cars government regulations for safety and emissions Increasing penetration of advanced assistance systems ADAS Advancements in cellular technology and bandwidth growing popularity of electric vehicles. Infotainment and telematics is expected to witness significant growth during the forecast period. Increasing demand for advanced infotainment and safety in passenger cars is driving the demand in the market. Increasing consumer demand for connected experiences, and integration of smartphone connectivity is driving the demand in the market significantly. Rise in demand for electric and autonomous vehicles, which rely heavily on telematics data for infotainment. Cloud-based infotainment platforms are fueling the growth in the market.

Regional Outlook

On the basis of the regions, the automotive embedded telematics market is segmented into 5 regions: Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. North America is the leading region due to high vehicle penetration and increasing technological advancements. The region is well-known for the presence of major key players. Increasing industrialization and heavy investment by manufacturers like Tesla, Ford, and GM are having headquarters in the region. Increasing fleet management needs is driving growth in the market significantly. The increasing integration of Wi-Fi hotspots in the vehicle is driving the growth of the market significantly.

Due to the rapidly growing automotive industry, the Asia-Pacific market is witnessing significant growth during the forecast period. Increasing industrialization and rising disposable income are the key factors behind the growth in the market. Rising awareness among the people from emerging economies like China, India, and South Korea is witnessing significant growth during the forecast period. Strategic partnership between automakers and telematics is driving the demand in the market significantly. Usage-based insurance models are widely adopted in the U.S., driving demand for embedded systems that collect driving behavior data.

Increasing demand for smart cities and increasing emphasis on the use of electric vehicles are driving growth in the market. Increasing demand for electric vehicles in the region is the key cause behind the significant growth in the market. The presence of key players like BMW, Renault, and Daimler is fueling the market growth significantly.
Growing smart city initiatives, especially in the Gulf countries like the United Arab Emirates and Saudi Arabia, are the key reason behind the growth in the market. Luxury brand vehicles in the region are driving the demand in the region.

Increasing demand for embedded telematics in Latin American countries like Brazil, Argentina, and Mexico due to high theft rates is fueling the growth in the market. Increasing demand for smart transport system, and fleet management is driving growth in the market. Though Economic instability in the region is the key cause behind the growth in the market.

Key Players

·         Denso

·         Valeo

·         Mitsubishi Electric

·         Infineon Technologies

·         Continental AG

·         Texas Instruments

·         Magna International

·         Harman International

·         Toshiba

·         Hella KGaA Hueck & Cc

·         Panasonic

·         Verizon

·         NXP Semiconductors

·         Delphi Automotive

·         Robert Bosch

·         Other Players