PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1788520
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1788520
The automotive telematics market is projected to grow from USD 10.02 billion in 2025 to USD 16.72 billion by 2032 at a CAGR of 7.6%.
Scope of the Report | |
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Years Considered for the Study | 2021-2032 |
Base Year | 2024 |
Forecast Period | 2025-2032 |
Units Considered | Value (USD Million/Billion) |
Segments | By service, vehicle type, form type, fleet management service, offering, aftermarket based on vehicle type, EV service, EV type, connectivity, and region |
Regions covered | Asia Pacific, North America, Europe, and the Rest of the World |
The rollout of 5G networks is significantly advancing the automotive systems by enabling faster, low-latency connectivity crucial for V2X communication, an essential component for autonomous driving and intelligent transportation systems. This enhanced connectivity allows telematics platforms to support real-time data exchange for functions like hazard alerts, cooperative driving, and smart traffic coordination. The adoption of edge computing within telematics systems further enables real-time processing of critical vehicle data directly onboard, improving responsiveness for safety and navigation functions. AI and machine learning are increasingly integrated into telematics platforms to enable predictive insights such as route optimization, driver behavior analysis, and early incident detection. In addition, improved sensor integration and communication protocols such as CAN bus are enabling more precise data collection, while growing attention to cybersecurity is ensuring stronger protection against threats in increasingly connected vehicles.
Embedded telematics is expected to hold the dominant share of the automotive telematics market during the forecast period.
Embedded telematics is expected to hold the largest share of the automotive telematics market, as it is built directly into the vehicle's system, allowing OEMs to offer features connected to the factory itself. Regulations in Europe and China also require factory-installed telematics to monitor energy use and vehicle safety. In China, the New Energy Vehicle National Monitoring Platform (NEV-NMP) mandates that all electric and hybrid vehicles transmit real-time data, such as battery status, vehicle location, and alerts to a centralized government platform, making embedded telematics essential for compliance. Additionally, embedded telematics helps automakers create a closed ecosystem for offering subscription-based services and using vehicle data for new revenue opportunities. The growing demand for EVs and vehicles with advanced driver assistance systems (ADAS) is increasing the need for integrated, software-based telematics. OEMs are also moving toward hybrid systems that combine embedded telematics with cloud and edge computing to support real-time data processing and better service delivery. GM's OnStar, Hyundai's BlueLink, and Toyota's i-Connect all offer features such as real-time navigation, remote diagnostics, and OTA updates. For instance, in November 2024, Volkswagen Group (Germany) rolled out its Fleet Interface Data solution in collaboration with CARIAD, offering embedded telematics to fleet customers across brands such as Volkswagen, Audi, Skoda, and Cupra. This platform provides near real-time insights into mileage, remaining range, warning signals, and upcoming service needs, all without additional telematics hardware. These factors are expected to support the growth of embedded telematics systems significantly.
The hardware segment is projected to lead the automotive telematics market during the forecast period.
Hardware is expected to hold the dominant share of the automotive telematics market. Key components such as telematics control units (TCUs), sensors, antennas, CAN Bus, communication modules, and electronic control units (ECUs) are essential for enabling vehicle connectivity and data exchange. With vehicles becoming more software-defined, there is a growing need for powerful and flexible hardware that can support OTA updates, built-in cybersecurity, and fast data processing. OEMs are increasingly favoring embedded, factory-fitted hardware to ensure consistent deployment across vehicle models. Hardware manufacturers are integrating 4G/5G connectivity, edge computing, and satellite communication into TCUs to improve performance and service reliability. Modern TCUs also include hardware security modules (HSMs), secure boot, encryption, and intrusion detection to protect against cyber threats and ensure safe software updates. Additionally, there is growing interest in modular hardware designs that can support future upgrades and V2X features. Companies such as LG Electronics (South Korea), Denso Corporation (Japan), and HARMAN International offer advanced TCUs with 4G/5G, GNSS, and cybersecurity capabilities, which are widely used by leading OEMs such as Toyota and Volkswagen. For instance, Visteon Corporation provided a TCU to Ford for its 2025 Mustang and Mustang Mach-E vehicle models.
Europe is expected to have the second-largest share of the automotive telematics market during the forecast period.
Europe is expected to hold the second-largest share of the automotive telematics market during the forecast period. The European automotive telematics market is led by advanced OEM-integrated systems, shaped by strict regulations and varying regional needs. Unlike regions where third-party providers dominate, European automakers offer built-in telematics platforms such as Volkswagen's We Connect, BMW's ConnectedDrive, Mercedes-Benz Me Connect, Renault's EASY CONNECT, and Stellantis's Uconnect. These systems commonly include OTA updates, remote diagnostics, digital services like parking and charging, and links to insurance products. The E-Call mandate is the key regulatory driver for the automotive telematics market in the European region. It requires all new cars and light vans sold in the EU since April 2018 to be equipped with an emergency call (eCall) system. This system automatically contacts emergency services in the event of a serious accident, transmitting the vehicle's location and other key data to speed up rescue response. Other regulations, such as the General Safety Regulation and EU Data Act, are pushing manufacturers to improve data privacy, user data ownership, and system compatibility. Usage-based insurance is also growing, supported by GDPR-compliant platforms, with insurers such as AXA, Allianz, Admiral, and UNIQA partnering with automakers and tech providers to offer customized premiums based on driving behavior. The continued expansion of advanced 5G networks is further enabling real-time features such as predictive maintenance, vehicle-to-grid connectivity, and in-car digital services, positioning Europe as a highly regulated and innovation-driven telematics market.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
The automotive telematics market is dominated by major players, including LG Electronics (South Korea), Harman International (US), Denso Corporation (Japan), Continental AG (Germany), and Robert Bosch GmbH (Germany). These companies offer comprehensive telematics solutions encompassing telematics control units (TCUs), cloud-based connectivity platforms, cybersecurity features, OTA update systems, and integrated infotainment services. They also provide customized hardware-software integration, enabling OEMs to deliver connected services across vehicle segments and global markets.
Leading telematics service providers, such as AT&T Intellectual Property (US), Geotab (Canada), Samsara (US), Verizon Connect (US), and Powerfleet (US), offer bundled and innovative telematics services tailored for fleets, OEMs, and mobility operators. These companies provide comprehensive service platforms that integrate real-time vehicle tracking, driver behavior monitoring, AI-enabled video telematics, maintenance diagnostics, EV analytics, and workflow automation.
The report covers the automotive telematics market in terms of service, form type, offering, vehicle type, connectivity, EV type, aftermarket, EV by service, and region. It covers the competitive landscape and company profiles of the major automotive telematics market ecosystem players.
The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.