Albany, NY -- (SBWIRE) -- 05/19/2017 -- Recent innovations in automotive telematics have greatly pumped up their demand. Considering this, technological applications of telematics solutions in vehicles have completely transitioned over the years. Various factors are steering this paradigm shift. For instance, the present generation of automobile buyers give preference to value-added features in their vehicles besides driving. Infotainment has emerged as a basic requirement in vehicles to woo customers.
Moreover, the demand for telematics features such as satellite navigation, automatic driving assistance systems, emergency warning, integrated hand-free calling facilities, the internet, and WiFi is surging. Spurred by these factors, the global automotive telematics market is forecast to exhibit an impressive 22.1% CAGR between 2017 and 2025.
Transparency Market Research (TMR) forecasts the global automotive telematics market to reach US$75.79 bn by the end of 2025, from its valuation of US$10.15 bn in 2016. In the last five years the market has witnessed robust growth in response to the expansion of the automotive industry. The market is expected to gain increased traction with the increasing demand for high-performing passenger vehicles worldwide.
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On the downside, stringent regulations implemented across various countries in the world and corporate average fuel economy standard regulations set up by various developed nations are inhibiting the market. Nevertheless, with companies focusing on product innovation and differentiation, the pace of gains is projected to accelerate for the market in the coming years.
Based on application, the global automotive telematics market can be segmented into vehicle tracking, fleet management, satellite navigation, vehicle safety communication, and others. Of these, the vehicle tracking segment emerged dominant in the overall market in 2016.
In the given year, the segment held over 30% of the overall market. In addition, it is expected to remain at the market's helm exhibiting the maximum CAGR during the course of the forecast period. The vehicle tracking segment, which encompasses trailer and container tracking, finds high application in the transportation sector. The technology helps to track the vehicle location across the world.
In terms of vehicle type, the global automotive telematics market can be segmented into light commercial vehicle, passenger vehicle, and heavy commercial vehicle. Of these, the passenger vehicle segment held the dominant share of 55.3% in the overall market in 2017. Exhibiting the highest CAGR, the segment is forecast to remain dominant in the market through the course of the forecast period. The demand for technologies such as satellite navigation, intelligent driver assistance, safety communication, and other advanced features in passenger vehicles is driving the segment.
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Regionally, North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa constitute the key market segments. Among these, Asia Pacific led the overall market with a share of 33.5% in 2016. North America emerged as the second-leading market for automotive telematics, followed by Europe. Besides the increasing demand from emerging nations such as China and India, Russia has proven to be a major market for automotive telematics in Asia Pacific. In addition, the region is home to a booming automotive industry, which invariably creates the demand for advanced technologies for better driving experience.
While China is the leading market for automotive telematics in Asia Pacific, India will exhibit the highest CAGR during the forecast period. In Europe, France held the largest market share while in North America, the U.S. will continue exhibiting lucrative opportunities.