Telematics in automotive industry has emerged as the latest trends in this technology driven industry. With the availability of high speed internet connectivity and increasing mobile phone penetration in the market, the telematics business has spread widely in many application industry, including automotive industry. Rising awareness about driver’s safety and stringent road safety regulations imposed by various governments, such as in European Union, Russia and Brazil, has led to the integration of telematics as an essential component of vehicles. Telematics is a communication technology that can be provided through an integrated communication module or smart phone.

The telematics system is a combination of hardware and software that helps in cellular communication with cars on road, i.e. vehicle-to-vehicle (V2V), roadside infrastructure, i.e. vehicle-to-infrastructure (V2I), and Vehicle-to-device systems (V2X). The global automotive telematics market is estimated to reach $55.97 billion by 2022, growing at a CAGR of 21% between 2016 and 2022. The market is being driven by factors such as growing awareness about driver safety, decreasing cost of connectivity, increasing market penetration rate of smartphones, and stringent automotive safety regulations. Despite the expected healthy growth rate of the market, factors like increasing hacking/privacy concerns, lack of cellular coverage, and low awareness about telematics are hampering the growth of the market.

Automotive telematics can be classified on the basis of connectivity into three parts, viz. embedded, tethered, and integrated. In 2015, embedded cellular connectivity accounted for the highest share of the market revenue, with 77% of the total revenue share, owing to the factors such as government regulations to install an integrated SIM for safety and security of passenger and vehicle, shared data plans, reliability, faster data transfer rate, and web-based apps. However, integrated connectivity is expected to grow at the highest rate between 2016 and 2022, almost by 24% as compared to other connectivity solutions. With increasing internet penetration and low hardware cost involved in integrated connectivity solution, this segment is set to grow exponentially in the coming years.

Original equipment manufacturers (OEMs) and telecom operators have come forth in offering a variety of services for the users with increasing number of connected cars, chiefly safety & security, information & navigation, entertainment, and remote diagnostics. Among these services, information and navigation held the highest share in the market, because of its wide application in developed countries like the US and Japan, and its speed, reliability, ease, and cost-effectiveness.

On the basis of application, the telematics for passenger cars accounted for the largest share in 2015, with OEMs as the chief distributor of telematics systems. Whereas, geographically, North America was the highest revenue generating region in 2015. However, well established automotive industry and increasing income in the Asia Pacific region puts APAC at the forefront of market growth during 2016 to 2022. BIS Research has compiled an extensive market research report on ‘Global Automotive Telematics Market - Analysis & Forecast (2016-2022)’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.

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