Automotive Telematics Market: Transforming Fleet Management

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Automotive Telematics Market Transforming Fleet
Management
As per the European Automobile Manufacturers
Association, around 79.1 million motor vehicles
were produced globally in 2021. Also, logistics
services have witnessed substantial growth
globally, spearheaded by the e-commerce industry.
These developments have paved the path for
telematics solutions, especially in fleet
management, offering real-time data on driving
styles and vehicular movement. According to
Tritons estimates, the global automotive
telematics market is set to garner 435.88
billion by 2030, progressing with a CAGR of
16.06 during the forecast years 2023-2030. With
the integration of sensors and cameras, vehicles
have emerged as mobile data centers generating a
high volume of data. From documenting in-vehicle
infotainment choices to navigation routes,
telematics has redefined the automotive industry
since its inception. And the advent of smart city
initiatives has fueled smart mobility programs
for real-time traffic management, systematic
emission control, and predictive parking systems.
Automotive Telematics A One-Stop Solution for
Fleet Management With surged competition and
growing cost pressures, fleet managers and
proprietors require data insights to streamline
operations. In this regard, telematics fleet
systems significantly help reduce fuel costs
(almost 10) while also decreasing downtime with
preventive maintenance. Here, onboard
diagnostics-based telematics offers well-timed
system alerts by capturing the vehicles
location, speed, mileage, etc. Tritons analysis
portrays that fleet or asset management leads the
studied market in terms of application with
34.78 in 2022, closely followed by safety
security.
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• Moreover, with the rise of software-as-a-service
  (SaaS), telematics systems have gained popularity
  among small businesses to optimize their fleet
  with features like route planning to maintenance
  scheduling. Several small as well as large fleet
  owners are opting for two-wheelers integrated
  with vehicle telematics due to affordability and
  convenience. Our research indicates that the
  two-wheeler category is predicted to witness the
  fastest growth at a CAGR of 18.38 during the
  forecast period 2023-2030 in the vehicle segment,
  surpassing passenger and commercial categories.
• Embedded telematics type, expected to observe the
  fastest growth at CAGR 15.58, is another trend
  that has upgraded fleet operations. This system
  provides autonomous driver assistance, GPS- based
  navigation, emergency solutions, etc., enabling
  vehicles to transmit stored data via the
  internet. For instance, in Feb 2023, Wejo
  announced partnering with Mercedes-Benz
  Connectivity Services to offer customized
  connected vehicle data to participating
  cloud-connected fleet vehicles in Europe. This
  will enable fleet managers to utilize data
  straight from embedded OEM hardware and support
  fleet services.
• In a press release, Benoit Joly, Chief Commercial
  Officer at Wejo, said, With Mercedes-Benz
  Connectivity Services, we can deliver TSPs and
  FMS companies more data-driven, enhanced fleet
  management insights for their fleet customers and
  help improve safety and drive efficiencies on the
  roadways.
• China An emerging leader in the Asia-Pacific
  market
• China continues to host the worlds largest
  vehicle market in terms of annual sales and
  manufacturing output. In recent years,
  third-party logistics providers have surged their
  long-term capacity and digital capabilities. In
  this regard, the establishment of China Logistics
  Group, a merger of five-stated owned companies,
  redefined the logistics industry operations,
  creating a high demand for advanced solutions
  like telematics to mitigate risks associated with
  freight movement. Such developments are thus
  likely to drive the Asia-Pacific automotive
  telematics market with a CAGR of 17.11 during
  2023-2030.
• Connectivity Demand Drives Strategic
  Contributions
• Competition among players differs in terms of
  price, data security, and product quality. The
  race to provide a broad application of telematics
  to customers has resulted in various strategic
  steps, from partnerships to launches.
• Listed below are some of the latest steps by
  players to expand their footing
• In February 2023, Qualcomm introduced Snapdragon
  Auto 5G Modern-RF Gen 2 at Mobile World Congress,
  adding to its growing Snapdragon Digital Chassis
  connected car portfolio.
• In January 2023, Uplight partnered with Rolling
  Energy Resources (RER) to develop an EV grid edge
  solution to manage grid load with the help of
  telematics.
• Also, in January 2023, Lighting eMotors launched
  the Fleet Planner to enable managers to receive
  a customized operating cost analysis and carbon
  reduction metrics.
• Walmart, in July 2022, collaborated with Platform
  Science to equip the retailers truck fleet with
  telematics devices.

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Technological Advancements Prompt Growth
Opportunities for OEMs Rapid innovation in
telematics and interface design enables better
driving experiences while benefiting the entire
automotive ecosystem. In this regard, telematics
systems integrated with cutting-edge technologies
like AI, machine learning, and voice assistance
assist OEMs in significantly reducing costs and
cycle times in the latest models. These steps to
differentiate product lines hold the potential to
widen the scope of the smart fleet management
market. Aligning with this, the rising
technological advancements to shorten production
time via real-time performance statistics of
vital components creates opportunities for the
automotive telematics market. FAQ Q1) What is
the size of the automotive telematics market? In
2022, the global automotive telematics market
obtained revenue worth 121.12 billion and is
expected to reap 435.88 billion by 2030. Q2)
Which are the key types integrated into
telematics devices? Embedded, integrated
smartphones, and tethered are key types
integrated into telematics devices.