April 21, 2024

APAC Automotive Telematics Market Is Propelled By Increased Demand For Advanced Safety Features

Automotive telematics refers to the use of telecommunication and digital technologies in vehicles to enable various services such as navigation, remote diagnostics, infotainment, and more. Automotive telematics systems help provide drivers with useful information and connectivity solutions on the move safely. The technology enhances road safety and drives convenience by offering services ranging from automatic crash notification to stolen vehicle tracking. The APAC region has witnessed a rise in demand for advanced safety features and connectivity solutions amid growing concerns of road accidents.

The global APAC Automotive Telematics Market is estimated to be valued at US$ 25 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Increased Demand for Advanced Safety Features: Growing concerns regarding road safety and strict regulations mandating safety features have increased the demand for advanced driver assistance systems and connected features in vehicles. As automotive telematics plays a vital role in enhancing road safety, its demand is growing significantly. Automotive telematics systems offer features like emergency call systems, driver monitoring systems, blind spot detection and more. The proliferation of such safety features is expected to drive the APAC automotive telematics market during the forecast period.

SWOT Analysis

Strength: The APAC region has large automotive manufacturing industry and increasing demand for connected vehicles presents strong growth opportunities.

Weakness: High development and maintenance costs of telematics systems can be a challenge for smaller automakers in price-sensitive markets.

Opportunity: Rising demand for safety, security, and mobility services among customers in emerging countries offer scope to roll out advanced features.

Threats: Stringent regulations regarding data privacy and cybersecurity need to be addressed to build trust among users.

Key Takeaways

The APAC automotive telematics market demand is expected to witness high growth over the forecast period owing to rapid adoption of connected vehicle technologies across major countries. The global APAC Automotive Telematics Market is estimated to be valued at US$ 25 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

China currently dominates the regional market supported by large vehicle production and sales volumes. Meanwhile, government initiatives promoting smart mobility are fueling adoption in India and other Southeast Asian nations. Japan, South Korea, and other developed Asian countries achieved early penetration. However, with rising disposable incomes and evolving mobility needs, the automotive telematics segment is expected to grow multifold in China and India over the coming years. These countries also present lucrative opportunities for international players to expand collaborations with local automakers and technology providers.

Key players operating in the market include Toyota Motor Corporation, BMW Group, Volkswagen Group, Ford Motor Company, and General Motors. These companies are investing heavily in R&D to develop innovative connectivity and infotainment services for customers. For instance, Toyota’s Telematics Control Unit utilizes cloud computing platform to offer real-time updates and diagnostics. Meanwhile, BMW’s ConnectedDrive platform integrates eCall and other advanced functionalities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it