APAC Automotive Telematics Market Is Expected To Be Flourished By Growing Demand For Connected And Autonomous Vehicles

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The APAC automotive telematics market consists of software and services that enable the transmission and processing of data from vehicles to enable various services such as emergency calling, vehicle diagnostics, navigation and infotainment. These telematics solutions are integrated into vehicles through components like head unit infotainment systems. Automakers are increasingly integrating telematics services as they enhance driver experience and assist with fleet management and vehicle maintenance. The growing demand for connected and autonomous vehicles across developing economies like India and China is expected to drive the adoption of automotive telematics.

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 Dynamics

Growing demand for connected and autonomous vehicles: The rapid adoption of autonomous and connected vehicle technologies across the APAC region is expected to drive the APAC Automotive Telematics Market share over the forecast period. The growing focus of automakers and governments on deploying V2X communication technologies that enable data transfer between vehicles and infrastructure is supporting the development of self-driving networks. Several OEMs are working on integrating advanced driver-assistance systems and solutions for vehicle-to-vehicle and vehicle-to-infrastructure communication. This is increasing the application of telematics control units in automobiles.

Government regulations and safety concerns: Stringent regulations regarding vehicle safety and growing safety concerns are propelling the demand for advanced automotive telematics solutions. Regulatory bodies across various APAC countries are mandating the integration of eCall and other emergency notification systems in vehicles. For instance, the Indian government made it mandatory for all passenger vehicles to have emergency call systems from 2023. This is boosting the adoption of telematics units and services and contributing to the market growth.

Segment Analysis
The APAC automotive telematics market is dominated by the service segment. The service segment holds more than 55% share of the overall market in the region. Factors such as a growing number of connected cars, increasing demand for safety, security, and navigation services are driving the segment. Services help in effective fleet management, vehicle diagnostics, emergency calling, and navigation among others. The dominance of this segment is expected to continue over the forecast period owing to the growing need for real-time telematics services among commercial and passenger vehicle owners in the region.

PEST Analysis
Political: Countries in the APAC region are supporting the development and adoption of connected mobility solutions to reduce road accidents and enhance transport infrastructure. Governments are developing policies to mandate safety features in vehicles.
Economic: Rising per capita income and spending capability are fueling vehicle ownership in emerging countries of APAC. Customers are willing to pay for value-added services to get optimized usage of vehicles.
Social: Increasingly digital native population is demanding connected features in vehicles. Customers expect features like internet connectivity, navigation, diagnostic alerts for hassle-free driving experience.
Technological: Growing deployment of 5G networks and cloud infrastructure is facilitating the development of innovative telematics solutions. Advancements in sensors, electronics, and connectivity technologies are making telematics affordable and feasible for mass-market vehicle segments.

Key Takeaways
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.

Regional analysis:

China dominates the APAC automotive telematics market with over 30% market share in 2024 owing to large vehicle production and presence of prominent players. Countries like India and Indonesia are poised to witness high growth in coming years led by rising vehicle sales.

Key players:

Geotab, AT&T, Verizon, MiX Telematics, TomTom, Trimble, Orbcomm, Masternaut, LG Electronics, Visteon Corporation. Key players are adopting strategies like partnerships, new service launches and investments in 5G and AI to gain higher share in the rapidly expanding APAC market

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

About Author – Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.  LinkedIn Profile