The APAC automotive telematics market is witnessing transformation owing to growing penetration of connected vehicle technologies and adoption of ADAS solutions across commercial and passenger vehicles. Automotive telematics provides vehicle location and status tracking along with real-time driver behavior analysis for fleet management operations. The system offers safety, convenience and productivity gains for vehicle owners and fleet managers.
The APAC Automotive Telematics Market Demand is estimated to be valued at US$ 25661.54 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the APAC automotive telematics are Accell Group, BionX, Robert Bosch GmbH, Derby Cycle AG, Easy Motion, Electric Bike Technologies LLC, Giant Bicycles, GRACE, Jiangsu Xinri E-Vehicle Co. Ltd., Panasonic, Pedego, Stromer, Superpedestrian, Trek, and Yadea Technology Group Co. Ltd. Rising demand for vehicle tracking solutions from logistics companies and commercial fleet operators is propelling the market growth. Major automotive OEMs are expanding their connected vehicle offerings across Asia to tap the growing demand from consumers.
The adoption of telematics is increasing across countries like China, India, South Korea and Japan. Fleet management companies are utilizing real-time vehicle data to optimize business operations. Furthermore, improving network connectivity and lower 4G/5G data costs are supporting the use of advanced telematics systems in commercial vehicles.
Market key trends
The adoption of electric vehicles is one of the major trends seen in the region’s APAC Automotive Telematics Market industry. Several automakers are introducing new electric car models for commercial and passenger segments. Telematics enables remote monitoring of electric vehicles and supports optimized battery usage. This trend is expected to further drive the demand for telematics control units in EVs. Furthermore, the integration of advanced technologies like artificial intelligence, cloud connectivity and predictive maintenance is streamlining fleet management for logistics companies.
Porter’s Analysis
Threat of new entrants: The APAC automotive telematics market requires large investments in technology which acts as a barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several vendors offering telematics solutions in the region.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as they depend on vehicle manufacturers for volumes.
Threat of new substitutes: There is a low threat from substitutes owing to the lack of safer and economical alternatives for data connectivity solutions.
Competitive rivalry: The APAC automotive telematics market witnesses high competitive rivalry due to the presence of global as well as regional players providing innovative solutions.
In terms of value, China accounts for the largest share in the APAC automotive telematics market owing to strong government regulations regarding fleet management and safety along with the presence of leading automakers in the country. India is another major market in the region and is expected to witness the fastest growth during the forecast period supported by rising demand for connected vehicles, increasing adoption of telematics by fleet operators, and growing focus on road safety.
The Southeast Asian countries including Indonesia, Vietnam, and Thailand offer lucrative opportunities for market participants. This is attributed to the expanding middle-class population, rising disposable incomes, and increasing awareness about vehicle security. Further, government initiatives to improve road safety and manage commercial fleets efficiently are encouraging telematics adoption.
Geographical Regions
Over 30% of the APAC automotive telematics market is concentrated in China. Presence of prominent automakers such as SAIC Motor, Great Wall Motors, BYD Auto, and Geely along with fleet operators are driving the demand for telematics services. Further, the implementation of policies mandating safety and connectivity features is boosting adoption.
India is projected to expand at the fastest CAGR during the forecast period within APAC. This can be credited to increasing private vehicle ownership, stringent government regulations for commercial fleets, and rising focus on road safety. Major players are targeting India for capacity expansion considering its growing aftermarket potential.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it