April 17, 2024
APAC Automotive Telematics Market

APAC Automotive Telematics Market to Witness Rapid Growth Owing to Rising Vehicle Safety Concerns

The APAC automotive telematics market consists of various connectivity solutions that allow data transmission between vehicle and any external device beyond basic transportation services. It includes solutions ranging from basic telematics to different connectivity protocols including Bluetooth, 3G/4G, 5G, and Wi-Fi among others. These solutions enable collection of vehicle data regarding location, speed, routing, mileage, fuel consumption, diagnostics data, and driver behavior among others. They provide advantages such as vehicle safety, fleet management, infotainment, and multimedia among others. With the increasing need for safer, connected, and autonomous vehicles, the demand for automotive telematics solutions is growing in the region.

The APAC Automotive Telematics Market Size 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. These players are focused on developing advanced telematics solutions and establishing partnerships with OEMs for fleet management and connected vehicle technologies.

The emerging opportunities in the market include development of 5G technology integrated solutions, over-the-air updates, advanced driver assistance systems, and autonomous driving. The increasing demand for connected mobility solutions from automotive, transportation, and insurance sectors are also opening new avenues for market growth.

The APAC region is witnessing rapid growth in automobile production and sales. This provides huge opportunities for automotive telematics solution providers for partnerships with OEMs for factory-fitted telematics devices. Additionally, the development of dedicated connectivity infrastructure and increasing disposable income levels are likely to propel the adoption of automotive telematics in the region in the coming years.

Market drivers

The key driver for the growth of APAC automotive telematics market is the rising safety concerns among consumers. Automotive telematics offers features like emergency calling, vehicle diagnostics, stolen vehicle tracking, and driver behavior monitoring which significantly contributes to road safety. Additionally, the implementation of telematics for fleet and asset management in industries like transportation, logistics, and construction is another major factor accelerating the demand of such solutions. This is anticipated to boost the market during the forecast period.

PEST Analysis

Political: The market is witnessing favorable regulatory policies regarding vehicular connectivity and data privacy. Creation of new infrastructure is supporting market growth.

Economic: With rising disposable incomes, customers are willing to pay premium prices for technology enabled features in vehicles. This is driving investments in advanced telematics.

Social: Younger demographics expect in-vehicle connectivity and entertainment options. There is rising demand for safety, security and after-sales service. This is increasing adoption of telematics services.

Technological: Advancements in connectivity technologies like 5G, AI and IoT are enhancing automotive telematics. Connected vehicles can now offer advanced features through integrated solutions. Data analytics is also improving consumer experience.

Geographical Regions with High Concentration

The APAC region accounts for a major share of the total automotive telematics market in terms of value, led by countries like China, Japan and South Korea. Availability of affordable vehicles and growing economy have increased vehicle ownership in these nations. Furthermore, presence of leading automotive manufacturers is driving the demand and adoption of telematics services.

Fastest Growing Region

Several Southeast Asian countries including Thailand, Indonesia and Malaysia are expected to witness highest growth rates during the forecast period. Factors such as rising disposable income, increasing urbanization and government initiatives for connected mobility are fueling market expansion in these developing nations. Countries are working towards creating telematics infrastructure to support advanced applications.

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