Netscribes Inc., a global market intelligence firm, has released the Global Telematics Market Report. According to Netscribes, the global telematics market is expected to grow at a compound annual growth rate (CAGR) of 28.5 percent between 2017 and 2022 to reach a global revenue of $233.24 billion USD by 2022.
An increased need to track vehicles in real time and monitor driver behavior, coupled with the rising demand for onboard infotainment, is expected to drive the use of telematics technology. Although the telematics market is expected to have positive growth globally, Netscribes points out that there is still a lack of awareness among car owners, resulting in a resistance toward bearing additional costs of installing new devices in old cars and vehicles. A large segment of vehicle owners is still aversive to usage-based insurance (UBI) companies over data-privacy concerns.
Some of the key highlights from the report are as follows:
- About 80-85 percent of the telematics solutions and devices that includes infotainment and UBI cater to the automotive industry.
- Increasing purchasing power of customers has led to a shift in preference for high-end vehicles (equipped with advanced telematics devices), rather than simple transport machines.
- Governments in several countries have made it mandatory to have an electronic on-board recorder (EOBR) fitted on commercial vehicles, which is one of the key drivers of the adoption of telematics among fleet companies.
- North America is the highest revenue-generating region for the automotive telematics industry. The telematics market is at a mature stage in countries like the U.S. and Canada, where stable growth is forecasted until 2022.