The telematics market has been forecast to increase at a compound annual growth rate (CAGR) of 22.67% through 2016, driven by the increasing awareness of road safety, and the increased adoption of the voice recognition feature in telematics systems.
This tremendous growth in telematics services is expected to be the outcome of growing demand for electric vehicles. The telematics market is also witnessing increasing demand due to introduction of cloud based offerings in vehicle telematics.
Another trend being witnessed in the market is the increasing demand for automotive infotainment. The automotive infotainment market is growing at a significant rate, leading to an increasing demand for telematics.
The increase in global vehicle production and increased usage of infotainment devices will play a vital role in the growth of the telematics market. Infotainment devices are used for communication, entertainment, and navigation and this will further influence the demand for telematics devices, which will lead to increased market growth.
Telematics typically is any integrated use of telecommunications and informatics, also known as ICT (Information and Communications Technology).
An increase in collaborations between vehicle manufacturing companies and telematics vendors is one of the major reasons contributing to the growth of the telematics services industry. Next generation vehicle telematics application such as automatic vehicle identifier systems, fleet operation management systems, remote vehicle diagnostics, incident detection systems, and in-vehicle terminal assistance are expected to increase the demand of telematics services in vehicle manufacturing industry.
Currently, telematics technology is primarily used in the Americas and the countries of Western Europe. However, the technology is expected to witness growing popularity across all geographies in the coming years.
One of the main challenges facing the market is the increasing design complexity. As applications of automotive embedded telematics are increasing, the complexity in design to manage these applications is also increasing.
Key players currently dominating the telematics market include BMW AG, Ford Motor Co., General Motors Co., Toyota Motor Corp., Delphi Automotive plc, Robert Bosch GmbH, Continental AG, WirelessCab AB.
For more information on the telematics market, see the latest research: Telematics Market
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