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The global electric vehicle telematics market size was valued at USD 8.50 billion in 2022. The market is projected to grow from USD 10.24 billion in 2023 to USD 42.12 billion by 2030, exhibiting a CAGR of 22.4% during the forecast period.
Electric vehicle telematics is an emerging field that is experiencing significant growth due to the increasing adoption of EVs and the need for advanced technologies to support their efficient and sustainable operation. Telematics uses telecommunication and information technologies to monitor and transmit real-time vehicle data. EV telematics can provide various benefits for drivers and fleet operators, such as remote real-time monitoring of the battery’s charge status, range, and vehicle performance. This information allows for more efficient fleet management and predictive maintenance. This type of telematics can analyze sensor data to detect potential issues and predict when maintenance is needed, thereby saving time and money.
Other benefits of EV telematics include optimizing charging station usage and availability, ensuring that EVs are charged efficiently, and reducing waiting time. Telematics can also provide real-time navigation, vehicle tracking, and vehicle-to-vehicle communication, improving the driver’s experience and safety.
The increasing demand for advanced telematics solutions for EVs is driven by government initiatives to promote sustainable transportation and the growing number of EV models introduced by automakers.
COVID-19 Pandemic had Mixed Impact on the Global Market
The COVID-19 pandemic had a mixed impact on the growth of the electric vehicles telematics industry. On the negative side, the pandemic caused disruptions in the global supply chains, leading to production delays and shortages of certain components needed to manufacture EVs. This resulted in automakers temporarily halting the production of some EV models and reducing their overall production targets. Additionally, the pandemic caused a decrease in consumer spending and increased economic uncertainty, which led to a decline in the total auto sales including EVs.
On the positive side, the COVID-19 pandemic accelerated EV adoption in some regions, particularly in countries with strong government incentives and policies to promote sustainable transportation. For example, in Europe, EV sales increased significantly in 2020, despite the overall decline in auto sales due to the pandemic. This also led to an increased demand for EV charging infrastructure and EV telematics solutions to support the efficient operation of these vehicles.
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Demand for Advancement in Technologies to Enhance EV Operations will Fuel Market Growth
One of the latest trends in electric vehicle telematics is using advanced data analytics and machine learning algorithms to support the efficient operation of EVs and their charging infrastructure. This includes using predictive maintenance solutions, which can help identify potential issues with EVs or charging stations before they become major problems.
Another trend is developing more sophisticated and integrated EV charging networks, which can support EVs' efficient and sustainable operation. This includes using smart charging solutions, which can automatically adjust charging rates and schedules based on the availability of renewable energy sources and other factors. In addition, there is a growing focus on improving the user experience of electric vehicle telematics solutions, with a greater emphasis on intuitive interfaces, real-time data visualization, and mobile connectivity. This includes using smartphone apps and other mobile technologies to provide drivers with up-to-date information on their EV's battery status, charging options, and other key metrics. Moreover, there is a growing emphasis on interoperability and standardization within the EV telematics industry. This includes the development of common data exchange protocols and other standards to support the seamless integration of different EV telematics solutions and ensure that EVs can be efficiently and effectively managed across different charging networks and geographies.
Increasing Demand for Electric Vehicles to Boost Market Growth over the Forecast Period
With the increasing awareness of the negative impact of carbon emissions on the environment, people are looking for ways to reduce their carbon footprint. EVs emit fewer greenhouse gases and pollutants than traditional gasoline-powered vehicles, making them a more environmentally friendly option. Advances in battery technology and charging infrastructure are making electric vehicles more convenient for everyday use. This is increasing the appeal of EVs to a wider range of consumers. Moreover, governments across the world are implementing regulations and incentives to promote EV adoption and reduce carbon emissions. This has led to a growing demand for electric vehicle telematics solutions that can support such vehicles' efficient and sustainable operation. The increasing awareness of the negative impact of carbon emissions on the environment will drive the transition toward EVs. Electric vehicle telematics solutions can help monitor and optimize the energy consumption of these vehicles, further reducing their carbon footprint. The continuously increasing demand for EVs has created ample opportunities for this market.
Major Security Concerns and High Cost of Telematics Systems May Restrain Market Growth
Although the demand for electric vehicle (EV) telematics is increasing, several restraining factors could slow down the market's growth. Electric vehicle telematics systems can be costly to install and maintain, which may be a significant barrier for some consumers, particularly those already paying a premium for an electric vehicle. In addition, the lack of adequate charging infrastructure can be a major challenge for EV owners, especially those relying on their vehicles for long-distance travel. The owners may be reluctant to invest in telematics systems that depend on a reliable charging network without sufficient charging options. Moreover, electric vehicle telematics systems can collect data about the vehicle and the driver, raising concerns about data privacy and security. Consumers may hesitate to adopt telematics systems if they are not assured that their data will be handled securely and responsibly. These factors may hinder the electric vehicle telematics market growth.
Information & Navigation Telematics to Dominate Market Owing to Growing Demand for Smart Transportation
Based on application, the market is segmented into safety & security, entertainment, information & navigation, diagnostics, and others. The information & navigation segment is expected to dominate the market over the forecast period, holding a market share of 29.4% by 2030. Information and navigation telematics systems can provide drivers with real-time traffic updates, weather reports, and other useful information to help them navigate their route more efficiently. This can save time and make the driving experience more convenient and less stressful. Navigation telematics systems can help drivers stay on course and avoid accidents by providing real-time information about road conditions, traffic congestion, and other potential hazards. This can aid drivers to make informed decisions and avoid dangerous situations. Information and navigation telematics systems can also be customized to meet drivers' needs and preferences, providing a more personalized driving experience. As technology enhances, innovative and useful features are expected to be added to these systems, further increasing their appeal to consumers.
The demand for safety and security telematics systems is also growing rapidly. Telematics systems can provide drivers with real-time alerts and warnings about potential hazards on the road, such as accidents, traffic congestion, and weather conditions. This can help drivers make more informed decisions and avoid dangerous situations, thereby improving road safety. Telematics systems can help prevent vehicle theft by providing real-time location information and alerts if the vehicle is moved without authorization. This can help law enforcement quickly recover stolen vehicles and reduce the theft risk.
Increasing Demand for Connectivity within Vehicles to Boost Adoption of Embedded Telematics
Based on technology, the market is divided into embedded and retrofit.
The embedded segment held the leading market share in 2022. Embedded telematics systems can provide real-time data on an EV’s performance such as battery life, charging status, and energy consumption. This can help EV owners monitor their vehicle's health and optimize its performance. They can also provide remote access to vehicle controls and information, such as starting or stopping the vehicle, adjusting the temperature, and viewing the vehicle's location. This can offer greater convenience and control for EV owners. Moreover, embedded telematics systems can help promote sustainability by providing data on energy consumption and carbon emissions, helping EV owners make more informed decisions about their driving habits.
Retrofitted telematics systems can be installed in older vehicles, allowing owners to enjoy the benefits of telematics technology without purchasing a new vehicle. This can be a cost-effective solution for owners who want to upgrade their vehicles without making a significant investment. Retrofitted telematics systems can be connected to the internet and other devices, such as smartphones and smart home devices, providing owners with access to a wide range of services and information.
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Passenger Vehicle to Dominate Market Owing to Customers’ Increasing Switch from Conventional Vehicles to EVs
Based on vehicle type, the market is divided into two wheelers, passenger vehicles, and commercial vehicles. The passenger vehicles segment is anticipated to record a significant growth rate during the forecast period. The increasing awareness of the impact of greenhouse gas emissions on the environment has accelerated the shift to cleaner and more sustainable modes of transportation. Electric vehicles produce lower or zero emissions, making them an eco-friendlier option compared to traditional Internal Combustion Engine (ICE) vehicles. Governments across the world are implementing policies and incentives to promote EV adoption such as tax credits, subsidies, and rebates. This has made EVs more affordable and attractive to consumers.
Moreover, the rising demand for passenger vehicles is closely linked to economic growth as consumers tend to purchase more vehicles when their disposable income increases. As economies grow, consumers have more purchasing power, thereby increasing the demand for passenger vehicles.
Asia Pacific Electric Vehicle Telematics Market Size, 2022 (USD Billion)
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Asia Pacific to Hold Largest Market Share Owing to Increasing Sales and Production of Connected Vehicles
Asia Pacific is anticipated to dominate the electric vehicle telematics market share throughout the forecast period. The region is experiencing a significant increase in the adoption of connected vehicles equipped with sensors and communication technology to provide real-time data and insights. This has led to a greater demand for vehicle telematics, which can help drivers and fleet operators manage their vehicles more effectively. In Asia, governments are implementing initiatives to promote the adoption of vehicle telematics, such as regulations mandating the installation of telematics systems in commercial vehicles. This has helped drive the demand for vehicle telematics in the region.
Moreover, the region is witnessing a worrying rise in road accidents and fatalities, leading to an increased focus on road safety. Vehicle telematics can help improve road safety by providing real-time alerts and warnings for potential hazards on the road, such as accidents and traffic congestion. The increased demand for electric vehicles in the Asian market is also one of the prime factors propelling the market growth in the region.
Increase in vehicle emissions and the implementation of strict government regulations in Europe are expected to boost the region's electric vehicle telematics market growth. The increasing focus on avoiding accidents and providing advanced security and safety to drivers and passengers is expected to propel the regional market growth.
The market in North America is expected to witness considerable growth during the forecast period owing to the presence of a few important players in the region, such as Trimble and TomTom International B.V.
Key Players are Emphasizing on Innovative Product Development to Address Rapidly Growing Market Competition
TomTom is a leading positioning technology expert in the market. It uses high-precision maps, real-time traffic information & services, and navigation software to shape mobility. It is focused on developing precision technology that brings people closer to the company’s vision of a safer, congestion-free, and cleaner world. Continental A.G., Robert Bosch, and Geotab Inc. are a few major players in this market. Bosch is one of the leading players in providing innovative and advanced software for electric vehicle telematics.
An Infographic Representation of Electric Vehicle Telematics Market
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The report provides a detailed market analysis and focuses on key aspects, such as leading companies, services, and product applications. Besides this, the report offers insights into the latest market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.
CAGR of 22.4% from 2023 to 2030
Value (USD billion)
By Vehicle Type
The report by Fortune Business Insights says that the market was valued at USD 8.50 billion in 2022 and is projected to reach USD 42.12 billion by 2030.
The market is expected to register a CAGR of 22.4% during the forecast period.
Growing demand for vehicle connectivity in electric vehicles is anticipated to boost the market growth.
Asia Pacific led the market in 2022.
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