Vehicle Telematics Market to Expand at 18.5% CAGR During 2023-2030; Rising Popularity of Connected Vehicle Solutions to Drive Market Expansion

The global vehicle telematics market size was USD 72.85 billion in 2022. Fortune Business Insights™ in its report titled “Vehicle Telematics Market Size, Share & COVID-19 Analysis, By Service (Information and Navigation, Safety and Security, Fleet/Asset Management, Insurance Telematics, and Infotainment System), By Technology (Embedded, Tethered, and Integrated), By Sales Channel (OEM and Aftermarket), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecasts, 2023-2030” observes that the market is projected to grow from USD 85.36 billion in 2023 to USD 280.78 billion by 2030, exhibiting a CAGR of 18.5% during the forecast period. Vehicle telematics is a combination of telecommunication, informatics, vehicular technology, and computer science to form a telematics system that collects vehicle data and analyzes it to gain insights and enhance the safety and driving experience of the driver. The surging demand for wireless communication technology and connectivity when driving is aiding market growth.

IDEMIA Completes First Automotive Large-scale Connectivity Fleet Swap with Premium Carmaker

In August 2022, IDEMIA, a leader in identity technologies, completed the first-of-its-kind mass-scale remote SIM provisioning campaign in the automotive industry with its Automotive Connectivity Manager platform. Under this campaign, the Group collaborated with Mercedes-Benz AG to transfer approximately 700,000 vehicles from one mobile network service provider to another, using over-the-air services. The cloud-based Automotive Connectivity Manager along with IDEMIA’s GSMA-compliant SM-SR enables the management of end-to-end processes from eSIM profile order to activation, including download of mobile cellular subscriptions into eSIM-equipped connected cars.

Supply Chain Disturbances Hampered Market Expansion Amid the Pandemic

The COVID-19 pandemic prompted governments worldwide to impose stringent lockdowns. Manufacturing facilities were closed which severely impacted vehicle production. In the automotive sector, leading manufacturers depend on third-party manufacturers to deliver high-quality products. The closure of manufacturing facilities decreased the availability of vehicle parts, which reduced vehicle production and sales. This negatively impacted the market in 2020.   

Rising Popularity of Connected Vehicle Solutions to Drive Market Expansion

The surging demand for connected vehicles has prompted leading automotive manufacturers to launch telematics systems for different vehicle types to boost car sales and attract customers. Moreover, vehicle manufacturers are increasingly focused on integrating IoT solutions to enhance safety and improve vehicle performance. Several automakers are introducing new fleet operator management technologies such as 5G, GPS tracking, Artificial Intelligence (AI), and the Internet of Things (IoT), along with telecommunication and informatics. This will further attribute to the vehicle telematics market growth.

On the other hand, concerns regarding data leaks and cyber security will pose as challenges for industry stakeholders.

Partnerships between Market Players to Propel Market Growth

Leading vehicle telematics players make several moves to maintain dominance in the global market such as mergers and acquisitions, collaborations, and partnerships. These moves improve their product portfolio and boost sales. For instance, in February 2022, NEXCOM announced its plans to partner with Hailo, a leading AI chipmaker, to introduce NEXCOM’s in-vehicle computer VTC 1021, the next-generation AI vehicular telematics solution. The company’s AI solution features the compact Hailo- AI accelerator module, thus enabling in-vehicle computers to run state-of-the-art AI applications more efficiently.

Notable Industry Development

• June 2022: Geotab, a leading provider of IoT and connected transportation solutions, announced its plans to collaborate with Renault to combine its vehicles’ telematics capabilities with the MyGeotab fleet management platform. This collaboration will provide a single point of access for fleet operators to provide connectivity solutions to fleets of any size and make informed decisions.

List of Key Companies Profiled in the Report:

• Robert Bosch GmbH (Germany)


• Webfleet Solutions B.V. (Netherlands)


• Mix Telematics (South Africa)


• Trimble (U.S.)


• Verizon (U.S.)


• Zonar Systems (U.S.)


• Octo Group S.p.A (Italy)


•  Microlise Telematics Pvt. Ltd. (U.K.)


• Harman International (U.S.)

Further Report Findings

• Europe is projected to account for the largest vehicle telematics market share among all regions during the forecast period. The growing focus of authorities on prevention of accidents and ensuring safety of drivers and passengers is aiding market growth in the region. Additionally, strategic collaborations by industry leaders to strengthen market positioning will also attribute to regional market growth.


• As per sales channel, the OEM segment accounted for a major market share in 2022. Factory-fitted telematics devices are hassle-free and cost-effective as compared to the alternative, thus boosting segment expansion. Furthermore, the launch of advanced software and services is also driving segment proliferation.


• Based on technology, the embedded segment led the market in 2022 due to rising consumer demand for connectivity within vehicles. The embedded telematics system helps monitor vehicle performance through a cellular modem installed in the vehicle. In the U.S., around 80% of new vehicles are installed with embedded telematics.

Table of Segmentation