According to the new market research report“Telematics Solutions Market for On & Off-Highway (Services-ACN, eCall, Navigation, RVD, On-Road Assistance, Tracking, Fuel Management, Maintenance, & Diagnostics), Form Factor, Hardware, Equipment Type, Technology, Aftermarket & Region – Forecast to 2022″
The telematics solutions market for on & off-highway vehicles is projected to grow at a CAGR of 14.37% from 2017 to 2022, to reach a market size of USD 40.84 Billion by 2022 from USD 17.78 Billion in 2016. The base year considered for the study is 2016 and the forecast period is 2017 to 2022. The growing number of regulatory mandates for vehicle safety and security is driving the growth of this market.
Download our free PDF Brochure and gain crucial industry insights that will help your business grow:
On-highway vehicles are estimated to hold the largest share by Telematics Solutions services during the forecast period
With the rise in vehicle production, the demand of safety & comfort features has also increased among the users. Further, the constant increase in premium vehicles sales at a global level would influence the demand of Telematics Solutions. As per MarketsandMarkets analysis, the premium vehicle sales has increased from 20.5 million units in 2012 to 22.6 million units in 2016 at a CAGR of 2.44% over the period of four years. The significant rise is experienced in per capital income for countries such as China, Brazil, and India increased by approximately 68%, 17%, and 14% respectively from 2010 to 2015 as per World Bank. The substantial increase in premium vehicle sales and rise in disposable income will consequently increase the sales of medium and premium end vehicles that further fuels the Telematics Solutions market for on-highway vehicles
“Telematics Solutions Control Unit for on-highway vehicles is estimated to be the fastest growing market from 2017 to 2022”
The introduction of safety regulation such as eCall or stolen vehicle recovery in European region is one of the noticeable factors for this market. This mandate will make compulsory to install TCU in all passenger cars by 2018 within Europe. Also, some key automotive manufactures are offering their embedded services, especially in North American and European region. Some of them are General Motors – Onstar, Nissan – Connect, Mercedes-Benz- mbrace, BMW ConnectedDrive and Audi – Connect among others. Also, the sale of alternate fuel vehicles has been increased in the recent years. As per the International Energy Agency (IEA), the global BEV & PHEV sales were 753.2 thousand units in 2016 from 47.6 thousand units in 2011 grown at a CAGR of 73.74% over the last five years. As embedded telematics solutions are being provided in most of these vehicles, the market for embedded telematics solutions in electric vehicles is projected to grow in the coming years.
More Insightful Information | Request a Sample Copy:
“North America: Largest Telematics Solutions market for On & Off-highway vehicles”
The North America region is projected to be largest market for telematics solutions from 2017 to 2022. The market growth can be attributed to presence of prominent OEMs [General Motors (U.S.) & Ford Motor Company (U.S.)], strategic alliances, exceptional communication infrastructure and higher adoption rate of technological advancements and innovations witnessing the increased demand of premium cars with advanced safety and comfort features. These premium cars are equipped with telematics solutions to enhance user experience. Also, the telematics solutions are being gradually adopted in commercial vehicles to enhance safety. For instance, Volvo Trucks (U.S.), Freightliner (U.S.), and Peterbilt (U.S.) are offering telematics solutions for navigation, vehicle monitoring and diagnostics to optimize the performance. The other factor such as electronic logging device (ELD) mandate, Dedicated Short Range Communication (DSRC) mandate for LCV and increasing government funds for transport infrastructure. From 2014 onwards, the U.S. Department of Transportation (U.S. DOT) increased the transportation budget from USD 2.5 Billion to USD 3.0 billion annually. On the other hand, the continuous development by telematics solutions vendor such as Telogis Inc, Orbcomm Inc for off-highway vehicles will allow the sustainable growth in the coming years