The global automotive telematics market is projected to witness robust growth in the coming years, according to a report by Transparency Market Research (TMR). The presence of a large vendor pool makes the automotive telematics market fragmented in nature. As the applications of telematics are highly diverse, even specific to automotive, the market is expected to offer lucrative opportunities to both new entrants and established players. Building alliances and collaborations is expected to be key growth strategies adopted by vendors in the global automotive telematics market. Players are seen allocating resources towards product and technology innovation in order to strengthen their product portfolio.
The leading four players in the global automotive telematics market, viz., Agero Inc., I.D.Systems, Inc., Airbiquity Inc., and TomTom International held roughly 38% of the overall market share. Leading players are seen focusing on launch of advanced products and a diversified product in order to gain traction in the global automotive telematics market.
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Between the forecast period of 2017 and 2025, TMR analysts project the global automotive telematics market to exhibit a robust 22.1% CAGR. The market was estimated to be worth US$10.15 bn in 2016, and is forecasted to reach a value of US$75.79 bn by 2025.
Wide adoption of vehicle tracking in the transportation sector could be responsible for this application segment’s dominance. Vehicle tracking held approximately 30% share in the global automotive telematics market in 2016, and this trend is expected to continue over the forecast period.
In terms of geography, Asia Pacific accounted for 33.5% share of the global market in 2016. Swift growth in the automotive sector is anticipated to bolster growth of this regional market over the forecast period.