Global automotive telematics will be $149.9B market by 2030: Report
In-vehicle telematics have immense potential in a market like India, and will help in reducing the number of road accidents and fatalities.
The global automotive telematics market is expected to reach $149.9 billion in revenue by 2030 as compared to $27.7 billion in 2019. According to a report released by Prescient & Strategic Intelligence, this 16.6 percent rise (CAGR) will be riding on the shoulders of a rapidly increasing demand for improved safety features in vehicles.
The rise in automobile telematics will also be supported by the rise in sales of connected vehicles and growing implementation of supportive government measures and regulations.
Human error is a major reason behind road accidents. According to data released by Ministry of Road Transport and Highways, 4,67,044 road accidents were reported in 2018. That’s almost one accident every hour. These accidents were the reason behind 1,51,417 deaths. Wide-scale utilisation of various telematic solutions will help in reduction of fatalities.
The increased demand for connected cars has led to high demand for in-vehicle telematics traffic, which includes features like collision warnings, real-time traffic monitoring, automobile diagnostics, and roadside assistance. Additionally, modern automobiles are also offered with vehicle-to-vehicle and vehicle-to-infrastructure connectivity features.
Commercial vehicles too have a significant demand for in-vehicle telematics, especially for fleet owners. Fleet telematic solutions allow for the efficient organisation of day-to-day operations of the fleet, by providing real-time details of the connected vehicles to the operator.
Even in India, where vehicle telematics is still a very nascent segment, there is an immense scope of growth. The Insurance Regulatory and Development Authority of India (IRDAI) has endorsed telematics as a way for logistics companies. This will not just help them in keeping their fleet safe but also save money.
Several carmakers, including the likes of Honda, Maruti Suzuki, and Hyundai, offer the connected car experience. Besides, the new flood of electric two-wheelers in India (Ather Energy, Revolt Motors, Bajaj, TVS and Ultraviolette) has seen the entry of in-vehicle telematics.
The shift to BS-VI emission norms has also seen the entry of OBD (on-board diagnostics) in two-wheelers and three-wheelers.
(Edited by Teja Lele Desai)