Asia Pacific Automotive Telematics Market

Automotive Telematics Market: Asia Pacific Industry Analysis and Opportunity Assessment 2014 - 2020

Automotive Telematics Market Overview

Automotive telematics combines telecommunication and informatics to provide various services such as navigation, safety and security dynamically to vehicles. Currently, the global penetration of automotive telematics is currently around 48%, which is expected to reach around 62% by 2020.

Asia Pacific automotive telematics market is expected to reach US$ 15,248 Million by 2020 at an estimated CAGR of 11.6% during forecast period. Increased vehicle production and sales, regulatory reforms and improved telecom infrastructure are some of the factors which are driving APAC automotive telematics market.

End Use Overview

On the basis of end use, Asia Pacific automotive telematics market is segmented as infotainment, diagnosis, navigation, safety & security and others.Safety & security and diagnosissegments collectively contributed to about 50% of Asia Pacific automotive telematics market revenues in 2014. Infotainment application segment is identified as one of the fastest growing market during the forecast period with a CAGR of 12.6%. 

Technology Overview

On the basis of technology, Asia Pacific automotive telematics market is segmented as embedded, tethered and smart phone. Currently, embedded technology segment is dominating the market by and is projected to reach US$ 11,934.6 Million by 2020. Though, smart phone technology segment is estimated to capture lowest market revenue share of 7.6% in APAC automotive telematics market in 2014, it’s expected to register a highest CAGR of 12.6% during forecast period.

Vehicle Overview

Telematics technology can be integrated with passenger and commercial vehicles. Currently, passenger car segment has 88% market revenue share in Asia Pacific automotive telematics. Passenger car segment is expected to continue its dominance till 2020, due to high production and sales volume.

Regional Overview

From country perspective, Asia Pacific automotive telematics market is segmented into India, China, Oceania, ASEAN, Japan and South Korea. Currently, China dominates the Asia Pacific automotive telematics market and accounts for around 45.4% market revenue share, followed by Japan and South Korea. China is forecast to continue its dominance in APAC automotive telematics market till 2020, as it’s expected to capture a 45.3% market revenue share and expected to register a CAGR of 11.6% during forecast period. China, Japan and South Korea collectively contributed around 89% of the market revenues in 2014.ASEAN region is forecast to register a healthy CAGR of 12.6% during forecast period. India is expected to register a highest CAGR of 14.1% during forecast period.

Drivers and Trends

Governments in advanced and emerging economies such as US, UK, Brazil, Singapore, India, have introduced regulations, policies and initiatives to increase the use of telematics in the automotive industry with a view to improving road safety. Increased acceptance of advanced technology and gadgets, such as mobile phones, laptops, smart phones, tablets, telecommunications, and various other technological goods in advanced and emerging regions has been witnessed in the last few years, particularly in the Asian region. As most of the manufacturers are competing to retain or increase their market share, some players are investing in innovating their product offerings by integrating new features and application in telematics devices. In order to maintain greater margins, OEMs capitalize on the convergence of digital content, wireless communication and automotive electronics. In the short term, however, telematics is expected to represent a product differentiation strategy rather than a revenue play. OEMs have created a new business model to complement their existing car making model. OEMs are investing in telematics to capture the untapped market. By 2020, they want to position their companies globally as the providers of content and services, just like phones or tablets. 

There has been increasing adoption of emerging hybrid technology in vehicles (semi-autonomous vehicles are expected to become commonplace). The importance of remote vehicle diagnostics is slowly growing globally. Automotive OEMs are expected to continue investing in various technology advancements, such as integration of smart phones with the vehicle infotainment unit. This is expected to make embedded solutions more affordable and engaging.

This Future Market Insights report examines the ‘Asia Pacific Automotive Telematics’ market for the period 2014–2020. The primary objective of the report is to offer updates on the advancements in automotive industry that have given rise to a telematics technology. Automotive telematics technology is revolutionizing the automotive industry as it adds new wing to product models of automotive OEMs and many benefits such as navigation assistance and safety to consumers. 

Automotive telematics technology enables connection between vehicles and telecommunication services. Using telematics unit, driver can avail services such as navigation, infotainment, safety & security and diagnostics. Not only has this technology benefited consumers, but also to automotive OEMs and insurance industry, by providing them new source of revenue.

The Automotive Telematics market report starts with an overview & evolution of the automotive telematics. The Automotive Telematics is categorically split into five components: Automotive Telematics Technologies, Automotive Telematics Vehicle Types, Automotive Telematics Marketplace and Automotive Telematics Channels, Automotive Telematics End Usages.

In the next section, FMI covers the Automotive Telematics market performance in terms of Asia Pacific Automotive Telematics units installed and revenue split. This section additionally includes FMI’s analyses of the key trends, drivers and restraints from the supply, demand and economy side, which are influencing the Automotive Telematics market. Impact analysis of key growth drivers and restraints, based on the weighted average model is included in the Automotive Telematics report to better equip and arm clients with crystal clear decision-making insights.

The primary focus of the following sectionis to analyse the Automotive Telematics market by end usage; the primary verticals covered under the scope of the report are Automotive Telematics uptake among infotainment, Automotive Telematics uptake among safety & security, Automotive Telematics uptake among navigation and Automotive Telematics uptake among diagnostic. Furthermore, report analysis Automotive Telematics market by its application in passenger cars and commercial vehicles.

As highlighted earlier, Automotive Telematics is an aggregation of Embedded, Tethered and Smart phone technology. All these sub-segments are included in this section to make the study more comprehensive.

The next section of the report highlights Automotive Telematics adoption by regions. It provides a market outlook for 2014–2020 and sets the forecast within the context of the Automotive Telematics, by technology, vehicle type, end usage, channel types. This study discusses the key country wise trends contributing to growth of the Automotive Telematics market on Asia Pacific region basis, as well as analyses the degree at which global drivers are influencing this market in region. Key regions assessed in this report include India, China, Japan, Oceania, South Korea, and ASEAN.

All the above sections, by technology, by end usage, by vehicle type, by channel type or by regions, evaluate the present scenario and the growth prospects of the Automotive Telematics market for the period 2014 –2020. We have considered 2014 as the base year and providedata for the trailing 12 months. 

To calculate the Automotive Telematics market size, we have considered passenger and commercial vehicle production, telematics penetration, telecommunication infrastructure, etc. The forecast presented here assesses the total revenue by both Value and Volume across the Automotive Telematics market. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the Automotive Telematics market will develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analyses, based on supply side, consumer spending and economic envelope. However, forecasting the market in terms of various Automotive Telematics technologies, channels type, vehicle type, end usage and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the forecast has been completed.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the Automotive Telematics market.

As previously highlighted, the Automotive Telematics market is split into a number of sub categories. All the Automotive Telematics sub-categories in terms of technology, regions, vehicle type, channel type and end usage are analysed in terms of Basis Point Share to understand individual segments’ relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the Automotive Telematics market.

Also, another key feature of this report is the analysis of all key Automotive Telematics segments, sub-segments, regional adoption and verticals revenue forecast in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the Automotive Telematics market.

Furthermore, to understand key growth segments in terms of growth & adoption of Automotive Telematics technology and regions, Future Market Insights developed the Automotive Telematics Market Attractiveness Index. The resulting index should help providers identify real market opportunities.

In the final section of the report, Automotive Telematics Competitive landscape is included to provide report audiences with a Dashboard view, based on categories of provider in the value chain, presence in Automotive Telematics product portfolio and key differentiators. Key categories of providers covered in the report are Automotive OEMs, Telematics OEMs, Telematics service providers and Telecom Service Provider companies. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key providers specific to a market segment in the Automotive Telematics value chain. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in the Automotive Telematics marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the Automotive Telematics. Key competitors covered are Denso, Clarion and Panasonic.

In this study, we analyze the APAC Automotive Telematics Market during 2014-2020. We focus on:

  • Market size and forecast, 2013-2020

  • Key drivers and developments in Automotive Telematics 

  • Market dynamics related with embedded, tethered and smartphone technologies

  • Market dynamics related with infotainment, safety & security, diagnosis and navigation

Key Geographies/ Countries Covered

India, China, ASEAN, Oceana, South Korea, Japan

Other Key Topics

  • Automotive technology evolution, global market dynamics, competitive landscape

Examples of key Companies Covered

Panasonic, Clarion, and Denso

Table Of Content

1. Executive Summary

2. Research Methodology and Assumptions

3. Terminologies & Acronyms Used

4. Global Automotive Telematics Market Overview

   4.1. Introduction

4.1.1. Global Automotive Telematics Market Definition

4.1.2. Telematics Automotive Technology Evolution

4.1.3. Global Automotive Telematics Market Value Chain

4.1.4. Global Automotive Telematics Market Taxonomy

   4.2. Global Automotive Telematics Market Analysis and Forecast, By Regions

4.2.1. BPS Analysis, By Regions

4.2.2. Global Automotive Telematics Market Y-o-Y Growth, By Regions

4.2.3. Global Automotive Telematics Market Value (US$) and Volume (Units), By Application

4.2.3.1. Asia Pacific

4.2.3.2. North America

4.2.3.3. Europe

4.2.3.4. Rest of the World

   4.3. Global Automotive Telematics Market Dynamics

4.3.1. Drivers

4.3.1.1. Economic 

4.3.1.2. Supply Side

4.3.1.3. Demand Side

4.3.2. Impact Analysis of Drivers

4.3.3. Inhibitors

4.3.4. Trends

   4.4. Latest Automotive Telematics Innovations

   4.5. Favourable Legislations for Automotive Telematics

5. APAC Automotive Telematics Market Value (US$) and Forecast

   5.1. Introduction

5.1.1. Why APAC?

5.1.2. Y-o-Y Growth Comparison

5.1.3. BPS Analysis

   5.2. APAC Automotive Telematics Market Dynamics

5.2.1. Drivers

5.2.1.1. Supply Side

5.2.1.2. Demand Side

5.2.2. Impact Analysis of Drivers

5.2.3. Inhibitors

5.2.4. Trends

6. APAC Automotive Telematics Market Analysis and Forecast, By Region

   6.1. Introduction

6.1.1. BPS Analysis

6.1.2. Y-o-Y Growth Comparison

6.1.3. Absolute $ Opportunity, By Region

   6.2. APAC Automotive Telematics Market Value (US$) and Volume (Units), By Region

6.2.1. India

6.2.2. China

6.2.3. Oceania

6.2.4. South Korea

6.2.5. Japan

6.2.6. ASEAN

   6.3. Market Trends

7. APAC Automotive Telematics Market Analysis and Forecast, By Vehicle Type

   7.1. Introduction

7.1.1. BPS Analysis

7.1.2. Y-o-Y Growth Comparison

7.1.3. Absolute $ Opportunity, By Vehicle Type

   7.2. APAC Automotive Telematics Market Value (US$) and Volume (Units), By Vehicle Type

7.2.1. Passenger Car

7.2.2. Commercial Vehicle 

   7.3. Market Trends

8. APAC Automotive Telematics Market Analysis and Forecast, By Channel Type

   8.1. Introduction

8.1.1. BPS Analysis

8.1.2. Y-o-Y Growth Comparison 

8.1.3. Absolute $ Opportunity, By Channel Type

   8.2. APAC Automotive Telematics Market Value (US$) and Volume (Units), By Channel Type

8.2.1. OEM

8.2.2. Aftermarket

   8.3. Market Trends

9. APAC Automotive Telematics Market Analysis and Forecast, By Technology Type

   9.1. Introduction

9.1.1. BPS Analysis

9.1.2. Y-o-Y Growth Comparison

9.1.3. Absolute $ Opportunity, By Technology Type

   9.2. APAC Automotive Telematics Market Value (US$) and Volume (Units), By Technology Type

9.2.1. Embedded

9.2.2. Tethered

9.2.3. Smartphone

   9.3. Market Trends

10. APAC Automotive Telematics Market Analysis and Forecast, By End-use

   10.1. Introduction

10.1.1. BPS Analysis

10.1.2. Y-o-Y Growth Comparison

10.1.3. Absolute $ Opportunity, By End-use

   10.2. APAC Automotive Telematics Market Value (US$) and Volume (Units), By End-use

10.2.1. Infotainment

10.2.2. Diagnosis

10.2.3. Navigation

10.2.4. Safety & Security

10.2.5. Others

   10.3. Market Trends

11. APAC Automotive Telematics Market: Competitive Landscape

   11.1. Competition Dashboard

   11.2. Top Suppliers of Automotive Infotainment

   11.3. Company Profiles (Basic Information, Business Strategies, Recent Development)

11.3.1. Denso

11.3.2. Clarion

11.3.3. Panasonic

List of Tables

Table 1: Global Automotive Telematics Market Revenue and Forecast, by Key Regions 2013–2020 (US$ Mn)

Table 2: Global Automotive Telematics Market Volume and Forecast, by Key Regions 2013–2020 (‘000 Units)

Table 3: APAC Automotive Telematics Market Value and Forecast, by Country, 2013–2020 (US$ Mn)

Table 4: APAC Automotive Telematics Market Volume and Forecast, by Country 2013–2020 (‘000 Units)

Table 5: APAC Automotive Telematics Market Value and Forecast by Vehicle Type 2013–2020 (US$ Mn)

Table 6: APAC Automotive Telematics Market Volume and Forecast by Vehicle Type 2013–2020 (‘000 Units)

Table 7: APAC Automotive Telematics Market Value and Forecast by Vehicle Type 2013–2020 (US$ Mn)

Table 8: APAC Automotive Telematics Market Volume and Forecast by Vehicle Type 2013–2020 (‘000 Units)

Table 9: Built-in and Brought-in System Comparison

Table 10: APAC Automotive Telematics Market Revenue by Vehicle Type 2013–2020 (US$ Mn)

Table 11: Asia-Pacific Automotive Telematics Market Volume, Vehicle Type, 2013 - 2020 (‘000 Units)

Table 12: APAC Automotive Telematics Market Value and Forecast by End Use 2013–2020 (US$ Mn)

Table 13: APAC Automotive Telematics Market Volume and Forecast by End Use 2013–2020 (‘000 Units)

List of Figures

Figure 1: Automotive Telematics Applications

Figure 2: Evolution of Automotive Telematics

Figure 3: Telematics Evolution Timeline

Figure 4: Value Chain of Global Automotive Telematics

Figure 5: Value Chain of Global Automotive Telematics

Figure 6: Taxonomy of Global Automotive Telematics Industry

Figure 7: Global Automotive Telematics Market Size and Forecast 2014–2020 (US$ Mn)

Figure 8: Global Automotive Telematics Absolute $ Opportunity 2014–2020 (US$ Mn)

Figure 9: Global Automotive Telematics Market by Region, 2012, 2014 & 2020 (US$ Mn)

Figure 10: Global Automotive Telematics Market Value, By Geography, 2014 & 2020 (%)

Figure 11: Global Automotive Telematics Market Value Y-o-Y Growth, by Region, 2013-2020 (%)

Figure 12: Technology and its Benefits 

Figure 13: The Latest Automotive Telematics Innovations

Figure 14: Legislations Regarding Telematics in Specific Regions

Figure 15: Global Automotive Telematics Market Value Share, by Region, 2012 & 2014 (%)

Figure 16: APAC Automotive Telematics Market Value Share, by Country, 2012 & 2014 (%)

Figure 17: GDP Growth Rate of APAC and World, 2012 and 2013 (%)

Figure 18: Technology Penetration, 2014

Figure 19: APAC Automotive Telematics Snapshot

Figure 20: APAC Automotive Telematics Market Size and Forecast 2014–2020 (US$ Mn)

Figure 21: APAC Automotive Telematics Absolute $ Opportunity 2014–2020 (US$ Mn)

Figure 22: APAC Automotive Telematics Market, by Region, 2014 and 2020 (US$ Mn)

Figure 23: APAC Automotive Telematics Market Value Share, By Region, 2014 & 2020 (%)

Figure 24: APAC Automotive Telematics Market Value Share, By Region, 2014 & 2020 (%)

Figure 25: China Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 26: Japan Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 27: South Korea Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 28: India Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 29: ASEAN Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 30: Oceania Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 31: APAC Automotive Telematics Market Segmentation by Vehicle Type, 2014 and 2020 (US$ Mn)

Figure 32: APAC Automotive Telematics Market Value Share, by Vehicle Type, 2014 & 2020 (%)

Figure 33: APAC Automotive Telematics Market Value Y-o-Y Growth, by Vehicle Type, 2013-2020 (%)

Figure 34: APAC Passenger Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 35: APAC Commercial Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 36: APAC Automotive Telematics Market Segmentation by Channel, 2014 and 2020 (US$ Mn) 

Figure 37: APAC Automotive Telematics Market Value Share, by Channel Type, 2014 & 2020 (%)

Figure 38: APAC Automotive Telematics Market Value Share, by Channel Type, 2014 & 2020 (%)

Figure 39: APAC OEM Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 40: APAC Aftermarket Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 41: Technologies Mapping as per End Usage

Figure 42: APAC Automotive Telematics Market Segmentation by Technology Type Flowchart, 2014 and 2020 (US$ Mn)

Figure 43: APAC Automotive Telematics Market Value Share, by Technology Type, 2013-2020 (%)

Figure 44: APAC Automotive Telematics Market Value Y-o-Y Growth, by Technology Type, 2013-2020 (%)

Figure 45: APAC Embedded Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 46: APAC Tethered Automotive Telematics Market Absolute $ Opportunity 2013-2020 (US$ Mn)

Figure 47: APAC Smartphone Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 48: APAC Automotive Telematics Market Segmentation by End Use, 2014 and 2020 (US$ Mn)

Figure 49: APAC Automotive Telematics Market Value Share, by End Use, 2014 & 2020 (%)

Figure 50: APAC Automotive Telematics Market Value Y-o-Y Growth, by End Usage, 2013-2020 (%)

Figure 51: APAC Infotainment Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 52: APAC Diagnosis Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 53: APAC Navigation Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 54: APAC Safety & Security Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)

Figure 55: APAC Others Automotive Telematics Market Absolute $ Opportunity 2013–2020 (US$ Mn)