APAC Automotive Telematics Market

Key Points Covered in APAC Automotive Telematics Market Study

• Market estimates and forecast 2021-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Automotive Telematics Market and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 APAC Automotive Telematics Market Outlook Compared to 2021-2031 Forecast

Driven by the growing technological advancements and increasing production of passenger as well as commercial vehicles, the APAC automotive telematics market posted substantial gains reaching a valuation of US$ 32.6 billion during 2016 and 2020.

With automotive industry envisioning to tap into next-generation automotive-communication technologies, such as automotive telematics, the market has witnessed a proliferated adoption in various applications such as safety & security, navigation system, infotainment and many more.

Also, burgeoning demand for satellite navigation services coupled with the rising popularity of in-built mobile communications among drivers, are creating wide growth opportunities for the automotive telematics manufacturers.

Furthermore, contribution from OEMs in the APAC automotive telematics and high demand for embedded system or technology based solutions, in the view of low cost, easy to manage aspects, will propel the growth of the market.

Moreover, increasing government initiatives and stringent rules regarding the integration of telematics systems for the safety & security of passenger across countries such as India, China, Japan and Australia is improving the adoption of automotive telematics.

On the back of these aforementioned factors, the APAC automotive telematics market is poised to rise at a CAGR of over 9% through 2021 and beyond.

How are Favorable Government Initiatives Improving the Demand of Automotive Telematics?

Owing to the favorable government initiatives, telecom infrastructure have registered significant growth in countries such as Australia, Japan, India, China and other South Asian countries.

For example, strict regulatory policies in China regarding the installation of telematics system and satellite positioning in the commercial vehicles is propelling the demand of automotive telematics in the country.

Also, increasing penetration of digital technology and use of smart phone have enabled the adoption of embedded telematics system within passenger as well as commercial vehicles. Furthermore, increased funding and investment supporting the automotive manufacturers have improved the market growth.

As per Department of Australian Automotive Industry Report, 2020 funding of US$ 47.5 million for the advanced manufacturing growth fund aided the car-related businesses move into other industries in South Australia and Victoria. Also, around US$ 155 million were invested for the advanced manufacturing growth fund to support automotive workers and supply chain businesses.

How is the Adoption of Compatible Telematics with Advanced Technology Bolstering the Market Growth?

Presently, the automotive telematics industry is adopting advanced technology such as big data connectivity for robust and reliable information storage. For example, Japan planned a single national automotive big data platform from 2020.

According to this, all the information related to vehicles will be incorporated into a single platform, and random access will be prohibited. In Japan, government have planned to charge fees to the public for accessing the data platform.

Furthermore, telematics manufacturers are increasingly emphasizing on making telematics compatible with multiple operating systems and software platforms. Adoption of cloud-based technology and Internet of Thinking is making it easy for the manufacturers as well the consumers to navigate the system while meeting the government guidelines.

For example, mirror telematics unit – a rear-view mirror telematics unit equipped with LTE communication module – is the first application in the Japanese car electronics market to utilize cloud services. These factors are most likely to positively affect the growth of the APAC automotive telematics market over the forecast period.

Country-wise Analysis

How Big is the China Automotive Telematics Market?

China has been the world’s largest automotive manufacturing country since past decade. China is expected to be a prominent market, accounting for over 50% of market revenue and shares of APAC automotive telematics market.

Stringent government policies for the installation of satellite positioning and telematics systems is playing an important role in the adoption of telematics by China’s automotive industry.

Moreover, increasing smartphone penetration is likely to create a strong base for telematics. By 2020, upsurge in fleet management, and increased concern regarding safety & security are the key factors that are considerably contributing toward the growth of China’s automotive telematics market.

Furthermore, as of 2021 car production in China was recorded around 18.8 million units of passenger and commercial vehicles. Hence, the adoption of automotive telematics increased, furthering the growth of automotive telematics in China.

How is the Demand for Safety & Security in Vehicles Pushing the Sales in India?

Indian automotive market is one of the largest in the South Asia &Pacific market. With rising government initiatives for the adoption of telematics regarding the safety & security in vehicles, the demand for automotive telematics is anticipated to increase over the years.

As per the projections of Indian Automotive Fleet report of 2020, an estimated of 7.42 million commercial vehicles are on Indian road and around 0.29 million telematics units were installed.

The government has recently taken a keen interest in the safety of passengers in public and commercial vehicles & transportation. Indian government, in 2014, allotted US$ 2.4 billion for the improvement of security network across the country.

Since then, there are strict rules and regulations regarding the safety & security, hence there have been a notable upsurge in the adoption of automotive telematics system in India.

With the increase in production of automotive vehicles and penetration of internet & artificial intelligence in the manufacturing of vehicles, India telematics is anticipated to increases in the upcoming decade.

How Penetration of Technology is Driving Increased Uptake across Japan?

The Japan automotive telematics market is poised to expand at an impressive CAGR through 2021 and beyond. With Japan’s auto-industry envisioning to tap into next-gen automotive capabilities such as automotive telematics, manufacturers are incorporating advance technologies such as Internet of Thinking and artificial intelligence to necessitate the demand for improved GPS technology in passenger vehicles.

Advent of wireless technologies such as 4G, 5G and LTE is expected to be used widely in future. Government is taking initiatives to transform their road and telecom infrastructure, furthering the adoption of automotive telematics across the country.

As 5G mobile telecommunication network is being rolled out in the country to fulfill the need for faster technology, the Carnegie Endowment for International Peace with the cooperation of Japanese partners are investing high for the research & development of Open Radio Access Network.

With the increasing penetration of smartphones in the country and the demand for advanced telematics in the vehicles, the Japan automotive telematics market is expected to bolster in the upcoming decade.

What is Driving Adoption of Automotive Telematics in ASEAN Countries?

The market for ASEAN automotive telematics countries include Indonesia, Myanmar, the Philippines and rest of ASEAN countries. Surge in the adoption of cloud-based technology for automotive telematics solutions and the growth of transport & logistics sector is driving the growth of automotive telematics market across ASEAN countries.

Moreover, leading players in the region are adopting various technology such as artificial intelligence to enhance the performance of automotive telematics in the vehicles. In 2018, around 7.19 million units of passenger vehicles were sold, especially in Vietnam and the Philippines, according to the report of Automotive Association of ASEAN Nations.

Hence, with the increasing production of passenger vehicles and rising concerns for safety & security, adoption of automotive telematics have propelled in the region.

What is Aiding the Market Demand across Australia?

The development of Australian automotive industry has been pointing upward for many years on the back of rising technological development in the country. Rising investments and transitioning Australia’s automotive industry is providing stimulus for the automotive telematics market.

Several manufacturing projects and the investment from the Australian government, in the favor of improving the industry due to the slight set back of 2020, are providing impetus for the development.

For instance, as per the report of Australian Government Department of Industry Science and Resources, the government started the initiatives such as US$ 100 million fund for advanced manufacturing fund which includes automotive transformation scheme which encourages competitive investment and innovation in the automotive industry through 2020.

Also, US$ 10 million fund for an automotive innovation labs program to build automotive test facilities and increase access to design and test facilities for automotive products.

These funds and initiatives have aided the manufacturers to reduce the cost operational cost and test the new technology in telematics system. Thereby, accelerating the growth of the market.

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Category-wise Insights

Which Vehicle Type Accounts for High Application of Automotive Telematics Market?

Presently, passenger vehicle is the leading segment in terms of vehicle type and is set to exhibit impressive growth during the forecast period. The passenger vehicle segment is anticipated to witness impressive growth through 2031.

With the surging automotive ownership pursuant to increased consumer spending is anticipated to improve the automotive telematics application in passenger cars. Furthermore, rapid incorporation of compatible telematics with advanced features in luxury cars, catering the demand for security & infotainment within the vehicles, are offering substantial impetus to the growth of automotive telematics market.

As per the statistics of International Organization of Motor Vehicle Manufacturers, global sales of commercial as well as passenger vehicles reached 90.45 million units as of 2020. Among which, around 53.5 million units of passenger cars were sold in the year 2020. Hence, increasing installation of automotive telematics in passenger vehicles is likely to result in increased market share.

Which End-User Segment is expected to be the Most Lucrative?

On the basis of key applications, the end-use segment is sub-segmented into safety & security, infotainment, navigation and diagnostics. According to FMI, the safety & security and infotainment segment are expected to flourish in the automotive telematics market. This is attributed to the increasing focus of OEMs on installation of safety services & infotainment for the better vehicle performance and in-car ambience.

Also, surging technological advancements in the automotive industry is a noteworthy factor backing the growth of infotainment segment. Higher demand for comfort & security coupled with smartphone integration in vehicle infotainment units will make the vehicle more engaging. This, in turn, is expected to boost the market demand.

Which Technology Type is Top-selling in APAC Automotive Telematics Market?

In terms of technology, the market is classified on the basis of embedded, tethered and smartphone/integrated. Surging demand for embedded systems with multi-core technologies and embedded graphics is escalating the demand for embedded technology in the automotive industry.

Advancements in smart & energy efficient electronic devices and persistent research & development for sustainable technology has furthered the adoption of embedded technology among leading players.

Embedded systems or technology based telematics solutions accounts for higher demand as compared to the tethered technology backed by the cost-effectiveness and easy handling aspect. Rapid incorporation of 5G technology and integration of big data science have propelled the adoption of embedded technology among the leading players.

Which Channel Type is Making Headway in APAC Automotive Telematics Market?

On the basis of channel type, the APAC automotive telematics market is segmented into original equipment manufacturers (OEMs) and aftermarket. OEM segment is anticipated to witness an aggressive growth during the forecast period.

End users generally prefers telematics services from the original equipment manufacturers as compared to those provided by aftermarket telematics service providers. Increasing investments for technological advancements, such as smartphone integration in vehicle infotainment units are expected to provide remunerative opportunities for the OEMs. OEMs, especially in China, are promoting telematics in low- and medium-end car models.

Furthermore, major OEMs are collaborating with local players to develop navigation, on-board diagnostics and smart mirrors with the help of high-speed internet and artificial intelligence, which is augmenting the growth of the market. At present, OEMs are reigning supremacy in the overall APAC market, however, the aftermarket segment is anticipated to gain traction over the coming years.

Competitive Landscape

The Asia Pacific automotive telematics market is slightly fragmented with medium sized enterprises leading the industry. Product innovation, new launches, strategic mergers, partnerships and collaborations are some of the strategies adopted by the leading manufacturers.

In March 2021, Ford announced the launch of new connected uptime system, FordLiive, designed to help Ford commercial vehicle operators to improve their productivity by maximizing vehicle uptime and maintain their vehicles, by reducing the number of breakdowns and decreasing the number of visits to the dealer workshop for maintenance.

In January 2021, Qualcomm Technologies Inc. and General Motors announced the partnership to deliver premium experiences for their upcoming vehicles. The partnership entailed incorporation of a full site of automotive solutions with the integration of General Motor’s next-generation digital cockpit and telematics systems & advanced driver assistance systems.

In October 2020, Airbiquity, the global leader of connected vehicle services, announced the launch of its OTAmatic vehicle configurator, a tool for defining and managing connected vehicle software. The tool gives the automaker insight into the exact hardware and software configurations within a vehicle to manage known combinations of electronic control units & software versions in vehicles.

Leading APAC automotive telematics manufactures as profiled by FMI include:

• Trimble Inc.
• Visteon Corporation
• Airbiquity Inc.
• Aplicom OY
• Scorpion Automotive Limited
• iTriangle InfoTech Pvt. Ltd.
• Shenzhen Concox Information & Technology Co. Ltd.
• Minda Corporation Limited
• iDem Telematics GmbH
• Road Track
• ACTIA Group
• Lavinta Buana Sakti
• Microlise Limited
• BOX Telematics
• Redtail Telematics Corporation

*This list is indicative - full details about prominent APAC automotive telematics manufacturers is available upon request

APAC Automotive Telematics Market - Report Scope

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Key Segments Covered

Vehicle Type

• Commercial
• Passenger

Aircraft Type

• Embedded
• Tethered
• Integrated/Smartphone

End Use

• Infotainment
• Safety
• Navigation
• Diagnostics

Channel Type

• OEM
• Aftermarket

Region

• China
• Japan
• South Korea
• India
• ASEAN
• Oceania (Australia and the Rest of Oceania)