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Telematics and Connectivity Processors Market

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Telematics and Connectivity Processors Market Overview

The growing demand for cost-effective connectivity and accurate data processing with cyber security protection is driving the telematics and connectivity processors market. The developments of powerful system on chip is fuelling the connectivity processors market. Telematics systems monitor on-board sensors and exchange information with the cloud; they also support assistance, diagnostics, Over-The-Air (OTA) updates, location-based services and others.

Continuous developments in connectivity processors, such as rich connected-driving services, secure in-car connectivity, reduced size of processors and flexibility to choose connection type, i.e. 2G, 3G or 4G are boosting the demand of telematics and connectivity processors. The telematics and connectivity processor market is witnessing multiple partnerships. For example, OEMs are entering into partnerships with internet service providers and infrastructure providers for various services. The growing on-demand taxi services and supply & logistics activity is significantly creating a demand for telematics and connectivity processors.

Telematics and Connectivity Processors Market: Drivers and challenges

Favorable government regulations are one of the major drivers for the telematics and connected processors market. The European Union (EU) mandates all vehicles to be equipped with the eCall feature and North American governments mandate all heavy commercial vehicles to be equipped with electronic logging devices. These regulations demand high-end technology connectivity processors, which is significantly driving the telematics and connectivity processors market. Moreover, growing concerns regarding safety & security, fuel monitoring and vehicle tracking are driving the telematics and connectivity processors market for passenger vehicles.

One of the major challenges for global telematics and connectivity processors is their high cost. The price sensitive markets of SEA and MEA are witnessing slow demand for telematics, due to their high cost. Moreover, these systems require subscription charges, which customers are not ready to pay. These factors hinder the growth of the global telematics and connected processors market. Another major challenge is poor internet infrastructure. Rural regions have the limitation of good connectivity; however, it is expected that connectivity issues will improve during the forecast period.

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Key Developments

In January 2018, STMicroelectronics entered into a partnership with Argus to provide enhanced cyber security to automotive infotainment and telematics systems. With this partnership, Argus integrated its cyber security solution directly onto STMicroelectronics processor for telematics systems.

Key Players

Key players in the telematics and connectivity processors market include STMicroelectronics, Qualcomm Technologies Inc., Intel Corporation, Continental, Toshiba Electronic Devices & Storage Corporation, Portwell Inc., Sierra Wireless, Texas Instruments, Arm Limited and others.

The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as geographies, application, and industry.

The report covers exhaust analysis on:

  • Market Segments
  • Market Dynamics
  • Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies involved
  • Technology
  • Value Chain
Sudip Saha
Sudip Saha

Principal Consultant

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Regional analysis includes:

  • North America (U.S., Canada)
  • Latin America (Mexico. Brazil)
  • Western Europe (Germany, Italy, France, U.K, Spain)
  • Eastern Europe (Poland, Russia)
  • Asia Pacific (China, India, ASEAN, Australia & New Zealand)
  • Japan
  • Middle East and Africa (GCC Countries, S. Africa, Northern Africa)

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

Telematics and Connectivity Processors Market: Segmentation

Segmentation based on the Type of Vehicle:

The telematics and connectivity processors market can be segmented on the basis of the type of vehicle into passenger vehicles and commercial vehicles. Commercial vehicles can be further segmented into light commercial vehicles and heavy commercial vehicles.

Segmentation based on the Type of Fitment:

The telematics and connectivity processors market can be segmented on the basis of type of fitment into OEMs and aftermarket.

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