Surging Adoption of Connected Vehicles Driving Automotive Telematics Market Growth
The global automotive telematics market revenue stood at $27.7 billion in 2019 and it is predicted to rise to $149.9 billion by 2030. According to the forecast of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 16.6% during 2020–2030 (forecast period). The market is being driven by the soaring requirement for greater vehicle safety and more efficient road traffic, mushrooming deployment of connected vehicles, and the implementation of favorable government regulations regarding the adoption of automotive telematics systems across the world.
Road accidents are one of the leading causes of deaths all over the world. According to the World Health Organization (WHO), road crashes claim the lives of 1.3 million people every year. Furthermore, the organization found that road accidents cost many countries around 3% of their gross domestic product (GDP). Thus, the rising incidence of these accidents is fueling the demand for greater vehicle and passenger safety and also more efficient and smoother road traffic.
As telematics solutions massively improve the safety of vehicles by providing drivers with a safer driving option, their popularity is soaring sharply because of the growing prevalence of road crashes. The other major factor propelling the expansion of the automotive telematics market is the increasing adoption of connected cars across the world. Connected cars provide various benefits to users such as vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) interfaces. Furthermore, the incorporation of telematics solutions in connected cars is very necessary, as these vehicles are equipped with V2I and V2V connectivity, which are two of the major components of automotive telematics solutions.
Hence, it can be safely said that the market will grow massively in the coming years, primarily because of the surging requirement for greater vehicle safety and the mushrooming deployment of connected vehicles across the world.
