The Europe telematics software and service Market is estimated to be valued at US$ 10011.9 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Telematics refers to the technology that combines wireless communications and vehicle tracking technologies for managing fleet of automobiles. Telematics system helps in vehicle tracking, driver behaviour monitoring, infotainment, and various security features. It includes devices like telematics control units and connectivity devices to transmit vehicle data to the cloud. Telematics software provides advanced features for fleet management such as vehicle tracking, fuel management, service alerts, driver behavior analysis etc. Key players offers both telematics hardware and software as a combined telematics solution for commercial fleet management.
Market Dynamics:
Two major drivers contributing to the growth of Europe Telematics Software And Services Market Size are growing adoption of connected vehicles and favorable government regulations. Connected vehicles are equipped with telematics units that enable vehicle tracking and driver monitoring. Advanced driver-assistance systems integrated into connected vehicles further drives the demand for telematics software and services. European governments are promoting connected mobility by implementing regulations for vehicle data accessibility and connectivity. For instance, eCall mandatory emergency services support systems in new vehicle types in European Union since 2018. Such regulations accelerate the deployment of telematics solutions across commercial and passenger vehicle segments. Additionally, growing shared mobility services also contribute to the market growth as these services widely adopt telematics for fleet management and customer experience enhancement. However, data privacy and security concerns restrain the market growth to some extent.
Segment Analysis
The Europe telematics software and service market is divided into segments based on deployment, industry verticals, services and others. Fleet/Asset Management sub-segment dominates the deployment segment as it enables real-time monitoring of fleet and aids in efficient fuel consumption and route optimization. When it comes to industry verticals, transportation & logistics is the dominating sub-segment due to growing e-commerce industry and need for last-mile delivery.
PEST Analysis
Political: Europe governments are increasingly supporting connected car telematics due to focus on road safety regulations. Economic: Growing aftermarket services and operational cost reduction achieved through telematics is fueling the Europe market growth. Social: Increasing tech-savviness and need for connected on-road experience is positively impacting the adoption. Technological: Developments in 5G deployment, connected ADAS systems and advanced IoT are providing opportunities for connected car innovations.
Key Takeaways
The Europe telematics software and service market is expected to witness high growth, exhibiting 18% CAGR over the forecast period, due to increasing urbanization and focus on operational efficiency.
Regional analysis: The Western Europe region dominates with over 35% market share due to stringent government regulations and focus on road safety. Growing at a CAGR of over 20%, Central and Eastern Europe is expected to be the fastest growing region over the forecast period.
Key players analysis: Key players operating in the Europe Telematics Software And Service Market are MiX Telematics, Octo Telematics, Trimble INC, Verizon, Aplicom, Astrata and Key Telematics. MiX Telematics and Octo Telematics are the leaders in fleet management segment due to their expertise and wide service portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it