The global APAC Automotive Telematics Market is estimated to be valued at US$ 22275.64 Mn or in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The APAC automotive telematics market offers connectivity solutions for passenger and commercial vehicles. It helps track vehicles, provide infotainment and navigation services, diagnose problems remotely, and send emergency signals in case of accidents. The growing adoption of connected vehicle technology and need for improved safety, efficiency and convenience are the major factors fueling the demand for telematics services in the region.
Market key trends:
One of the key trends in the APAC automotive telematics market is the rising demand for embedded telematics systems. Major automakers are now offering telematics as a standard feature in most new vehicles owing to benefits such as vehicle tracking, emergency calling, and diagnostics. Furthermore, the growing popularity of autonomous vehicles is also driving the integration of advanced telematics solutions. Also, developments in 5G network technology are allowing real-time data transmission between vehicles and telematics control units, thereby improving various services including navigation and entertainment. Such developments are expected to significantly boost the adoption of telematics in commercial and passenger vehicles across Asia Pacific region over the forecast period.
Porter’s Analysis:
Threat of new entrants: The APAC automotive telematics market poses low threat to new entrants due to high initial funding requirements. Major players in the market have strong brand recognition and customer loyalty along with economies of scale in production and distribution.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to availability of alternatives. However, switching costs associated with changing existing systems increase buyers’ dependence on existing suppliers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many component suppliers in the market and switching between them is easy. This reduces suppliers’ control over prices.
Threat of new substitutes: Threat of substitutes is moderate as mobility services can be an alternative for personal vehicle ownership. However, telematics complements such services by offering convenience, safety and security features.
Competitive rivalry: The market is fragmented with presence of global as well as regional players. Players differentiate based on technology, features and services to gain competitive advantage.
Key Takeaways:
The Global APAC automotive telematics market Size is expected to grow at a CAGR of 14% during the forecast period. Growing awareness about vehicle safety, security and tracking along with rising demand for advanced in-vehicle connectivity and infotainment solutions are driving the market.
Regional analysis:
China dominates the APAC automotive telematics market followed by Japan and India. China exhibits highest CAGR owing to rapid modernization of automotive industry and government initiatives to deploy telematics. Other emerging economies are also witnessing rising demand for connected services in automobiles.
Key players:
Key players operating in the APAC automotive telematics market are Denso Corporation, Panasonic Corporation, Clarion, Masternaut Limited, Continental AG, Qualcomm Technologies, Inc. LG Electronics, Harman International Industries, Inc., Trimble Inc., and I.D. Systems. Players focus on developing advanced solutions through strategic partnerships and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it