Automotive Telematics Market

Market Definition

The market involves the integration of telecommunications and informatics in vehicles, enabling real-time data transmission, monitoring, and diagnostics. It supports navigation, fleet management, remote diagnostics, and emergency response.

Telematics enhances vehicle safety, efficiency, and connectivity, playing a crucial role in connected and autonomous vehicle ecosystems across commercial and passenger transport sectors. The report outlines the primary drivers of the market, along with an in-depth analysis of emerging trends and evolving regulatory frameworks shaping the market's trajectory.

Automotive Telematics Market Overview

The global automotive telematics market size was valued at USD 53.56 billion in 2024 and is projected to grow from USD 59.52 billion in 2025 to USD 135.09 billion by 2032, exhibiting a CAGR of 12.42% during the forecast period.

The market is advancing toward fully connected ecosystems, driven by the rising demand for real-time services and 5G integration. This shift enables intelligent transport systems, V2X communication, and seamless digital interaction, enhancing vehicle connectivity, automation, and operational efficiency.

Major companies operating in the automotive telematics industry are Bosch Service Solutions GmbH, Continental AG, Qualcomm Technologies, Inc., Verizon, LG Electronics, HARMAN International, Clarion, ACTIA Corporation, Masternaut Limited., Trimble Transport & Logistics, Bridgestone Mobility Solutions B.V, TomTom International BV, AT&T Intellectual Property, Ford Motor Company, and Volkswagen Commercial Vehicles.

The market is driven by the growing consumer preference for in-car infotainment. Earlier systems offered basic radio and navigation; however, rising expectations for seamless digital experiences have led to the increased demand for integrated multimedia, voice control, and real-time connectivity.

Consumers seek personalized content, app integration, and smart interfaces that mirror smartphone functionality. This shift is encouraging automakers to embed advanced infotainment systems, making connectivity and entertainment essential components of the modern driving experience and influencing purchase decisions.

• In June 2024, TomTom partnered with Marelli to deliver enhanced in-vehicle infotainment solutions through Marelli’s LeanConnect cockpit, which integrates cluster, infotainment, and telematics into one system. By embedding TomTom’s Digital Cockpit SDK, the platform offers customizable navigation, traffic, and EV services, along with pre-developed infotainment apps, enabling automakers to create tailored, high-performance digital experiences efficiently.

Key Highlights:

1. The automotive telematics industry size was valued at USD 53.56 billion in 2024.
2. The market is projected to grow at a CAGR of 12.42% from 2025 to 2032.
3. Asia Pacific held a market share of 36.55% in 2024, with a valuation of USD 19.58 billion.
4. The hardware segment garnered USD 30.76 billion in revenue in 2024.
5. The embedded segment is expected to reach USD 66.30 billion by 2032.
6. The commercial segment is anticipated to register a CAGR of 12.65% during the forecast period.
7. The original equipment manufacturer segment is forecasted to hold a market share of 57.42% in 2032.
8. The market in Europe is anticipated to grow at a CAGR of 12.26% during the forecast period.

Market Driver

Rising Demand for Connected Vehicles and Smart Mobility Solutions

The automotive telematics market is driven by the rising demand for connected vehicles and smart mobility solutions. Earlier systems offered limited connectivity; however, growing consumer expectations for real-time navigation, remote diagnostics, and in-car digital services have accelerated the shift toward fully connected vehicles.

This demand supports the development of intelligent transport systems, seamless data integration, and enhanced user experiences. Automakers are now prioritizing connectivity features to meet evolving mobility needs and improve vehicle performance, convenience, and safety through continuous digital interaction.

• In August 2024, Salesforce launched Connected Vehicle, a new Automotive Cloud app that helps automakers quickly deliver safer, personalized driver experiences. With a unified console and low-code tools, it enables fast service rollouts using bidirectional OTA updates. The platform also integrates vehicle, IoT, driver, and retail data from any source to support real-time personalization and safety enhancements.

Market Challenge

Limited Network Coverage in Rural and Remote Areas

Limited network coverage in rural and remote areas restricts the functionality of automotive telematics systems, which rely on constant data transmission for GPS, vehicle tracking, diagnostics, and emergency services. Poor connectivity affects fleet efficiency, safety, and user experience. This hinders market growth, especially in regions with underdeveloped infrastructure.

Companies are investing in satellite-based telematics, expanding partnerships with telecom providers, and developing hybrid systems that switch between available networks. Automakers and telematics providers are also pushing for broader 5G deployment and leveraging low-power wide-area networks (LPWAN) to ensure consistent data flow in low-connectivity environments.

Market Trend

Integration of 5G Technology

The automotive telematics market is shifting toward high-speed, low-latency connectivity through 5G integration. This marks a shift from earlier, slower networks to real-time data exchange supporting V2X communication, cloud-based services, and enhanced infotainment.

Telematics systems are becoming more intelligent and responsive, enabling smoother updates, advanced diagnostics, and better user experiences. This trend reflects the industry's focus on building a fully connected vehicle ecosystem that supports automation, efficiency, and seamless digital interaction across mobility platforms.

• In February 2024, HARMAN launched the Ready Connect 5G Telematics Control Unit (TCU), powered by Snapdragon Digital Chassis technologies from Qualcomm. Built on the Snapdragon Auto 5G Modem-RF Gen 2, the TCU enhances automotive connectivity, offers advanced in-cabin experiences, and streamlines development processes for OEMs, marking a major step forward in connected vehicle solutions.

Automotive Telematics Market Report Snapshot

Segmentation	Details
By Solution	Hardware (Telematic Control Unit (TCU), Navigation Systems, Communication Devices, On-Board Units (OBUs), Others (Audio/Video Interface, CAN Bus (Controller Area Network Bus), Embedded Telematics Systems)), Services (Infotainment and Navigation, Safety and Security, Fleet Management, Insurance Risk Assessment (Usage-Based Insurance - UBI), Others (Remote Diagnostics, Payment Services, Car Sharing/Ride-Hailing Integration))
By Technology	Embedded, Tethered, Integrated
By Vehicle Type	Passenger, Commercial(Light Commercial Vehicles (LCVs), Trucks (Heavy Commercial Vehicles - HCVs), Buses)
By Sales Channel	Original Equipment Manufacturer (OEM), Aftermarket
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Solution (Hardware, Services): The hardware segment earned USD 30.76 billion in 2024, due to the increasing adoption of advanced telematics control units, sensors, and connectivity modules essential for enabling real-time vehicle communication and data processing.
• By Technology (Embedded, Tethered, Integrated): The embedded segment held 47.33% share of the market in 2024, due to its seamless integration within vehicles, offering enhanced reliability, real-time data processing, and improved performance without relying on external devices.
• By Vehicle Type (Passenger, Commercial): The passenger segment is projected to reach USD 70.7 billion by 2032, due to the increasing consumer demand for connected features, enhanced safety systems, and in-car infotainment in personal vehicles.
• By Sales Channel (Original Equipment Manufacturer (OEM), Aftermarket): The original equipment manufacturer segment held 57.42% share of the market in 2032, as automakers increasingly integrate telematics systems during vehicle production to meet the rising demand for built-in connectivity and safety features.

Automotive Telematics Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for a automotive telematics market share of around 36.55% in 2024, with a valuation of USD 19.58 billion. Asia Pacific dominates the global  market, due to the increasing number of collaborations among industry leaders to standardize telematics protocols and streamline software integration. This focus on reducing development costs and accelerating innovation supports the widespread adoption of connected vehicle technologies.

Enhanced capabilities in managing vehicle communication networks and enabling over-the-air updates drive efficiency and scalability. Combined with growing commercial vehicle fleets and demand for advanced telematics solutions, these factors strengthen the region’s leadership in the market.

• In September 2025 , Cummins Inc. partnered with Bosch Global Software and KPIT to launch Eclipse CANought, an open-source project under the Eclipse Software Defined Vehicle initiative. This project standardizes and secures access to the CAN bus, simplifying over-the-air updates and reducing development time and costs for commercial vehicle telematics applications, benefiting OEMs and suppliers with faster, more efficient software integration.

The automotive telematics industry in Europe is poised for significant growth at a robust CAGR of 12.26% over the forecast period. The  market in Europe is driven by the increasing integration of connected vehicle data across multiple regions, enabling seamless access to real-time information such as mileage, fuel consumption, and GPS location.

This widespread data connectivity supports the development of advanced mobility services and fleet management solutions without requiring additional hardware installation. Enhanced collaboration between automakers and telematics providers facilitates the expansion of personalized and efficient telematics offerings, boosting adoption rates and market growth throughout the European automotive sector.

• In March 2025, Targa Telematics partnered with Toyota Motors Europe to integrate Toyota and Lexus vehicle data into its telematics platform. This enables the development of advanced mobility services using embedded data like mileage, fuel, EV stats, and GPS without extra hardware. The partnership expands Targa’s automotive telematics presence across multiple European countries, strengthening its position in OEM data management.

Regulatory Frameworks

• In the U.S., the National Highway Traffic Safety Administration (NHTSA) is the main regulatory body overseeing automotive telematics, focusing on vehicle safety standards and the management of data access and privacy.
• In India, the Ministry of Road Transport and Highways (MoRTH) regulates automotive telematics, implementing rules such as AIS-140 that require public buses and commercial vehicles to be equipped with vehicle-tracking devices and emergency buttons for enhanced safety and monitoring.
• In Europe, the European Data Protection Board (EDPB) and the General Data Protection Regulation (GDPR) play a vital role in regulating telematics data collection and usage, ensuring strict compliance with data privacy and security standards across the automotive industry.

Competitive Landscape

Companies in the automotive telematics industry are actively pursuing strategic initiatives, including mergers, acquisitions, and partnerships, to expand their technological capabilities and market reach. Key market players are also launching advanced telematics platforms and integrating next-generation connectivity solutions to strengthen their competitive position.

These actions reflect a broader industry focus on scaling operations, enhancing product portfolios, and accelerating innovation through collaborative and independent developments, reinforcing the dynamic and evolving nature of the market’s competitive landscape.

• In December 2024, Zubie integrated its Direct Connect telematics solution with Ford Pro’s connectivity platform, offering real-time access to vehicle diagnostics without hardware installation. This integration delivers insights like location, fuel levels, and tire pressure, helping businesses enhance fleet efficiency, safety, and cost control. The scalable solution aligns with evolving fleet management needs, streamlining operations through intuitive tools and advanced data analytics.

List of Key Companies in Automotive Telematics Market:

• Bosch Service Solutions GmbH
• Continental AG
• Qualcomm Technologies, Inc.
• Verizon
• LG Electronics
• HARMAN International
• Clarion
• ACTIA Corporation
• Masternaut Limited.
• Trimble Transport & Logistics
• Bridgestone Mobility Solutions B.V
• TomTom International BV
• AT&T Intellectual Property
• Ford Motor Company
• Volkswagen Commercial Vehicles

Recent Developments

• In May 2024, LG Electronics integrated its webOS-powered Automotive Content Platform (ACP) into Kia’s new EV3, bringing immersive in-car entertainment to electric vehicles. This platform, part of LG’s software-defined vehicle suite, transforms the cabin into a digital living space, offering access to streaming, gaming, and educational content. It is enhancing the role of automotive telematics in delivering connected, content-rich experiences for passengers.
• In January 2024, Ford Pro enhanced its telematics suite with integrated dashcam capabilities and upfit system features, enabling better monitoring of driver behavior and vehicle safety. By leveraging connected vehicle data through the Ford Pro Intelligence platform, fleet managers gain deeper insights and control over operations, reinforcing the role of automotive telematics in improving productivity, safety, and risk management for commercial fleets.
• In September 2023, Qualcomm Technologies expanded its Snapdragon Digital Chassis with QWM2290 and QWS2290 platforms, targeting two-wheelers, micromobility, and motorized vehicles. These platforms enhance safety, infotainment, and cloud-connected services, supporting both electric and ICE models. These platforms further bring connected, personalized experiences and efficient management to emerging vehicle classes, including e-bikes, scooters, ATVs, and shared mobility fleets, contributing to the market growth.