Press release
Automotive Telematics Market worth $16.72 billion by 2032
Automotive Telematics Market by Service (E-call, Remote Diagnostics, IRA, SVA), Connectivity (Cellular, Satellite), Vehicle Type (PC, LCV, Bus, Truck), Form Type, Offering, EV Type, Aftermarket, and Region - Global Forecast to 2032The automotive telematics market [https://www.marketsandmarkets.com/Market-Reports/automotive-telematics-market-245073008.html?utm_source=abnewswire.com&utm_medium=referral&utm_campaign=automotive-telematics-market] is projected to grow from USD 10.02 billion in 2025 to USD 16.72 billion by 2032 at a CAGR of 7.6%.
The automotive telematics market is driven by the growing shift toward software-defined vehicles, where telematics plays a key role in enabling connectivity for diagnostics, remote services, and feature upgrades. Rising adoption of over-the-air (OTA) updates, usage-based insurance (UBI), and fleet management solutions is expanding the role of telematics beyond navigation and tracking. Regulatory mandates in EU countries, India, and China are pushing OEMs to integrate telematics for real-time energy consumption and emissions reporting. In China, regulations such as the New Energy Vehicle National Monitoring Platform require OEMs to transmit real-time vehicle data, including battery status, location, and alerts, to a centralized government platform for all electric and hybrid vehicles. Additionally, the rollout of 5G and V2X communication technologies is enabling faster, low-latency data exchange, further accelerating advanced telematics applications.
"Software segment to grow at fastest rate in automotive telematics market during forecast period"
Telematics systems increasingly rely on intelligent software platforms to deliver connectivity, data processing, and feature-rich services. Software enables dynamic capabilities such as predictive maintenance, real-time vehicle diagnostics, OTA updates, and remote command execution, which are essential for modern connected vehicles. The shift toward software-defined vehicles is accelerating demand for modular, cloud-integrated telematics software that can scale across models and markets. OEMs and Tier 1 suppliers are investing heavily in in-house and partner-developed software stacks to differentiate user experiences and enable monetizable services. For instance, in May 2025, Toyota announced that it was developing its proprietary software platform called Arene, which was first rolling out in its RAV4 model. Arene will support OTA functionality along with driving assistance and infotainment services. Additionally, software allows integration of third-party APIs for insurance, infotainment, and fleet management platforms. These APIs enable telematics systems to share real-time vehicle data with external services, supporting features such as usage-based insurance, personalized infotainment experiences, and efficient fleet tracking and diagnostics. Telematics software is now being developed using container-based architectures, with AI analytics and edge computing to improve speed and reduce delays. At the same time, cybersecurity features are being integrated to meet data privacy laws and regulatory requirements.
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"4G cellular connectivity to hold largest share of automotive telematics market during forecast period"
4G cellular connectivity is expected to lead the automotive telematics market during the forecast period, primarily due to the widespread availability of 4G infrastructure across most global markets, including emerging economies. Unlike 5G, which is still in the early stages of rollout in emerging economies and concentrated in urban areas, 4G offers broader and more stable coverage at lower deployment and operational costs. Its technical maturity also ensures compatibility with a wide range of vehicle platforms and telematics applications such as real-time tracking, remote diagnostics, and OTA updates. OEMs are increasingly integrating 4G into entry- and mid-segment vehicles, often pairing it with edge computing to enable faster and more responsive telematics functions. For instance, Hyundai's 2024 Venue and Creta models come equipped with 4G-enabled BlueLink telematics, offering services such as remote vehicle control, live location tracking, and vehicle health monitoring. Other models, such as the Toyota Corolla, Kia Sonet, Honda Civic, and Toyota Camry, also feature 4G-based telematics platforms. Companies such as LG Electronics (South Korea), HARMAN International (US), and Valeo (France) are also enhancing their connectivity modules. For instance, in May 2025, LG unveiled a next-gen TCU that combines 4G LTE, 5G Rel-16, and satellite V2X capabilities, with embedded antennas and edge computing for enhanced coverage and resiliency. In March 2025, HARMAN announced its Ready Connect TCU, which still supports 4G LTE fallback and integrates satellite-based reliability in partnership with Skylo, ensuring uninterrupted telematics even in remote areas. Further, Valeo provided a 4G communication module to Renault (France) for its 2025 Scenic E-TECH model in France. Thus, 4G cellular connectivity is likely to continue to serve as a stable backbone for mainstream telematics applications even as 5G adoption rises in premium segments.
"North America to hold significant share of automotive telematics market during forecast period"
North America is expected to hold a significant share of the automotive telematics market during the forecast period, due to its advanced infrastructure, high penetration of connected vehicles, and rapid fleet modernization across commercial and consumer segments. The Electronic Logging Device (ELD) mandate in the US, enforced by the Federal Motor Carrier Safety Administration (FMCSA), requires commercial drivers to use electronic devices to record their driving hours. This rule has led to a significant increase in telematics adoption, particularly among fleet operators. Agencies such as the National Highway Traffic Safety Administration (NHTSA) in the US and Transport Canada require reporting on crash data, vehicle defects, and the use of event data recorders (EDRs). Telematics systems support these requirements by automatically collecting and submitting relevant data. In addition, programs related to vehicle-to-infrastructure (V2I) and connected vehicle data-sharing, such as the US Department of Transportation's Connected Vehicle Program, encourage the use of telematics for traffic and safety monitoring. As a result, OEMs and large fleets are increasingly adopting built-in telematics solutions to meet regulatory requirements while also improving diagnostics, driver safety, and operational efficiency. For instance, established North American OEMs such as Ford Motors, General Motors, and Tesla provide embedded telematics features in their vehicles. The increasing interest in autonomous driving is further expected to propel the telematics market expansion as advanced technologies are integrated into vehicles.
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