Press release
Asia Pacific Automotive Telematics Market Revenue is expected to reach US$ 15,248 Mn by 2020
Future Market Insights (FMI) with sharp focus on emerging regions delivers key insights about the Asia Pacific automotive telematics market in its recent report titled, “Asia Pacific Automotive Telematics Market Analysis and Opportunity Assessment, 2014 - 2020”. According to this report, the global telematics market is expected to expand at a single-digit CAGR during forecast period 2014–2020. On the other hand, APAC will demonstrate the fastest growth in the global automotive telematics market at a double-digit CAGR during the forecast period. During this period, the contribution of the telematics market in the Asia Pacific region to the overall market is projected to increase from 26% to 30%, reflecting an increase of 400 BPS.This growth is attributed to high penetration of technologies and steadily increasing GDP. Moreover, Asia Pacific benefits from the presence of established vendors in the commercial vehicle telematics market, which includes PeopleNet, FleetMatics, Trimble, Telogis and Omnitracs. Furthermore, over 42% of the world’s Internet users in Asia (2013), combined with hundreds of millions of 4G users, will fuel growth of the APAC automotive telematics market during the forecast period.
FMI lead consultant, Nikhil Kaitwade, sheds light on why Asia Pacific will emerge the fastest growing market in the near future. “Telematics in the automotive industry has become increasingly relevant with a palpable emphasis on safety and security globally. New business models combined with increased technology adoption and remote vehicle diagnostics is fuelling growth of the Asia Pacific automotive telematics market,” he said.
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The three key technologies that will drive the Asia Pacific automotive telematics market are:
Embedded Technology – Currently, this segment dominates the Asia Pacific automotive telematics market. Greater ease of assembly, ease of troubleshooting, reliability of components and fall in cost of electronic parts are factors driving demand for automotive embedded systems in this region. Increasing use of cloud-based telematics will also influence the APAC automotive telematics embedded technology market segment. FMI projects that this segment will display a double-digit CAGR during the forecast period.
Tethered Technology – The tethered technology segment in the Asia Pacific automotive telematics market will demonstrate the lowest growth at a single-digit CAGR during forecast period 2014–2020.
Smartphone Technology – Price advantages and growing smartphone penetration will fuel growth of the smartphone technology segment in the Asia Pacific automotive telematics market. FMI anticipates that evolving smartphone technology will witness the highest CAGR in double digits during the forecast period.
Currently, North America dominates the global automotive telematics market, followed by Europe. High penetration of the aforesaid technologies in Asia Pacific combined with saturation of European and North American markets will continue to fuel growth of the APAC automotive telematics market.
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Elaborating on this trend, Kaitwade further stated, “In order to differentiate their product offerings, automotive OEMs are integrating telematics technologies into vehicles they manufacture.”
In addition, the expanding safety and security end-user segment and increasing prominence of social media in Asia Pacific will drive the automotive telematics market in the region. The safety and security end-user segment is anticipated to dominate the Asia Pacific automotive telematics market between 2014 and 2020 due to increasing consumer focus on safety and security aspects. Growing prominence of social media in the Asia Pacific region will also contribute to the growth of infotainment segment during the forecast period.
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