by Telematics systems provide connectivity features in vehicles that link to mobile networks and enable a variety of useful functions. As demand for connected vehicle technology rises in APAC countries, here is an overview of the state of the automotive telematics m.
Current State
The automotive telematics m in APAC countries has seen a compound annual growth rate of over 15% since 2010 according to recent reports. Japan and South Korea led adoption in the early years but now China and India are prominent growth ms. It is estimated that over 50 million vehicles on APAC roads are equipped with some type of telematics system today.
Embedded telematics solutions, those installed by automakers as standard or optional equipment, currently account for about 70% of the m. Afterm systems, which consumers have installed post-purchase, make up the remaining 30% portion. However, the afterm segment is growing at a faster pace as awareness of telematics benefits increases. Overall, the APAC telematics m was valued at $14 billion in 2020 and projected to reach $30 billion by 2025.
Key Country
China: As the largest auto m in the region and world, China also leads in telematics adoption. An estimated 25 million vehicles have embedded solutions currently. Chinese automakers are ramping up telematics offerings and foreign JVs also supply systems. Revenue in China reached $6 billion in 2020.
India: With rapid growth in vehicle ownership, India is becoming a major focus for telematics companies. Systems are gaining popularity for safety, fleet/asset management and convenience. The m grew 30% annually from 2015-2020 and may surpass China in coming years.
Japan/South Korea: Early telematics adopters and home to several major suppliers, Japan and Korea have high penetration rates above 50%. Demand remains steady as connected systems become standard on most new vehicles. Their combined m was valued at $4 billion in 2020.
Other Ms: Countries like Indonesia, Thailand, Australia and New Zealand show potential for growth. Vehicle ownership is rising across Southeast Asia while telematics is still emerging. Australia and New Zealand have demand from consumers and commercial fleets.
Key Trends Driving Growth
Connected Services
Connectivity enables a range of useful mobile applications for drivers. Live traffic updates, location services, parking availability info and infotainment are popular. Automakers and suppliers actively enhance their connected service portfolios to increase telematics value. This growing ecosystem of services is a core driver of adoption.
Fleet/Asset Management
Telematics provides powerful fleet management functions for commercial users, like vehicle monitoring, tracking, driver behavior analysis and predictive maintenance. This creates demand from logistics, transportation, construction and more. The Asian m sees rising need as companies optimize operations.
New Mobility Shifts
Trends like ride-hailing, car-sharing and autonomous driving rely on vehicle connectivity for operations. Telematics ensures security/authentication and data exchange between vehicles and centralized systems. It’s becoming essential for new mobility services proliferating across Asia.
Government Mandates
Countries are enacting policies promoting connected vehicle technologies. Mandates for eCall emergency notification systems and usage-based insurance programs spur telematics installation. Upcoming rules for autonomous vehicles will also drive more sophisticated solutions. This regulatory push stimulates afterm sales.
Future of the APAC
With the Apac Automotive Telematics region projected to account for over half of global vehicle sales by 2025, substantial telematics growth is guaranteed in the coming decade. The systems will continue transitioning from optional to standard equipment across all price tiers of new cars. Afterm installations are poised to rapidly increase, appealing to consumers upgrading older vehicles.
Functionality will become more advanced, seamlessly integrating with smartphones, smart home devices and evolving vehicle technologies. Fleet management through telematics is likely to generate the most revenue among commercial users across logistics and transportation sectors. Emerging trends like electric vehicles and shared mobility may kickstart new innovations leveraging connectivity.
Overall, the Asian automotive telematics arena has reached a pivotal stage. With the strong foundations built, the next phase will cement connected vehicle solutions as indispensable to drivers, companies and governments across the entire region. Telematics suppliers are racing to capture this growing multi-billion dollar m and establish themselves as leaders in the transformative landscape of smart mobility.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
