Global telematics revenue will reach $233.2 billion by 2022, according to a report from the market-research firm Netscribes.
The global telematics market will expand at a compound annual growth rate of 28.5 percent between 2017 and 2022, according to the firm.
“An increased need to track vehicles in real time and monitor driver behavior, coupled with the rising demand for onboard infotainment, is expected to drive the use of telematics technology,” Netscribes said. “Although the telematics market is expected to have a positive growth globally … there is still a lack of awareness among car owners, resulting in a resistance towards bearing additional costs of installing new devices in old cars and vehicles.”
Many vehicle owners still are wary of usage-based insurance due to data-privacy concerns, Netscribes added.
Among the report’s highlights:
- About 80 to 85 percent of the telematics solutions and devices that include infotainment and UBI capabilities cater to the automotive industry.
- Increasing purchasing power of customers has led to a shift in preference for high-end vehicles (equipped with advanced telematics devices), rather than simple transport machines.
- Governments in several countries have made it mandatory to have an electronic onboard recorder in commercial vehicles, which is one of the key drivers of the adoption of telematics among fleet companies.
- North America is the highest revenue-generating region for the automotive telematics industry.
The telematics market has reached “a mature stage” in countries such as the United States and Canada, where stable growth is forecasted until 2022, according to Netscribes.