The CAGR of telematics is estimated to hit 8.4%, or $81 billion, by 2026 according to a report by the Persistence Market Research.
Key factors including increased road and telecom infrastructure budget by governments, rising acceptance of technology, government push to adopt telematics, growing car connecting technology, and increasing car rental and car sharing activities are anticipated to push the market valuation of the automotive telematics market.
“Due to increasing awareness about the need to ensure safety and security of a vehicle, automotive telematics manufacturers are highly focused on manufacturing high quality automotive telematics at a low cost. Furthermore, in North America and Europe, governments have taken initiatives to promote the installation of telematics. Increasing car rental and car sharing facilities are also projected to ramp up the global automotive telematics market over the slated time period, ” a principal analyst at Persistence Market Research shared.
Europe to Dominate; Asia Pacific Fastest Growing Automotive Telematics Market
In terms of regional market performance, Europe is anticipated to hold the largest share in the automotive telematics market and continue to maintain its dominance over the forecast period, followed by North America. Europe is also projected to witness more opportunities as compared to North America during the forecast period. Owing to increasing domestic demand for wireless communication system in vehicles, Asia Pacific is expected to witness highest growth by 2020. China and India are expected to boost the Asian automotive telematics market in the next eight years.
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