Global Automotive Telematics Market is estimated to reach $55.97 billion by 2022 at a compound annual growth rate (CAGR) of 21 per cent between 2016 and 2022, Research and Markets has said in a detailed analysis and forecast of the industry.
According to the report, growing awareness about driver safety, decreasing cost of connectivity, increasing market penetration rate of smartphones, and stringent automotive safety regulations are some of the reasons fueling the market growth.
“However, the market consists of certain constraints such as increasing hacking/privacy concerns, lack of cellular coverage, and low awareness about telematics which are hampering its overall growth,”the report stated.
Research and Markets noted that the increased demand for connected cars has led OEM’s and telecom operators to offer a variety of services for the users and therefore the market is categorized by four main services: safety & security, information & navigation, entertainment, and remote diagnostics.
The new report shows that information and navigation services held the highest share in 2015 because of factors like wide application in developed countries such as the US and Japan, speed, reliability, ease, and cost-effectiveness.
“Between 2016 and 2022, the automotive telematics market in APAC is expected to grow at a faster rate of 22.1 per cent in comparison to other regions. Factors such as well-established automotive industry, increasing disposable income, and growing awareness of telematics are some of the factors contributing to the market growth in APAC,” the report added.
The “Global Automotive Telematics Market – Analysis and Forecast (2016-2022)” report is a new offering by Research and Markets.