The automotive telematics in Asia Pacific (APAC) region is witnessing strong growth over the past few years and projected to grow substantially in the coming years. Various technological advancements along with increasing adoption of connected vehicles concept is fueling the m growth. This article analyses the key trends, opportunities and challenges in the APAC automotive telematics.


Overview

The automotive telematics m in APAC region was valued at around USD 15 billion in 2020 and estimated to reach over USD 45 billion by 2027, growing at a CAGR of more than 17% during 2023-2030. Automotive telematics refers to the application of wireless technologies in vehicles to provide connectivity services. It includes services like emergency calling, onboard diagnostics, satellite navigation, insurance risk assessment, infotainment, fleet/asset management, and vehicle tracking and recovery among others. 

Countries like China, Japan, India and South Korea dominate the automotive telematics adoption in APAC. Proliferation of smartphones and advanced connectivity infrastructure like 4G/5G networks in these countries fuel the demand for connected vehicles experience. Majority of automakers are now offering telematics as standard or optional feature in their new vehicles sold in APAC countries. OEM telematics controlled around 55-60% of the total m in 2020.

Country-wise Analysis

China accounted for over 35% of the total Apac Automotive Telematics m share in 2020. Presence of leading automakers along with growing inclination towards advanced vehicle technologies drives the demand. India is projected to be the fastest growing m during 2021-2027 period. Favourable regulations, rising vehicle production and increasing digitization across industries supports the growth.

Japan and South Korea are relatively mature ms. However, continuous product innovations and growing deployments of 5G networks ensure steady growth. Countries like Thailand, Vietnam, Indonesia and Australia are also emerging as promising automotive telematics ms due to rising vehicle parc and expanding telecom infrastructure.

Service Type Analysis

The fleet/asset management segment captured around 25% of the total APAC automotive telematics m in 2020. Large fleet operators actively utilize these solutions for vehicle tracking, monitoring fuel usage and driver behaviors analysis. Integration of AI and IoT is further enhancing the fleet management capabilities.

Satellite navigation service dominated other segments with over 30% share. Affordability of devices, maturing navigation technologies and partnerships between automakers and navigation providers fuel this type of services across all vehicle segments. Emergency call (eCall) is still in nascent stage in many APAC countries compared to developed automotive ms like Europe. However, it is anticipated to witness fast growth mainly driven by regulatory push.

Vehicle Type Analysis

Passenger vehicles (PC) formed the bulk of automotive telematics deployments in APAC, accounting for around 70% share in 2020. Rising focus towards vehicle connectivity experience especially among young population driving this adoption. However, commercial vehicles (LCV, HCV, Buses) segment is projected to witness highest CAGR during the forecast period. Large fleet operators rapidly upgrading their fleets with advanced telematics devices to optimize operations. Two-wheelers are also an emerging category, mainly driven by growing OEM telematics offerings addressing riders safety concerns.

Key Players

Some of the prominent players operating in the APAC automotive telematics m include TomTom International, Continental, Trimble, Verizon Connect, Visteon Corporation, Robert Bosch, BMW, Vodafone Automotive and Denso among others. These players are continuously focusing on developing innovative solutions, strategic collaborations and expanding geographic presence to gain competitive advantage. They are also investing heavily in R&D to integrate evolving automotive technologies like 5G, AI, cloud services in their offerings.

Startups are also emerging as important disruptors developing telematics hardware and services targeting specific vehicle categories like motorcycles, HCVs, fleet services. They help diversifying the portfolio catering to variances across countries and customer needs in the region. Partnerships with regional automakers and telecom operators is also a priority for these startups to scale up operations.

The automotive telematics space in APAC is evolving rapidly driven by increasing automotive production, developing telecom infrastructure and growing digitization. Rising vehicle connectivity expectations among younger population and commercial fleets also supports this growth. While OEM telematics will continue leading, afterm systems m is projected to witness faster growth through 2027. Growing importance of data analytics, predictive maintenance, and over-the-air updates will further advance telematics capabilities in the region. Nations must form conducive regulatory policies to accelerate mass adoption of these opportunities across vehicles while ensuring data privacy and security.

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