Over the past decade, APAC Automotive telematics has experienced momentous growth with major automakers ramping up production and sales across developing economies. Alongside steady economic expansion and rising disposable incomes, vehicle ownership across the region has ballooned. However, this growth has also placed increasing pressure on overburdened road infrastructure and aggravated issues like traffic congestion and emissions.
At the same time, technology companies have leveraged advanced connectivity to equip modern vehicles with telematics capabilities. By connecting cars to networks, telematics provides a platform for value-added services that can optimize transport systems while enhancing driver safety, convenience and satisfaction. Recognizing these benefits, automakers and tech firms are increasingly collaborating to pioneer new connected mobility solutions tailored for Asia Pacific. This will aid in driving demand in the APAC automotive telematics.
Growing Investments in Automotive Telematics
Led by countries with vigorous auto industries like China, Japan and South Korea, the Asia Pacific region has emerged as a major hotbed for APAC Automotive Telematics innovation and investment. Auto giants are ramping up R&D budgets to engineer ‘smart’ vehicles with advanced driver assistance, infotainment and remote diagnostic systems. For example, Toyota invested $1 billion to launch its connected vehicle program, while Hyundai founded a new division focused on mobility services and autonomous driving technologies.
On the other hand, prominent tech names have also entered the fray by partnering with automakers on telematics platforms and applications. For instance, Baidu collaborated with Xiaopeng Motors to develop intelligent EV solutions, while Huawei teamed up with Audi to deliver 5G-based connected driving experiences. Such synergies are helping to accelerate telematics integration across new models, as well as afterretrofits of existing fleets.
Smart Transportation Infrastructure Ahead
To maximize the potential of connected vehicles, governments across the region are also injecting funds into modernizing transportation infrastructure with telematics and smart city initiatives. For example, China’s ‘Digital China’ project aims to blanket major cities with 5G for autonomous driving and traffic management applications by 2022. Similarly, India launched the ‘Smart Cities Mission’ to deploy telematics across 100 urban centers for congestion control, parking occupancy, and emergency response.
On the infrastructure side, technologies like vehicle-to-everything (V2X) communication are being incorporated to optimize traffic flows based on real-time vehicle positioning and sensor data shared over Wi-Fi or cellular networks. Systems can reroute traffic, adjust signal timing or warn drivers of road conditions to alleviate bottlenecks. Further, centralized traffic management dashboards give authorities unprecedented visibility and control over transport ecosystems. The combination of intelligent infrastructure and connected vehicles is enabling new mobility-as-a-service models to efficiently meet the exponentially growing passenger and logistics transportation needs of the region.
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