The global electric vehicle telematics market is projected to witness a CAGR of 15.86% during the forecast period 2024-2031, growing from USD 10.04 billion in 2023 to USD 32.6 billion in 2031. The infotainment systems, big multi-functional displays, and integration of different technologies enable auto equipment leaders to build advanced systems for electric vehicles. The higher adoption of EVs due to environmental concerns, government support, and affordable functionality is likely to increase the sales of EV telematics across the globe. Electric vehicles hold electric transmission, battery systems, and a full digitized version of vehicle telematics. This utilizes connected car technology, internet, Wi-Fi, smartphone connectivity, and camera and sensor monitoring. Furthermore, the enhanced EV charging infrastructure, incentives, and subsidies are helping scale up electric vehicle adoption, increasing the demand for EV components, including EV telematics and infotainment systems.
The space for advanced autotech and on-board diagnostic systems also enables the usage of future-ready EV telematics. These include higher connectivity tools, infotainment displays, and monitoring systems. The vehicle manufacturers and equipment producers focus on delivering high-performance, inclusive dynamics and faster processing in the telematics systems they provide.
For instance, in January 2024, Tata Motors launched its newly designed Punch EV with a 10.25-inch touchscreen infotainment system and a two-spoke steering wheel. Other telematics features include a semi-digital instrument cluster, a 360-degree camera, automatic climate control, electronic stability control (ESC), and a tire pressure monitoring system (TPMS).
Higher EV Fleet Management Along with AI Integration to Fuel Market Expansion
As the sales of electric vehicles rise, the demand for telematics solutions designed especially for electric vehicles has also risen and it is expected to fuel market growth during the forecast period. Advanced technologies like artificial intelligence and machine learning will likely enable more effective fleet management and operation by offering insights into EV-specific factors, including battery state of charge, range estimate, and energy consumption. Telematics systems provide real-time vehicle location, status, and performance data, essential for optimizing fleet operations. Telematics can assist electric vehicle fleets maximize productivity and efficiency by helping to plan routes, schedule maintenance, and charge times. People are searching for methods to lessen their carbon footprint as they become more conscious of the damaging effects of carbon emissions on the environment. EVs are more environmentally friendly than conventional gasoline-powered cars since they produce less greenhouse emissions and pollution.
For instance, in April 2023, Continental AG and Here Technologies Pvt. Ltd. partnered with IVECo SpA to increase safety and fuel-saving functions in commercial vehicles. While Continental delivers vehicle positioning and a scalable 4G/5G telematics control unit, HERE provides validated speed limit information for any road in the European Union.
IoT Deployment and Technological Advancements to Thrive Market Growth
Internet of Things (IoT) deployment, along with the advent of 5G networks and faster networks, delivers connected car technology to the next level. The location of vehicles, driver behavior, engine diagnostics, and other vital metrics can all be tracked in real time by IoT-based telematics systems. This makes it possible for fleet managers to swiftly make well-informed judgments about things like vehicle rerouting and driver safety. Real-time vehicle data monitoring enables IoT-integrated telematics to anticipate maintenance needs, enabling proactive and preventative maintenance as opposed to reactive. This lowers maintenance expenses and vehicle downtime. These telematic solutions can enhance overall vehicle and driver safety with features like remote vehicle speed limit limits, collision alerts for emergency personnel, and vehicle authentication. The companies also launch diagnostic telematics that help vehicle owners to monitor their vehicle’s overall condition.
For instance, in November 2023, Reliance Jio Infocomm Ltd. introduced JioMotive, an onboard diagnostics (OBD) plug-and-play system aimed at enhancing vehicle security and in-car connectivity. By plugging the device into their car’s OBD port, customers can access in-car WiFi services, vehicle tracking and monitoring functions, and more.
Government’s Support to Telematics Infrastructure to Fuel Market Growth
Implementation and commercialization of telematics technology for electric vehicles could not have been implemented without the crucial role of government authorities. From permits to safety regulations, governments across the globe focus on promoting EV technology that restricts fossil fuel consumption and increases sustainability. Governments across the globe support and fund infrastructure for telematics. The ability of telematics technology to lower carbon emissions and enhance air quality has been acknowledged by governments worldwide. Governments and private companies are now working together to develop infrastructure for battery charging and standardize telematics procedures. These regulations encourage and recognize new ventures and creative ideas while guaranteeing the proper application of telematics technology.
For instance, in April 2022, the Government of India announced plans to create interoperability standards and a telematics policy during Budget 2022–2023 to improve the efficiency of the telematics ecosystem and accelerate the adoption of electric vehicles.
The Advent of Smart Transportation and Commercial EV Adoption to Fuel Segmental Growth
The market is divided into segments according to application, including entertainment, safety and security, information and navigation, diagnostics, and others. The information and navigation category will lead the market throughout the forecast period. To help drivers navigate their routes more effectively, information and navigation telematics systems can offer real-time traffic updates, weather reports, and other helpful data. As a result, time can be saved, and driving can become more convenient and less stressful. By giving real-time information on road conditions, traffic congestion, and other possible risks, navigation telematics systems can assist drivers in staying on track and preventing accidents. This can help drivers avoid risky circumstances and make well-informed judgments. Telematics systems for information and navigation can also be tailored to drivers’ requirements and tastes, making driving a more individualized experience. Innovative and practical features are anticipated to be introduced to these systems as technology advances, enhancing consumer appeal.
For instance, in September 2022, Colorado-based powertrain manufacturer Lightning eMotors launched a new EV telematics and charger management software product designed for fleets. For both new and old lightning EVs, there is a software suite called Lightning Insights, which is offered on a subscription basis. An API for integrating third-party software is also included.
Asia-Pacific Dominates the Global Electric Vehicle Telematics Market
Throughout the forecast period, Asia-Pacific is anticipated to hold a dominant market share in the global electric vehicle telematics market. The usage of connected cars, outfitted with sensors and communication technologies to offer real-time data and insights, is significantly rising throughout the region. The need for vehicle telematics, which may assist drivers and fleet managers in managing their vehicles more skillfully, has increased. Governments in Asia-Pacific are taking steps to encourage vehicle telematics, such as enacting laws requiring the installation of telematics systems in commercial vehicles. This has contributed to the local demand for car telematics. Hence, the local manufacturers are also building new telematics systems to advance the local automotive manufacturers. Local manufacturers are strengthening their supply chain in the Asia-Pacific region.
For instance, in January 2024, China’s BYD Company Ltd. debuted three battery-electric models in Indonesia to take the lead in the market in the largest economy in Southeast Asia. In the fourth quarter, BYD surpassed Tesla to become the leading electric vehicle manufacturer in the world, with the majority of its 526,000 sales vehicles heading to China.
Future Market Scenario (2024-2031F)
1. Increased EV adoption, advanced infotainment systems, and advanced integrated technology are flourishing the market growth.
2. Rising penetration of Internet and IoT deployment to increase the demand for advanced vehicles with higher connectivity.
3. The dominance of battery electric vehicles, technological advancements, and increased R&D are projected to garner market expansion.
4. The adoption of EVs in emerging economies like China and India is expected to add value to the global market.
Report Scope
“Electric Vehicle Telematics Market Assessment, Opportunities, and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, that provides an in-depth analysis and qualitative and quantitative assessment of the current state of the global electric vehicle telematics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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