APAC Telematics Market Size (2024 - 2029)

The APAC telematics market is experiencing significant growth, driven by factors such as government initiatives for road safety, the rising demand for electric vehicles, and increased connectivity due to affordable sensor prices. The development of 5G infrastructure in key countries further supports this expansion. Strategic partnerships are being formed to enhance service delivery, particularly in connected car services, which are contributing to the market's expansion. Despite these positive trends, challenges such as high costs, lack of product standardization, cybersecurity threats, and limited awareness among smaller vehicle operators pose obstacles to market growth.

Market Size of APAC Telematics Industry

APAC Telematics Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 26.22 Billion
Market Size (2029) USD 53.59 Billion
CAGR (2024 - 2029) 15.37 %
Market Concentration Low

Major Players

APAC Telematics Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Telematics Market Analysis

The APAC Telematics Market size is estimated at USD 26.22 billion in 2024, and is expected to reach USD 53.59 billion by 2029, growing at a CAGR of greater than 15.37% during the forecast period (2024-2029).

Telematics helps in usage-based insurance (UBI) by providing information to fleet management companies and automobile insurance companies to monitor the location and behavior of vehicles. Government initiatives towards road safety with mandatory navigation for commercial vehicles and Intelligent Transport System (ITS), rising demand for EVs, and increasing trend of connectivity with affordable sensor prices are mainly driving the growth in the Asia-Pacific telematics market. The development of 5G infrastructure in countries such as China, Japan, and South Korea will also boost the telematics industry in the Asia Pacific.

  • Qualcomm Technologies introduced a feature for Snapdragon Car-to-Cloud Services - Connectivity-as-a-Service - that brings new technology collaborations to support out-of-the-box connectivity, integrated analytics, and a cloud and device developer environment aimed to deliver new technology features, content, and services globally. Cognizant will work with Qualcomm Technologies to integrate and tailor Snapdragon Car-to-Cloud Services for automakers, with the goal of delivering rich, immersive, personalized in-vehicle experiences, new connected solutions, and better on-demand services.
  • With the increase in usage of connected car services driving the market, companies are making strategic partnerships to offer services at the doorstep. Indian AutoTech startup ReadyAssist announced its strategic partnership with iTriangle Infotech, a technology provider for vehicle tracking and fleet management for telematics solutions. The partnership will cross-leverage the companies' existing capabilities of telematics and service networks to bring installation, service, and warranty replacements of IoT devices to their customers at the doorstep.
  • The Asia Pacific region has witnessed a substantial increase in vehicle ownership due to urbanization, improved living standards, and economic growth. With more vehicles on the road, there is a growing need for efficient vehicle management and maintenance solutions. According to IEA, in 2022, China witnessed the highest number of electric car sales across the Asia Pacific region, with around six million electric car sales, and nearly 28,000 electric cars were sold in 2022 in New Zealand. The growth in EVs is anticipated to drive the telematics market, as these advanced systems play a crucial role in managing and monitoring EV performance, enhancing optimization and efficiency of the driving experience.
  • However, the higher cost of telematics systems, lack of standardization of products, and increasing cybersecurity threats are among the major factors restraining the growth of the market studied. Additionally, a lower awareness among individual commercial/passenger vehicles and small vehicle fleet operators also challenges the growth of the market studied.

APAC Telematics Industry Segmentation

Telematics refers to the set of technologies used to monitor a wide range of information for an individual vehicle or fleet. A Telematics system is able to gather the information, including driver behavior, location, engine diagnostics, vehicle activity, and help the fleet operators to visualize the data generated on the software platform to manage their resources.

The Asia Pacific Telematics Market is Segmented by type of vehicle (commercial (truck) LCV Vs. M/HCV, passenger (Car), by channel (OEM, newsprint, aftermarket), by Country (China, Japan, South Korea, Southeast Asia, and Rest of Asia Pacific). The report offers market forecasts and size in value (USD) for all the above segments.

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APAC Telematics Market Size Summary

The Asia-Pacific telematics market is poised for significant growth, driven by factors such as government initiatives for road safety, the rise in electric vehicle adoption, and advancements in connectivity technologies like 5G. Telematics systems, which provide critical data for usage-based insurance and fleet management, are becoming increasingly essential as vehicle ownership rises due to urbanization and economic development in the region. The market is characterized by strategic partnerships and technological collaborations, such as those between Qualcomm Technologies and Cognizant, aimed at enhancing in-vehicle connectivity and analytics. Despite challenges like high system costs and cybersecurity threats, the demand for telematics solutions in passenger vehicles is expected to propel market expansion, particularly in countries like China, India, and Japan, where stringent safety regulations and high vehicle sales rates prevail.

China stands out as a major contributor to the telematics market's growth in the Asia-Pacific region, with its rapid adoption of connected vehicle technologies and substantial investments in 5G infrastructure. The Chinese government's supportive policies and the country's dominance in automotive microcontrollers and microprocessors further bolster the market. The proliferation of IoT and 5G networks enhances telematics capabilities, enabling advanced services such as real-time data transmission and vehicle-to-everything communication. The market is highly fragmented, with key players like LG Corporation and MiX Telematics Ltd actively pursuing partnerships and acquisitions to strengthen their offerings. Recent developments, such as OCTO Telematics' expansion in Japan and collaborations in the two and three-wheeler segments, highlight the dynamic nature of the market and its potential for continued growth.

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APAC Telematics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of Impact of COVID-19 on the Industry

    5. 1.5 Technology Snapshot

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Vehicle

      1. 2.1.1 Commercial (Truck) LCV Vs. M/HCV

      2. 2.1.2 Passenger (Car)

    2. 2.2 By Channel

      1. 2.2.1 OEM

      2. 2.2.2 Newsprint

      3. 2.2.3 Aftermarket

    3. 2.3 By Country

      1. 2.3.1 China

      2. 2.3.2 Japan

      3. 2.3.3 South Korea

      4. 2.3.4 South East Asia

APAC Telematics Market Size FAQs

The Asia-Pacific Telematics Market size is expected to reach USD 26.22 billion in 2024 and grow at a CAGR of greater than 15.37% to reach USD 53.59 billion by 2029.

In 2024, the Asia-Pacific Telematics Market size is expected to reach USD 26.22 billion.

APAC Telematics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)