How big is the automotive telematics market | Market Size & Growth Forecast

Q: How big is the automotive telematics market?

The automotive telematics market is expected to reach USD 93.7 billion by 2031.

Q: What is the CAGR of the automotive telematics market?

The automotive telematics market is projected to grow at a CAGR of 9.7% during the forecast period.

Q: What are the main applications of automotive telematics?

Key applications include fleet tracking, insurance telematics, predictive maintenance, infotainment, and emergency assistance.

Q: What challenges does the telematics market face?

The challenges are over data privacy, high initial integration costs, and interoperability between platforms.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5350

Publication Date: Jul 2025

How big is the automotive telematics market?

According to 6Wresearch internal database and industry insights, Global automotive telematics market was valued at approximatelyUSD 48.2 billion in 2024 and is projected to reachUSD 93.7 billion by 2031, growing at aCAGR of 9.7% during the forecast period.

View Main Report

Schedule Analyst Call

This growth is driven by the rising demand for connected vehicles, increasing regulatory mandates for safety and tracking, and expansion of vehicle-to-everything (V2X) communication technologies. Additionally, advancements in AI, cloud computing, and 5G are accelerating the adoption of telematics in fleet management, insurance telematics, and in-car infotainment systems.

Key Growth Factors of the Automotive Telematics Market

Growing demand for real-time car diagnostics and tracking
Development of infotainment services and connected car ecosystems
Government rules pertaining to eCall systems and vehicle safety are strict.
Growing fleet management and commercial vehicle logistics optimisation
Combining artificial intelligence, machine learning, and predictive analytics with telematics
Expansion of pay-as-you-drive and usage-based insurance (UBI) models

Automotive Telematics Market Trends

The industry is shifting toward embedded telematics over aftermarket solutions due to improved integration and security. Cloud-based telematics platforms are enabling real-time analytics and over-the-air (OTA) updates. OEMs are investing in in-house telematics ecosystems to differentiate services. The Asia-Pacific region, particularly China and India, is witnessing rapid adoption driven by smart city and smart mobility initiatives.

Emerging Developments in the Automotive Telematics Market

Next-gen telematics control units (TCUs) are being developed with edge computing capabilities. Telematics data is being leveraged for predictive maintenance and driver behavior analytics. Partnerships between telecom providers and automakers are driving innovations in vehicle connectivity. Blockchain is being explored for secure telematics data sharing.