by Automotive telematics refers to the integration of telecommunication and information technologies with automobile systems. Automotive telematics allows communication between vehicles and their external environment, including users, infrastructure, and other users.
Increasing vehicle production and sales driving growth
Rising vehicle production and sales in major APAC economies such as China, India, and Southeast Asian countries is expected to drive APAC automotive telematics growth over the forecast period. According to industry estimates, around 72 million vehicles were produced in APAC in 2020. China alone accounted for over 25 million units during the year. The growing middle class population and increasing disposable incomes are supporting vehicle demand in the region. Automotive manufacturers are ramping up telematics offerings and making them standard in newer vehicle models to differentiate their brands.
Government regulations promoting safety and connectivity
Stringent government regulations regarding vehicle and road safety are also supporting APAC Automotive Telematics adoption, especially for fleet and commercial vehicles. For instance, the Indian government has mandated telematics devices in public transport vehicles since 2018 to improve safety and emergency response. Several APAC nations have also formulated rules promoting connected vehicle technologies. Telematics allows real-time vehicle tracking and monitoring of driver behavior, aiding regulatory compliance. The implementation of eCall technology standards will further augment safety and emergency services across APAC.
Rise of mobility services boosting commercial telematics
The increasing popularity of shared mobility services such as ride-hailing and car-sharing has boosted the commercial vehicles telematics segment in the region. Mobility operators rely on telematics to optimize fleet operations, enhance resource utilization, ensure driver safety, and provide superior customer service. While passenger vehicles remain the major revenue contributor currently, commercial telematics segment is pegged to display higher growth on the back of emerging mobility business models. Shared mobility has picked up strongly in major APAC economies led by digitally-savvy populations and urbanization.
Connectivity and infotainment solutions gaining traction
In-vehicle connectivity and infotainment services enabled by embedded telematics systems are gaining widespread acceptance among consumers in APAC Automotive Telematics. Features such as built-in navigation, voice controls, and advanced connectivity are becoming mainstream expectations from modern vehicles. OEMs are offering these as differentiators through their branded connected driving platforms. Additionally, over-the-air updates ensure access to latest infotainment features without hardware replacements. Afterconnectivity solutions are also enabling older vehicles to access value-added services via smartphones. Rising consumer spending power and connectivity infrastructure are propelling such telematics applications among individuals.
5G rollout to accelerate intelligent mobility ecosystem
Widespread rollout of 5G networks across APAC is anticipated to revolutionize automotive telematics domain and fuel the next phase of intelligent mobility transformation. High-speed 5G connectivity can support advanced applications around vehicle-to-everything (V2X) communication, autonomous driving, smart infrastructure, and other C-V2X services. 5G-based telematics platforms allow real-time exchange of vast volumes of sensor data between connected vehicles, roadside units, and cloud platforms. Countries like China, South Korea, and Japan have already conducted successful 5G-assisted vehicle trials and developing smart transportation ecosystems. As 5G networks become pervasive, new automotive use cases and innovative business models are expected to emerge.
Chinese firms advancing capabilities in connectivity segment
China currently dominates the APAC automotive telematics owing to the large production base of OEMs and technology leaders based in the country. Chinese telematics vendors such as Hirain, Neusoft, and Huawei have accelerated indigenous R&D to develop advanced solutions. These firms have filed several patents for V2X, C-V2X, and intelligent cockpit technologies. They also actively participate in global standardization activities. Chinese automakers like GAC, SAIC, and BYD have incorporated sophisticated telematics and connectivity suites showcasing the country’s technological prowess. Chinese tech giants Alibaba, Baidu, and Tencent are also working on mixed AV/CV platforms and smart transportation networks, providing opportunities for local telematics players.
Challenges include high costs and technology assimilation
One of the key challenges restraining widespread automotive telematics adoption in APAC is the relatively higher costs involved. Telematics hardware, data plans, and connectivity add to vehicle expenses. This poses affordability issues, especially in lower-income APAC regions. As technologies progress rapidly, automakers also face challenges assimilating latest connectivity innovations across product portfolio in a seamless and cost-effective manner. Lack of standardized platforms widens this technology gap further. However, declining module prices, availability of affordable used vehicle telematics, and new business models are helping address these economic barriers.
The automotive telematics in APAC region is expected to thrive over the next five years on the back of growing mobility needs, policy support, emerging use cases, and technology advancements. Domestic industry players are strengthening their capabilities and global partnerships. Regional demands such as fleet management, e-mobility, and smart cities provide immense scope for innovation. Widespread 5G rollout will accelerate the development of intelligent transportation ecosystem in APAC. Concerted efforts by stakeholders to enrich experiences, enhance affordability as well as ensure cybersecurity will aid continued expansion of automotive telematics.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
