The report forecasts the global automotive telematics market to grow at a CAGR of 24.22% during the period 2016-2020.
The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
One of latest trends in the market is reduced dependence on smartphones for applications. Smartphone connectivity to in-vehicle infotainment system has been one of the major drivers of automotive telematics. This is due to end-users' desire to access smartphones while driving. Automakers have capitalized on this by developing high-resolution and more intuitive HMIs capable of seamlessly integrating with smartphones in automobiles. OEMs have been trying to enter the third-party application service segment. Smartphones have the upper hand over in-vehicle infotainment OS owing to their flexibility.
According to the report, one of the primary drivers in the market is regulatory mandates to improve vehicle and passenger safety. Passenger vehicles are the largest installer of telematics systems in the world due to increased demand for vehicle tracking and navigation services in passenger vehicles. Among the services offered by telematics solutions for passenger vehicles, emergency call and stolen vehicle tracking have been the area of focus for many regulatory bodies worldwide.
Further, the report states that one major challenge in the market is data security in telematics industry. Previously, most M2M communications used proprietary protocols or private networks for connectivity. However, increasing demand for connectivity has forced players in the industry to provide Internet connectivity in their offerings. The major focus is on the functional requirements of telematics devices. As a result, the industry has neglected many non-functional requirements of systems, like data security.