The German automotive telematics market is predicted to attain a revenue of $7,748.0 million by 2030, increasing from $1.408.2 million in 2019, progressing at a 16.5% CAGR during the forecast period (2020–2030), according to the report by P&S Intelligence. The market is registering growth due to the extensive government support, in terms of regulation and policy formulation, for integrating such systems in automobiles, and rising preference for a safer driving alternative. On the basis of product type, the market is divided into integrated, embedded, and tethered.
Out of all these, the embedded division held the major share of the market in the past, owing to the regulatory policies in the EU that mandating the use of telematics systems. In addition to this, the division is also growing due to the rising demand for cloud-based services and increasing requirement for optimizing cost of service plans. The integrated division is expected to register the highest CAGR during the forecast period.
When service is taken into consideration, the German automotive telematics market is categorized into vehicle to everything, insurance telematics, safety & security, fleet/asset management, remote diagnostics, and infotainment and navigation. Among these, the safety & security category is predicted to witness the fastest growth during the forecast period. The demand for passenger safety in vehicles has risen, owing to the development of automated driving and intelligent transport systems technology. Moreover, governments have taken initiatives for increasing vehicle safety in a number of countries.
In terms of vehicle type the German automotive telematics market is classified into construction machines, commercial vehicle, passenger car, and two-wheeler, out of which, the construction machines classification is projected to grow at the fastest pace during the forecast period. Security and safety are the two major requirements that are associated with these vehicle. Safety & compliance solutions such as theft protection features and accident communication are important for construction machines, and are leading to the growth of the market.
The surging preference for safer driving option is a key driving factor of the German automotive telematics market. While road transportation have various advantages, road traffics and deaths and injuries because of road accidents are among the negative aspects of these facilities. Furthermore, most of the road accidents and crashes are because of negligence on the part of the driver, owing to which, manufacturers in the transportation industry are integrated vehicles with advanced solutions, such as automotive telematics, for increasing their safety.
A key trend being witnessed in the German automotive telematics market is the rising integration of telematics solutions in off-highway vehicles. The rising requirement for off-highway vehicle data analysis, enhanced efficiency and productivity of these vehicles, and the need for decreasing operations costs related to maintenance and repair are resulting in the rising adoption of automotive telematics solutions in these vehicles. This is expected to result in the growth of the market in the years to come.