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Automotive Telematics Services Market Size - By Service, By Technology, By Propulsion, By Vehicle, By Connectivity, Growth Forecast, 2025 - 2034
Report ID: GMI15325
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Published Date: November 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2024
Companies covered: 34
Tables & Figures: 120
Countries covered: 24
Pages: 210
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Automotive Telematics Services Market
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Automotive Telematics Services Market Size
The global automotive telematics services market size was estimated at USD 45.5 billion in 2024. The market is expected to grow from USD 49.7 billion in 2025 to USD 142.2 billion in 2034, at a CAGR of 12.4% according to latest report published by Global Market Insights Inc.
Telematics are increasingly being implemented in fleets in order to minimize downtime and to optimize the use of assets and to manage fuel and maintenance costs. Zip diagnostics, proactive fault detection, driver-behavior analytics and automatic service scheduling go a long way in enhancing operational efficiency. This high ROI example compels commercial fleets, logistics operators, and mobility service providers to move swiftly to telematics adoption, thereby augmenting recurrence-type service earnings in every of the key markets.
In November 2025, Cartrack and Volkswagen Info Services AG formed a partnership for fleet data integration. This partnership provides easy access to OEM vehicle data from six Volkswagen Group brands. It allows for quick onboarding and follows all European data privacy standards.
To satisfy the expectations of safety, diagnostics and connectivity, automotive OEMs are integrating telematics units as an established part of new vehicle platforms. The use of mandatory eCall regulations, monitoring of vehicles remotely and update needs on-the-air are driving this approach. With the growing number of vehicles leaving the production lines with an already installed connection, subscription services are growing at a blistering rate, establishing a constant foundation of recurrent telematics income in the global marketplace.
Telematics data on driving style, mileage and risk patterns are prompting insurers around the world to move towards the usage-based insurance schemes. This generates the repetitive requirement of telematics gadgets and information forums. With more and more insurers basing policy prices on real-time behavioral data, the uptake of telematics is increasing on both consumer and commercial lines of business, reinforcing the overall service ecosystem and premium revenue potential.
The desire to have smartphone-like digital experiences in cars means consumers are highly demanding connected infotainment, in-car commerce, OTA software upgrades, and personalized services. These services are monetized by automakers via subscription packages and app ecosystems. With the proliferation of software-defined vehicles, the telematics platform will be the core of the delivery of features, enhancing the UX, and making the vehicle a platform of continuing revenue generation, a digital service platform on a long-term basis.
North America is at the forefront of the telematics market because of early technology adoption, a high rate of OEM-installed connectivity, and widespread acceptance of usage-based insurance. Well-developed broadband networks, high vehicle ownership, and effective fleet management practices create steady demand. Regulations focused on safety, emissions monitoring, and ELD compliance also boost telematics adoption, making this region the most developed and profitable market worldwide.
The fast growth of automotive telematics in APAC is motivated by the excelling sales of vehicles, the development of 4G/5G networks, and the growing interest of agencies in tracking vehicles and road safety. Telematics are being used in real-time monitoring, fleet productivity and anti-theft in countries such as China, India, and Southeast Asia. Another stimulus to telematics integration in passenger and commercial fleets is the booming e-commerce logistics sector in the region and the relatively inexpensive data plans.
6.2% market share
Collective market share in 2024 is 16%
Automotive Telematics Services Market Trends
The significant transition towards connected and software-defined automobiles is a significant catalyst to the adoption of telematics. Carmakers are now installing telematics control units, digital dashboards, and cloud-connected systems. This aids in ongoing data sharing, remote services, predictive updates, and digital safety improvements. With every increase in software reliance, the need to upgrade the vehicle to a high-tech telematics platform and subscription-based services is becoming increasingly popular in the global market.
Telemetry-based risk scoring and behavior analytics, mileage-sensitive pricing models are gaining popularity with insurers. The consumers enjoy equal premiums, and the insurers enjoy improved underwriting accuracy and reduced claims cost. This speeds up the installation of telematics systems in both personal and business vehicles. With regulatory landscapes, which have proven to be favorable to telematics-enhanced transparency and reduction of fraud, usage-based insurance can be considered a significant driving force behind connected service penetration globally.
The demand of global logistics, e-commerce growth and mobility-as-a-service models compel fleet operators to implement telematics to track, comply, and be efficient in their operations. Visibility of vehicle location, fuel consumption, driver performance and optimization of routes in real-time is a significant cost-reducing factor. Telematics will become a necessity in the management of multi-asset, multi-region operations with the increased strictness of delivery SLAs and increased fleet electrification, leading to high service demand across industries.
The deployment of 4G and 5G networks with high speeds improves the stability and bandwidth required to support real time telematics, video analytics, V2X communication, and cloud-based mobility services. Low-latency networks can allow richer data-driven features and predictions. With the addition of growing IoT systems and edge computing, connectivity enhancements increase the rate of adoption of telematics in consumer, business, and autonomous vehicle-based Telematics worldwide.
The governments all over the world are implementing digital safety systems, emergency warnings, electronic log, and remote diagnostics. ECall, ELD requirements and emissions monitoring regulations all demand the integration of telematics, particularly in commercial fleets. With pressure on the authorities to ensure that roads become safer and the transparency of compliance is increased, the telematics platform will turn into a necessary resource to report, track, and monitor compliance through automatic means, becoming widespread in many regions.
Electric vehicles rely on telematics for monitoring battery health, optimizing charging, analyzing thermal performance, and predicting range. As more people adopt EVs worldwide, telematics platforms provide real-time energy insights, smart routing, and remote energy diagnostics. Manufacturers, fleets, and charging operators increasingly use telematics-connected battery data to improve performance, enhance safety, and decrease downtime, leading to significant market growth.
Automotive Telematics Services Market Analysis
Based on vehicle, the automotive telematics services market is divided into passenger vehicle and commercial vehicle. The passenger vehicle segment accounted for around 76% in 2024 and is expected to grow at a CAGR of 12.7% from 2025 to 2034.
Based on service, the automotive telematics services market is segmented into fleet management & logistics, usage-based insurance, vehicle tracking & monitoring, remote diagnostics & maintenance, safety & emergency, infotainment & navigation, and others. The fleet management & logistics dominates the market with 43% share in 2024, and the segment is expected to grow at a CAGR of over 12% from 2025 to 2034.
Based on propulsion, the automotive telematics services market is segmented into Gasoline, Diesel, BEV, HEV, and PHEV. The gasoline segment dominated the market, accounting for share of 52% in 2024.
Based on connectivity, the automotive telematics services market is segmented into embedded, integrated, and tethered. Embedded segment is leading the market with 58% share in 2024.
US dominated the automotive telematics services market in North America with around 86% share and generated USD 15.5 billion in revenue in 2024.
The automotive telematics services market in Italy is projected to grow at a strong CAGR of 15% from 2025 to 2034, supported by its advanced automotive ecosystem, rapid integration of connected-car technologies, and stringent regulations promoting vehicle safety, data transparency, and real-time telematics compliance.
China automotive telematics services market reached USD 4.4 billion in 2024, driven by rapid digitalization of vehicles, widespread adoption of connected-car platforms, and aggressive government initiatives supporting intelligent transportation, V2X infrastructure, and large-scale deployment of embedded telematics across domestic and international OEMs.
The automotive telematics services market in Brazil reached USD 865.6 million in 2024, fueled by rapid expansion of commercial fleets, growing demand for real-time tracking and driver safety solutions, rising theft-recovery telematics penetration, and the increasing integration of connected services by domestic and international OEMs across the country.
The automotive telematics services market in South Africa is projected to grow at a CAGR of 9.5% from 2025 to 2034, supported by high demand for vehicle tracking, insurance telematics expansion, and the countryโs ongoing efforts to combat vehicle theft and improve fleet efficiency.
Automotive Telematics Services Market Share
Automotive Telematics Services Market Companies
Major players operating in the automotive telematics services industry are:
Automotive Telematics Services Industry News
The automotive telematics services market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (fleet size) from 2021-2034, for the following segments:
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Market, By Service
Market, By Propulsion
Market, By Technology
Market, By Connectivity
Market, By Vehicle
The above information is provided for the following regions and countries: