Telematics Systems Market Size - By Offering, By Technology, By Vehicle Type, By Channel, By Application, By End Use Industry, Growth Forecast, 2026-2035

The telematics systems market was valued at USD 41.1 billion and USD 44.7 billion in 2022 and 2023, respectively. The market size reached USD 52.8 billion in 2025, growing from USD 48.5 billion in 2024.
 

Based on the channel, the market is divided into original equipment manufacturers (OEM), & aftermarket. The original equipment manufacturers (OEM) segment accounted for 49.4% of the market share in 2025.
 

• The OEMs by channel driven by multiple market drivers and trends including demand by the marketplace, advances in technology, efficient supply chains, customer preferences and overall strategic partnerships, which allow some OEMs to provide cost-effective, high-quality solutions across many different industries.
   
• To compete in an evolving marketplace and regulatory environment, companies must invest in developing innovative supply chains, developing customer-centric designs, investing in sustainable practices, and developing strategic partnerships to facilitate their integrations of advanced new technologies.
   
• The aftermarket segment was valued at USD 26.7 billion in 2025 and is anticipated to grow at a CAGR of 12.8% over the forecast years. Customers and products in the aftermarket by channel are driven by product lifecycle management (PLM) and demand for customization as well as low-cost, convenience and technological advances, along with an increased focus on online and direct-to-consumer sales.
   
• To remain relevant in the ever-changing marketplace and meet customer and market expectations, companies must continually improve and enhance their product quality, product supply chain agility, customization options, integrating advanced technologies and growing their online presence.
   

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Based on the end-use industry, telematics systems market is classified into automotive, transportation and logistics, insurance, healthcare, media and entertainment, government and utilities & others. The automotive dominated the market in 2025 with a market share of 28.5%.
 

• The automotive sector is divided by usage based upon technological advancements related to safety; increased adoption of electric-powered automobiles; improved fuel efficiency; developing autonomous technologies; regulatory compliance; and consumer preference for desirable and sustainable driving experiences.
   
• Automobile manufacturers and companies engaged in the automotive sector should focus their efforts on producing electric automobiles, increasing the use of autonomous driving technology, improving fuel economy, introducing new safety features, and remaining compliant with current regulations to develop environmentally friendly consumer-based automotive products.
   
• The transportation and logistics segment is expected to witness growth at a CAGR of 13.5% during the forecast period. The transportation and logistics market is primarily driven by the demand for quick delivery, supply chain optimization, real-time shipment tracking, and overall improvements related to artificial intelligence and Internet of Things (IoT) technologies.
   
• Companies must prioritize efforts to establish optimized supply chain systems, implement predictive analytics via the integration of artificial intelligence, utilize eco-friendly solutions for the delivery of products, enhance the customer experience related to last-mile delivery, and capitalize on the cost savings and customer satisfaction resulting from increased levels of automation through enhanced efficiencies.
   

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North America telematics systems market with a market share of 32.5% in 2025.
 

• In North America, the growth of the telematics market largely attributed to government mandated safety regulatory compliance, smart city initiatives promoting infrastructure development and enhancement, and technology-related advancements such as collision detection and autonomous driving applications.
   
• The combined reasons for this growth in North America include the increased growth of shared mobility services, the increasing demand for E-comm delivery services, and the requirement for fleet electrification and emission reduction goals.
   

The U.S. telematics systems market was valued at USD 9.9 billion and USD 10.9 billion in 2022 and 2023, respectively. The market size reached USD 13.1 billion in 2025, growing from USD 11.9 billion in 2024.
 

• In The United States, the growing telematics market is being driven by the electronic logging device (ELD), the expansion of automated vehicle development, and the rising demand for fleet optimization, which improves efficiency and compliance.
   
• Manufacturers must focus on creating more sustainable and recyclable film solutions and incorporating automation into their production process to improve production efficiency.
   

Europe telematics systems market accounted for USD 11.2 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
 

• Several factors support telematics systems in Europe, including the European Union's stringent emissions regulations, the growth of mobility as a service, and the increasing availability of infrastructure for electric vehicles. These factors drive innovation to develop and adopt telematics systems in Europe.
   
• Additional growth in Europe supports the EU green deal, sustainability targets, an increase in the number of advanced driver assistance systems (ADAS) being used, and an increase in cross-border fleet operations. These factors enhance both efficiency and safety.
   

Germany dominates the Europe telematics systems market, showcasing strong growth potential.
 

• Telematics is the leading edge of innovation in the supply chain sector, with the German government’s support of the development of telematic solutions for electric vehicles (EV) as well as other smart mobility products.
   
• Industry leaders are placing emphasis on the telematics systems and building out their product offerings that utilize telematics, as well as leveraging Germany’s leadership position in the automotive manufacturing industry to support their efforts.
   

The Asia Pacific telematics systems market is anticipated to grow at the highest CAGR of 13.6% during the analysis timeframe.
 

• The rapid growth and increasing urbanization across the Asia Pacific region, combined with government programs to promote smart city initiatives and rising growth in the middle class, driven demand for connected vehicle technology, and continue to propel the growth of telematics systems in the region.
   
• Factors contributing to the continued growth of telematics in the Asia Pacific region include the growth of e-commerce and logistics, increasing adoption of electric vehicles, and an increasing focus on providing consumers with safer roads.
   

China telematics systems market is estimated to grow with a significant CAGR, in the Asia Pacific market.
 

• The telematics systems market in China is growing due to government assistance in the growth of smart transportation, widespread use of electric vehicles (EVs), and the potential to significantly increase the amount of 5G infrastructure in the country which improve mobility and efficiency.
   
• Companies should focus on developing smart transportation solutions, integrating telematics with electric vehicles, leveraging 5G infrastructure for real-time data, and aligning with China's environmental and sustainability goals.
   

Brazil leads the Latin American telematics systems market, exhibiting remarkable growth during the analysis period.
 

• In Brazil, the increased growth of the telematics systems industry directly influenced by three main drivers include increased activity in logistics and transportation, increased demand for solutions that help manage fleet assets, and increased government support through safety and emissions tracking initiatives.
   
• Enhancing the use of telematics, as well as enhancing fleet management processes, such as improving fuel efficiency, and developing advanced driver assistance systems (ADAS), allow for continued growth in the logistics and transportation industry in Brazil through compliance with new regulations and increased operational demands.
   

South Africa telematics systems market to experience substantial growth in the Middle East and Africa market in 2025.
 

• In the Middle East and Africa region, South Africa holds a significant share of the telematics market due to its expanding transportation sector, growth in fleet management adoption, and an increasing demand for real-time vehicle tracking and maintenance solutions.
   
• In South Africa, telematics companies should focus on offering cost-effective fleet management solutions, integrating advanced tracking and diagnostics systems, and enhancing data security features to meet the growing needs of the logistics, transportation, and commercial sectors.
   

Telematics Systems Market Share

Trimble Inc., TomTom International BV, Verizon Connect, Geotab Inc., and Teletrac Navman are amongst the leading companies in providing the telematics systems and together they make up more than 11.05% of the market share as of 2025. All these companies are at the forefront of innovation in telematics with their use of advanced technology, including global positioning system (GPS) and real-time analysis capabilities, to provide solutions for fleet owners.
 

In addition, each company is in several different parts of the world, has established relationships with many customers, and collaborates with large industries, which has helped to establish them as leaders in the telematics market and sets the stage for the future.
 

In addition to large established companies like Trimble Inc., other smaller niche companies play an important role within the telematics systems industry. They develop solutions that target specific industries, but they also generate technological innovation by providing customized and cost-effective telematics technologies and servicing those industries.
 

Telematics Systems Market Companies

Prominent players operating in the telematics systems industry are as mentioned below:
 

• Trimble Inc.
• TomTom International BV
• Teletrac Navman
• Harman International Industries, Inc. (Samsung)
• Mix Telematics
• Octo Telematics
• Geotab Inc.
• Verizon Connect (Verizon Communications Inc.)
• PTC Inc.
• Sierra Wireless
• HERE Technologies
• Intel Corporation
• AT&T Inc.
• Robert Bosch GmbH
• Continental AG
  
   
• Trimble Inc.

Trimble Inc. focuses on GPS solutions and positioning systems. Beyond that, they are also known for easy product integration with other software, and for their industry-specific telematics (agriculture and construction). Data accuracy industry leaders are also reliable with a strong global market presence.
 

• TomTom International BV

TomTom International BV does map and navigation and provides location-based services. They assist with fleet telematics and routing optimizations using real-time data and their navigation systems, and with partnerships with auto and logistics companies. 
 

• Verizon Connect (Verizon Communications Inc.)
  Verizon Connect applies telematics to assist their customers with more efficient fleet management. They provide real-time vehicle tracking, driving performance analysis, and cloud-based fleet telematics. Known for their telecom services, Verizon also provides fast and reliable telematics services. 
   
• Geotab Inc.
  Geotab Inc. is the industry leader in open-platform telematics with the ability to provide custom data analytics, strong AI, and seamless integration with more than one third party. For transport and logistics companies, they use their technology to help optimize fleet use, streamline operations, and stay compliant with industry regulations.
   
• Teletrac Navman

Teletrac Navman values customer satisfaction and strives to enrich the customer experience and optimize costs. They assist small to mid-range fleets globally and help enhance operational performance. Their telematics provide legally compliant telematics analytics with safety features and protection.
 

Telematics Systems Industry News

• In February 2024, Rosmerta Technologies launched a driver monitoring and alert system that uses artificial intelligence for fleet operators. This system also integrates with a vehicle tracking and management system. It uses real-time data to monitor driver's safety and perform an AI analysis of driver behavior data, demonstrating the growing influence of telematics technology on improving road safety and increasing fleet management efficiency.
   
• In December 2023, TomTom announced a collaborative effort with Microsoft aimed at utilizing generative Artificial Intelligence (AI) to provide better in-car experiences for drivers. Using the power of Microsoft Azure, the Microsoft Azure AI Assistant enables drivers to interact with their vehicles using voice commands, enhancing their ability to navigate and control their vehicles.
   
• In May 2024, Ambarella announced new AI system-on-chip solutions (SoCs) CV75AX and CV72AX for fleet telematics that enhance AI performance capabilities. These SoCs support driver monitoring as well as multi-channel video capability for enhanced accuracy, efficiency and quality of images.