Automotive OEM Telematics

Global Automotive OEM Telematics Market to Reach US$218.9 Billion by 2030

The global market for Automotive OEM Telematics estimated at US$101.2 Billion in the year 2024, is expected to reach US$218.9 Billion by 2030, growing at a CAGR of 13.7% over the analysis period 2024-2030. Hardware Component, one of the segments analyzed in the report, is expected to record a 12.2% CAGR and reach US$132.0 Billion by the end of the analysis period. Growth in the Software & Services Component segment is estimated at 16.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$27.6 Billion While China is Forecast to Grow at 18.1% CAGR

The Automotive OEM Telematics market in the U.S. is estimated at US$27.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$46.1 Billion by the year 2030 trailing a CAGR of 18.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.2% and 12.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.9% CAGR.

Global Automotive OEM Telematics Market – Key Trends & Drivers Summarized

Why Are OEM Telematics Systems Becoming Core to Connected Vehicle Strategies and Lifecycle Value Optimization?
Automotive OEM telematics systems are transitioning from optional features to foundational infrastructure in the digital transformation of vehicles, enabling real-time data exchange between the vehicle, driver, OEMs, service providers, and cloud ecosystems. These embedded systems offer a wide range of capabilities—including remote diagnostics, predictive maintenance, vehicle tracking, over-the-air (OTA) updates, usage-based insurance (UBI), driver behavior monitoring, and emergency response services—thereby redefining how OEMs engage with customers and monetize vehicle lifecycles.

With vehicles increasingly acting as mobile data hubs, telematics platforms are integral to supporting advanced driver-assistance systems (ADAS), fleet management, and subscription-based mobility services. OEMs are leveraging telematics not only to enhance safety, efficiency, and customer experience but also to create new digital revenue streams through connected service offerings and real-time analytics. As software-defined vehicles (SDVs) gain momentum, telematics platforms are becoming the gateway for continuous feature enhancement, personalization, and post-sale engagement—repositioning the vehicle as a service-enabling asset rather than a static product.

How Are AI, 5G, and Cloud Integration Advancing the Capabilities and Scalability of OEM Telematics Platforms?
The technological sophistication of OEM telematics systems is increasing through the integration of AI algorithms, 5G connectivity, and cloud-native architecture. AI enables real-time analytics on driver behavior, predictive diagnostics, and contextual insights for improving safety and optimizing performance. Telematics control units (TCUs) are being equipped with edge computing capabilities to process critical data locally and reduce latency for time-sensitive applications such as crash detection or lane departure alerts.

5G networks are accelerating the responsiveness and bandwidth of telematics systems, supporting ultra-fast data transmission required for autonomous vehicle communication, live video feeds, and high-frequency OTA software updates. Meanwhile, cloud platforms are enabling centralized data management, cross-fleet visibility, and scalable service delivery across geographies. Cloud-native telematics ecosystems also support seamless integration with OEM CRM platforms, mobility apps, and third-party services like insurance, navigation, and EV charging. Together, these technologies are enabling OEMs to offer telematics as a modular, upgradeable, and always-on service platform that adapts to evolving vehicle and user needs.

Where Is Demand for OEM Telematics Systems Expanding and Which Vehicle Segments Are Leading Implementation?
OEM telematics systems are seeing widespread adoption across passenger vehicles, commercial fleets, and electric vehicles (EVs), with the most significant demand emerging from North America, Europe, China, and Japan. Premium and mid-range passenger vehicles have led deployment historically, driven by consumer demand for safety, convenience, and infotainment. However, telematics adoption is now expanding into entry-level segments as cost reductions, regulatory mandates, and consumer expectations for connectivity increase.

Electric vehicles are emerging as a key growth segment for telematics integration, as these platforms require advanced monitoring for battery health, charging behavior, range prediction, and energy optimization. OEMs are embedding telematics as standard in EVs to enable energy-efficient routing, remote charging management, and integration with smart grid systems. Commercial fleets—including logistics, rental, and ride-hailing operators—are also heavy adopters, relying on OEM telematics for route optimization, fuel economy monitoring, compliance reporting, and real-time asset tracking. Governments and regulators are further incentivizing telematics through vehicle safety mandates and fleet emission reduction initiatives, particularly in Europe and Asia-Pacific.

What Is Fueling the Global Growth of the Automotive OEM Telematics Market?
The rapid expansion of the OEM telematics market is being fueled by the convergence of connected mobility demand, regulatory compliance pressures, and the strategic shift toward recurring digital revenues. As OEMs transition from a transactional model to an ecosystem model, telematics provides a scalable pathway to deliver value-added services, build long-term customer relationships, and gather continuous vehicle usage data. Regulatory requirements—such as eCall in Europe, driver monitoring systems, and emissions reporting—are further driving telematics integration as part of standard safety and compliance packages.

The growing popularity of usage-based insurance (UBI), vehicle subscription models, and shared mobility platforms is also amplifying telematics deployment, as these models depend on accurate, real-time data collection and management. OEMs are forming strategic alliances with telecom providers, cloud platforms, and mobility startups to build integrated telematics ecosystems that can evolve with software upgrades and adapt to regional service demands. As digital infrastructure becomes intrinsic to vehicle value and market differentiation, a key strategic question arises: Can OEM telematics platforms scale as secure, flexible, and monetizable backbones for the data-driven, customer-centric mobility landscape of tomorrow?

SCOPE OF STUDY:

The report analyzes the Automotive OEM Telematics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Offering (Hardware, Software & Services); Application (Infotainment & Navigation, Fleet Management, Safety & Security, Diagnostics); End-Use (Passenger Cars, Commercial Vehicles)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Airbiquity
• AT&T Inc.
• BMW AG
• Continental AG
• Denso Corporation
• Ford Motor Company
• General Motors
• Geotab Inc.
• Harman International
• Hyundai Motor Company
• Kia Corporation
• Mercedes-Benz Group AG
• Nissan Motor Co., Ltd.
• Qualcomm Technologies Inc.
• Renault Group
• Robert Bosch GmbH
• Stellantis N.V.
• Tesla, Inc.
• Toyota Motor Corporation
• Verizon Communications Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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