Ballooning Popularity of Connected Cars Adding Fuel to Automotive Telematics Demand

The rising prevalence of road accidents is fueling the surge in the demand for advanced safety systems and features in automobiles. Human error is the biggest cause of road accidents around the world. According to may reports, the number of road crashes are regularly observed to be the maximum in India. China and the U.S. are the next two countries that witness the highest incidence of road accidents every year.

Moreover, connected cars are equipped with several other advanced features such as roadside assistance, smartphone connectivity, traffic and collision warnings, real-time traffic monitoring, and automobile diagnostics, owing to which, the increasing deployment of these vehicles is positively impacting the popularity of automotive telematics solutions. This is subsequently causing the expansion of the global automotive telematics market. As a result, the market will witness its revenue jump from $27.7 billion to $149.9 billion from 2019 to 2030.

According to the findings of P&S Intelligence, a market research firm based in India, the automotive telematics market recorded the highest expansion in North America in the years gone by. The main factor responsible for the boom of the market is the presence of stringent government policies regarding vehicular safety in the regional countries. For example, in the U.S., the Federal Motor Carrier Safety Administration (FMCSA) made the incorporation of electronic logging device (ELD) in commercial vehicles mandatory.

Hence, it can be safely said that the requirement for automotive telematics solutions would surge throughout the world in the forthcoming years, mainly because of the rising demand for advanced safety systems and features in automobiles, due to the growing incidence of road accidents and the increasing implementation of strict vehicular safety regulations by the governments of many countries around the world.

Source: P&S Intelligence