Increasing Emphasis on Remote Vehicle Diagnostics Spurring Automotive Telematics Market Growth: FMI

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Demand for in-built mobile communications among motorist is increasing the sales of automotive telematics in the Asia Pacific

As per a study by FMI, the Asia Pacific automotive telematics market is likely to grow at a CAGR of around 9% by the year 2021. The market for automotive telematics in APAC has recorded a valuation of US$ 32.6 billion between 2016 and 2020.

China, being the largest automotive manufacturing country in the world, is dominating the telematics market in APAC. As of 2021, around 18.8 million units of commercial and passenger vehicles were manufactured in the country, making it the most lucrative market in the region.

Despite growth registered in the last few years, the coronavirus outbreak has severely impacted the automotive telematics sales in APAC. The pandemic originated in the leading telematics market, China, gradually tightening its noose across the region.

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As governments took steps for containing COVID-19, restrictions were imposed, resulting in the closure of manufacturing units. The market therefore registered declining growth in the region due to lockdown.

Nonetheless, automotive telematics sales are recovering on the back of favorable government initiatives. For instance, in April 2020, a new draft regulation was published on heavy-duty vehicle telematics, stating that telematics will be required for all heavy-duty vehicles by the Chinese Ministry of Ecology and Environment (MEE). Such regulations are propelling the demand of automotive telematics in the region.

“Key market players are adopting various cloud-based technologies and are using Internet of Thinking to tap into the next-generation automotive communication technologies for applications such as navigation system, safety & security, and infotainment,” says the FMI analyst. 

Key Takeaways

China is leading the automotive telematics market in the APAC. The country accounts for more than 50% of market share in the region.
Owing to the increasing adoption of artificial intelligence and internet in the manufacturing of vehicles, India is demonstrating a rapid growth in the market.
Japan is emerging as a lucrative market for automotive telematics on the back of well-developed technological infrastructure and increasing penetration of smartphones in the country.
ASEAN automotive telematics market is expected to project steady growth due to the expansion of the transport and logistics sector in the countries.
Passenger cars will account for higher sales of automotive telematics. According to the International Organization of Motor Vehicle Manufacturers, over 53.5 million passenger cars were sold in 2020. Rising passenger vehicle sales will bode well for the market.

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Key Drivers

Ongoing technological advancements are expected to bolster market growth.
Increasing demand for safety and security along with smartphone integration will heighten the sales of automotive telematics.
Rising demand for passenger cars will fuel the demand for automotive telematics.
Favorable government initiatives will spur the growth of the market.

Key Restraints

Extravagant cost of installation will hamper the demand for automotive telematics.
High maintenance cost of automotive telematics will restrain the market growth.
Lack of consumer awareness is estimated to pose a challenge for the growth of the market.

Competitive Landscape

The automotive telematics market in Asia Pacific is slightly fragmented with medium sized enterprises and presence of less number of regional players.

Leading players are increasingly investing in developing and launching innovative products and engaging in strategic collaborations, mergers, and partnerships to maintain their lead. For instance,

Ford launched a new connected uptime system named, FordLiive in March 2021, aiming to help the operators of Ford commercial vehicle to improve their productivity.
In 2021, General Motors and Qualcomm Technologies Inc. announced the partnership to deliver premium experiences for their upcoming vehicles. 
In October 2020, Airbiquity, launched a new a tool for managing and defining connected vehicle software named, OTAmatic vehicle configurator.

Leading players profiled by FMI operating in APAC automotive telematics market include:

Trimble Inc.
Visteon Corporation
Airbiquity Inc.
Aplicom OY
Scorpion Automotive Limited
iTriangle InfoTech Pvt. Ltd.
Shenzhen Concox Information & Technology Co. Ltd.
Minda Corporation Limited
iDem Telematics GmbH

More Insights on FMI’s APAC Automotive Telematics Market

The latest market study on APAC automotive telematics market by Future Market Insights gives a detailed segmentation for the forecast period of 2021-2031. In order to gain a better perspective of the global market potential, its growth, trends, and opportunities, the market is segmented on the basis of

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Vehicle Type


Aircraft Type


End Use


Channel Type



South Korea
Oceania (Australia and the Rest of Oceania)

Contact Info:
Name: Abhishek Budholiya
Email: Send Email
Organization: Future Market Insights

Release ID: 89030075

Name: Abhishek Budholiya
Email: Send Email
Organization: Future Market Insights