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Telematics is a combination of telecommunications and computers. Telematics devices are used to transmit large amount of information in vehicles. Consumer telematics devices have found increased application in the automotive industry due to growing innovation in this market. The consumer telematics industry has been segmented based on the various industries involved in the telematics market and the services which are offered by consumer telematics. The consumer telematics industry has also been segmented based on the different components that go into the manufacturing of a telematics device, the vehicle type in which the telematics device is used and the type of technology used in the telematics system. A geographical analysis has been done to analyse the global market scenario. The consumer telematics market is led by automotive giants Ford Motors (U.S), GM (U.S) and BMW (Germany) as well as Infotainment and automotive service companies Bosch AG (Germany), Delphi Automotive (U.K) and Harman International Industries (U.S).

The IndustryARC report on the consumer telematics has estimated the revenue of $51.5 billion in 2014. This market is estimated to grow at a high rate of 20.8% by 2020.

The Consumer telematics market has been segmented based on geography in order to put things in perspective on the global stage. The Americas is currently the biggest market in 2014 followed by Europe. However, APAC region is poised to grow at the highest CAGR and is projected to surpass American market size by 2017. The significant growth in APAC region is due to increased awareness related to the telematics service.

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The consumer telematics market can be segmented into integrated, embedded, and tethered telematics markets based on technology. Embedded telematics is the largest market with a market share of 45% in 2013. Integrated Telematics is forecast to exhibit the fastest growth, according to the report by IndustryARC, due to the advent of smartphones and customer preference for these devices. The smartphone market is projected to grow from 700 million units in 2012 to 2400 million units in 2018. This growth will propel the integrated telematics market.

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The automobile market has shown signs of recovery in 2013 and the market is projected to grow for the next few years. As a result, telematics services and products will have a bigger potential market. The electric vehicles market is set to drive the adoption of telematics due to the presence of inbuilt telematics services. The projected growth of this market is set to propel sales of telematics devices as customer demand is driven by growing awareness.

The increased customer demand for automated vehicles is a major cause of the growth in this market. The demand for driver assistance and emergency notification has led to improved growth in the telematics market. The increased demand for safety services is to forecast the drive of the consumer telematics market leading to growing adoption of emergency notification services. The Governmental regulations in Europe make emergency notification systems compulsory in vehicles by 2015. This has led to a major surge in the emergency notification market.

The top 5 companies in terms of revenue in the telematics market are General Motors, BMW, Ford, Harman and Delphi accounting for 56% of the total market. The highly differentiated products offered by the companies have resulted in a highly competitive market scenario. Thus, the telematics companies have looked to acquisitions and agreements as the key strategies for growth. Acquisitions have been completed in order to enter related markets and expansion in fast growing segments.

The growing demand for connected vehicles has led to increased installation of telematics products in vehicles. Thus, the future of the telematics market looks extremely bright and stable, and is forecasted to be a good segment for future investments.

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IndustryARC is a research and consulting firm that publishes more than 20 reports every month in various industries, such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food & Beverages, Information Technology, Life sciences & Healthcare. Contact us to find out how we can help you today!

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Electric Power Steering (EPS) systems assist drivers by improvingthe turning power of the steering wheel. EPS systems provide increased steering capabilities with less effort. EPS systems improve the driving experience as well as the fuel efficiency thus the customer demand is increasing. Power steering has been segmented based on type of technology used into the Electric Powered Hydraulic Steering (EPHS), Hydraulic Power Assisted Steering (HPAS) and Electric Power Assisted Steering (EPAS). Electric power assisted steering is further divided into column drive, rack drive, direct drive, pinion assist, and dual point pinion steering systems. 

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