Telematics Market Summary
As per MRFR Analysis, the Telematics Market was valued at USD 129,177.36 Million in 2024 and is projected to grow to USD 681,824.2 Million by 2035, with a CAGR of 14.5% from 2025 to 2035. The growth is driven by rising demand for fleet management solutions and a focus on vehicle safety. Telematics enhances urban transport by providing insights into traffic flow, driving behavior, and emissions, contributing to safer and more sustainable transportation systems.
📌 Key Market Trends & Highlights
Key trends shaping the Telematics Market include advancements in connectivity and increasing regulatory requirements.
- Telematics in insurance is gaining traction, with personalized policies based on driving behavior.
- The North America telematics market is among the fastest growing, supported by government initiatives and investments.
- Asia-Pacific is witnessing strong growth due to increasing vehicle ownership and smart city projects.
- The commercial vehicle segment is expanding, driven by digitalization in fleet management and urban logistics.
📊 Market Size & Forecast
2024 Market Size: USD 129,177.36 Million
2035 Market Size: USD 681,824.2 Million
CAGR (2025-2035): 14.5%
Largest Regional Market Share in 2024: North America.
🏢 Major Players
Key players include Oracle, Verizon, Harman International, TomTom International BV, AT&T, Vodafone Group PLC, Ford Motor Company, Telefónica S.A, PowerFleet, Geotab Inc, NXP Semiconductors.
As per Analyst at MRFR, “The transport sector contributes approximately one quarter of all energy related to greenhouse gas (GHG) emissions. Globally, road traffic collisions result in the deaths of approximately 1.35 million people and serious injuries to 50 million annually, making road traffic injuries a major public health concern. Vehicle telematics contributes to safer, cleaner and more sustainable urban transport. Vehicle telematics can be used to estimate transport variables, such as traffic flow speed, driving characteristics, fuel consumption and exhaustive and non-exhaustive emissions.”
FIGURE 1: TELEMATICS MARKET VALUE (2019-2035) USD Million
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Telematics Market Opportunity
USAGE-BASED INSURANCE (UBI)
One of the most popular technologies utilized by auto insurers is telematics in insurance industry. It collects drivers’ driving information and builds a profile based on their habits. It is a crucial step because it aids in creating a personalized auto insurance policy and determines the cost. The expense of coverage may not be incurred by the car owners, who only pay the premium set forth for their specific policy ,In this, driver’s behaviour is monitored via a telematics device. Generally, while most car insurers rely on data such as credit ratings, age, gender and type of vehicle to evaluate risks, they cannot accurately determine the driving behaviour, check vehicle dynamics, or prevent mishaps.
Technologies such as telematics, on-board diagnostic (OBD) devices, and adaptive cruise control (ACC) fill this void by monitoring vehicles in real-time through the use of sensors. These sensors send signals about drivers and their surroundings, which can help car insurance companies assess risks better. For example, insurers can analyse real-time driving data to determine fair insurance rates, develop tailored products, personalise / incentivise road safety programs, and even provide driving assistance to prevent accidents.
Telematics Market Segment Insights
Telematics Component Insights
Based on Component, the Telematics Market is bifurcated into Hardware, Software, Services. The hardware segment is further divided into GPS Tracking Devices, Sensors & Actuators, Communication Modules, Others. The software segment is sub segmented into Fleet Management Software, Navigation & Mapping Solutions, Telematics Data Analytics. The services segment is bifurcated based on Consulting & Integration, Maintenance & Support. The segment is further divided into GPS Tracking Devices, Sensors & Actuators, Communication Modules, Others. A full telematics system consists of a set of hardware devices that must be carefully integrated into one another so that there can be uninterrupted, reliable, and precise data delivery.
The main part of the system is the Telematics Control Unit (TCU), or the system brain, which retrieves data from sources and transmits it using embedded cellular modems (4G/5G/LTE) and at times Wi-Fi or Bluetooth technology. Precise vehicle location is managed by a special GPS/GNSS chipset and antenna, critical for monitoring routes, distances, and driver behavior. It taps into the vehicle's OBD-II port or CAN bus for monitoring diagnostics and performance data, and external sensors such as fuel level, temperature, and accelerometers add data depth. Dashcams enable visual monitoring for safety and compliance.
FIGURE 2: TELEMATICS MARKET SHARE BY TYPE 2024 and 2035 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Telematics Connectivity Insights
Based on Connectivity Type, the Telematics Market is divided into Satellite-Based Telematics, Cellular Network-Based Telematics, Bluetooth & Wi-Fi-Based Telematics This type of connectivity is optimum for distant places, over oceans, deserts, or countryside. Rather than using cellular towers, vehicle or equipment data is transmitted through satellite to ground stations and subsequently to telematics solutions. The main benefits are global reach, real-time monitoring in harsh environments, and continuous data stream for location tracking, vehicle condition, driver behavior, and cargo status. Satellite-based telematics systems are usually embedded with GPS/GNSS modules and high-strength telematics control units (TCUs) for providing very reliable tracking. An everyday example of satellite-based telematics is GPS tracking systems being used by logistics companies to track their fleets and streamline routes and delivery schedules.
Telematics vehicle Insights
Based on Vehicle Type, the Telematics Market is divided into Passenger Vehicles, Commercial Vehicles, Off-Highway Vehicles. With regulations in several regions mandating safety telematics and growing popularity of connected car platforms, the market for passenger vehicle telematics is projected to witness strong growth. Telematics adoption in passenger vehicles has grown rapidly, driven by increasing consumer demand for in-car connectivity, navigation, safety features, and infotainment. Smart connected vehicle features have added up to the rapid adoption of passenger vehicles and telematics systems. Key features in high demand include built-in navigation and real-time traffic updates, remote vehicle diagnostics, intelligent personal assistants, over the air updates etc.
The market for commercial vehicle telematics is expected into witness growth with growing digitalization in fleet management. Demand is fueled by growing urban delivery volumes, sustainability objectives, and the requirement for real-time tracking and analytics. Light Commercial Vehicles (LCVs) like vans and small trucks are significant contributors to urban logistics and last-mile delivery. The use of telematics in LCVs is increasing, providing route optimization, driver monitoring, and monitoring of cargo condition. Heavy Commercial Vehicles (HCVs), such as heavy trucks and trailers, rely considerably on telematics for long-distance logistics, cross-border shipping, and cargo safety. Such systems aid in fuel efficiency management, load management, and regulatory compliance. With the rise of fleet management smart solutions and e-commerce the commercial vehicle market segment holds significant share.
Telematics Application Insights
Based on Application, the Telematics Market is divided into Fleet Management, Vehicle Tracking & Monitoring, Driver Behavior Analysis, Predictive Maintenance, Infotainment & Navigation, Insurance Telematics (Usage-Based Insurance), Emergency & Roadside Assistance and Others. Fleets of all sizes and business types use telematics software, from small businesses to large corporations like courier and delivery companies, trucking and transportation logistics, construction businesses, car and rental companies and others. Telematics enhances fleet management software by providing real-time data on vehicle location, speed, fuel consumption, driver behavior, and engine diagnostics. This continuous stream of insights allows fleet managers to optimize routes, reduce fuel costs, schedule predictive maintenance, improve driver safety, and ensure regulatory compliance. By integrating telematics with other systems like dispatching, CRM, and onboard cameras, fleets gain greater efficiency, visibility, and control over operations. Vehicle tracking and monitoring through telematics enables real-time visibility into fleet operations by combining GPS tracking with onboard sensors and data analytics. This technology allows to continuously monitor vehicle location, speed, fuel consumption, engine performance, and driver behavior. By providing instant alerts for route deviations, excessive idling, harsh braking, or maintenance needs, telematics-based tracking improves operational efficiency, reduces fuel costs, enhances driver safety, and helps ensure regulatory compliance..
Telematics Regional Insights
Based on Region, the global Telematics is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America telematics market is among the most developed and fastest growing, fueled by robust government initiatives, high private investments, and emphasis on road safety, environmental laws, and intelligent mobility. Government regulations such as the Federal Motor Carrier Safety Administration's (FMCSA) ELD (Electronic Logging Device) rule for commercial trucks and programs encouraging vehicle-to-everything (V2X) communication and intelligent transportation infrastructure have boosted telematics adoption. The U.S. and Canada are heavily investing in intelligent transportation systems (ITS) and 5G infrastructure, further facilitating the use of real-time telematics data. Major players in the region are Geotab, Verizon Connect, Trimble, Omnitracs, Lytx, and Samsara, as well as the large OEMs such as Ford, GM, and Tesla, all incorporating telematics into their vehicle offerings.
In August 2024, the U.S. Department of Transportation (USDOT) released the National Deployment Plan for Vehicle-to-Everything (V2X) Technologies, aimed at reducing deaths and serious injuries on America’s roadways through advanced connected vehicle communication. As part of this initiative, the Federal Highway Administration (FHWA) announced nearly $60 million in grants to support the deployment of V2X technologies, accelerating research, investment, and widespread adoption of secure, interoperable connected systems across the U.S. Additionally, the U.S. Department of Transportation (USDOT) invested $100 million into smart city and vehicle-to-infrastructure (V2I) projects through the Smart City Challenge and ITS programs, encouraging telematics adoption for urban mobility and traffic management.
EU countries, industry and the Commission collaborate to achieve the EU's ambitious vision for connected and automated mobility across the EU, taking into consideration public authorities, citizens, cities and industry interests. In 2020 ,the EU announced to fund 11 new technology and trial projects to enable 5G ecosystems in Europe. These include eight new projects that aim to build a first-class European supply chain for 5G hardware. In addition, three new projects will provide applications in cross-border connected and automated mobility. The cross-border projects will provide 5G connectivity and pave the way for autonomous driving on main road, train and maritime routes. Additionally, in 2023, a new Directive (Directive (EU) 2023/2661 ) amending the ITS Directive was adopted on 22 November 2023, with the aim to adapt to the emergence of new road mobility options, mobility apps and connected and automated mobility. Telematics systems are becoming foundational in developing intelligent and efficient transportation frameworks, offering benefits such as enhanced vehicle tracking, improved fleet management, and increased safety measures. The key players in the European telematics market include global and regional leaders such as Geotab, Verizon Connect, and Webfleet Solutions (formerly TomTom Telematics), offering advanced fleet management and connectivity solutions.
The Asia-Pacific telematics market is registering strong growth on account of increasing vehicle ownership, smart city projects, and robust government backing for connected mobility solutions. China, Japan, India, and South Korea are at the forefront of the drive with large-scale investments in smart transport, 5G infrastructure, and integration of IoT. In China, the Intelligent Connected Vehicle (ICV) development roadmap has been initiated by the government with huge investment to foster autonomous driving and intelligent transportation corridors. Japan's Society 5.0 strategy highlights connected mobility as a component of its vision for the future society, with government-sponsored initiatives in V2X communication and autonomous vehicle testing. India has made AIS-140 standards compulsory for vehicle tracking and emergency response systems in public transport, as well as the implementation of FASTag for hassle-free toll payment and vehicle tracking. The Bidirectional Roadmap is the latest in a series of Australian-first studies and projects initiated by ARENA since 2019. This included ARENA's first V2X strategy, which committed to developing a national V2X market activation strategy, in partnership with wider government, industry and academic institutions.
South Korea, too, is developing smart road infrastructure and connected car test beds. All this government activity is backed by public-private tie-ups and massive investments by telecom and auto industries. The Asia-Pacific market for telematics is impacted by swift digitalization, emerging need for fleet management and vehicle data in real-time, improved emphasis on safety on the road, and policies encouraging environmentally sound driving habits. Some of the key players in the region are Bosch, Panasonic and Denso and multinationals such as Geotab, Trimble, Continental, and Bosch, who are all growing their presence and partnerships throughout Asia-Pacific to capture the rapidly expanding demand for telematics-enabled services.
The South American telematics market is advancing steadily with accelerating adoption of fleet management solutions, government mandates related to vehicle tracking, and road safety and logistics efficiency efforts. Brazil, Argentina, and Chile government initiatives are implementing vehicle monitoring systems in public transit and commercial vehicles to reduce theft, enhance driving habits, and maximize fuel utilization. The government of Brazil, for instance, has laws mandating electronic logging devices (ELDs) and GPS monitoring of heavy-duty trucks. Collaboration among telecom players and automakers is driving the expansion of connected offerings. Increasing e-commerce and regional cross-border commerce are also placing demands on next-generation telematics solutions in the region. Major players in the South American telematics market are Mix Telematics, Geotab, Trimble, Localiza Fleet Solutions, Sascar (Michelin), and with strong regional telecom players and logistics players investing in connected vehicle technologies. Chile's National Electromobility Strategy, initiated in 2021, is a central component of the country's efforts towards carbon neutrality by 2050, emphasizing the revolutionizing of transport through robust regulations and incentives. In total, government agendas throughout South America revolve around lowering the rate of cargo theft, streamlining transport efficiency, minimizing CO2 emissions, and achieving regulatory requirements, with increasing budgets spent on smart mobility, connected infrastructure, and digital enforcement systems.
The Middle East and Africa (MEA) telematics market is steadily expanding, driven by growing urbanization, the need for efficient fleet management, and increasing government initiatives around smart transportation and road safety. Governments in the Middle East, particularly in the UAE and Saudi Arabia, are investing heavily in smart city projects like Dubai Smart City and Saudi Vision 2030, both of which emphasize connected mobility, intelligent traffic management, and real-time vehicle tracking systems. The UAE has mandated telematics for logistics and heavy vehicles to monitor driver behavior and reduce accidents, while Saudi Arabia’s Public Transport Authority requires telematics devices in buses and trucks for compliance and safety monitoring.
In recent years, the automotive landscape in South Africa has witnessed a notable surge in the adoption of connected car technologies. Connected cars, equipped with internet connectivity and a suite of sensors, offer a range of features that go beyond traditional transportation. These features include real-time navigation, vehicle diagnostics, predictive maintenance, and even entertainment options for passengers. In Africa, countries like South Africa are leading with government support for advanced fleet tracking and road safety programs, with investment in GPS-based solutions and integration of telematics in insurance and logistics sectors. In the urban centers of Johannesburg, Cape Town, and Durban, connected cars are proving to be invaluable in addressing the challenges of traffic congestion and navigation.
FIGURE 3: TELEMATICS MARKET VALUE BY REGION 2024 and 2035 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Telematics Market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.
Telematics Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Telematics market grow even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Telematics industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
In the competitive Telematics industry, companies are driving innovation by developing integrated Telematics solutions with strong compatibility and scalable connectivity options. According to MRFR analysis, the key players in the Telematics sector include Oracle, VERIZON, HARMAN INTERNATIONAL , TOMTOM INTERNATIONAL BV, AT&T, VODAFONE GROUP PLC, FORD MOTOR COMPANY, TELEFÓNICA S.A, POWERFLEET, GEOTAB INC, NXP SEMICONDUCTORS
These companies continue to shape the market by innovating and expanding their Offering Type which include Product and Services. Established companies like Oracle , International Business Machines Corporation and others have significant competitive advantages due to their strong brand recognition, extensive distribution networks, and substantial investments in technology and innovation.
Geotab’s growth strategy focuses on expanding its presence in the Telematics Market by enhancing data-driven fleet management solutions, strengthening its open-platform ecosystem, and increasing adoption in key industries. The company leverages artificial intelligence and advanced analytics to provide actionable insights, helping fleets optimize performance, improve safety, and ensure regulatory compliance. By continuously developing its hardware and software solutions, such as the Geotab GO device and MyGeotab platform, the company aims to meet the evolving demands of commercial and government fleets.
A key component of Geotab’s growth strategy is its focus on electric vehicle (EV) fleet management. As the transportation sector transitions to electrification, the company provides EV fleet optimization tools, charging infrastructure insights, and sustainability metrics to help businesses reduce carbon footprints. Additionally, Geotab is expanding its partnerships with OEMs, software developers, and third-party service providers to integrate new technologies into its marketplace.
In the broader telematics market, increasing regulatory requirements for fleet tracking, compliance, and safety are driving demand for advanced telematics solutions. Geotab is capitalizing on this trend by investing in cybersecurity, data privacy, and predictive analytics. The company’s expansion into emerging markets and smart city initiatives further supports its long-term growth in connected mobility solutions.
Key Companies in the Telematics Market include
- Verizon
- Harman International
- Tomtom International Bv
- At&T
- Vodafone Group Plc
- Ford Motor Company
- Telefónica S.A
- Powerfleet
- Geotab Inc
- Nxp Semiconductors
Telematics Market Industry Developments
November 2024 : NXP has introduced the i.MX 94 applications processor, a next-generation telematics and connectivity solution for software-defined vehicles (SDVs). It integrates high-performance processing, advanced security, and real-time networking, enabling efficient vehicle-to-cloud communication, over-the-air (OTA) updates, and intelligent telematics management while reducing system complexity and cost.
June 2023 : Verizon Business launched Connected Car by Verizon for select BMW models in the U.S., offering voice, data, and unlimited Wi-Fi for $20/month. Features include Multi-Vehicle Connect for personalized settings across multiple BMWs and Number Share – Vehicle for seamless calling via BMW eSIM, enhancing in-car connectivity and infotainment.
Telematics Market Segmentation
Telematics Component Outlook
- Hardware
- GPS Tracking Devices
- Sensors & Actuators
- Communication Modules
- Others
- Software
- Fleet Management Software
- Navigation & Mapping Solutions
- Telematics Data Analytics
- Services
- Consulting & Integration
- Maintenance & Support
Telematics Connectivity Type Outlook
- Satellite-Based Telematics
- Cellular Network-Based Telematics
- Bluetooth & Wi-Fi-Based Telematics
- Telematics Vehicle Type Outlook
- Passenger Vehicles
- Commercial Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Off-Highway Vehicles
Telematics Application Outlook
- Fleet Management
- Vehicle Tracking & Monitoring
- Driver Behavior Analysis
- Predictive Maintenance
- Infotainment & Navigation
- Insurance Telematics (Usage-Based Insurance)
- Emergency & Roadside Assistance
- Others
Telematics Regional Outlook
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North America
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Europe
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Germany
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France
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UK
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Rest of Asia-Pacific
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Middle East & Africa
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Report Attribute/Metric
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Details
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Market Size 2024
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USD 1,29,177.36 million
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Market Size 2025
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USD 1,75,293.67 million
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Market Size 2035
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USD 6,81,824.2 million
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Compound Annual Growth Rate (CAGR)
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14.5 % (2025-2035)
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Base Year
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2024
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Forecast Period
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2025-2035
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Historical Data
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2019-2023
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Forecast Units
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Value (USD Million)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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Component , Connectivity Type , Vehicle, Application and Region
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Geographies Covered
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North America, Europe, Asia Pacific, Middle East & Africa, and South America
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Countries Covered
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The U.S, Canada, Mexico, Germany, France, UK, China, Japan, India, Australia, South Korea, UAE, and Brazil
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Key Companies Profiled
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· VERIZON· HARMAN INTERNATIONAL· TOMTOM INTERNATIONAL BV· AT&T· VODAFONE GROUP PLC· FORD MOTOR COMPANY· TELEFÓNICA S.A· POWERFLEET· GEOTAB INC· NXP SEMICONDUCTORS |
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Key Market Opportunities
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· USAGE-BASED INSURANCE (UBI)
· ROLE OF TELEMATICS IN ENABLING GNSS-BASED TOLLING SOLUTIONS
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Key Market Dynamics
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· RISING DEMAND FOR FLEET MANAGEMENT SOLUTIONS
· GROWING FOCUS ON VEHICLE SAFETY AND REGULATIONS
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Telematics Market Highlights:
Frequently Asked Questions (FAQ) :
USD 129,177.36 Million in 2024
VERIZON, HARMAN INTERNATIONAL , TOMTOM INTERNATIONAL BV, AT&T, VODAFONE GROUP PLC, FORD MOTOR COMPANY, TELEFÓNICA S.A, POWERFLEET, GEOTAB INC, NXP SEMICONDUCTORS and others .
The Services dominated the market in 2024.
