Telematics Market Trends

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, Market Research Future 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.