by Various factors like rising vehicle production and sales, improving connectivity infrastructure, growing demand for enhanced safety, security and comfort features are driving the adoption of telematics solutions in automobiles across APAC countries. In this article, we will explore some of the key emerging trends and opportunities in the APAC automotive telematics space.
Rise of Connected Cars
One of the biggest trends impacting the APAC automotive telematics m is the rise of connected cars. As per various estimates, the proportion of connected cars on roads in the Asia Pacific region is projected to grow from around 15-20% currently to over 50% by 2025. Leading automobile manufacturers are rapidly embedding connectivity capabilities in new models to offer enhanced in-vehicle experience to drivers and passengers. Features like onboard wi-fi hotspots, advanced infotainment systems, remote vehicle diagnostics, and usage-based insurance are gaining popularity. This is positively boosting the demand for telematics control units (TCUs), telematics services, and telematics software across APAC nations.
Growing Adoption of Autonomous Driving Technologies
Another trend with far reaching implications is the growing research and development in autonomous vehicle technologies. While fully autonomous cars are still some time away, semi-autonomous features like adaptive cruise control, lane keeping assist, automatic braking are being adopted more swiftly. The testing and adoption of higher levels of autonomous driving, mainly for commercial applications, is boosting the prospects of advanced telematics solutions. Transportation and logistics companies are incorporating telematics to remotely monitor fleet performance, driver behavior, fuel consumption, route deviation and enable remote assistance. This offers huge opportunities for telematics vendors to tap into the commercial vehicles segment.
Rise of Shared Mobility and Emerging Business Models
Ride-sharing services are revolutionizing the transportation landscape in Asia Pacific region. Services like Uber, Grab and Ola have taken urban mobility by storm. Telematics can play a big role in managing shared vehicle fleets and optimizing operational efficiency. It provides tools to track vehicle locations, monitor driver and vehicle performance, manage bookings and payments. Moreover, emerging business models like usage-based insurance and subscription-based vehicle access made possible by telematics and connectivity are disrupting the industry. This is leading to new revenue streams for automakers. Overall, the rapid growth of the shared mobility economy presents a massive m for advanced telematics solutions.
Growing Role of Connected Services
To remain competitive, automakers are expanding beyond traditional vehicle sales into provision of connected services. Telematics enables them to offer value-added services like remote diagnostics, emergency calling, in-vehicle apps mplace, voice-commanded services, infotainment and more. It helps automakers strengthen their brand loyalty, generate new revenue streams through paid subscriptions. Connectivity makes it possible for car manufacturers to regularly update vehicle software over-the-air and roll-out new features. The growing digital lifestyles of customers are positively impacting the adoption of advanced in-car connected services in APAC countries. This presents a promising opportunity for telematics vendors.
Regulations Driving Safety and Compliance
Safety being a critical aspect, governments across Apac Automotive Telematics nations are coming up with new regulations to make motoring safer and reduce accidents. Enhanced crash notification, emergency calling, driver monitoring solutions are being mandated in many countries. Moreover, policies around efficiency, emission control and compliance are also on the rise. Telematics enables event data recording, driver behavior analysis and ensures operational compliance. Its usage is rising in fleet, commercial vehicle segments to meet regulatory norms. Stricter safety and compliance guidelines will compel more automakers and commercial fleet owners to deploy telematics solutions.
Rising Investment and Partnerships in the Region
Given the immense growth opportunities, investments in APAC automotive telematics space have been on the rise. Major global players have been partnering with or acquiring regional tech companies and startups to gain foothold in high growth ms. Even domestic giants and tech companies are ramping investments in connected vehicle technologies and 5G-assisted services. Furthermore, innovative business models centered around shared ownership, rental fleets, predictive maintenance through telematics are coming up. This has led to influx of risk capital boosting new product development. Growing private investments and openness to partnerships indicates a very promising future landscape for telematics in Asia Pacific region.
Challenges and Future Direction
While immense opportunities exist, there are challenges too. Lack of standardized platforms, interoperability issues, fragmented regulatory landscape across nations, and high costs of technologies are some inhibitors. However, the barriers are steadily getting addressed. As connectivity infrastructure gets stronger and 5G gets commercialized, it will augment the capabilities of advanced automotive applications. Adoption of open platforms, cloud-based solutions will facilitate seamless data exchange across borders. With rapidly declining costs of embedded technologies, telematics is expected to become mainstream in the coming 5-7 years. If the promising trends sustain, the Asia Pacific automotive telematics m will likely cross $50 Billion in revenues by 2030.
The automotive telematics industry is booming in Asia Pacific region riding on multiple secular trends. While issues persist, the opportunities outweigh challenges indicating a very bright future. Continuous technological progress, policy tailwinds and strong momentum of new business models will help realize the true potential of connected mobility in the region. With growing OEM initiatives and ecosystem partnerships, telematics promises to transform APAC automotive landscape and driving experience in the coming decade.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
