The integration of telecommunications and information processing system with automobiles, which includes the emergency warning system for vehicles, GPS navigation, integrated hands-free cellphones, wireless safety communications, and automatic driving assistance systems are all covered under the scope of telematics.
The segment is primarily driven by the technological improvements aimed at enhancing the overall in-vehicle experience of passengers and also bringing about a greater degree of interactivity within and among the vehicles. In addition, the segment is also driven by strict safety norms, increased safety awareness, and affordability to adopt telematics system. Telematics comprise electronic, electromechanical, and electromagnetic devices — usually silicon micromachined components operating in conjunction with computer controlled devices and radio transceivers to provide precision repeatability functions.
The segment is categorized on the basis of services offered like that of safety, information and navigation, fleet management, entertainment, and remote diagnostics. Safety constitutes the major segment in the service offered by automotive telematics. Wireless vehicle safety communications telematics majorly aid in car safety and road safety. The electronic sub-system in a car or another vehicle is used for the purpose of exchanging safety information about road hazards, the locations, and speeds of vehicles. In addition to wireless local area networks, emergency warning systems for vehicles telematics are developed like collision warning for international harmonization and standardization of vehicle-to-vehicle, infrastructure-to-vehicle, and vehicle-to-infrastructure to provide real-time Short Range Communication systems. Information from telematics is also extensively used in Car sharing and also for Auto insurance purposes.The technology is witnessing an increase in collaboration of the automotive telematics and the automobile insurance industry that is boosting growth. The segment is also categorized by the type of telematics in the automotive industry. Embedded telematics system market is the leader in the type of automotive telematics services, followed by Tethered and Integrated Telematics Systems.
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The use of automotive telematics in the EVs is also expected to propel the segment growth in the coming years. The leading vendors are looking to leverage on the opportunity presented by the introduction of electric vehicles (EVs) in the market. Aguero, Aribiquity, Continental, Visteon, Verizon are some of the leaders in the automotive telematics segment.
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