Global Auto Telematics Market to Grow at 18% Says New Report

A new research study on the global automotive telematics market anticipates that the sector will  grow at a CAGR of close to 18% during the period from 2018-2022. The growing popularity of application protocol interface (API) is a key trend, which is expected to impact the growth of the market.

According to the authors, Technavio, “Modern fleets are operated with more than one system, which requires information sharing across platforms. Modern vehicles store a large amount of data in the form of GPS location and vehicle diagnostics data. Integrating this data into software applications enabled by API can streamline the data collection process. Hence, API is gaining popularity in the automotive telematics market.”

The study notes that regulations play a critical part in the adoption of insurance in the automotive market. Regulations for mandatory motor insurance are increasing the adoption of UBI, which allows insurers to create a risk profile for individual customers based on real-time driving behavior tracked by the onboard unit. UBI benefits both insurers and drivers.

“Growing functions in the vehicle telematics system for tracking information for increased safety and control are pushing the adoption of embedded solutions in the telematics market. This will give UBI suppliers an opportunity to increase the usage of the system for broader functions, and hence, they will collaborate with other telematics function participants for data sharing. As a result, the automotive telematics market will benefit from the adoption of UBI,” says a senior analyst at Technavio for automotive components research.”

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