Automotive telematics industry to reach 8.4% CAGR by 2026

Automotive telematics industry to reach 8.4% CAGR by 2026 | Insurance Business

Automotive telematics industry to reach 8.4% CAGR by 2026

The automotive telematics industry is expected to achieve a compound annual growth rate (CAGR) of 8.4% from 2018 to 2026, according to a study by Persistence Market Research.

Telematics is an important component of usage-based motor insurance policies, which monitor driving behaviour and other vehicle parameters from various on-board sensors, in order to determine premium pricing.

The study said that increased road and telecom infrastructure spending by governments, rising acceptance of technology, regulators pushing telematics, developments in connected car technology, and increasing car rental and ride-sharing activities will all contribute to the growth of the automotive telematics industry.

Asia-Pacific is predicted to be the fastest-growing market for telematics by 2020, with China and India taking the lead. Europe, followed by North America, will remain as the largest global market until 2026.

“Due to increasing awareness about the need to ensure the safety and security of a vehicle, automotive telematics manufacturers are highly focused on manufacturing high quality automotive telematics at a low cost,” the study said. “Furthermore, in North America and Europe, governments have taken initiatives to promote the installation of telematics. Increasing car rental and car sharing facilities are also projected to ramp up the global automotive telematics market over the slated time period.”