OBD Telematics Market Size, Share, Growth, and Industry Analysis by Type (SIM Card Type, Wifi Type and Others) By Application (Repair Technicians, State Agencies, Vehicle Owners, Vehicle and Engine Manufacturers and Others), Regional Insights, and Forecast To 2031

Updated On: 08 April 2024

OBD Telematics Market Report Overview

• 
• Request Free Sample PDF to learn more about this report

The global OBD telematics market size was USD 1876.3 million in 2021 and is expected to be USD 4662.88 million in 2031, exhibiting a CAGR of 9.5% during the forecast period.

One of the biggest developments in the automobile sector is OBD Telematics. It enables automobile owners to keep an eye on and assess the operation of their vehicle, identifying faults or possible engine troubles before they escalate into more serious problems. In order to increase fuel economy and lower maintenance costs for on-the-road vehicles, fleet management businesses, insurance companies, rental car companies, and others now have new prospects thanks to the telematics system's remote monitoring capability.

The need for telematics devices is rising in the automotive and insurance industries, which is fueling market expansion. This is explained by the fact that telematic devices improve premium pricing, improve how customers perceive a business, and fortify long-term connections via boosting communication. Additionally, the automotive industry's growing requirement for regulatory compliance and the insurance telematics industry's rapid use of Internet of Things (IoT) technology are significant aspects that significantly contribute to the worldwide OBD telematics market growth.

COVID-19 Impact: Pandemic-related Disruptions Impacted Market Dynamics

The global COVID-19 pandemic has been unprecedented and staggering, with OBD telematics market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 outbreak had a favourable effect on the telematics insurance sector. This is because telematics immediately responds to consumer demands for cheaper rates when vehicles are only partially used during the shutdown. Telematics further improves exact calculations and savings on vehicle insurance policies, allowing consumers to pay affordable rates while being more precise for insurance providers. As a result, amid the global health crisis, there has been a considerable surge in demand for insurance telematics.

Pay-as-you-drive (PAYD) methods are now preferred by insurers over traditional actuarial and underwriting models as a result of the COVID-19 epidemic. Additionally, the requirement for insurers to accurately construct premium plans, together with customers' growing adoption of digital technologies in the policy binding and claims process, are significant aspects that significantly contribute to the market growth. Insurance telematics collects, measures, and transmits a variety of data points in order to follow people's driving behaviour. It typically functions as a tiny GPS-based gadget installed inside a car that records locations and keeps track of several factors including speed, distance, and position. Insurers can also adopt usage-based insurance (UBI) systems and develop premium rates for auto insurance customers in accordance with tracking drivers' performance while using a vehicle.

LATEST TRENDS

"Rising Autonomous Vehicle Sales to Support Market Expansion"

The growth in vehicle sales and the number of drivers, safety concerns for telematics-equipped vehicles, technological advancements, and rising consumer desire for connected car experiences are the main factors driving the worldwide OBD telematics market size. The market's growth factor may be due to a number of factors, including a rising need for improved automotive connection and the entry of less well-established regional firms that are competing with international OEMs who have previously controlled this market size. Sales of vehicles and the number of drivers have increased. Increased automobile sales will result in greater market penetration in countries like China and India, which will greatly increase revenues.

Safety Issues With Telematics-Enabled Vehicles - OBD telematics is used to track a car's condition and even identify automotive problems. Higher adoption rates for vehicles using this technology would result from this. Technology Advances - Better analytical capabilities have been made possible by advances in sensors, IoT integration, cloud computing, and data analytics. These advancements will be reflected in new product features supplied by OEMs.

OBD Telematics Market Segmentation

• 
• Request Free Sample PDF to learn more about this report

• By Type

Depending on OBD telematics given are types: SIM card type, Wifi type and others. The SIM card type and Wifi type will capture the maximum market share through 2028.

• By Application

The market is divided in repair technicians, state agencies, vehicle owners, vehicle and engine manufacturers and others based on application. The global OBD telematics market players in cover segment like in repair technicians, state agencies and vehicle owners will dominate the market share during 2022-2028.

DRIVING FACTORS

"Government Measures To Increase The Deployment Of OBD Telematics Devices Are Driving Market Growth"

The worldwide on-board diagnostics telematics market is expanding as a result of government efforts that are promoting the deployment of OBD telematics systems. The use of telematics-based systems in automobiles is being encouraged by the governments of many nations due to the OBD telematics market growth in awareness about vehicle safety and the requirement for real-time monitoring of vehicles and driving habits. For instance, in 1996, the US required that all light-duty automobiles be equipped with OBD systems. Regional navigation systems, like the Indian Regional Navigation Satellite System (IRNSS) in India and BeiDou in China, are created in nations like China and India to enable telematics service providers.

"Technological Advancements And Increasing Adoption Of Online Solutions"

The use of online solutions and technical improvements are the two main reasons propelling the growth of the worldwide OBD telematics market. Consumers are now aware of the financial advantages of this technology. Additional factors that are anticipated to favourably affect market expansion include firms' increasing spending in R&D initiatives to launch novel products and the telecommunications sector's rapid development.

RESTRAINING FACTORS

"Rising Challenge Posed By Embedded Telematics to Limit Growth"

The expansion of the worldwide on-board diagnostics telematics industry is being hampered by the rising challenge posed by embedded telematics. Due to its linked surroundings, embedded connectivity's key benefit is the dependability of data. Consequently, it is anticipated that regulatory authorities would enact laws encouraging the installation of integrated telematics in the automobile sector. The worldwide connected automobile industry is expanding as a result of the BRIC nations' booming economies and consumers' increasing knowledge of in-car entertainment systems. To assure their availability and meet the rising demand, OEMs are adding these technologies to their entry-level and mid-level vehicles. Due to rising embedded telematics demand brought on by such causes, the forecasted development of the worldwide OBD telematics market size may be threatened.

OBD Telematics Market Regional Insights

• 
• Request Free Sample PDF to learn more about this report

"North America to Dominate owing to Rising Autonomous Car Development"

In terms of geographical markets, North America emerged as the one with the biggest revenue share for OBD telematics in 2020. Growing expenditures in R&D and technical improvements in the area are primarily responsible for the market's revenue growth in North America. Strict regulations, growing consumer needs, technological focus, innovation, industrial stability, and affordability will all significantly contribute to the expansion of on-board diagnostics telematics in this area throughout the course of the projection period.

Asia Pacific continues to dominate in terms of revenue CAGR due to the advent of electric cars and autonomous vehicle technologies. This is due to increased investment in 5G technology and the presence of well-known corporations in developing nations like China and India.

KEY INDUSTRY PLAYERS

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.

List of Market Players Profiled

• Continental
• Delphi
• Bosch
• LG
• Automatic
• Danlaw
• Mojio
• Zubie
• Dash
• Calamp
• Xirgo Technologies
• Geotab
• Freematics
• Launch
• Xtool
• Comit
• Carsmart
• Autonet
• Sinocastel
• DNA
• Ismartcar
• AutoBot
• JiangShengChang