OBD Telematics Market Forecast 2023 - 2030
Report ID : CBI_1085 |
| Published Date:
| Format :
| Base Year: | 2022 |
|---|---|
| CAGR: | 9.1% |
| Forecast Year: | 2023 - 2030 |
| Revenue 2022: | $2,409.98 Mn |
| Revenue 2030: | $4,813.72 Mn |
OBD Telematics Market Forecast 2023 - 2030
Market Overview :
OBD Telematics Market is estimated to reach over USD 4,813.72 Million by 2030 from a value of USD 2,409.98 Million in 2022, growing at a CAGR of 9.1% from 2023 to 2030.
Market Definition :
OBD Telematics (On-Board Diagnostics Telematics) refers to the combination of vehicle diagnostics and telematics technology. Telematics is a modern system that combines telecommunications and informatics to manage data remotely over long distances. Vehicle telematics employs technology such as GPS sensors and onboard diagnostic codes to acquire driver behavior, fleet data, engine diagnostics, location and activity. OBD telematics involves using an OBD-II (On-Board Diagnostics-II) scanner that connects to the OBD-II port in a vehicle. The vehicle-related data is then collected and transmitted wirelessly to a server or a cloud-based platform. Telematics analyzes the collected data and provides the necessary information to the driver.
Market Dynamics :
Drivers :
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Growing demand for connectivity to gather real-time data is driving the market growth
The growing demand for connected vehicles due to the integration of telematics systems into vehicle designs has contributed to the expansion of the OBD telematics market. Modern vehicles are equipped with built-in OBD-II ports and allow fleet management software to connect and receive live vehicle data. Consequently, OBD telematics captures information such as location, speed, and real-time location of the vehicles. Moreover, OBD telematics provide navigation assistance to guide drivers to reach their locations. For instance, in November 2022, ATrack Technology Inc. launched 4G fleet management products called AX300 OBD tracker and AK500 telematics gateway to improve management efficiency and reduce operating costs. Therefore, OBD telematics play a crucial role in gathering vehicle-related information, resulting in market growth.
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Increasing government regulations for fleet management is propelling the market growth
Government regulations and standards related to vehicle emissions, safety, and efficiency have played a significant role in driving the adoption of OBD telematics. Many countries have implemented regulations that mandate the use of OBD systems in vehicles, creating a market demand for OBD telematics solutions. The integration of OBD telematics in vehicle allow governments to improve their transportation systems by analyzing vehicle-generated data. For instance, in June 2022, The U.S. General Services Administration Fleet team activated approximately 19,000 new telematics devices to receive, send, and store data connected with fleet vehicles. Therefore, the application of telematics to determine the operational efficiency of a variety of vehicles is accelerating the growth of the market.
Restraint :
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Data privacy and security concerns associated with OBD telematics is hindering the market growth
The collection and transmission of vehicle-generated data raises concerns about privacy and security of data. OBD telematics systems gather sensitive information, including vehicle location, driving behavior, and diagnostics. The information is used by the insurance companies, mechanics, and other authorities that raises data privacy concerns among consumers. Therefore, the security concerns associated with OBD telematics is hindering the market growth.
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Connectivity limitations of OBD telematics is hampering the market growth
OBD telematics systems rely on reliable and continuous connectivity to transmit data. However, in remote areas or regions with poor network coverage, connectivity limitations impact the effectiveness of real-time data monitoring and communication with the telematics platform. Thus, the increased dependence of OBD telematics on constant network connectivity for efficient operations is restraining the market growth.
Opportunities :
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Integration of OBD telematics in electric vehicles to monitor real-time data
The integration of OBD telematics in electric vehicles is expected to create growth opportunities for the OBD telematics market during the forecast period. OBD telematics provide real-time data on battery health, charging status, range estimation, and energy efficiency, thereby allowing EV owners to optimize their driving and charging patterns. For instance, in August 2022, Lightning eMotors launched Lightning Insights for monitoring and managing lightning fleet assets in electric vehicles. Therefore, the incorporation of telematics in electric vehicles to monitor and manage EV-specific data is expected to drive the market growth during the forecast period.
OBD Telematics Market Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 4,813.72 Million |
| CAGR (2023-2030) | 9.1% |
| By Product Type | SIM Card, Wi-Fi, and Others |
| By Application | Repair Technicians, State Agencies, Vehicle Owners, Vehicle and Engine Manufacturers, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Key Players | BorgWarner Inc., Continental AG, Bosch Automotive Service Solutions Inc., LG Electronics, Geotab Inc., Danlaw, Inc., CalAmp, Xirgo Technologies, Mojio, Autonet |
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Download Sample ReportMarket Segmentation :
By Product Type :
Based on the product type, the market is bifurcated into SIM card, Wi-Fi, and others. SIM card segment accounted for the largest revenue share of 67.65% in the year 2022. SIM cards are widely utilized by vehicle manufacturers to establish a cellular connection for data transmission. SIM cards are installed as a part of infotainment system that provides advanced features such as telematics systems, in-car navigation, and GPS tracking systems. As a result, SIM card-based connectivity offers broad coverage and reliable connectivity, allowing real-time data monitoring and communication with the telematics platform.
The Wi-Fi segment is expected to witness fastest CAGR growth during the forecast period. OBD telematics devices utilize Wi-Fi technology to establish a wireless connection between devices. Wi-Fi-based connectivity is useful for applications where personal data access and transfer are prioritized, such as in-vehicle entertainment, passenger connectivity, or vehicle diagnostics for personal use. For instance, in January 2021, Geotab Inc. launched GO9+ telematics solution featuring W-Fi connectivity to provide improved acceleration tracking and GPS tracking. Moreover, the ability of Wi-Fi-based OBD telematics to transfer data between connected devices such as smartphones, tablets, and other onboard systems is accelerating the growth of the market.
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Download Sample ReportBy Application :
Based on the application, the market is separated into repair technicians, state agencies, vehicle owners, vehicle and engine manufacturers, and others. The repair technicians segment accounted for the largest revenue share in the year 2022. OBD telematics devices provide valuable information to repair technicians, enabling them to diagnose vehicle issues accurately and efficiently. OBD telematics assists technicians in identifying faults in vehicles by monitoring vehicle performance parameters. Consequently, the increasing adoption of OBD telematics by repair technicians and service centers to detect faults in vehicles is driving the growth of the market.
The state agencies segment is anticipated to witness fastest CAGR growth during the forecast period. OBD telematics helps state agencies to track emissions from vehicles and identify vehicles that require inspection or maintenance. OBD telematics improves air quality by identifying cars and trucks with high emissions that require repair and maintenance. Thus, OBD telematics allow state agencies to enforce environmental regulations, thereby contributing to the growth of the market.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regional Growth Insights
Download Sample ReportNorth America accounted for the largest revenue share in the year 2022. The early adoption of advanced technologies including OBD telematics, data analytics, and connectivity services to monitor the data generated by vehicles is driving the growth of the market. OBD telematics provide real-time information of various parameters such as driver behavior, fleet data, engine diagnostics, location, and activity of the vehicle. For instance, in August 2020, Teletrac Navman US Ltd. launched next generation AI-Based Real-time, predictive telematics solution called TN360 allowing businesses to improve efficiency of logistic workflows, driver behavior, compliance and fuel management processes. Moreover, increasing environmental regulations by the state agencies to improve air quality is driving the demand for OBD telematics solutions to monitor various parameters such as emissions from the vehicle.
The Asia-Pacific region accounted for a revenue share of USD 709.74 million in 2022 and is expected to reach USD 1,239.09 million in 2030, registering a CAGR of 9.3% during the forecast period. Additionally, in the region, Japan accounted for the largest revenue share of 24.6% in the year 2022. The growing automotive industry in the Asia-Pacific is driving the demand for OBD telematics solutions in the region. Consumers are increasingly adopting vehicles for in-vehicle entertainment and data transfer applications. Moreover, the presence of key players such as Honda, LG Electronics, and Queclink Wireless Solutions Co., Ltd. in the region is accelerating the growth of the market.
Details Countries Growth Insights
Download Sample ReportOBD Telematics Market Competitive Landscape:
The OBD Telematics market is characterized by the presence of major players providing OBD telematics solutions for the domestic and international markets. Key players are adopting various business strategies such as product innovation, research and development (R&D), and application launches that accelerate the growth of the OBD telematics market. Key players in the market include-
- BorgWarner Inc.
- Continental AG
- LG Electronics
- Geotab Inc.
- Danlaw, Inc.
- CalAmp
- Xirgo Technologies
- Mojio
- Queclink Wireless Solutions Co., Ltd.
- Bosch Automotive Service Solutions Inc.
Recent Developments :
- In February 2023, Cummins Group collaborated with Automotive Research Association of India to perform Bharat Stage-VI OBD-II emission standard compliance certification tests.
- In March 2023, Honda launched OBD2 compliant Activa125 featuring Enhanced Smart Power (eSP) to optimize energy output by the vehicle.
Frequently Asked Question
What is OBD Telematics?+
OBD Telematics is a system that combines telecommunications and informatics to manage vehicle-generated data remotely over long distances. OBD Telematics provides information based on vehicle speed, mileage, and emission by the vehicle.
What specific segmentation details are covered in the OBD telematics report, and how is the dominating segment impacting the market growth?+
By product type has witnessed SIM Card as the dominating segment in the year 2022, due to its ability to establish a cellular connection for data transmission.
What specific segmentation details are covered in the OBD telematics market report, and how is the fastest segment anticipated to impact the market growth?+
Each segment is projected to have the fastest-growing sub-segment being fuelled by industry trends and drivers. For instance, by application segment has witnessed state agencies as the fastest-growing segment during the forecast period as they deploy OBD telematics to check the air quality.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2030? +
Asia-Pacific region is expected to register fastest CAGR growth during the forecast period due to the increasing adoption of automotive vehicles in the region.
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