According to a new research report from the IoT analyst firm Berg Insight, the total number of aftermarket car telematics shipments worldwide reached 26.7 million in 2023 and is forecasted to reach 38.7 million units in 2028.
The installed base of active aftermarket car telematics units will grow at a compound annual growth rate (CAGR) of 9.0 percent from 87.7 million at the end of 2023 to 135.1 million worldwide at the end of 2028.
Berg Insight’s definition of an aftermarket car telematics solution in this report comprises both cellular/GNSS and RF-based solutions. Aftermarket car telematics solutions are useful in a number of application areas including stolen vehicle tracking and recovery (SVT/SVR), vehicle diagnostics, Wi-Fi hotspot, convenience applications and usage-based insurance. Remote vehicle diagnostics allow service providers such as dealers and workshops to improve service offerings to car owners.
“Even though an increasing number of new cars are sold with embedded connectivity, a varying degree of market success for current OEM telematics services enables aftermarket services to have a promising future even in mature OEM telematics markets”, said Martin Cederqvist, Senior Analyst at Berg Insight.
Aftermarket services targeting a specific customer group can furthermore gain an advantage in specialisation compared to OEM telematics services that are mainly developed for a wide range of use cases. Dealers is an example of a customer group that aftermarket service providers serve successfully as the telematics offering can be adjusted to fit their business needs.
Regional market conditions such as a high level of vehicle crime influence the demand for stolen vehicle tracking and have made SVT solutions popular in countries such as Brazil, Israel, Russia and South Africa.
Mr. Cederqvist, said:
“The number of active aftermarket SVT units in use is forecasted to reach 91.2 million in 2028, up from 58.2 million at year-end 2023.”
Today, there are many different form factors applicable for aftermarket car telematics ranging from professionally installed hardwired blackboxes to self-installed OBD dongles and battery-powered devices. Solutions leveraging cellular technologies are most common across the industry, but RF-based solutions can be found in many geographical markets and are particularly used for SVT/SVR services.
Aftermarket car telematics services are offered by a wide range of players. Examples of leading telematics companies selling services via third parties or directly to consumers include Octo Telematics, Procon Analytics, StarLine, Spireon, Targa Telematics, Ituran, PassTime GPS, Vodafone Automotive, Tracker Connect, Maxtrack, Carsystem, Verizon, Ikon Technologies, Mojio, Tail Light (Bouncie) and Agnik (Vyncs).
Mr. Cederqvist concluded:
“Distributing services and products through third parties is the most common go-to-market strategy for aftermarket car telematics solution vendors. Important sales channels include insurance companies, dealers and importers as well as direct-to-consumer channels such as mobile operators and online retailers.”
The post Aftermarket telematics solutions to remain popular in the coming years appeared first on IoT Business News.