Electric Vehicle Telematics Market Size, Share | Report 2030

Report Description

Electric Vehicle Telematics Market Outlook

The global electric vehicle telematics market size was valued at USD 9,889.5 Mn in 2021 and is projected to reach USD 1,24,756.6 Mn by 2030, expanding at a CAGR of 33.5% during, 2022-2030. Telematics used in EVs gather data from GPS and DTG (Digital Tachometer Graph) to show the state of the vehicle in terms of time taken, over-speeding in the journey, distance traveled, warnings, malfunctioning, and records exceptional events.

EV telematics provides various advantages, such as sending notifications to charging stations, constant charging updates, and V2G (vehicle-to-grid communication). A key application of telematics in EVs is real-time map updates. Telematics offers the live location of EVs on the digital map.

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The navigation system used in EV telematics works on GPS and helps in location tracking of vehicles and sends the data by using connectivity protocols such as 4G, CDMA, LTE, Wi-Fi, and others for remote access. Telematics includes the techniques of monitoring a vehicle using GPS and onboard diagnostics for recording and mapping the exact location of the vehicle along with the speed of the vehicle. The telematics industry is expanding at a significant rate, as it plays an important role in the international economy.

Electric Vehicle Telematics Market Macro-economic Factors

GDP

GDP is a critical indicator used to measure the size and performance of an economy. High GDP indicates high per capita income and consumer spending. The global GDP in 2020 was estimated at USD 85.24 trillion, down by USD 2.0 trillion from the previous year. Rising demand for technologically advanced electric vehicles in various industries, as well as increasing adoption of electric vehicles in high-income countries are expected to increase the adoption of telematics in electric vehicles.

Inflation Reduction

The global average inflation rate, with respect to consumer price percentage, is around 6.82% in 2022. The primary cause of the current rise in inflation is attributed to the supply shocks brought on by the war in Europe. Thus, inflation is expected to impede the electric vehicle industry, which is expected to hamper the EV telematics market. For instance, in August 2022, the Government of US passed the Inflation Reduction Act, with the aim to encourage electric vehicle (EV) manufacturers to expand their production and sourcing activities domestically to avail of tax benefits.

Government Regulations

Governments across the globe are encouraging automotive manufacturers for producing environment-friendly vehicles. Governments are making stringent regulations for reducing pollution caused by automobiles. Rising restrictions on the use of internal combustion engines is increasing the adoption of electric vehicle telematics. Regulatory agencies encourage people for purchasing low or zero-emission vehicles through tax reductions or tax exemptions.

Government rules and regulations in various regions for security, safety, and tracking are fueling the usage of telematics in EVs. For instance, the US department of transportation issued guidelines for vehicle tracking. Fleet managers provide a report of damages that are identified by the state or federal investigators and a list of violations found during the inspections.

Furthermore, it is mandatory that the fleet management systems (FMS) are certified by the Federal Motor Carrier Safety Advisor. The Government of India passed a rule in April 2018, that public transport vehicles with more than six-seater capacity need to have a tracking device installed in them.

Electric Vehicle Telematics Market Dynamics

Major Drivers

Rising demand for EVs

The electrification of cars has increased in recent years. In 2021, global electric vehicle sales reached over 6.9 million units. Increasing electrification of vehicles and growing demand for electric vehicles are expected to drive the demand for EV telematics in the near future. Factors such as high demand for fuel-efficient, high-performance, and low-emission vehicles; implementation of stringent government rules and regulations on vehicle emissions; reduction in battery costs; and rising gasoline prices are boosting the demand for electric vehicles.

Additionally, increasing disposable income and rising standard of living are fueling the demand for electric vehicles, thus boosting the market. For instance, India’s automotive sector is steadily adopting this technology, as EV sales in the country are growing. Thus, fueling the market in the coming years.

Increasing R&D Investments

Rising R&D investments from key companies, and increasing emphasis on product innovation are projected to drive the demand for the EV telematics in the coming years. Major companies, in practically every industry, rely on the development of innovative products. To increase their market share, major corporations undertake strategic initiatives such as product updates and releases, service expansion, partnerships, collaborations, mergers and acquisitions, and customer acquisition. For instance,

• In February 2021, German Equity Partners V invested an undisclosed sum in the telematics software provider YellowFox GmbH. YellowFox GmbH provides cloud-based SaaS software solutions for digital fleet and object management, allowing for significant productivity and cost reductions while maintaining regulatory compliances. All sectors, fleet sizes, and vehicles can benefit from the solutions.

Such factors are projected to encourage companies to engage in acquisitions, thus driving the market during the forecast period.

High-end features

It is critical for the driver of an electric car to understand the vehicle's range, locate the next charging station, and plan the trip accordingly. EV telematics has the ability to determine the vehicle's location and, using mapping and information on the range and available charging infrastructure can help pre-book a charging slot at a charging station to save time.

EV telematics aids in the monitoring of charge levels and battery health and provides critical data needed to enhance vehicle algorithms. Furthermore, continuous updates and advancements in charging time, battery size, and weight are being taken up by EV manufacturers. Manufacturers can use real-time data as a rich data source for development and analytics.

Such analytics aid in detecting the status of the charge of the battery and notifying the driver through SMS regarding the need to find a parking site as soon as possible. To avoid uncertain circumstances on the road, real-time alerts such as battery issues are provided to the driver. These high-end features are expected to fuel the EV telematics market during the forecast period.

Restraints

The development of vehicle-to-infrastructure (V2I), vehicle-to-vehicle (V2V) communication technologies, and unmanned vehicles, is boosting the number of cars having the ability to communicate with each other. It raises the safety and privacy concerns associated with GPS position, a user driving behavior, and breaking methods, and hastens the processing of the data.

The linked system has access to sensitive information such as family details, medical information, travel itineraries, and addresses. Rising consumer awareness regarding breaching this information and its misuse is expected to slightly hamper the market growth. For instance,

• In 2022, Ola Electric publicly shared the telematics data of one of its users on the social media platform Twitter, who had met with an accident in India. Twitter users, on the other hand, accused Ola Electric of violating customer privacy and data protection laws. The incident raised concerns about the companies' customers' data security.

Emerging Opportunities

Recent developments in self-driving vehicles are expected to create opportunities in the EV telematics market during the forecast period. Self-driving technology is expected to boost the demand for electric vehicles in the long run due to benefits such as low accident risk, the convenience of use, and the inclusion of value-added services. This technology is projected to increase the penetration of EVs in the next 5-6 years.

As a result, the advancement of self-driving electric car technology is expected to create opportunities in the market in the future years. Top OEMs such as Tesla, Volvo, Vera, and Daimler are developing self-driving electric vehicles. Waymo, Uber, Embark, Einride, TuSimple, and are engaged in research to develop self-driving electric vehicles.

• TuSimple intends to operate self-driving routes between Phoenix and Tucson in Arizona, and several places in Texas, the US. Daimler announced a USD 570 million investment in self-driving electric vehicles in January 2019.

Scope of Electric Vehicle Telematics Market Report

The report on the global Electric Vehicle Telematics Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Electric Vehicle Telematics Market Segment Insights

The global Electric Vehicle Telematics Market is segmented on the basis of type, vehicle type, application, and region.

Type Segment Analysis

In terms of Type, Electric Vehicle Telematics Market is segmented into Plug and Play Telematics and Hardwired Install Telematics. The Hardwired Install Telematics segment is expected to dominate the market in 2021. Increasing concerns regarding the safeguarding of data and strict regulations are fueling the market.

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Vehicle Type Segment Analysis

On the basis of vehicle type, the Electric Vehicle Telematics market is segmented into 2 Wheelers, 3 Wheelers, 4 Wheelers (Passenger Cars), Commercial Vehicles (Trucks & Heavy-Duty Vehicles, Buses), Industrial Vehicles (Forklifts, Excavators, Automated Guided Vehicles (AGVs)). The 2 Wheelers segment is expected to hold a substantial share of the market during the forecast, as EV telematics is increasingly embedded in two-wheelers, due to growing innovations in the two-wheeler industry across the globe.

Application Segment Insights

Based on application, Electric Vehicle Telematics Market is segmented into Safety & Security, Entertainment, Information & Navigation, Diagnostics, Battery Pack Telematics, and Others. The Safety & Security segment is expected to dominate the market in 2021, as increasing concerns regarding the safeguarding of data and strict regulations are fueling the market.

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Regional Insights

Based on regions, the Electric Vehicle Telematics Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is growing at a rapid pace during the forecast. The region dominates the global market and is expected to continue to maintain its position during the projection period.

China is the leader in the electric vehicle (EV) telematics market in the region. Major regional players are substantially spending on R&D for technological improvements in telematics applications. Furthermore, rising production and sales of electric vehicles are anticipated to contribute to the region's growth in the coming years.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global Electric Vehicle Telematics Market
• Historical, Current, and Projected Market Size in terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Electric Vehicle Telematics Market