It’s anticipated that the APAC telematics market will reach $63.79 billion by 2029, with a 31.9% CAGR during the forecasted period.
This is an industry that’s clearly set for a sustained period of growth, so it’s not difficult to see why many business owners and entrepreneurs have their sights set on this region and industry.
In light of that, we’re going to dig a little bit deeper and look at some of the newest tele market trends in APAC for 2023 and beyond.
APAC businesses will make huge maintenance savings by using fleet telematics
There is only one place to begin, and this is with the maintenance savings you’re set to make by switching to fleet telematics. This is something more and more businesses in the APAC region are going to make the most of.
A lot of fleet managers associate telematics with location tracking. However, solutions go way beyond this, and this is something more business owners are starting to realise.
Features such as fleet telematics maintenance task automation will automate maintenance workflows, ensuring routine maintenance is adhered to but also immediately addressing vehicle problems as and when they arise.
You don’t need us to tell you how much money you can lose when one of your fleets is out of operation due to unexpected maintenance issues. Nevertheless, this is something you won’t need to worry about anymore thanks to the advanced telematics available.
Passenger car safety will be a huge market segment for telematics
We can expect passenger car safety to be a huge segment for the telematics market in the region as we move into 2023.
There is an increasing interest in the use of telematics software to enhance convenience and safety across the board.
In countries such as Australia, India, China, and Japan, passenger vehicles are subject to much more stringent safety regulations, which have heightened demand for connectivity solutions.
Telematics will adapt to suit the self-driving phenomenon
One of the biggest trends in the world of automobiles is self-driving vehicles. We can expect to see a monumental rise in these vehicles in APAC over the next couple of years.
As a response to this trend, OEMs are incredibly delivering advanced telematics services within the passenger vehicle segment.
Asia-Pacific is considered a key region in terms of sensor fusion in autonomous applications. There are a number of contributing factors here:
- A strong position in the worldwide semiconductor industry
- Stringent government regulations
- The increasing adoption of autonomous cars
- All of these are expected to propel telematics growth in the passenger sector but also in the advancement of self-driving vehicles.
China is expected to hold a significant market share in the coming years
As a result of the stringent safety requirements and a high degree of regulatory scrutiny in China, we expect to see China become a major player in the telematics market.
In this part of APAC, the automatic industry is characterised by long product life cycles, extensive design-in timeframes, high reliability, functionally safe design architectures, zero-defect quality processes, and stringent qualification processes. All of these come together and result in telematics solutions being adopted on a broad scale.
In areas such as Beijing, telematics is available to approximately 50% of the new cars on the market, in comparison to approximately 25% in Heilongjiang.
In fact, in 2019, the installation of embedded telematics in new cars witnessed a 30 to 40% increase in demand when compared with two years previously.
China also has the upper hand in the manufacturing of telematics control units (TCU) because of the dominance it has in worldwide automotive microprocessors and microcontrollers.
The manufacturing of 5G TCUs is further being promoted by China’s recent investment in the 5G infrastructure market.
Leverage the latest telematic market trends and take your fleet to the next level
So there you have it: an insight into the top telematic market trends in APAC. This is certainly an exciting industry to be involved in, with businesses across the Asia-Pacific region set to benefit from cost savings and great efficiency rates thanks to the latest trends.