The 4th Annual Telematics China Summit 2014

The global telematics market is poised to grow exponentially, with approximately 104 million new cars expected to have some form of connectivity by 2025. All stakeholders need to be continuously evolving their business strategies in order to gain ownership of end customers. Analysis of the consumer telematics market revealed the growth of these segments in the market, for example fleet management is estimated to grow at a rate of 22% CAGR till 2018, driving the demand for commercial telematics system and services, the GPS navigation systems market is estimated to grow from $11.3bn (USD) in 2013 to $39bn (USD) by 2018. Such trends are also seen in other segments of the market chain such as aftermarket sales of telematics devices and services and also the embedded-telematics systems market is seeing good growth with Auto OEMs realising the scope of growth in this field.

China government is in the process of passing legislation to make emergency notification services in vehicles compulsory, which will drive the market further. Additionally, the fast development of Electric Vehicle (EV) segment in China is also seen as a market driver for telematics systems as telematics would have a major part to play in the whole EV system setup. All in all consumer telematics market is definitely on the rise with a lot of organisations entering into China market looking at the growth rate and the future scope of this market. In China the huge potential remains untapped providing in-car connectivity is going to be essential for every automaker, but the industry is still looking for viable business models. The evolving connected car ecosystem effective delivery of connectivity-based services will require seamless integration of infrastructure by various stakeholders.