Automotive telematics is emerging as one of the most rapidly growing technologies in the automotive industry across the Asia Pacific region. Telematics services integrate wireless communication technologies like GPS, satellite, and cellular networks to provide a range of services including vehicle diagnostics, navigation, emergency assistance, and infotainment to drivers. Leading automakers in APAC countries like Japan, South Korea, China, and India have already introduced telematics-enabled models in their lineups.
Countries with well-developed cellular infrastructures and high vehicle production volumes like China and Japan will account for a major share of this growth. Original Equipment Manufacturers (OEMs) in these are actively collaborating with telecom operators and technology providers to offer factory-fitted telematics solutions as standard features across various vehicle segments.
Regulatory push for enhanced safety and security
Much of the growth APAC Automotive Telematics is propelled by regulatory changes and policies aimed at improving road safety. Several countries in the region have mandated the installation of Emergency Call (eCall) systems for new vehicles by certain deadlines. For instance, eCall will be mandatory for all new cars sold in the European Union from 2018. Similarly, China released its new Intelligent Connected Vehicle (ICV) standards in 2017, pushing for advanced driver assistance, autonomous driving, telematics connectivity, and cybersecurity technologies.
Government agencies are also promoting built-in telematics and positioning technologies to enhance emergency response time and rescue operations. Stolen vehicle tracking and auto shutdown features further bolster safety and security concerns. Such regulatory tailwinds are encouraging more car buyers in APAC to opt for factory-installed telematics as opposed to aftersolutions. This is seen as an important driver for OEM telematics adoption.
Emerging demand for connected services
While safety and compliance remain core drivers, evolving consumer demands for 'connected' infotainment and comfort services are expected to fuel the next phase of growth. Young drivers in developing APAC countries have rapidly embraced in-vehicle connectivity solutions. Access to internet radio, navigation, and integrated smartphone functionalities are fast becoming basic requirements.
Demand for over-the-air updates is also rising across Asia to enable new features and address security vulnerabilities post-purchase. This highlights the need for standardized telematics platforms integrated with cloud-based infrastructures. Several automakers have introduced 'connected car' models and subscription packages to access navigation maps, traffic alerts, location-based services, and remote vehicle management apps.
The next generation of drivers view a well-connected driving experience on par with other premium cabin features. This change in consumer behavior will exert greater pressure on OEMs in APAC to introduce scalable telematics hardware and flexible service bundles to meet emerging mobility needs. The availability of high-speed cellular and satellite networks even in rural areas will catalyze this shift further.
Rise of autonomous driving technologies
Autonomous vehicles present the next logical evolution for automotive telematics. To realize higher levels of self-driving automation, cars need sophisticated sensing capabilities and ultra-low latency connectivity to infrastructure. This dependence on advanced driver assistance systems (ADAS) and vehicle-to-everything (V2X) communications makes telematics a core hardware/software enabler for future autonomous mobility.
Several automakers have identified Asia as a key region for deploying pilot autonomous vehicle services and technologies in the near future given regulatory-friendly environments. Cities like Beijing, Tokyo, Singapore and New Delhi are specifically promoting research and testing of ADAS/automated transit to begin with. This presents a massive opportunity for APAC automotive telematics vendors to roll out specialized V2X solutions and partner with OEMs on autonomous vehicle integration.
While regulations and safety concerns are driving initial growth of telematics, evolving consumer demands and new-age automotive trends centered around autonomous driving and electrification will fuel the next phase of expansion in Asia's rapidly developing automotive. With proactive government policies enabling ubiquitous connectivity infrastructure and technology innovation, the APAC automotive telematics remains at the forefront.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
