Vehicle Telematics Market Size

Vehicle Telematics Market size was over USD 104.72 billion in 2024 and is set to cross USD 955.21 billion by the end of 2037, witnessing more than 18.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of vehicle telematics is estimated at USD 120.22 billion. The market is primarily driven by higher count of connected cars along with expansion of automotive sector and high demand of vehicles by the population.  In 2021, there were nearly 237 million connected cars worldwide, and the count is expected to reach approximately 400 million by 2025.

The increasing requirement of semiconductor chips owing to its prolonged shortage due to lockdown imposed by pandemic, it is to accelerate its growth of semiconductor companies. In 2021, more than 1 trillion semiconductors were sold in 2021. In addition, telematics helps drivers to reduce consumption of fuel by tracking their unused time and increasing their efficiency. Alarming need to reduce fuel usage and rising requirement for safety assistance in the automobile is to boost the growth of vehicle telematics market.