Global Automotive OEM Telematics Market to Reach US$218.9 Billion by 2030

The global market for Automotive OEM Telematics estimated at US$101.2 Billion in the year 2024, is expected to reach US$218.9 Billion by 2030, growing at a CAGR of 13.7% over the analysis period 2024-2030. Hardware, one of the segments analyzed in the report, is expected to record a 12.2% CAGR and reach US$132.0 Billion by the end of the analysis period. Growth in the Software & Services segment is estimated at 16.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$27.6 Billion While China is Forecast to Grow at 18.1% CAGR

The Automotive OEM Telematics market in the U.S. is estimated at US$27.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$46.1 Billion by the year 2030 trailing a CAGR of 18.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.2% and 12.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.9% CAGR.

Global Automotive OEM Telematics Market – Key Trends & Drivers Summarized

Why Are OEM Telematics Systems Becoming Core to Connected Vehicle Strategies and Lifecycle Value Optimization?
Automotive OEM telematics systems are transitioning from optional features to foundational infrastructure in the digital transformation of vehicles, enabling real-time data exchange between the vehicle, driver, OEMs, service providers, and cloud ecosystems. These embedded systems offer a wide range of capabilities—including remote diagnostics, predictive maintenance, vehicle tracking, over-the-air (OTA) updates, usage-based insurance (UBI), driver behavior monitoring, and emergency response services—thereby redefining how OEMs engage with customers and monetize vehicle lifecycles.

With vehicles increasingly acting as mobile data hubs, telematics platforms are integral to supporting advanced driver-assistance systems (ADAS), fleet management, and subscription-based mobility services. OEMs are leveraging telematics not only to enhance safety, efficiency, and customer experience but also to create new digital revenue streams through connected service offerings and real-time analytics. As software-defined vehicles (SDVs) gain momentum, telematics platforms are becoming the gateway for continuous feature enhancement, personalization, and post-sale engagement—repositioning the vehicle as a service-enabling asset rather than a static product.

How Are AI, 5G, and Cloud Integration Advancing the Capabilities and Scalability of OEM Telematics Platforms?
The technological sophistication of OEM telematics systems is increasing through the integration of AI algorithms, 5G connectivity, and cloud-native architecture. AI enables real-time analytics on driver behavior, predictive diagnostics, and contextual insights for improving safety and optimizing performance. Telematics control units (TCUs) are being equipped with edge computing capabilities to process critical data locally and reduce latency for time-sensitive applications such as crash detection or lane departure alerts.

5G networks are accelerating the responsiveness and bandwidth of telematics systems, supporting ultra-fast data transmission required for autonomous vehicle communication, live video feeds, and high-frequency OTA software updates. Meanwhile, cloud platforms are enabling centralized data management, cross-fleet visibility, and scalable service delivery across geographies. Cloud-native telematics ecosystems also support seamless integration with OEM CRM platforms, mobility apps, and third-party services like insurance, navigation, and EV charging. Together, these technologies are enabling OEMs to offer telematics as a modular, upgradeable, and always-on service platform that adapts to evolving vehicle and user needs.

Where Is Demand for OEM Telematics Systems Expanding and Which Vehicle Segments Are Leading Implementation?
OEM telematics systems are seeing widespread adoption across passenger vehicles, commercial fleets, and electric vehicles (EVs), with the most significant demand emerging from North America, Europe, China, and Japan. Premium and mid-range passenger vehicles have led deployment historically, driven by consumer demand for safety, convenience, and infotainment. However, telematics adoption is now expanding into entry-level segments as cost reductions, regulatory mandates, and consumer expectations for connectivity increase.

Electric vehicles are emerging as a key growth segment for telematics integration, as these platforms require advanced monitoring for battery health, charging behavior, range prediction, and energy optimization. OEMs are embedding telematics as standard in EVs to enable energy-efficient routing, remote charging management, and integration with smart grid systems. Commercial fleets—including logistics, rental, and ride-hailing operators—are also heavy adopters, relying on OEM telematics for route optimization, fuel economy monitoring, compliance reporting, and real-time asset tracking. Governments and regulators are further incentivizing telematics through vehicle safety mandates and fleet emission reduction initiatives, particularly in Europe and Asia-Pacific.

What Is Fueling the Global Growth of the Automotive OEM Telematics Market?
The rapid expansion of the OEM telematics market is being fueled by the convergence of connected mobility demand, regulatory compliance pressures, and the strategic shift toward recurring digital revenues. As OEMs transition from a transactional model to an ecosystem model, telematics provides a scalable pathway to deliver value-added services, build long-term customer relationships, and gather continuous vehicle usage data. Regulatory requirements—such as eCall in Europe, driver monitoring systems, and emissions reporting—are further driving telematics integration as part of standard safety and compliance packages.

The growing popularity of usage-based insurance (UBI), vehicle subscription models, and shared mobility platforms is also amplifying telematics deployment, as these models depend on accurate, real-time data collection and management. OEMs are forming strategic alliances with telecom providers, cloud platforms, and mobility startups to build integrated telematics ecosystems that can evolve with software upgrades and adapt to regional service demands. As digital infrastructure becomes intrinsic to vehicle value and market differentiation, a key strategic question arises: Can OEM telematics platforms scale as secure, flexible, and monetizable backbones for the data-driven, customer-centric mobility landscape of tomorrow?