Global Telematics for On- & Off-Highway Market to Reach US$110.0 Billion by 2030

The global market for Telematics for On- & Off-Highway estimated at US$50.5 Billion in the year 2024, is expected to reach US$110.0 Billion by 2030, growing at a CAGR of 13.9% over the analysis period 2024-2030. Infotainment Display Unit, one of the segments analyzed in the report, is expected to record a 14.1% CAGR and reach US$61.0 Billion by the end of the analysis period. Growth in the Telematics Control Unit (TCU) segment is estimated at 13.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$14.0 Billion While China is Forecast to Grow at 13.1% CAGR

The Telematics for On- & Off-Highway market in the U.S. is estimated at US$14.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$16.8 Billion by the year 2030 trailing a CAGR of 13.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.3% and 11.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.1% CAGR.

Global Telematics for On- & Off-Highway Market - Key Trends and Drivers Summarized

What Is Telematics and How Is It Used in On- and Off-Highway Applications?
Telematics is the integration of telecommunications and informatics, enabling the real-time tracking, monitoring, and management of vehicles and assets through GPS and other data systems. In on-highway applications, telematics is widely used in fleet management for commercial vehicles, helping companies monitor fuel consumption, driver behavior, vehicle location, and maintenance needs. In off-highway applications, such as construction and mining, telematics plays a crucial role in optimizing the use of heavy equipment, improving operational efficiency, and reducing downtime. The adoption of telematics is revolutionizing how businesses manage their fleets and machinery, providing them with the data-driven insights needed to enhance productivity and lower operational costs.

How Is 5G Enhancing the Capabilities of Telematics Solutions?
The advent of 5G technology is significantly enhancing the capabilities of telematics systems by providing faster data transmission, lower latency, and greater connectivity. For fleet operators, 5G enables real-time monitoring of vehicles and assets, improving route optimization, fuel efficiency, and safety. In off-highway applications, such as agriculture and construction, 5G-powered telematics allows for more precise control of heavy machinery, leading to increased automation and improved decision-making. The combination of telematics with 5G is also enabling the development of autonomous vehicles and machinery, further expanding the possibilities for telematics in both on-highway and off-highway environments.

What Segments Are Driving the Telematics Market for On- and Off-Highway Applications?
In on-highway applications, the primary market drivers are fleet management, driver safety, and fuel optimization, with sectors such as logistics, transportation, and public transit being the key users of telematics systems. In off-highway applications, industries such as construction, mining, and agriculture are the primary users of telematics for heavy equipment monitoring, maintenance, and asset management. Geographically, North America is the largest market for telematics, driven by strong regulatory requirements for fleet management and safety, while Europe and Asia-Pacific are experiencing rapid growth due to increasing industrialization and infrastructure development.

The Growth in the Telematics Market for On- and Off-Highway Applications Is Driven by Several Factors
The growth in the telematics market for on- and off-highway applications is driven by several factors, including the increasing adoption of connected vehicle technologies, the rise of 5G networks, and the growing focus on fleet optimization and safety. In the on-highway segment, telematics is becoming essential for companies looking to reduce fuel consumption, comply with regulatory requirements, and improve driver behavior. In off-highway applications, the demand for telematics is being fueled by the need to enhance the productivity and lifespan of heavy equipment. Additionally, the integration of AI and machine learning into telematics systems is enabling predictive maintenance and more efficient asset management. As businesses continue to seek data-driven insights to improve their operations, the telematics market is expected to witness sustained growth in the coming years.