With the rising number of private vehicles, the surging demand for tech-savvy automobiles, and the advent of autonomous vehicles, vehicle safety has become more important than ever. Something as revolutionary as a self-driving car needs to come with a promise of error-free driving for a customer to trust and invest in the technology. Automotive telematics is a massive and growing industry focused on collecting mobility-related information, particularly from private and commercial vehicles, and developing wide-ranging services catering to both individuals and companies. These services include info-mobility services, information systems to support car insurance, and ad hoc investigation for planning purposes, among others. Automotive telematics encompasses the applications of multimedia entertainment, Global Positioning System (GPS) navigation, wireless connectivity, and automatic driving assistance systems.
Vehicle insurance has also become a key focus of buyers, virtually an appendage to the vehicle. A growing segment within the automotive telematics sector is insurance telematics, and Millenials might be a major reason behind this growth. There is an evident shift in car purchasing trends, wherein Millenials constitute a substantial portion of car buyers, and it might have a considerable impact on the industry. For instance, usage-based insurance options offer insurers new opportunities to accurately determine premium, price, and risk. These schemes can potentially identify risky drivers, allowing insurers to better estimate the price of their products while also giving the driver the chance to moderate their driving to make roads safer. However, in the case of usage-based insurance or pay-as-you-drive auto insurance, there is an apparent need for a more precise assessment of how driver behaiour affects the risk of an accident or an insurance claim.
The increasing focus on vehicle safety and connectivity and the policies governing vehicle telematics are expected to propel the growth of the automotive telematics market. The overall improvement in vehicle performance and intelligence and road safety would also help the broader adoption of the technology. Nonetheless, the general threats associated with data breach, the cost of installation, and an inadequate internet infrastructure might impede the growth of the market in the coming years. The leading companies in the automotive telematics industry include Cartrack, Harman International, I.D. Systems, Inc., Masternaut Limited, Omnitracs, Airbiquity Inc., Verizon, Trimble Inc., Mix Telematics, and Tomtom Telematics B.V.
The four main elements viz., safety, navigation, connectivity, and security that automotive telematics incorporates into one Smart, nearly-indestructible piece of technology, which has already revolutionized the way we look at driver, vehicle, and road safety, will boost market growth in the coming years.