More than 1,200 people in Germany were killed in road accidents in the first half of 2020, says the Federal Statistical Office (Destatis). Due to the rising number of road fatalities, the awareness about driving safety is rising in the country. As a result, the German automotive telematics market would grow from $1,408.2 million to $7,748.0 million from 2019 to 2030, at a healthy 16.5% CAGR between 2020 and 2030.
Since most of the accidents are caused by basic human errors, such as unsafe distance between vehicles, speeding, and not paying attention on the road, the demand for telematics solutions, which can aid drivers, is increasing. One of the government initiatives that are driving the German automotive telematics market is the EU’s eCall system, which automatically alerts emergency services in case of a major accident.
The COVID-19 pandemic has restrained the growth of the German automotive telematics market, majorly by leading to a drop in vehicle sales. In 2020, 3.1 million passenger cars are expected to be bought by Germans, compared to 3.6 million that were bought in 2019. Similarly, compared to 0.41 million in 2019, 0.36 million commercial vehicles are predicted to be sold in the country in 2020. However, on account of the government mandate to integrate the eCall system in vehicles, the market would revive after the COVID-19 situation ends.
Germany Automotive Telematics Market Segmentation Analysis
In the past, the embedded category held the largest share in the German automotive telematics market, on the basis of product type. The integration of embedded solutions is driven by the mandates of the EU to have these in vehicles. Additionally, the rising demand for cloud-based services and reducing the cost of service plans have driven the adoption of embedded telematics solutions in automobiles in the country.
The fleet/asset management category is predicted to continue dominating the German automotive telematics market during the next decade, based on service, majorly owing to the high demand for these services in commercial vehicles.
In the coming years, the German automotive telematics market will witness the higher value CAGR, of 17.1%, in the original equipment manufacturer (OEM) bifurcation, under the channel segment. Due to the increasing demand for connected vehicles and government rules to ensure the incorporation of safety features, automakers are increasingly providing these in their vehicles.
The passenger car category contributed the highest revenue to the German automotive telematics market historically, under segmentation by vehicle type. Passenger cars account for the highest sales among all types of automobiles in the country. This, coupled with the increasing customer preference for connectivity features and a safer driving experience, has driven the integration of telematics solutions in passenger cars.
Companies Engaging in Partnerships to Expand Their Influence on Market
In an effort to more strongly influence the German automotive telematics market, the players are entering into partnerships, which are aimed at:
- Launching digital travel assistants for their customers
- Utilizing their partners’ communication technology for deploying telematics solutions
- Offering audio solutions in their partners’ vehicles
- Developing fully integrated electronic logging devices (ELDs) for trucks
- Commercializing new autonomous vehicle safety standards
The biggest names in the German automotive telematics market are Valeo SA, Robert Bosch GmbH, MiX Telematics Ltd., Continental AG, AREALCONTROL GmbH, Verizon Communication Inc., MAC & NIL srl, FleetGO Group Ltd., Emixis SA, frameLOGIC PL, Mireo dd, CVS Mobile Inc., Transpoco, Axtech AB, and Loqus Holdings plc.