: +1 (646) 661-6066Consumer Automotive Telematics Market Trends in North America
In North American geography, especially in US, the rise in awareness pertaining to the telematics is leading in its wide acceptance. The geography accounts for the highest number of insured vehicles driving the market for insurance telematics. Various government authorities are playing a key role in the adoption of telematics across this region. The U.S Department of Transportation (DOT) and a number of car makers have undergone an agreement for communication technologies pertaining to V2V and V2I, which would be helpful in minimizing the traffic crashes and taking the remedial course of actions in case of any crash. On the same lines, US highway regulatory body, National Highway Traffic Safety Administration (NHTSA) have made it mandatory for all the vehicle manufacturers to display the list of different safety measures in their vehicles.
Vehicle manufacturers are developing special features such as easy access to emails or texts, navigation systems and traffic update tools. BMW has recently developed iDrive System for its vehicles and has positioned it as “An office that moves”. This unique feature facilitates the driver to dictate and share the information over voice commands, along with other features such as the ease to make calls, setting reminders. With major market share the leading players such as BMW, Ford, Verizon and AT&T are leveraging the high acceptance of their products in North American geography. AT&T, a Network connectivity and service provider, has developed a universal SIM Card for vehicles, especially programmed to access various networks available across geographies.
In 2013, the North American telematics market generated a revenue of more than $1.5 million. The insurance segment emerged as the major revenue generating segment for the consumer automotive telematics market. This segment generated a revenue of nearly $450 million in 2013 growing at a growth rate of more than 25% followed by the media & entertainment, rental services and individual owner segment.
The market growth of the telematics solutions in this region is primarily fueled by government regulations and its various programs. The leading players are now embedding their telematics solutions in their vehicles and it is expected to trigger the market growth further in the North American region.
