Passenger Vehicle Telematics Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Offering (Automatic Crash Notification, Emergency Calling, Navigation, On-Road Assistance, Remote Diagnostics, Vehicle Tracking/Recovery, Insurance Risk Assessment, Driver Behavior, Billing Services, Others), By Form Type (Embedded, Tethered, Integrated), By Type (Discrete, Consulting, Implementation, Maintenance), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 30.74 Billion
CAGR (2026-2031)	11.98%
Fastest Growing Segment	Automatic Crash Notification
Largest Market	North America
Market Size (2031)	USD 60.61 Billion

Market Overview

The Global Passenger Vehicle Telematics Market will grow from USD 30.74 Billion in 2025 to USD 60.61 Billion by 2031 at a 11.98% CAGR. Passenger vehicle telematics constitutes the integration of telecommunications and informatics within automobiles to enable bi-directional data exchange between the vehicle and external systems. The primary drivers fueling market growth are rooted in stringent government regulations regarding passenger safety and the rising consumer preference for usage-based insurance and remote diagnostics. According to the 5G Automotive Association, in 2024, the global number of cellular-connected vehicles on the road surpassed 300 million.

However, the market faces a substantial impediment regarding data privacy and cybersecurity vulnerabilities. The massive volume of sensitive user data generated by connected vehicles creates attractive targets for cyberattacks, leading to consumer reluctance and requiring manufacturers to invest heavily in secure architecture which can delay widespread implementation.

Key Market Drivers

The proliferation of high-speed 5G and IoT connectivity serves as the foundational enabler for the modern telematics ecosystem, transforming vehicles into software-defined platforms. This infrastructure supports critical applications like Vehicle-to-Everything (V2X) communication and over-the-air (OTA) updates, which require low latency and high bandwidth to function effectively. According to Ericsson, June 2025, in the 'Mobility Report', global 5G subscriptions reached just above 2.4 billion during the first quarter of 2025, providing the necessary scale for widespread connected mobility implementation. This robust connectivity directly correlates with the financial growth of key automotive technology suppliers. For instance, according to Qualcomm, July 2025, in the 'Fiscal 2025 Third Quarter Results', the company’s automotive segment revenue increased 21% year-over-year to a record $984 million, driven by the adoption of its Snapdragon Digital Chassis.

Simultaneously, the growth of electric vehicle telematics is reshaping the market, as battery-powered platforms necessitate specialized monitoring systems that combustion engines do not. Telematics solutions are indispensable for EVs to manage battery health, optimize range prediction, and locate charging infrastructure, thereby alleviating range anxiety for consumers. This segment is expanding in lockstep with the broader electrification trend. According to the European Automobile Manufacturers’ Association (ACEA), November 2025, in the 'New Car Registrations' update, registrations of battery-electric vehicles in the European Union surged by 38.6% in October 2025 compared to the previous year. As manufacturers ramp up production to meet these volumes, the integration of specialized telematics units for energy management becomes a standard requirement for market entry.

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Key Market Challenges

The most significant impediment hampering the growth of the Global Passenger Vehicle Telematics Market is the escalation of data privacy concerns and cybersecurity vulnerabilities. As vehicles increasingly rely on bi-directional data exchange for operations, they become susceptible to malicious hacking and unauthorized information interception. This exposure risks compromising sensitive user details, such as real-time location and driving history, which creates substantial hesitation among consumers. The fear of surveillance and data theft reduces trust in connected services, directly slowing the adoption rates of advanced telematics features and usage-based insurance models.

Furthermore, the operational burden of securing this expanding network creates a financial drag on the industry. Manufacturers must divert significant capital toward developing secure software architectures and maintaining rigorous compliance standards, which delays the rollout of new innovations. This challenge is intensified by the rapid influx of new vehicles into the ecosystem, which continually widens the potential attack surface. According to the European Automobile Manufacturers' Association, in 2024, new passenger car registrations in the European Union reached approximately 10.6 million units. This massive volume of new, digitally enabled inventory necessitates complex and costly defense mechanisms, thereby increasing production costs and stifling the market's overall financial expansion.

Key Market Trends

The most significant structural shift in the sector is the accelerated transition from aftermarket OBD-II devices to OEM-embedded telematics systems. This evolution is driven by the need for deeper integration with vehicle control units, which aftermarket dongles cannot reliably achieve, to support advanced functions like remote diagnostics and immutable data logging. Manufacturers are standardizing built-in connectivity to ensure seamless compatibility with future software ecosystems and to maintain control over the user experience, effectively reducing the reliance on third-party hardware installations. According to Motorq, October 2025, in a presentation at the 'Fleet Forward 2025' conference, 96% of new vehicles sold currently feature factory-installed modems, rendering aftermarket hardware largely obsolete for basic connectivity.

Concurrently, automakers are aggressively pursuing the monetization of telematics data by pivoting from one-time hardware sales to recurring software-as-a-service (SaaS) revenue models. By leveraging the granular data collected from embedded systems, OEMs are launching tiered subscription packages that offer fleet managers and individual owners real-time insights into vehicle health, driver behavior, and logistics optimization. This strategy transforms the vehicle into a digital platform, allowing manufacturers to generate high-margin income throughout the asset's lifecycle rather than solely at the point of purchase. According to Ford Motor Company, July 2025, in the 'Second Quarter 2025 Financial Results', paid subscriptions to the Ford Pro Intelligence software platform grew 24% year-over-year to 757,000 active users, underscoring the commercial viability of these digital service ecosystems.

Segmental Insights

The Automatic Crash Notification segment acts as the fastest-growing category within the Global Passenger Vehicle Telematics Market, primarily driven by stringent safety mandates intended to minimize emergency response times. This rapid expansion is notably supported by regulatory initiatives such as the eCall requirement from the European Commission, which obligates new vehicle models to automatically contact emergency services after a collision. Consequently, automotive manufacturers are prioritizing the integration of these safety systems to ensure compliance with regional laws and fulfill the rising consumer demand for enhanced passenger security measures.

Regional Insights

North America maintains a dominant position in the global passenger vehicle telematics market due to the widespread integration of connectivity features by major automotive manufacturers. This leadership is largely driven by strict safety guidelines established by the National Highway Traffic Safety Administration, which encourage the deployment of emergency response and vehicle monitoring solutions. Additionally, the mature insurance sector in the United States actively promotes usage-based insurance models, further accelerating the adoption of telematics in private vehicles. Consequently, high consumer awareness combined with favorable infrastructure supports the continued expansion of the regional industry.

Recent Developments

• In May 2025, LG Electronics demonstrated a breakthrough in connected car technology at the 5G Automotive Association conference in Paris, showcasing a new satellite-based telematics solution. The company successfully tested uninterrupted, conversation-level voice communication from a moving vehicle by seamlessly switching between terrestrial 5G networks and non-terrestrial satellite networks. This "IoT-NTN" technology aims to ensure consistent connectivity for passenger vehicles in remote areas or during terrestrial network failures. This advancement represents a significant step forward for the global passenger vehicle telematics market, particularly for autonomous driving and emergency response applications in underserved regions.
• In July 2024, Uber Technologies launched a strategic partnership with Cambridge Mobile Telematics to deploy a new driver safety initiative called Advantage Mode. This program utilizes advanced mobile telematics to analyze data from drivers' smartphones, monitoring behaviors such as braking intensity, acceleration, and phone distraction. By leveraging these insights, the initiative incentivizes safer driving habits among ride-share operators through financial rewards and exclusive access to ride requests. This collaboration underscores the growing reliance on mobile-based telematics data to mitigate risk and improve passenger safety in the shared mobility segment of the passenger vehicle market.
• In April 2024, Continental AG announced a major supply agreement to equip the new Mercedes-Benz E-Class with advanced telematics solutions, directly impacting the passenger vehicle sector. The technology company provided a high-performance telematics control unit designed to ensure rapid data exchange with mobile networks and support essential safety functions like automatic emergency calls. Furthermore, the collaboration introduced a secure, smart device-based access system that allows drivers to use smartphones and smartwatches as digital keys. This development highlights the increasing convergence of secure connectivity and user convenience in modern automotive telematics.
• In January 2024, Qualcomm Technologies and Robert Bosch unveiled a pioneering collaboration to transform the global passenger vehicle telematics market with the industry's first central vehicle computer. This innovation integrates infotainment and advanced driver assistance system (ADAS) functionalities onto a single system-on-chip from the Snapdragon Ride Flex family. By consolidating these critical domains, the partnership enables automakers to implement complex electronic architectures more efficiently, reducing both cost and development time. The breakthrough allows for high-performance, mixed-criticality workloads to run seamlessly, significantly enhancing the digital cockpit experience and safety features in next-generation passenger vehicles.

Key Market Players

• Robert Bosch GmbH
• Continental AG
• OnStar LLC
• AirIQ Inc.
• Agero, Inc.
• Qualcomm Incorporated
• Zonar Systems, Inc.
• Omnitracs, LLC
• MiX Telematics International (Pty) Ltd

By Service Offering	By Form Type	By Type	By Region
Automatic Crash Notification Emergency Calling Navigation On-Road Assistance Remote Diagnostics Vehicle Tracking/Recovery Insurance Risk Assessment Driver Behavior Billing Services Others	Embedded Tethered Integrated	Discrete Consulting Implementation Maintenance	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Passenger Vehicle Telematics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passenger Vehicle Telematics Market, By Service Offering:

• Automatic Crash Notification
• Emergency Calling
• Navigation
• On-Road Assistance
• Remote Diagnostics
• Vehicle Tracking/Recovery
• Insurance Risk Assessment
• Driver Behavior
• Billing Services
• Others

• Passenger Vehicle Telematics Market, By Form Type:

• Embedded
• Tethered
• Integrated

• Passenger Vehicle Telematics Market, By Type:

• Discrete
• Consulting
• Implementation
• Maintenance

• Passenger Vehicle Telematics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE