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A report from Sandler Research on the global automotive telematics market reveals that the demand for connectivity in cars will be one of the major drivers of growth in the industry, ensuring a CAGR of 23.37% between 2014 and 2019.

One of the key selling points for telematics is its role in boosting the in-vehicle experience by providing consistency with the user interface of personal mobile devices. However, the high cost of automobile-embedded telematics is set to offset market growth.

From a geographical perspective, the Asia Pacific market will witness the fastest growth, with the region expected to contribute 30% to the global market, an increase of 400 BPS from 26%, according to another report from Future Market Insights (FMI). The key drivers of growth are expected to be steady GDP growth and high technological penetration. The region also is at an advantage on account of the presence of major players in the commercial vehicle telematics market.

FMI lead consultant Nikhil Kaitwade said: “Telematics in the automotive industry has become increasingly relevant with a palpable emphasis on safety and security globally. New business models combined with increased technology adoption and remote vehicle diagnostics is fuelling growth of the Asia Pacific automotive telematics market.”

Though North America is the market leader from a geographical point of view, saturation in the West coupled by high penetration will boost growth in the Asia Pacific region. The growth in social media adoption and expanding safety and security end-user segment will also be drivers of growth.

Key players in the global automotive telematics market include Agero, Aribiquity, Continental, Verizon, AT&T, Bynx, Connexis, Ericsson, Fleetmatics Group, GM, Luxoft, Marelli, Mix Telematics, Octo Telematics, PTC, Bosch, TeleCommunication Systems, TELENAV, Telogis, TomTom International, Valeo, Vodafone, and WirelessCar.

You can find the global report here, and the Asia Pacific report here.