Automotive OEM Telematics deals with the development, manufacturing, production, and integration of telematics systems built directly into automobiles by OEMs, i.e., the car manufacturing companies themselves. The industry caters to diverse hardware and software integrations, as well as services such as remote diagnostics, fleet management, infotainment, and more. OEM telematics systems allow car manufacturers to offer built-in connected services and solutions, which have the ability to enhance vehicle safety, performance, and drive. It plays a key role in the development of smart cities. The sector is witnessing rapid growth, owing to rise in vehicle connectivity, increase in adoption of 5G, and surge in the number of EVs. Moreover, prominent players such as Qualcomm, Bosch, Continental AG, and more, are driving innovation and technologies in the sector.
Rapid industry transformation driven by technological innovations
The automotive OEM telematics sector is witnessing significant transformation, owing to the most key developments, which is the integration of 5G connectivity. It fosters faster, low-latency communication, which is essential for real-time vehicle-to-everything (V2X) interactions, autonomous driving, and advanced navigation. This high-speed communication infrastructure supports the rise in demand for connected and semi-autonomous vehicle features. Furthermore, AI and ML integration is also playing a significant role in fostering development, focusing on predictive maintenance, driver behavior analytics, and personalized in-car experiences that improve vehicle reliability and customer satisfaction.
In addition, integration of telematics systems with infotainment platforms allows systems including Android Automotive OS and Apple CarPlay to deliver seamless user experiences. They feature navigation, voice assistance, and multimedia, which improves the drive. Rise of data flow has led to serious situations, where cybersecurity enables OEM manufacturers to implement secure boot mechanisms, encryption communications, and intrusion detection systems, ensuring safety of the vehicles and vehicle data. Such technologies address the rise in threats from hackers that target connected vehicles. Such advancements in the sector are focus on the expansion of OEM telematics systems’ capabilities, and enhance how drivers interact with the vehicles.
Notable strategic product launches by key players in the sector
In March 2025, Huawei AITO M9 SUV, a flagship SUV developed by Aito, set new standards for intelligent vehicles, with significant upgrades, such as integration of the Huawei ADS 3.3 advanced driver assistance system. The updated system has four LiDAR sensors that promote 360° environmental awareness. These upgrades position Huawei AITO M9 as a prime example of OEM-telematics vehicle and autonomous driving technology.
In addition, in 2025, leading OEMs, such as General Motors, Mercedes- Benz, and Stellantis, adopted Qualcomm’s Snapdragon Digital Chassis on a large-scale. The chassis is designed to join driver assistance systems in one unit, supporting the trend towards software-defined vehicles. It features over-the-air (OTA) updates and enhances real-time functionality.
Such strategic advancements highlight the automotive industry drive to enhance safety, connectivity, and user experience by offering innovative telematics solutions.
Regional trends fostering developments and innovations
The automotive OEM telematics industry is witnessing robust global growth globally. According to Allied Market Research, the sector is projected to rise at a CAGR of 15.1% from 2023 to 2032. Asia-Pacific is leading the revenue share, owing to strong government mandates, widespread 5G deployment, and increase in electric vehicle adoption, particularly in China, India, and South Korea. In Asia-Pacific, OEMs including Toyota, BYD, and Hyundai are emphasizing on embedded telematics, EV integration, and partnerships with local tech giants owing to the strong 5G infrastructure and government mandates. The North America region witnesses growth, owing to implementation of stringent regulatory requirements, rise in consumer demand for safety features, and rapid adoption of AI and IoT in vehicles. Major players in the region such as GM, Ford, and Tesla lead in subscription services, OTA updates, and fleet solutions, taking advantage on tech-savvy consumers and a mature commercial vehicle base. Europe is a significant player in the industry, and the sector is expected to witness notable surge, owing to strict safety regulations, smart mobility initiatives, and high consumer awareness. OEMs in the region, including Volkswagen, BMW, and Mercedes-Benz, are focused on regulatory compliance (eCall, GDPR), premium data services, and EV telematics integration. Latin America and the Middle East & Africa (MEA) are emerging and developing markets, wherein rise in investments in digital infrastructure, fleet management needs, and smart city projects are substantially increasing the telematics adoption.
Future Outlook
The automotive OEM telematics industry is driven by increase in advancements in vehicle connectivity, rise in technological developments such as AI integration, electrification, and 5G adoption, and strengthening of regulatory support globally. Moreover, the shift towards software-defined vehicles (SDVs) and increase in use of AI and predictive analysis are anticipated to boost the industry during the forecast period. Thus, leading OEMs are transforming into mobility tech companies, by using telematics to deliver personalized, data-driven, and subscription-based services. Manufacturers in the sector can capitalize on this by focusing on integration of hardware, software, and cloud connectivity seamlessly, further driving growth.
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