Aftermarket Car Telematics Market Enters a New Growth Phase Driven by Remote Diagnostics, Data Integration, and AI
The latest edition of the “Aftermarket Car Telematics – 6th Edition” report has been officially added to ResearchAndMarkets.com’s expanding portfolio of global mobility and connected vehicle intelligence. As the sixth consecutive study dedicated to this rapidly evolving segment, the report delivers a comprehensive and forward-looking assessment of how aftermarket telematics solutions are reshaping vehicle services, insurance models, and customer engagement strategies worldwide.
Spanning 180 pages of in-depth analysis, the study provides a detailed view of the aftermarket car telematics ecosystem, covering technology trends, competitive dynamics, value-chain relationships, and market forecasts extending through 2029. Supported by five-year industry projections and expert insights, the report is designed to help stakeholders make informed strategic decisions in an increasingly data-driven automotive landscape.
Expansive Addressable Market Despite Competitive Pressures
The global opportunity for aftermarket car telematics remains substantial. By the end of 2024, an estimated 1.4 billion passenger cars and light commercial vehicles were registered worldwide. This enormous vehicle parc represents a vast pool of potential customers for telematics solutions that can be retrofitted to vehicles already in operation.
Although aftermarket telematics providers face growing competition from OEM-installed systems and smartphone-only applications, the analyst concludes that the aftermarket segment is far from mature. Instead, it continues to demonstrate solid growth, driven by technological innovation, evolving business models, and rising demand for connected vehicle services across both consumer and commercial markets.
Strong Shipment Growth and Rising Installed Base
According to the report’s findings, global shipments of aftermarket car telematics systems reached approximately 26.5 million units in 2024. With a projected compound annual growth rate (CAGR) of 8.2%, shipments are forecast to climb to 39.3 million units by 2029.
Even more telling is the growth of active systems already in use. The number of aftermarket car telematics units in operation worldwide is expected to increase from 90.3 million in 2024 to 136.8 million by 2029, reflecting a CAGR of 8.7%. During the same period, overall penetration of aftermarket telematics within the global vehicle fleet is projected to rise from 6.3% to 8.5%.
These figures underscore a sustained shift toward connected vehicle functionality beyond factory-installed solutions, particularly in regions with aging vehicle fleets or lower OEM telematics penetration.
A Complex and Diverse Competitive Landscape
The aftermarket car telematics market is characterized by a highly fragmented and diverse competitive environment, spanning multiple industries including automotive, insurance, telecommunications, software, and electronics manufacturing.
Solution providers targeting the aftermarket range from pure-play telematics specialists to broader platform providers that also support fleet management, logistics, and enterprise mobility solutions. Several leading companies have already achieved installed bases numbering in the millions, reflecting both scale and long-term customer relationships.
Prominent solution vendors active in the aftermarket car telematics space include OCTO Telematics, Procon Analytics, StarLine, Spireon, Targa Telematics, Vodafone Automotive, Ituran, PassTime GPS, Tracker Connect Maxtrack, Carsystem, SVR Tracking, and Cognosos.
Partnership-Led Go-to-Market Strategies Dominate
A defining characteristic of the aftermarket telematics sector is its reliance on partnership-driven distribution models. Rather than selling directly to end users alone, most vendors collaborate closely with insurance companies, automotive dealers, OEMs, mobile network operators (MNOs), and vehicle finance institutions.
This ecosystem-based approach allows telematics providers to embed their solutions into broader service offerings, including insurance policies, financing agreements, extended warranties, and dealer aftersales programs. As a result, telematics increasingly functions as a value-added service rather than a standalone product.
On the hardware side, companies such as Teltonika, Jimi IoT, Queclink, ERM Advanced Telematics, Xirgo, BSJ Technology, Danlaw, Positioning Universal, ST SUNLAB, Gosuncn RichLink, Ruptela, and Munic play a critical role in enabling scalable aftermarket deployments.
Stolen Vehicle Tracking Remains a Core Application
Among all aftermarket telematics use cases, stolen vehicle tracking (SVT) and recovery (SVR) remains one of the most mature and widely adopted. Demand for these solutions is strongly influenced by regional vehicle crime rates, making SVT particularly popular in countries such as Brazil, Argentina, China, Israel, Russia, and South Africa.
Vehicle theft has been rising in many markets in recent years. In the United States alone, approximately 900,000 motor vehicles were stolen in 2024, according to national crime data. Against this backdrop, the report forecasts that the number of active aftermarket SVT units worldwide will grow from 67 million at the end of 2024 to 103.4 million by 2029.
Despite increasing competition from OEM-installed security services, aftermarket SVT providers continue to compete effectively by offering flexible pricing, broader vehicle compatibility, and rapid deployment options.
Telematics Transforms Aftersales and Vehicle Finance Operations
Telematics has become an increasingly strategic component of dealer aftersales programs and vehicle finance operations. By enabling remote diagnostics, real-time alerts, and direct communication with drivers, telematics platforms allow service providers to shift from reactive maintenance models to proactive, data-driven customer engagement.
When integrated with customer relationship management (CRM) systems, telematics data can help dealers anticipate service needs, identify recurring technical issues, and improve overall customer satisfaction. For dealerships managing inventory, telematics also enables real-time monitoring of vehicle health, battery status, and software performance across vehicles on the lot.
Vehicle finance companies similarly leverage telematics to support risk management, asset protection, and usage-based pricing models, particularly in emerging markets.
Expanding Direct-to-Consumer Offerings
Direct-to-consumer (D2C) telematics solutions are available across many global markets, offered by companies such as Verizon, Mojio, Varroc Connect, Tail Light (Bouncie), Agnik (Vyncs), Net4Things, Air, LandAirSea, Uffizio, Comodif, and Protectus Technologies (CarLock).
In recent years, many D2C providers have expanded beyond basic consumer services to include fleet management features and B2B2C telematics platforms, allowing them to serve small businesses, mobility operators, and insurance partners alongside private vehicle owners.
This convergence between consumer and enterprise telematics reflects a broader trend toward platform-based solutions capable of supporting multiple customer segments from a single technology stack.
Key Findings and Strategic Insights
The report incorporates insights from 30 newly conducted executive interviews, offering firsthand perspectives on market challenges, innovation priorities, and competitive strategies. It also includes profiles of 93 aftermarket car telematics solution providers, along with updated data on global car populations, new vehicle registrations, and regional market dynamics.
Key themes identified in the study include:
- Artificial intelligence as a differentiator for aftermarket telematics service providers
- Continued success of niche and specialized telematics applications
- Growing overlap between consumer telematics and fleet management services
- Emerging opportunities enabled by satellite IoT connectivity
- Simplification of telematics deployment through new IoT technologies
- Increasing competition between aftermarket SVT solutions and OEM services
- Gradual easing of privacy concerns among consumers
- Continued relevance of usage-based insurance in the aftermarket segment
- Insourcing of telematics capabilities by large insurance groups
- Intensifying competition from smartphone-based telematics applications
- Enhanced customer care enabled by CRM and diagnostic integration
- Wi-Fi hotspot services driving in-vehicle connectivity demand
- Broad partner ecosystems becoming central to telematics succes
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