The telematics and connectivity processors market is being driven by the growing demand for cost-effective connection and accurate data processing with cyber security protection. The market for connectivity processors is being fueled by the development of the powerful system on chips. Telematics systems track onboard sensors and send data to the cloud, as well as provide assistance, diagnostics, OTA updates, location-based services, and more.
Continuous advancements in connectivity processors, such as rich connected-driving services, secure in-car connections, smaller processors, and the ability to choose between different connection types, such as 2G, 3G, and 4G, are driving up demand for telematics and connectivity processors. Multiple agreements are taking place in the telematics and connection processor market. OEMs, for example, are forming alliances with internet service providers and infrastructure providers to deliver a variety of services. The increased need for telematics and connection processors is being driven by on-demand taxi services and supply and logistics activity.
Market drivers and challenges for telematics and connectivity processors
One of the primary drivers for the telematics and connected processors market is favorable government legislation. All cars in the European Union (EU) are required to have the eCall feature, while all large commercial vehicles in North America are required to have electronic logging devices. These rules necessitate the use of high-end technology connectivity processors, which is propelling the telematics and connectivity processors market forward. Furthermore, the telematics and connection processors market for passenger vehicles is being driven by increased concerns about safety and security, fuel monitoring, and vehicle tracking.
Players to Watch
STMicroelectronics, Qualcomm Technologies Inc., Intel Corporation, Continental, Toshiba Electronic Devices & Storage Corporation, Portwell Inc., Sierra Wireless, Texas Instruments, Arm Limited, and others are among the major participants in the telematics and connectivity processors market.