Regional Analysis

4.3.3 Asia Pacific region is expected to lead the OE market during the forecast period.

One of the critical drivers for the Asia Pacific market is the increased demand for fleet
management and navigation services, particularly in China, Japan, India and South Korea.
The tech-savvy population in these countries are now getting more inclined towards
connected driving experience. The demand for telematics in the Asia Pacific is significantly
driven by strong economic growth, ongoing advancement in the automotive sector and rapid
urbanization. As safety regulations have been made in Japan and South Korea, the demand
for telematics in these countries is anticipated to increase in coming years.

Owing to favorable government initiatives, telecom infrastructure has registered significant

growth in APAC. For instance, the installation of telematics systems and satellite positioning
in commercial vehicles has been made mandatory by the Chinese government. Moreover,
increasing smartphone penetration is likely to create a strong base for telematics. In 2017, the
Chinese Ministry of Industry and Information Technology (MIIT) and the Standardization
Administration of China (SAC) issued a draft to establish national standards for China’s
Intelligent & Connected Vehicles (ICV). Due to the growing population and vehicle demand,
China is expected to introduce vehicle and road safety regulations. Baidu and Alibaba which
are the biggest technology companies in China, are pushing to develop platforms for
telematics services. Moreover, the Japanese automotive companies are also inventing and
implementing telematics services and solutions. In 2019, Airbiquity announced it had become
a member of the Japan Automotive Software Platform and Architecture (JASPAR), an
organization dedicated to advancing the standardization of in-vehicle software and networks
to enhance development efficiency and reliability.