Analyst firm Berg Insight says the global telematics market for connected cars is set to experience substantial growth in the coming years.
The number of telematics service subscribers using embedded systems is projected to rise from 239.7 million at the end of 2023 to 473.8 million by 2028, representing a compound annual growth rate (CAGR) of 14.6 percent.
Similarly, shipments of embedded original equipment manufacturer (OEM) telematics systems are forecast to grow from 59.3 million units in 2023 to 82.9 million units by 2028, with the attach rate increasing from 75 percent to 94 percent.
The report noted that global passenger car and light truck registrations climbed by 11.6 percent to 79.3 million in 2023. Berg Insight predicts that OEM telematics subscribers will continue to expand rapidly as connected car services become more prevalent across major automotive markets.
Berg Insight says approximately 75 percent of all new cars sold globally in 2023 were equipped with embedded OEM telematics systems, marking an increase from 72 percent in 2022.
The most advanced markets for premium telematics services include North America, which leads with a 91 percent attach rate, followed closely by the EU+EFTA+UK region at 90 percent. Japan and South Korea also demonstrate high adoption, with an attach rate of around 81 percent, while China, a key market for telematics services, has an attach rate of 78 percent. In contrast, the attach rate in other regions remains below 40 percent.
Major automotive manufacturers like Toyota, General Motors, Stellantis, Ford, Volkswagen, Hyundai, Honda, and Nissan are driving growth by offering free connected services in their key markets. Premium brands such as BMW, Mercedes-Benz, and Audi, which have provided telematics services as standard for over a decade, continue to hold a significant number of subscribers. Other automakers, including Kia, Tesla, Renault, Geely, BYD, Volvo, SAIC, GWM, and Changan Motors, are also expanding their embedded telematics offerings on a large scale.
Currently, OEM telematics services focus on core offerings such as emergency and roadside assistance, and remote control features, often provided through standard or premium subscriptions. However, in recent years, new connected entertainment services—such as video streaming, gaming, and video calls—have emerged, particularly in premium models. Automakers are still refining business models to meet customer demands while leveraging data collected from connected vehicles for product development and cost reduction.
“Carmakers are increasingly bundling core services for free for extended periods to build brand loyalty and maintain active connections in a larger portion of their vehicles, enabling valuable data collection,” said Martin Cederqvist, Senior Analyst at Berg Insight.
In addition, carmakers are shifting toward integrating third-party apps directly into vehicle infotainment systems, moving away from smartphone-mirroring solutions like Android Auto and Apple CarPlay. Some manufacturers are even considering phasing out support for these platforms to gain more control over the in-car digital experience.
Toyota, General Motors, and BMW each had more than 20 million connected cars at the end of 2023, while Stellantis, Ford, Volkswagen, Mercedes-Benz, and Hyundai also ranked among the top automotive OEMs in terms of connected car numbers. In mature markets, shipments of connected cars are expected to grow in line with new car sales, with nearly 100 percent of vehicles expected to have embedded telematics by the end of the forecast period.
