Originally Published on: TechnavioMotor Racing Telematics (MRT) Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Germany, France, UK - Size and Forecast 2023-2027

The motor racing telematics (MRT) market is set for substantial growth, with an anticipated surge of USD 241.43 million and a robust CAGR of 9.18% between 2022 and 2027. This upswing is driven by factors like the escalating demand for performance optimization, a favorable regulatory climate driving MRT adoption, and the heightened use of electronic components amplifying overall performance.

Motor Racing Telematics (MRT) Market Forecast 2023-2027

Expect significant market expansion, driven by a compelling CAGR of 9.18% between 2022 and 2027, resulting in an impressive USD 241.43 million surge.

Market: Key Drivers, Trends, and Challenges

Key Driver

The primary growth catalyst is the escalating demand for performance optimization. The deployment of cutting-edge telecommunications solutions by motor racing teams is a positive influencer on the global market. Real-time data proves pivotal in comprehending bike and rider performance, offering a competitive edge in races. Telematics data empowers teams to pinpoint areas for development and optimize bike setup and race plans, considering variables like speed, acceleration, braking, and maneuverability.

Furthermore, the motorsport sector's pursuit of enhanced lap times, efficiency, and safety through data-driven decisions fuels the demand for advanced telematics systems, contributing significantly to market expansion.

Key Trends

A standout trend is the deployment of 5G networks and edge computing capabilities. These advancements revolutionize real-time data transmission and analysis during races. The high speeds and low latency of 5G facilitate seamless communication between ground sensors in motorsport and race management systems. Edge computing, by processing data closer to the source, reduces transmission latency and enhances data intelligibility.

This trend fosters the use of sophisticated telemetry, providing riders and teams with more profound and accurate performance measurements. It elevates competition and predictability in global motor racing competitions, driving substantial market growth.

Key Challenge

The formidable challenge lies in the high costs associated with telematics services. Total costs, encompassing licensing, configuration, installation fees, customization payments, and integration with existing systems, impact customers' financial decisions. Hidden costs like installation fees and network roaming fees further pose challenges to market growth. Manufacturers, compelled to maintain low profit margins, face financial constraints impacting R&D investment and in-vehicle telematics development.

This challenge impedes OEMs from gaining maximum control points in the telematics ecosystem, potentially hindering global market growth during the forecast period.

Market Customer Landscape

The market research report navigates the adoption lifecycle, spanning stages from innovators to laggards. It evaluates adoption rates in diverse regions based on penetration and explores key purchase criteria and drivers of price sensitivity, assisting companies in refining growth strategies.

Motor Racing Telematics (MRT) Market Share by Geography

Who are the Major Motor Racing Telematics (MRT) Market Companies?

Companies adopt various strategies, including strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to amplify their market presence.

Agero Inc.: The company offers motor racing telematics, such as Agero connected vehicle service.

The research report furnishes detailed analyses of the competitive landscape, featuring information about 20 market companies, including:

• Airbiquity Inc.
• Aptiv Plc
• AT and T Inc.
• Bridgestone Corp.
• Bynx Ltd.
• Comtech
• Continental AG
• DXC Technology Co.
• Emkay Inc.
• iLink Digital Inc.
• OCTO Telematics S.p.A
• PTC Inc.
• Robert Bosch GmbH
• Telefonaktiebolaget LM Ericsson
• Valeo SA
• Verizon Communications Inc.
• Visteon Corp.
• Vodafone Group Plc
• Volkswagen AG

Qualitative and quantitative analyses categorize companies as pure play, category-focused, industry-focused, and diversified, providing insights into their strengths and weaknesses.

What is the Largest-Growing Segment in the Market?

The M2M segment is anticipated to witness significant growth during the forecast period. Particularly in developing economies like India and China, the M2M applications market holds significant growth potential. Steady adoption in countries such as China, India, Thailand, and Singapore, coupled with government initiatives and regulatory mandates like the EU's integration of automotive security systems, is driving M2M connectivity and cybersecurity solutions.

The M2M segment, valued at USD 196.04 million in 2017, is driven by the deployment of M2M automotive competitive telecommunications applications, contributing to reduced road accidents and damage. The demand for M2M applications is on the rise, further driving market growth.

Which are the Key Regions for the Market?

Europe is estimated to contribute 37% to the global market's growth during the forecast period. The European market's steady growth is attributed to technological advancements and the increasing popularity of motorsport. Telematics solutions are increasingly used by manufacturers and teams in Europe to enhance security measures, track data, and improve performance. Major companies are unveiling advanced GPS tracking devices, data loggers, and telemetry systems designed for racing applications.

Additionally, the European motorsports community's strong commitment to sustainability has popularized eco-friendly telemetry systems, fostering efficient fuel use and reduced carbon emissions. These factors are expected to drive market growth in the region.

Market Analyst Overview

The market integrates informatics and information technology for vehicle telemetry, utilizing remote objects and computer programs for real-time data analysis. This high-tech sector employs in-vehicle telematics to enhance racing technology, ensuring the reliability of performance systems and green vehicle efficiency. Market opportunities arise from consumer needs for stability and comfort, leading to investments in software implementation and hybrid vehicle technology.

Challenges include economic crises impacting labor productivity and manufacturing costs. Competitive intensity is analyzed through Porter's five forces, highlighting buyer and supplier potency. Trends indicate a growing focus on remote monitoring, simulation, and telematics integration for optimized performance.

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