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Vehicle Connectivity and Telematics: Tapping into a New Revenue Opportunity for the Auto Aftermarket Industry

By October 2, 2023October 23rd, 2023Garage Guard®, Insurance

As the realm of automotive tech experiences a sea of change, vehicle connectivity and telematics are at the forefront.

The numbers are staggering. The global connected car market is expected to reach a value of $170B by 2032 with CAGR of 25.2% from 2023 to 2032

Similarly, the telematics market is projected to achieve a value of $232.5B by 2032, growing at a CAGR of 17.3% from 2023 to 2032.

These figures represent not just trends but a goldmine of opportunities for the automotive aftermarket industry.


With many auto execs seeing connected car services as a key revenue driver, the future looks promising. Imagine leveraging real-time data for predictive maintenance – a market expected to hit $100B by 2032.

This opens doors for upselling services like software updates and custom tuning, and could substantially increase revenue streams.

Preparing for the Future

  1. Skill Upgradation: The time to train your techs for connected vehicles is now, as its predicted by 2030, 95% of new vehicles will be connected.
  2. Tools & Equipment: Modernize your toolkit with updated OBD systems and secure internet to meet demands of connected vehicles
  3. Cybersecurity: Data is the backbone of connectivity. Robust cybersecurity measures are non-negotiable.
  4. Customer Education: Existing customers can become early adopters. Educate them on how telematics can enhance vehicle performance and safety.


Potential Risk Exposures and Insurance

  1. Data Breach: As you handle sensitive data, consider augmenting your coverage with cyber liability insurance. (Feel free to reach out to me directly if you’re unsure if you have cyber coverage)
  2. Professional Errors: With increased system complexity comes higher chances of errors. E&O coverage is advised.
  3. Property Risk: Modern diagnostic equipment is expensive – ensure your property insurance is up-to-date.


Vehicle connectivity and telematics offers a transformative avenue for growth in the auto aftermarket industry.

However, it’s key to adapt both business practices and insurance portfolios to navigate this promising yet complex landscape successfully.

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