Telematics are the cornerstone of efficient logistic systems as well as fleet management systems. The global market size for commercial telematics is anticipated to exceed USD 45.0 billion by 2022. Rising fuel prices along with advancements in mobile connectivity across the automotive segment provides several growth opportunities.
High demand for connected vehicles is one of the primary factor expected to fuel market demand over the next seven years. The technology is matured in developed regions including North America and Europe; however market penetration for the same is somewhat on a lower side.
Aftermarket telematics is expected to capture a sizeable market share in 2014, which may be attributed to a surge in demand for applications including infotainment and satellite navigation. However, over the next few years the OEM telematics segment may witness high demand in comparison to aftermarket telematics owing to increasing partnerships among telematics service providers and automobile manufacturers.
Government mandates pertaining to the installation of GPS trackers and satellite navigation play a key role in driving market demand. Further, installation of telematics solutions in light commercial vehicles has been mandated in several regions, which is expected to drive the demand for embedded OEM telematics segment over the forecast period. In 2014, the segment accounted for more than 60% of the overall OEM telematics market share.
Telematics adoption by commercial fleets has several benefits as the technology empowers fleet-based organizations to lower fuel consumption. Recent, upsurge in internet and cellphone usage has drastically led to a decline in cost for mobile terminals and telecom charges. On account of which the telematics market is expected to witness high growth across the commercial vehicle segment over the foreseeable future.
Key competitors in this market place are largely focused on location and tracking-based products. However, new entrants are now focusing on computational science and data analytics software that these systems utilize to provide more advanced products to its customers. Presently, when the majority of the market players are focused on proving location-based tracking products, this initiative by emerging players to provide greater value than its competitors through the provision of advanced data streaming analytics solutions, is expected to drive market demand significantly.
In recent times, fuel price volatility has impacted the commercial vehicle industry adversely. This has also created a demand for several innovative applications that allow fleet-wide fuel optimization and is anticipated to impel the demand for telematics systems across the commercial fleet segment over the next seven years. Further, driver monitoring and safety is poised to emerge as a new application area, which may drive innovation and development across the telematics segment.
The market has a clear demand for advanced decision support systems, which is expected to take telematics services and their applications to a level where a large segment of regional, as well as local long-haul commercial fleet subscribers, can be attracted. Fleet managers often under the impression, that telematics services merely provide a large volume of data with little or no actionable information, which may pose a challenge to the industry growth. Therefore, creating a sense of awareness among the commercial fleet owners in regards to the solution benefits is pivotal to fuel market demand. Further, it is also important for the vendors to provide solutions that focus on integrating advanced data analytics techniques across these systems that collate data from various vehicles and analyze the same to provide real-time, strategic and business-critical information to the fleet managers.
Key players in this marketplace include Verizon, Tomtom, Onstar, Trimble Navigation and Omnitracs.
Avail customized purchase options to meet your research needs:
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.