The global commercial telematics market size is anticipated to reach USD 45.0 billion by 2022. Telematics is the cornerstone of efficient logistic systems as well as fleet management systems. 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 factors expected to fuel commercial telematics 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 the 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 commercial telematics 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. The recent, upsurge in internet and cellphone usage has drastically led to a decline in the cost of mobile terminals and telecom charges. 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 marketplace 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 their 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 their competitors through the provision of advanced data streaming analytics solutions, is expected to drive the commercial telematics 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 commercial telematics 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 are 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.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
"The quality of research they have done for us has been excellent."
In contrast to its related industries like consumer electronics and semiconductors, the data center and communications infrastructure industry is expected to be more buoyant with continued strategic investments made to support the increased network traffic and data usage for remote working during the lockdown phase. From school closures necessitating students to use virtual offerings (Google Classroom ) to the governments using business analytics services (Power BI) for communicating virus updates, the demand for communication services and related infrastructure has witnessed an unprecedented rise amidst the global pandemic. Digital services including telemedicine are expected to remain popular even after the pandemic is contained, thereby ensuring strong growth in the communication infrastructure industry. The report will account for Covid19 as a key market contributor.
We value your investment and offer free customization with every report to fulfil your exact research needs.