The global commercial telematics market is expected to grow at a CAGR of around 14.0% from 2020 to 2027 and expected to reach the market value of around US$ 106.5 Bn by 2027.
Commercial telematics are automotive information and communication technologies/services aimed at the fleet and trucking segments that use embedded technology, mobile and aftermarket devices. They support networks connecting commercial vehicles/fleets and IT applications, with a focus on increasing productivity, efficiency, profitability, cost savings (such as lower insurance premiums), and sustainability.
Significant growth in the transportation industry around the world is one of the key factors driving the market forward. Furthermore, the widespread adoption of smart transportation systems is fueling market growth. Automobile manufacturers are integrating sophisticated connectivity solutions to provide more accurate insights about the vehicles as the use of digital devices such as smart phones, laptops, and tablets grows. These solutions also help to improve vehicle efficiency, enable smart routing and tracking, provide on-road assistance, and improve the overall driver experience. Various technological advancements, such as the development of open-source frameworks for commercial telematics, are also acting as growth drivers. Other factors, such as favourable government policies mandating commercial vehicle tracking and the development of video-based telematics, are expected to drive the market even further.
Threat of cyber attacks/data hacking
Rising hacking and privacy concerns, as well as a lack of awareness about telematics, are some of the factors impeding overall market growth. Telematics produces a massive amount of data, including a detailed history of vehicle and driver activities and operations. It is critical to safeguard that valuable data. If a malicious party gains access, serious consequences may ensue, potentially jeopardising customer accounts, schedules, shipments, asset location, and personal information. Thus, one of the factors expected to thwart market growth is hacking threats to vehicle telematics systems.
Big calls for "vehicle telematics" to improve safety and save money for the public sector
Telematics, according to the OGL report, allows fleet managers to monitor things like fuel consumption, vehicle tracking, and driver behaviour. This data can then be used to investigate ways to significantly reduce vehicle costs over their entire life cycle. This brand new agreement was created to assist organizations in better managing their fleets by improving safety and efficiency through the use of telematics technology. The agreement was created in collaboration with police, ambulance, local government, and central government customers, and it includes a variety of suppliers, all of which are small and medium-sized businesses.
The global commercial telematics market is segmented as solution type, application, and end-user. By solution type, the market is classified into OEM and aftermarket. Based on application, the market is bifurcated into solution and services. Further, end-user is segmented as transportation and logistics, insurance, healthcare, media & entertainment, vehicle manufacturers/dealers, and government agencies.
Transportation and logistics will have a reasonable market share in the global commercial telematics market based on end-user. Currently, 96% of businesses use telematics in their fleets, with communication functions sent over 3G/4G, leveraging real-time data for efficient fleet operation. Furthermore, commercial vehicles such as light-duty trucks (LDT), medium-heavy-duty trucks (MHDT), and heavy-duty trucks (HDT) are used in the transportation and logistics and postal and delivery services sectors. It examines the application of telematics and fleet management solutions.
Based on solution type, the aftermarket segment has dominated the market in the past and will continue to do so during the forecast period for the global commercial telematics market. One of the key factors driving segment growth is an increase in demand for applications such as infotainment and satellite navigation. However, due to growing partnerships between telematics service providers and automobile manufacturers, the OEM telematics segment may see higher demand than aftermarket telematics in the coming years.
North America dominates; Asia Pacific to register fastest growing CAGR in the coming years
One of the primary factors expected to fuel commercial telematics market demand over the next seven years is a high demand for connected vehicles. The technology has reached maturity in developed regions such as North America and Europe. Government rules and regulations for vehicle safety, security, and tracking in various regions drive the growth of the commercial telematics market. The United States Department of Transportation, for example, has issued guidelines for vehicle tacking. According to the same, the fleet manager must provide reports for all violations identified by federal or state investigators, as well as a detailed list of all violations discovered during inspections and state-supplied crash reports. Furthermore, the Federal Motor Carrier Safety Advisor requires that all fleet management systems (FMS) be certified. As a result, government regulations for vehicle telematics are driving market growth in North America, resulting in massive growth for the global commercial telematics market. Furthermore, the massive demand for commercial telematics in transportation and logistics activities is the primary reason for North America's commercial telematics market dominance.
China, India, Japan, South Korea, and Australia are some of the key countries that have contributed significantly to the expansion of the Asia Pacific commercial vehicle telematics market. The Indian commercial vehicle telematics market is expected to grow the fastest. This region has seen a high adoption of telematics in commercial vehicles, which is positively influencing market growth in India. Commercial vehicle telematics aid in overall service improvement, lower fuel and maintenance costs, lower administrative costs, and improve safety, prompting governments to enact mandates mandating the installation of cutting-edge telematics and boosting the growth of the Asia Pacific commercial vehicle telematics market.
Apart from that, Europe will have the second largest market share in commercial telematics. The adoption of mobile resource management and machine-to-machine communication has resulted in the use of the commercial telematics ecosystem.
The report covers detailed competitive outlook including company profiles of the key participants operating in the global market. Key players profiled in the report include Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., and among others
Market By Solution Type
Market By Application
Market By End-user
Transportation and Logistics
Media & Entertainment
Commercial telematics market is expected to reach a market value of around US$ 106.5 Bn by 2027.
The commercial telematics market is expected to grow at a CAGR of around 14.0% from 2020 to 2027.
Based on solution type, aftermarket segment is the leading segment in the overall market.
Big calls for “vehicle telematics” to improve safety and save money for the public sector are one of the prominent factors that drive the demand for commercial telematics market.
Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years