Commercial Telematics Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Commercial Telematics Market Size accounted for USD 48.6 Billion in 2021 and is estimated to achieve a market size of USD 161.6 Billion by 2030 growing at a CAGR of 14.4% from 2022 to 2030.

Commercial Telematics Market Report Key Highlights

• Global commercial telematics market revenue is poised to garner USD 161.6 billion by 2030 with a CAGR of 14.4% from 2022 to 2030
• North America commercial telematics market value occupied more than USD 17 billion in 2021
• Asia-Pacific commercial telematics market growth will record a CAGR of around 15% from 2022 to 2030
• Among application, the solution sub-segment generated around 56% share in 2021
• Based on application, the transportation and logistics sub-segment generated around US$ 14 billion revenue in 2021
• Personalized services and adoption of cybersecurity are popular commercial telematics market trends that fuels the industry demand

Commercial telematics is automotive information and communication technologies/services aimed at the fleet and trucking segments that use embedded technology and 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.

Global Commercial Telematics Market Dynamics

Market Drivers

• Increasing demand for fleet management solutions
• Growing demand for data analytics
• Rising adoption of connected cars
• Regulatory mandates

Market Restraints

• High initial cost
• Limited availability of skilled workers

Market Opportunities

• Advanced analytics and artificial intelligence
• Integration with other technologies

Commercial Telematics Market Report Coverage

Commercial Telematics Market Insights

Market Drivers

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 favorable 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 jeopardizing 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

Key Takeaways

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 behavior. 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

Commercial Telematics Market Segmentation

The worldwide commercial telematics market is split based on product type, application, end-user, and geography.

Commercial Telematics Product Types

• OEM
• Aftermarket

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.

Commercial Telematics Applications

• Solution
  • Fleet Tracking and Monitoring
  • Driver Management
  • Insurance Telematics
  • Safety and Compliance
  • V2X Solutions
  • Others
• Services
  • Professional services
  • Managed services

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.

Commercial Telematics End-Users

• Transportation and Logistics
• Insurance
• Healthcare 
• Media & Entertainment
• Vehicle Manufacturers/Dealers
• Government Agencies
• Others

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.

Commercial Telematics Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

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 tracking. 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 high adoption of telematics in commercial vehicles, which is positively influencing the 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.

Commercial Telematics Market Players

Some of the top commercial telematics companies offered in the professional report include Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., Zonar Systems, Inc., Omnitracs LLC, and Inseego Corporation.