The global telematics market is expected to register a CAGR of 20.7%, over the forecast period (2020 - 2025). The focus shifted from vehicle location and routing to solutions focused on drivers and their respective safety. By monitoring the driving behavior, vehicle health and maintenance intervals, telematics solutions help minimize accidental incidents, the number of speeding tickets, and downtime.
- The mobile resource management (MRM - traditional telematics and GPS tracking) and machine-to-machine sectors will continue to drive the market and include better commercial fleet productivity (fuel cost reduction, routing, reduced maintenance, driver monitoring), improved customer service (real-time status, timely response times), and improved risk management, driver behavior and safety, and control and improvement.
- Organizations are increasingly turning to EVs. In June 2018, Geotab, a global leader in IoT and connected transportation, acquired clean-tech solution provider, FleetCarma. They are specializing in EV telematics, that provides technology for the adoption and operation of EVs. This is because organizations have turned to EVs while setting goals to reduce emissions and improve operational fleet efficiency.
- As a huge amount of data that is getting generated about the driver and the behavior involved there are huge risks related to cyber attacks that could occur.
Scope of the Report
Combining the properties and capabilities of telecommunication and information technology, telematics is now being used across various industries for effective transportation and logistics purpose. In 2008, the Association of Equipment Management Professionals (AEMP) brought together the major construction equipment manufacturers and telematics providers in the heavy equipment industry to discuss the development of the industry's first telematics standard
Key Market Trends
Smartphone Solution is Expected to Hold a Major Market Share During the Forecast Period
- Leveraging the smartphone development is cheap for OEM manufacturers. The easiest and the most straightforward connected-car choice is an app that turns your phone into both a telematics sensor and transmitter. With the huge adoption of smartphones, it gets easy for the OEMs to implement the activities related to telematics. Typically capable of autonomously detecting trips, these apps offer trip scoring based on driving behavior, habits, and the driving context, although the quality of the data collected may not be the best.
- Smartphone applications usually provide proactive notifications about traffic alerts, weather alerts, and service workshop locations. They are also used in sync with hardware solutions to heighten service offerings such as warnings, driving tips, reporting, and gamification. They tend to be modular, fully configurable, and work on open platforms to facilitate additional app development.
- With electric vehicles coming into the picture with advanced developments, there is critical information about the charge levels. With charging taking several hours it becomes more user-friendly to provide facilities on a smartphone due to its easier accessibility. The smartphone will act as a crucial link between the driver and the vehicle.
- Smartphone has become the primary choice for implementing the activities related to telematics due to its huge adoption rate. Different platforms have coincided to avail their services on smartphones which makes it easier for the user.
North America is Expected to Hold a Major Market Share During the Forecast Period
- The companies in the region are collaborating and delivering new products which are leading to the growth of the market. For instance, AT&T Inc. launched fleet management solutions to meet the needs of small business, enterprise, and government customers.
- The company has integrated Geotab's fleet tracking platform with their IoT platforms to launch a comprehensive solution which will boost productivity, control costs, improve safety, and manage compliance for their customers.
- LD Systems Inc. launched PowerFleet Essence which is a new category of industrial truck telematics platforms aimed at small and medium-sized fleets used in manufacturing, distribution, logistics, and retail centers.
- PowerFleet Essence ensures site managers in manufacturing, warehouse, distribution, and retail environments can know that only certified operators are using their equipment, when they have completed required safety inspections, and how their equipment is operated to reap the benefits of safer industrial truck operations.
- Besides, intelligent transportation is gaining wide acceptance in the region particularly in the United States with several ongoing projects. Therefore, the companies in the region are vying to provide telematics systems and solutions to rail electronics solutions, traffic management solutions, and fleet management.
- With the Advanced Driver Assistance System (ADAS) already gaining popularity, the combination of ADAS and Telematics will further help to increase the penetration rate of Telematics as an efficient solution.
The Global Telematics market is highly competitive and consists of a significant number of major players. In terms of market share, few of the major players currently dominate the market. Manufacturers are focussing to improving product quality by increasing the relevance associated with buyers. Product innovation is encouraged to take an edge over the competitors.
- May 2018 - Mix Telematics LimIted partnered with Wincanton with a three-year contract. Under this partnership. Wincanton can enhance safety in different operations by reducing road risk. With its key aim being to enhance safety in operation by reducing road risk, the contract includes an extensive adoption of MIX's premium fleet telematics solution, specifically tailored to Wincanton's requirements.
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