PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273574
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1273574
According to Stratistics MRC, the Global Commercial Vehicle Telematics Market is accounted for $46.50 billion in 2022 and is expected to reach $144.52 billion by 2028 growing at a CAGR of 20.8% during the forecast period. Telematics is a means of tracking a vehicle's location and movement using a mix of GPS and on-board diagnostics devices. The GPS and diagnostics systems can be used to record the vehicle's speed and internal behaviour. Automobile insurance firms, fleet management businesses, and others use telematics devices to track the position and behaviour of vehicles. The global commercial telematics market encompasses the services and solutions used to monitor and control a commercial vehicle via a telecommunication device. A Fleet Telematics System (FTS) allows information to be exchanged between a commercial vehicle fleet and a central authority, allowing them to keep track of vehicle diagnostics and position.
According to Ericsson, IoT connections are predicted to increase from 100 million in 2020 to 292 million in 2030 in the transportation industry.
Commercial vehicles like pick-up vans, small trucks, and other light commercial vehicles are growing rapidly because of the simple travel, for example, growth in logistic industries and e-commerce businesses, resulting in an increase in commercial vehicle production, which is expected to boost the growth of the Telematics market. However, vehicle manufacturers are boosting the production of large trucks and containers for the construction industry, which is propelling the commercial vehicle telematics market.
Commercial vehicle telematics collects and maintains a wide range of user data, making it vulnerable to hacking. It's also utilised to communicate commands to cars, such as locking or unlocking doors, turning off motors, and so on. Hacking the telematics system can become a substantial issue over time, thereby limiting market revenue growth over the forecast period. Customers must pay more for telecom services, equipment, and connectivity options. A box is necessary for collecting and storing trip-related data for linked automotive monitoring, and its installation is costly, so the initial installation costs rise, potentially hampering market revenue growth over the forecast period.
Government actions will propel the consumer telematics business forward. Governments in Europe and America, for example, have provided tax breaks to telematics clients in the fleet insurance and management sectors. During the projection period, advanced technologies will cut the production costs of telematics goods, driving the telematics industry's growth. This feature indicates that telematics solutions will be in high demand in the near future. The growing number of smartphone users will propel the commercial telematics market forward. Government rules requiring increased security measures, as well as increased smartphone market penetration, will drive the commercial telematics market.
Telematics data will be limited in its usage due to technical and regulatory constraints. The European Union has now issued a consultation paper that specifically limits third-party access to personal data. Existing regulatory constraints will be imposed on any future telematics-based smart systems. Geolocation data will be subject to defined constraints, for example. These limitations will also limit telematic devices' potential benefits in terms of safety and cost.
Many organisations have declared work from home owing to the impact of COVID-19, however the Transportation and Logistics industries are facing tremendous issues due to emergency and supply chain disruptions. As a fleet manager, communicating with drivers by SMS, mail, radio, and phone can be difficult. As the fleet manager deals with the drivers on the road rather than on-site. Miscommunications between fleet managers and their teams are prevalent. Furthermore, fuel is the most expensive cost for any organisation that operates a fleet. These are the primary restraints of the Fleet Management Software Market.
The embedded segment is estimated to have a lucrative growth, as a result of an increase in the frequency of car casualties and road accidents. Furthermore, the logistics sector's strong demand for GPS navigation and emergency systems is pushing demand for embedded systems. Teltrac Navman, for example, introduced an AI dual-dashboard camera capable of capturing and analysing 100% of driving time, hence averting accidents.
The transportation and logistics segment is anticipated to witness the fastest CAGR growth during the forecast period. A telematics system allows the user to monitor and measure different vehicle data for a single vehicle or a fleet of vehicles, such as speed, projected time, driver behaviour, fuel flow, and vehicle health. When metrics such as over speeding, rapid corners, Service Level Agreements (SLA) violations, and other data are taken into account, these aspects help in a more accurate assessment of a driver's performance.
Asia Pacific is projected to hold the largest market share during the forecast period owing to the factors such as rising accident rates, rising government attempts to reduce accidents, and the increased demand for monitoring and surveillance are important factors driving revenue development in this region. The presence of significant enterprises in this region, as well as strategic efforts such as collaboration agreements, product launches, mergers and acquisitions, and other initiatives, is further fuelling demand for commercial vehicle telematics.
North America is projected to have the highest CAGR over the forecast period, owing to the rising number of commercial vehicle accidents, as well as increased security and safety concerns among drivers, passengers, and accident avoidance, are driving up demand for telematics throughout the region. Furthermore, government rules that encourage the use of automotive telematics are likely to boost revenue growth in this region.
Some of the key players profiled in the Commercial Vehicle Telematics Market include: Mix Telematics International (PTY) Ltd., PTC Inc., TomTom Telematics BV, Trimble Inc., Microlise Group Ltd, OCTO Telematics Ltd., Masternaut Limited, Verizon Telematics Inc., Zonar Systems Inc. and Omnitracs LLC.
In March 2021, MiX Telematics and Imperial Enters into a Strategic Partnership MiX Telematics, a leading global SaaS provider of connected fleet management solutions, announced an agreement to be the preferred telematics supplier for Imperial, a leading Africa-focused integrated market access and logistics solutions provider. This strategic partnership allows for the alignment of data and reporting across Imperial. As per the new agreement, MiX's premium solutions and services will be implemented across the entire fleet of Imperial for its proven risk management benefits.
In June 2020, Ford Commercial Solutions Officially Launches Ford Telematics. Ford officially launched the Ford Telematics platform to assist commercial vehicle customers in optimizing their fleet and making them efficient. Ford Telematics is a web-based software platform with a subscription service designed to provide fleet managers easy access to crucial connected vehicle data.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.