Commercial Telematics Market: Current Analysis and Forecast (2022-2028)

The global commercial telematics market is expected to witness a significant CAGR of around 20% during the forecast period owing to the rising concerns about fleet safety, mandatory government regulations towards vehicle maintenance & tracking, the need for operational competency in fleet management, and the rapidly increasing number of fleets are also fueling the growth of the market. Vehicle telematics is used to describe vehicle onboard communication services and applications that communicate with one another via GPS receivers and other telematics device.

Telematics solutions such as fleet/asset management systems assist in the smooth operation of a business by recognizing unsafe driver habits, reducing excess fuel usage, and providing a strategy for more efficient routes. Operators can use fleet management systems to find vehicles on demand, gather and preserve engine problem data, and spot unsafe driving tendencies like idling, forceful braking, and speeding. Thus, with rising focus on passenger and driver safety, adoption of telematics solutions to increase during 2022-2028.

Some of the major players operating in the market include Robert Bosch GmbH, Airbiquity Inc., Verizon Communications Inc., Masternaut Limited, Mix Telematics, Omnitracs LLC, Zonar Systems, Harman International, Trimble Inc., and Teletrac Navman.

Insights Presented in the Report

"Amongst type, solutions category accounted for the major share in the global market in 2020"

Based on type, the commercial telematics market is divided into solutions and services. In 2020, solutions category accounted for the major share in the global market. Major market players are creating leading-edge solutions by developing technology that solves real-world problems for fleet leaders around the globe. The companies are now developing and integrating wide array of services and offering advance telematics solutions to its customers. Some of the major solutions offered are vehicle tracking, asset tracking, maintenance, safety tracking, and insurance risk assessment. Thus, growing adoption of telematics in the insurance industry couple with the increasing safety and security regulation are some of the factors that are expected to fuel the market growth in the forecast period.

"Amongst provider type, OEM to witness higher growth during the forecast period"

Based on provider type, the commercial telematics market is divided into OEM and aftermarket. The OEM telematics provider type segment is expected to witness faster growth rate during the forecast period. This is mainly due to the rising government mandates around vehicle safety and telematics solutions thus OEM are offering embedded telematics solutions in new cars due to their extensive foothold in manufacturing embedded modules and strong technological leadership. Furthermore, nearly every commercial sector that uses vehicles for transportation uses vehicle telematics systems, which give fleet managers and analysts vital vehicle telematics data that drives insights, boosts productivity, lowers costs, and enhances driver safety. Thus, most major OEMs already provide vehicles with factory-embedded telematics hardware that can be integrated with a software intended expressly for fleet management analytics and business insights.

"APAC to hold a significant share in the market"

The APAC commercial vehicles telematics market is expected grow at a considerable CAGR during the forecast period. The rising adoption of advanced technologies and growing concern for the security and safety of vehicles are factors driving the growth of the market in the region. The adoption and penetration of vehicle telematics solutions is on the rise - even though the automotive industry has been struggling recently, mainly due to chip shortage and aftermath of COVID-19 resulting in low sales. However, in developing countries like India and China, there is a huge opportunity for key vendors to increase their market share. Furthermore, the increasing focus of fleet managers on operational efficiency and the advent of remote fleet management will bolster the market growth in the coming years. Moreover, growing fleet safety and security concerns are augmenting the need for proper fleet management ultimately surging the growth of the market during the forecast period.

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Deep dive regional level analysis of the industry.

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