Commercial Telematics Market Research, 2030
The global commercial telematics market size was valued at $16,871 million in 2020, and is projected to reach $63,981.5 million by 2030, registering a CAGR of 14.3% from 2021 to 2030.
Telematics is methodology of monitoring the location and movement of vehicle by combination of Global Positioning System (GPS) and on-boards diagnostics systems. With the help of GPS and diagnostics system, it is possible to record the speed and internal behavior of the vehicle. Telematics systems are majorly adopted by the automobile insurance companies, fleet management companies, and others to monitor the location and behavior of the vehicle. The global commercial telematics market refers to the services and solutions that are adopted for monitoring and controlling a commercial vehicle through a telecommunication device. A Fleet Telematics System (FTS) allows the exchange of information between a commercial vehicle fleet and the central authority, which enables them to keep a track of vehicle diagnostics and location.
The spread of the COVID-19 pandemic has negatively impacted the global commercial telematics market, owing to commute restrictions and expected weak financial performance of the market players in 2020.
The economic impact of the pandemic is visible with organizations preparing strategic cost-saving plans. Organizations with vehicle assets are considering sale and leaseback options to improve cash flow. The major risk factors of the commercial telematics market participants are supply chain execution, regulatory & policy changes, dependency on labor, working capital management, and liquidity & solvency management. Commercial telematics is a high-end technological solution dealing with intense capital investment for the end users. In 2020, market participants of the market as well as end users, such as OEM, fleet owners, insurers, and others, witnessed weak financial performance. This expected weak business performance directly impacts the overall sales of the system and service of commercial telematics.
By Solution Type
OEM segment is projected as the most lucrative segment
For the commercial telematics market, 2020 is estimated to be a negative performing year, owing to the negative demand and supply outlook from the COVID-19 crisis restrictions in end users such as automotive manufacturer, insurance, and fleet owner. The demand from end users has reduced as there is limited operational activity and their main focus shifted to the core competencies of the origination. The overall production activities of these industries have declined, owing to operations with limited workforce capacity, inadequate health safety measures, and change in consumer sentiments.
In addition, end users, such as automotive OEM, automotive dealer, insurer, and fleet operators, are expected to focus on the working capital management and there are very less chances for heavy investment in advanced technology. However, there are most probable chances of sales momentum for the commercial telematics technology from 2021, owing to its high installation cost and additional infrastructural requirements. Market participants of commercial telematics are following certain approaches to manage the operations by slashed budgets, extended equipment lifecycles, decreased staff sizes, and reduced salaries in the short term to overcome the financial downturn.
By Application
Solutions segment is projected as the most lucrative segment
The commercial telematics industry is segmented on the basis of solution type, application, service, end user, and region. By solution type, the market is bifurcated into OEM and aftermarket. By application, it is classified into solutions, and services. By end user, it is further divided into transportation and logistics, insurance, healthcare, media & entertainment, vehicle manufacturers/dealers, and government agencies. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Market Players
The key players analyzed in the global commercial telematics market are Mix Telematics, Navistar, Inc., Trimble Inc., Verizon Communications Inc., Vontier Corporation, Fleet Complete, Geotab Inc., Microlise limited, Solera Holdings, Inc., Continental AG, Daimler AG, Karooooo Ltd., Michelin.
By End User
Transportation & Logistics segment is projected as the most lucrative segment
Government Regulations for Vehicle Telematics
Government rules and regulations for the safety, security, and tracking of vehicles in different regions drives the growth of the commercial telematics market. For instance, the U.S. Department of Transportation has also issued guidelines for tracking of vehicles. In accordance with the same, the fleet manager is projected to provide reports for all violations as identified by federal or state investigators, the detailed list of all the violations detected during inspections, and state-supplied crash reports. Moreover, it is also mandated that all of the fleet management systems (FMS) should be certified from the Federal Motor Carrier Safety Advisor. Therefore, government regulations for vehicle telematics are driving the growth of the market. Also, in April 2018, government of India passed rule for all the public transport vehicles over six-seater capacity should have tracking device installed in them.
Rise in Trend of Connectivity Solutions
Smartphones have changed the definition of connectivity over time. People wish to stay connected with the outer world even while travelling. Now that connectivity has become the need of the hour, automobile manufacturers adopt connectivity solutions in their vehicles to boost their automobile sales. Consumers are expecting their vehicles to perform tasks similar to computers and smart phones. Adding connectivity solutions in the vehicle has become the top most priority for automobile manufacturers. Many connectivity solutions are integrated in modern cars. These need internet service to perform their respective functions. Connectivity can be provided in a car using embedded, integrated, or tethered connectivity solutions. The automotive industry is witnessing a phase of digital revolution. Over the next few years, automobiles will be completely transformed into communication objects. Therefore, the commercial telematics market is expected to grow at a promising rate due to the rise in customer demands for staying connected 24*7 even while travelling.
By Region
Asia-Pacific would exhibit the highest CAGR of 17.1% during 2021-2030.
Key Benefits For Stakeholders
- This study presents analytical depiction of the commercial telematics market analysis along with the current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
- The current market size is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the Commercial telematics industry.
Commercial Telematics Market Report Highlights
| Aspects | Details |
 By Solution Type |
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 By Application |
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 By End User |
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 By Region |
|
 Key Market Players | DAIMLER FLEETBOARD GmbH, MICROLISE, NAVISTAR, INC, TOMTOM INTERNATIONAL BV., CARTRACK, ZONAR SYSTEMS, FLEET COMPLETE, TRIMBLE INC.,, OMNITRACS, MIX TELEMATICS, VERIZON, MASTERNAUT LIMITED, GEOTAB INC. |
Analyst Review
The commercial telematics market is expected to experience significant growth in vehicle embedded technology. This market is in its growth stage and is contributing to a good fraction of revenue for the overall automotive industry. This user-friendly technology has increasingly become popular amidst end users. In addition, rise in awareness among consumers is expected to experience rapid growth during the forecast period. Government regulations for vehicle telematics and rise in trend of connectivity solutions are the factors that fuel the growth of the commercial telematics market. However, threat of data hacking and high installation cost are the factors that hinder the growth of the market.
There is an increase in fleet operations across the globe, owing to the adoption of commercial transportation and other commercial activities, thereby driving the U.S. commercial telematics market. In addition, key companies have focused on product launch and partnership to strengthen their foothold in the market. For instance, Cartrack Holdings Limited updated its Mi-Fleet software to simplify the fleet operation at no additional cost. Verizon Communication Inc. partnered with Gravel Conveyors Inc. to implement Verizon Connect REVEAL fleet management software to reduce costs, improve fleet performance, and other such instances. Moreover, innovative marketing and positioning strategies have influenced the expansion of the commercial telematics market.
The key market players profiled in the report include Mix Telematics, Navistar, Inc., Trimble Inc., Verizon Communications Inc., Vontier Corporation, Fleet Complete, Geotab Inc., Microlise limited, Solera Holdings, Inc., Continental AG, Daimler AG, Karooooo Ltd., Michelin.
The global commercial telematics market was valued at $3.53 billion in 2020, and is projected to reach $30.05 billion by 2030, registering a CAGR of 24.5% from 2021 to 2030.
Ease of vehicle diagnosis and Rise in trend of connectivity solutions with the inetgration advenace technology is foreseen to reinforce the commercial telematics market growth.
The sample for global commercial telematics market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
Commercial telematics used by commercial vehicles by the fleet management companies, automobile insurance companies, and others
The commercial telematics market has witnessed significant growth in pasr few years. However, Government regulations for vehicle telematics is bolstering the demand for commercial telematicss.
The company profiles of the top market players of commercial telematics market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the commercial telematics market.
Owing to the growing government regulations for vehicle telematics and rise in trend of connectivity solutions the market for commercial telematics is foreseen to grow considerably
Commercial telematics refer to the use of telematics systems in commercial vehicles by the fleet management companies, automobile insurance companies, and others
North America region is leading the market presently in terms of revenue and foreseen to grow considerably over the forecast period.
Factors such as Government regulations for vehicle telematics and rise in trend of connectivity solutions are the factors that fuel the growth of the commercial telematics market. However, threat of data hacking and high installation cost are the factors that hinder the growth of the market.
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