Telematics are information and telecommunication products that combine computers and telecommunication services for transferring large amounts of data in vehicles in real-time. Commercial telematics market includes the telematics used by light, medium and heavy commercial vehicles. All major automotive manufacturers across the globe are now concentrating on developing and implementing the Telematics concept into their vehicles. Vehicles manufactured today offer unique connectivity solutions for better monitoring and tracking.
The global commercial telematics market is driven by increased market penetration of smart phones, lowered connectivity cost, availability of high speed internet technologies such as LTE, greater governmental mandate in terms of safety compliance mandates, road infrastructure constraints, and driver monitoring etc.
Based on type of Telematics, the market is segmented into Automotive Original Equipment Manufacturers (OEM) and Aftermarket. Currently, Aftermarket has relatively high market share compared to Automotive OEM. However, vehicle manufacturing companies forming collaborations with telematics providers would lead to high growth of Automotive OEM segment.
Based on Applications, Telematics market is segmented into Solutions and Services. Solutions include fleet/asset management, infotainment, tele health, insurance telematics, vehicle-to-vehicle (v2v)/ vehicle to infrastructure (v2i), remote alarm and others. Services include design & consulting, deployment & integration and maintenance & training.
Further, Telematics market is segmented based on End User i.e. transportation & logistics, healthcare, insurance, media and entertainment, vehicle manufacturers/dealers, and government agencies. Telematics provides integrated route planning, route execution, driver behavior tracking, and vehicle status with its comprehensive set of services.
Geographically, the market is segmented into, North America, Europe, Asia Pacific and LAMEA. In the years to come, Asia-Pacific should be a prominent market, owing to the rapidly growing number of automobiles sold in the region. The increase in sales is primarily driven by the increasing population, and rising disposal income. LAMEA is also growing with a good pace because of increasing government regulations for the safety & security of drivers and vehicles.
Technology agreements and collaborations are the key strategies adopted by the market players to enhance their market share. For instance, AT&T is working with automotive manufacturers to provide contextual voice controls, which would help to create a safer driving experience. TomTom has launched the online turn-by-turn navigation service for customers, making it feasible to connect over a network.
Current and future trends adopted by the key market players are highlighted to determine overall competitiveness of the market
Porters Five Forces analysis and SWOT analysis of the key market players are provided to illustrate the business strategies adopted by buyers and suppliers
The technology-effective drivers and opportunities are highlighted to describe the top factors responsible for the market growth
Various operating segments of the commercial telematics market are carefully analyzed to measure the potential of the emerging market
The quantitative analysis of the market through 2013-2020 is provided to elaborate the market potential
COMMERCIAL TELEMATICS KEY MARKET SEGMENTS
COMMERCIAL TELEMATICS MARKET BY TYPE
COMMERCIAL TELEMATICS MARKET BY APPLICATION
Navigation and location based
V2v and V2i
Remote Alarm & Monitoring
Design & Consulting
Integration & Deployment
Maintenance & Training
COMMERCIAL TELEMATICS MARKET BY END USER
Transportation and Logistics
Media & Entertainment
COMMERCIAL TELEMATICS MARKET BY GEOGRAPHY
Vodafone Group Plc
Ford Motors Co
Trimble Navigation Limited
Telematics acts as a connectivity device on wheels offering comfort, convenience, performance, safety and security combined with powerful network technology. The Commercial Telematics market is expected to grow at a promising rate, due to the rising customer demand for vehicle safety, stringent government regulations and the dire necessity for 24*7 connection. In addition, increasing awareness amongst customers could also lead to a rapid growth in the forecast period. The technological advancements adopted by the automakers enable customers to remotely connect with their vehicles. The market for commercial telematics include telematics used in light, medium and heavy commercial vehicles.
Along with the factors, that positively drive the market, some of the restraints associated with telematics market, are the additional expenses borne by the consumer for availing the telematics services, threat of hackers breaching the security, accessing data or causing nuisance to the vehicle system, non-availability of uninterrupted & seamless connectivity and lack of awareness among consumers in certain regions. Since the market for telematics is comparatively at a nascent stage and growing swiftly, the restraints are not likely to hinder the increasing adoption of telematics.
The telematics market holds a promising future for the growth of vehicle-embedded telematics technology. Automotive OEM embedded type, is expected to gain momentum, given the growing alliances between component or device manufacturers and connectivity service providers. This arrangement saves cost for not only the manufacturer but for the consumers as well. Transportation and logistics industry, is the leading market for the telematics. The fleet manager plays an important role in logistics and transportation industry. They help logistics operators in improving the productivity, performance and overall safety of fleets. Also, Insurance sector is one of the important drivers for telematics market, particularly in aftermarket solutions. They enable the insurance companies to minimize risk, through monitoring of different aspects such as maintenance, usage & security, etc.
The scope of the telematics market, is likely to be high in American and European markets. The products of the European vehicle manufacturing companies, are dominant in the market. Regions such as APAC and LAMEA, though presently having lesser adoption, are expected to grow at comparatively higher growth rates, during the forecast period.
Government regulations and increasing awareness in these regions as well as increasing number of automobiles will be the key driving factors.
Prominent strategies, adopted by different companies, in order to survive and excel in telematics market are collaboration, service enhancement and product launches, which help the organizations in expanding their product offerings and reach. The prominent players such as, TomTom, BMW, Ford, AT&T, Trimble, etc. are analyzed in the report in order to study their winning strategies. The intensity of rivalry among the competitors is intense, due to the presence of numerous market players. Undifferentiated product lines and low switching cost, increases the bargaining power of buyer. Easy access to distribution channel, absence of feasible substitutes, etc. increases the threat of new entrants into the telematics market.
Consumer telematics are communication technologies and services enabling transfer of large amounts of data in and out of passenger vehicles in real-time. This provides consumers in-vehicle services, global positioning System (GPS) navigation, traffic information, local search (for example, for petrol pumps / gas stations or restaurants) and concierge services. Passenger cars manufactured today offer unique connectivity solutions for better monitoring and tracking.
3D printing, as alternately known as additive manufacturing, enables manufacturers to produce objects using a digital file and a wide array of printing materials. The technology has gained increased acceptance in the automotive industry, apart from aerospace & defense, healthcare and manufacturing sectors. This is used for applications such as printing car parts and accessories to manufacturing complex parts in less time.
Connected cars facilitate connectivity on wheels offering comfort, convenience, performance, safety and security combined with powerful network technology. This enables the driver to connect with online platforms and facilitates real-time communication on the go. Rising consumer demands, the need for constant connectivity, increased dependency on technology and the growing number of tech savvy people account for the growth of this market.
Transport plays a key role in today’s world.The indispensible nature of transport creates theneed to mitigate the various problems associated with it, such as the increase in the levels of congestion and traffic, noise and emissions of different gases into the environment.
In todayâ€™s world, alternative automobile technologies are becoming increasingly important to control the increasing carbon footprint caused by automobile emission. Automobile manufacturers are focused on finding alternate power solution for fuel based power source owing to rapidly depleting oil reserves, globally.
The increasing number of mega cities and the population growth in developed and developing countries has increased the importance of deploying an intelligent transport system (ITS). ITS system constitutes both, road transport and an efficient metro/underground rail system. ITS involves the revamp of overall technological aspects such as GPS, Carrier Access for Land Mobiles (CALM), Dedicated Short Range Communication (DSRC) etc. Globally, the concerned government departments understand the importance of implementing an efficient ITS system, which is an important driving factor for the market growth.