Commercial Telematics Market

Commercial Telematics Market Statistics 2021-2030:

The global commercial telematics market 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.

The COVID-19 outbreak severely impacted the automotive sector on a global level. The most direct effect of the COVID-19 on the automotive sector is the standstill of many OEM and supplier factories. Further indications include the interruption in export of Chinese automotive parts, huge manufacturing disruptions across Europe, and the shutting down of assembly plants in the U.S. Furthermore, The pandemic also have impacted the revenue streams allocated towards the R&D and adoption of new technologies in commercial telematics sector. However, owing to the growing vaccination numbers globally coupled with considerable demand for commercial vehicle, the commercial telematics market is foreseen to grow appreciably in near future.

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 commercial telematics 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.

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.

The commercial telematics market 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.

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.

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 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 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.

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 commercial telematics 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