U.S. Commercial Telematics Market

United States Commercial Telematics Market Statistics 2019-2027:

The U.S. Commercial Telematics market was valued at $2.64 billion in 2019, and is projected to reach $3.90 billion by 2027, registering a CAGR of 7.8% from 2020 to 2027. 

COVID-19 virus has spread worldwide without acknowledging borders. It has impacted all industries, sectors, and aspects of lives with devastating economic & financial losses and significant uncertainties. The growth of the commercial telematics market is directly linked to the transportation & logistics industry, which was the first one to undergo complete shutdown as the transportation of goods across cities came to a halt.

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 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.

Government regulations for vehicle telematics and rise in trend of connectivity solutions drive the growth of the commercial telematics market. In addition, vehicle diagnostic due to telematics systems also propels the growth of the market. However, threat of data hacking, high installation cost, and lack of uninterrupted & seamless internet connectivity hinder the growth of the market. Furthermore, intelligent transportation system and improved performance of autonomous vehicles impose a remarkable growth opportunity for the commercial telematics market. 

The U.S. commercial telematics market is segmented based on solution type, application, end-user, and region. Based on solution type, the market is bifurcated into OEM and aftermarket. Based on application, the market is categorized into solutions and services. Based on end-user, it is classified into transportation & logistics, insurance, healthcare, media & entertainment, vehicle manufacturers/dealers, and government agencies. The states considered under the U.S. commercial telematics market include California, Texas, Florida, New York, Pennsylvania, Ohio, Illinois, Michigan, Georgia, North Carolina, Virginia, Washington, Indiana, Colorado, and Arizona.

Key players operating in the U.S. Commercial Telematics market include Cartrack, Continental AG, Daimler Fleetboard GmbH, Fleet Complete, Geotab Inc., MiX Telematics, Navistar Inc., Omnitracs, TomTom International BV., and Trimble Inc.

Government Regulations For Vehicle Telematics

Government rules & regulations for safety, security, and tracking of vehicles in different regions drive the growth of the commercial telematics market. For instance, the U.S. Department of Transportation has also issued guidelines for tacking of vehicles. In accordance with the same, the fleet manager must 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. 

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 traveling. 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 into modern vehicles. 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 are expected to be completely transformed into communication objects. Therefore, the commercial telematics market is expected to grow at a promising rate due to rise in customer demand for staying connected 24*7 even while traveling. 

Threat Of Data Hacking

Telematics is a relatively new technology. Events, such as unauthorized access to multiple car connectivity solutions or breaking into the in-vehicle connectivity system, can restrict the growth of the U.S. commercial telematics market. The major security concern is that the hacker can access the computer system of the car as well as to the data that it collects and stores. Moreover, hackers may be able to send commands to the vehicle from a remote location to steal corporate & private data and track individual vehicle or entire fleet. This may result in hijacking non-safety and safety-critical functions. Therefore, threat of data hacking of vehicle with telematics systems is one of the factors, which is expected to hamper the growth of the market.

Intelligent Transportation System

Safety services offered in vehicles with telematics solutions are an appropriate example of cutting-edge aftermarket technology, which involves sharing data between the vehicle and humans. Safety is a combination of telecommunication and automobile technology used to improve vehicle efficiency, reduce fuel consumption & maintenance cost, enhance security & safety measures, and assist the driver to enhance his overall driving experience. Features, such as live traffic updates, automatic toll transactions, insurance telematics, road-side assistance in case of accidents or breakdowns, and smarty routing & tracking, are expected to provide an exponential growth opportunity for the key players operating in the U.S. commercial telematics market.

 Covid-19 Impact Analysis

• COVID-19 virus has spread worldwide without acknowledging borders. It has impacted all industries, sectors, and aspects of lives with devastating economic & financial losses and significant uncertainties.
• The growth of the commercial telematics market is directly linked to the transportation & logistics industry, which was the first one to undergo complete shutdown as the transportation of goods across cities came to a halt.
• Decline of vehicle manufacturing & sales is expected to have a far-reaching impact on the market.
• The change in the behavior of customers towards COVID-19 crisis, travel restrictions, and the ensuing economic crisis resulted in a dramatic drop in demand for vehicle sales.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the U.S. Commercial Telematics market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall U.S. Commercial Telematics market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global U.S. Commercial Telematics market with a detailed impact analysis.
• The current U.S. Commercial Telematics market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 U.S. Commercial Telematics Market Report Highlights