Enjoy complimentary customisation on priority with our Enterprise License!
The commercial telematics market size is forecast to increase by USD 10.78 billion, at a CAGR of 4.77% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of real-time monitoring capabilities and quantum computing technologies. These advancements enable seamless implementation of real-time processing, real-time tracking, and receiving data in various industries, including logistics, transportation, and fleet management. The market is driven by the need for reduced fuel consumption, improved road safety, and route optimization. Telematics solutions offer safety measures through predictive analytics and advanced software-driven functionalities, ensuring seamless integration with smartphones and shared mobility services. Additionally, the integration of telematics with smart cities and smart infrastructure enhances the potential for secure data sharing and supply chain disruption mitigation.
The complexity of telematics software and hardware designs presents challenges, but the benefits of real-time insights and improved operational efficiency far outweigh these hurdles.
The market is witnessing significant growth due to the transformative capabilities it offers to organizations in managing their fleet operations. Telematics systems, which include GPS trackers, sensors, and IoT devices, enable real-time monitoring of fuel efficiency, vehicle condition, and route planning. This leads to reduced downtime, improved operational efficiency, and lower carbon footprints. Telematics solutions provide organizations with valuable insights into their fleet's performance, enabling preventive maintenance solutions and safety measures. Fleet communication is also enhanced, ensuring effective coordination between drivers and dispatchers. GPS trackers and sensors play a crucial role in telematics systems, providing accurate location data and vehicle condition information.
Mobile applications and dashcams further extend the capabilities of telematics, offering real-time driver behavior analysis and video evidence in case of incidents. The integration of telematics with connected cars and IoT devices is revolutionizing the industry, enabling predictive maintenance and supply chain optimization. However, the increasing reliance on telematics also poses challenges, such as the risk of supply chain disruption due to technology failures or cybersecurity threats. The technology roadmap for telematics solutions includes advancements in AI and machine learning, which will enable more accurate predictive maintenance and real-time route optimization. Overall, telematics is set to continue transforming fleet management, offering significant benefits in terms of operational efficiency, safety, and cost savings.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The solutions segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the integration of connectivity solutions and cutting-edge technologies in the transportation industry. This digital revolution is enabling fleet operators to optimize their operations through enhanced driver information, vehicle control, and real-time fleet communication. The deployment of telematics systems for navigation, infotainment, diagnostics, and safety is increasing in both OEM and aftermarket applications. The rise in global commercial vehicle production and the growing demand for fuel efficiency are major factors driving the market's growth. Cybersecurity concerns and cyber threats are becoming increasingly prevalent in the telematics industry. Insurance companies are leveraging telematics solutions to improve driver safety, offer personalized insurance products, and achieve a competitive edge.
These solutions provide valuable insights into driving patterns, fuel efficiency, and vehicle performance, enabling insurers to price policies appropriately based on risk. Fleet management companies are also benefiting from telematics, as they gain enhanced fleet visibility, improved fleet performance, and better driver behavior analysis. Despite these benefits, data security remains a critical concern, and cyber-security measures are essential to protect against potential cyberattacks.
Get a glance at the market share of various segments Request Free Sample
The solutions segment was valued at USD 24.19 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The market is witnessing significant growth due to the increasing adoption of connectivity solutions and cutting-edge technologies in the automotive industry. Fleet operators in North America are leading the way, with a high volume of sales of luxury cars creating a demand for advanced connected features such as enhanced driver information, fuel efficiency, and fleet performance. OEMs, including Ford Motor and GM, are responding by integrating in-built entertainment and information systems, shifting from Microsoft OS to more secure alternatives like QNX OS for enhanced vehicle control. However, with the digital revolution comes cyber threats and cyberattacks, making data security a top concern for fleet management companies.
As such, cyber-security solutions are becoming an essential component of commercial telematics systems to ensure fleet communication and visibility remain uncompromised.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing adoption of driver assistance is the key driver of the market. The market is experiencing significant growth due to the integration of advanced technologies such as 5G, AI, and blockchain. Autonomous vehicles (AVs) are at the forefront of this evolution, utilizing these technologies to provide actionable insights and improve operational efficiency in commercial fleets. Advanced diagnostic systems and autonomous navigation are key features of AVs, enabling real-time monitoring and predictive maintenance. Communication devices and connectivity features, including 5G and communication protocols, are essential for seamless data transfer and analysis. Augmented Reality (AR) and autonomous driving technologies are also gaining traction, offering enhanced safety and productivity. Carbon footprints are a major concern, and telematics solutions are helping to reduce emissions by optimizing routes and fleet management.
Further, digital map providers are investing in Advanced Driver Assistance Systems (ADAS) using their digital maps to enhance safety and performance in high-end commercial vehicles. Overall, the market is transforming the way businesses manage their fleets, providing valuable data and insights to optimize operations and enhance safety.
Advanced analytics on telematics data to reduce the severity of risks is the upcoming trend in the market. The market is experiencing significant growth due to the integration of advanced technologies such as 5G technology, AI, and blockchain technology. These innovations enable the collection and analysis of vast amounts of data from commercial vehicles, providing actionable insights for fleet management and autonomous navigation. Advanced diagnostic systems and autonomous driving technologies are revolutionizing the industry, enabling real-time vehicle health checks and predictive maintenance. Connected cars and communication devices are becoming essential components of commercial fleets, offering features like over-the-air (OTA) software updates, infotainment, security monitoring, and UBI. However, customer concerns regarding data privacy and cybersecurity remain a challenge. Telecoms service providers and OEMs are partnering to offer secure and reliable connectivity solutions, ensuring transparency and trust.
Cloud-based platforms play a crucial role in developing these solutions, enabling efficient data processing and analysis. The implementation of these technologies is expected to reduce carbon footprints, enhance fleet productivity, and provide valuable insights for fleet management.
The complexity of telematics software and hardware designs is a key challenge affecting the market growth. Commercial telematics, a critical component of connected commercial vehicles, is witnessing significant advancements with the integration of innovative technologies such as 5G, AI, and blockchain. These technologies enable the collection and analysis of real-time data, providing actionable insights for fleet management and optimization. Advanced diagnostic systems, including AI and Augmented Reality (AR), enhance autonomous driving technologies and autonomous navigation, enabling autonomous telematics in commercial vehicle fleets. 5G technology ensures seamless connectivity and faster data transfer, enabling advanced communication protocols for connected cars. Communication devices, both onboard and off-board, play a vital role in the implementation of these technologies. While onboard systems offer real-time data collection, off-board devices provide additional data sources and flexibility.
Moreover, the integration of AI and machine learning algorithms in commercial telematics systems allows for predictive maintenance and improved fleet performance, reducing carbon footprints and operational costs. Blockchain technology further enhances security and data privacy, ensuring data integrity and protection. The adoption of these advanced technologies in commercial telematics is driving the growth of the market and transforming the commercial vehicle industry.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers a commercial telematics platform for fleet managers and drivers. It includes access to fleet management, electronic logging device, and driver compliance solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Commercial telematics refers to the use of advanced technologies and connectivity solutions in commercial vehicles to optimize fleet performance, enhance driver information, and ensure vehicle health. The market for commercial telematics is witnessing significant growth due to the digital revolution and the integration of cutting-edge technologies such as AI, machine learning, and blockchain technology. These technologies enable real-time monitoring capabilities, predictive maintenance models, and proactive approach to fleet management. Connected cars, in-vehicle infotainment systems, and IoT devices are transforming commercial telematics by providing actionable insights into driver behavior, fuel efficiency, and vehicle location. Autonomous driving technologies, such as autonomous navigation and autonomous telematics, are also gaining traction in the market, offering minimized vehicle downtimes and enhanced vehicle control.
However, cyber threats, including cyberattacks and hacking, pose significant challenges to the market. Organizations must prioritize data security and cyber-security concerns to ensure secure data sharing and prevent intrusion. Integration complexity and supply chain disruption are also challenges that must be addressed to ensure seamless implementation of telematics systems. Fleet operators, vehicle manufacturers/dealers, insurers, and logistics companies are some of the key stakeholders in the market. The market is expected to witness significant growth in the coming years due to the transformative capabilities of telematics technology and the need for operational efficiency, safety, and sustainability in transportation and logistics.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
178 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 4.77% |
|
Market Growth 2024-2028 |
USD 10.78 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.47 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 40% |
|
Key countries |
US, China, Germany, UK, and Japan |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
AB Volvo, Agero Inc., Airbiquity Inc., AT and T Inc., Bridgestone Corp., Continental AG, Fleet Complete, Geotab Inc., Mercedes Benz Group AG, Michelin Group, Microlise Group Plc, MiX Telematics Ltd., Navistar International Corp., OCTO Telematics S.p.A, Omnitracs LLC, SmartDrive Systems Inc., Trimble Inc., Verizon Communications Inc., Visteon Corp., and Volkswagen AG |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Platform
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
