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TMCNet:  Global Commercial Telematics Market - Drivers and Forecasts by Technavio

[August 09, 2017]

Global Commercial Telematics Market - Drivers and Forecasts by Technavio

Technavio analysts forecast the global commercial telematics market to grow at a CAGR of more than 18% during the forecast period, according to their latest report.

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Technavio has published a new report on the global commercial telematics market from 2017-2021. (Gra ...

Technavio has published a new report on the global commercial telematics market from 2017-2021. (Graphic: Business Wire)

The research study covers the present scenario and growth prospects of the global commercial telematics market for 2017-2021. The market is segmented based on product (solution and services), end-user (logistics and transportation, insurance, healthcare, media and entertainment, vehicle manufacturers, and government agencies), platform (embedded systems, tethered systems, and smartphone integration systems), and geography (the Americas, EMEA, and APAC).

The commercial telematics market will witness a rapid increase in market revenues due to the increased awareness of safety and security services among consumers. The demand for vehicles with Internet connectivity is escalating among consumers and businesses. Consumers use this feature to reduce fuel consumption, enable safe driving, and avoid traffic congestion. The growing emphasis on personalization, customization, and seamless on-the-go experiences is responsible for the rapid growth in the demand for high-end vehicle systems in the automotive industry.

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Technavio ICT research analysts highlight the following three factors that are contributing to the growth of the global commercial telematics market:

  • Globalization of the telematics supply chain
  • Increasing adoption of driver assistance systems
  • Growth of embedded telematics solutions

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Technavio's sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Globalization of the telematics supply chain

Global trade activities have increased the fragmentation of logistics and production centers, creating new markets for commercial vehicle telematics. Supply chains have to be broken up into multiple stages with an increase in manufacturing costs in developed countries and the continued search for low-cost sources. Assembly operations are outsourced to countries, such as China, where the manufacturing costs are lower to reduce costs.

Rohan Roy Thomas, a lead machine to machine (M2M) and connected devices research analyst at Technavio, says, "Business-driven M2M services are urged to witness globalization in a seamless and cost-conscious manner, which is specifically high for a business that includes activities to ensure continuous tracking and asset management. M2M connectivity serves across international boundaries as well as over sea and land for innovative technology developments, such as satellite network services. These networks, such as GPS, Wi-Fi, and radio frequency identification technologies, enable organizations to track their modes of transport."

Increasing adoption of driver assistance systems

Autonomous vehicles (AVs) is a major innovation in the automotive industry that could profoundly secure social, economic, and mobility benefits. A sophisticated level of autonomous or unmanned technology vehicles are already in existence, but the scenario is changing incrementally to make these technologies commercially available in the market.

"On-drive management includes features that allow the car driver to reach the destination in a quicker and a cost-efficient way. For instance, it provides real-time information regarding the traffic updates, parking information or garage space availability, and fuel consumption details. It creates comfort and fitness to drive and provides medical assistance in case of emergency situations. It automatically alerts drivers as per environmental adjustments," adds Rohan.

Growth of embedded telematics solutions

Automotive companies are increasingly deploying embedded telematics in vehicles to monitor system failures and vehicle performance to meet customer demand for wireless connectivity. The percentage of new vehicle sales with embedded telematics is expected to reach more than 75% of the on-road cars in the US and more than 35% globally by 2018.

Europe is slightly ahead of North America and the Asia-Pacific in terms of the penetration of telematics in new vehicles shipped. The growing volume of vehicles with embedded devices helps to cut down device prices. Thus, insurers and customers find it easier to embrace usage-based insurance (UBI) products. For instance, State Farm and GMAC offer their UBI products to subscribers of GM's OnStar service and Ford (News - Alert) Motor's Drive Sync program.

Top vendors:

  • MiX Telematics
  • TomTom Telematics
  • Trimble
  • Verizon (News - Alert)

Browse Related Reports:

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

If you are interested in more information, please contact our media team at media@technavio.com.


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