The Global Market for Commercial Vehicle Telematics is Projected to Reach US$43.7 Billion by 2022

July 03, 2016

The Emerging New Era of Pervasive Intelligence Drives Demand for Commercial Vehicle Telematics, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Commercial Vehicle Telematics market. The global market for Commercial Vehicle Telematics is projected to reach US$43.7 billion by 2022, driven by the growing importance of intelligence in enabling road transport efficiencies and relieving traffic congestions in overburdened transportation systems worldwide.

As the world enters a new era of real-time intelligence, the ability to access the ever growing mountains of data is gaining significance. As cars become more connected and digital lifestyles become more important and relevant than the engineering design of the engine, the role of telematics will become larger. Defined as the transfer of information over telecommunication platforms, telematics is one of the earliest enablers of vehicle connectivity. Telematics is the combination of location technology, wireless communications, and in-vehicle electronics, which can be used to receive, send, and store information. Automotive telematics has and still continues to evolve from telematics 1.0 to the current telematics 4.0. While telematics 1.0 brought in breakthroughs in hands-free calling & navigation, telematics 2.0 commercialized portable navigation and satellite radio and telematics 3.0 unleashed comprehensive end-to-end in-vehicle connectivity. The telematics ecosystem is growing as vehicle independent services like on-demand infotainment & navigation evolve into vehicle-centric services such as diagnostics, usage based insurance, fleet management, electronic toll & parking payments, safety and security and other vehicle to vehicle services.

Governments worldwide are legislating mandatory telematics regulations to enable intelligent traffic management against the backdrop of ever growing vehicular traffic and road infrastructure limitations. Also, strict road safety regulations are encouraging the installation of telematics systems into vehicles both in the OEM and the aftermarket. As the number of smart city initiatives increase in various parts of the world, telematics will play an important role in efficient mass vehicular transportation. Auto OEMs are continuing to focus on the technology to offer branded connectivity in an attempt to differentiate their products in the marketplace. Vehicle insurance companies are seeking to leverage telematics to reduce their risk by implementing usage-based insurance (UBI) or telematics-based insurance. The logistics industry is embracing the technology in a massive way to enable more efficient fleet management through vehicle tracking and location. Consumers/vehicle owners are exhibiting interest in telematics as a technology capable of supporting their always connected, digital lifestyles from in-vehicle emergency assistance, global positioning system (GPS) navigation, weather and traffic information/updates to local searches charging stations, restaurants etc.

As stated by the new market research report on Commercial Vehicle Telematics, the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 23.8% over the analysis period, led by factors such as stable economic growth, growing investments in intelligent transportation technologies, strong growth in trade and logistics, exploding eCommerce market and the parallel rise in urban freight mobility, imposition of mandatory telematics regulations by several local governments in the region, and developments in connectivity technologies like cellular networks, Wi-Fi, Bluetooth and satellite commutations.

Major players in the market include Airbiquity, Inc., AirIQ, Inc., Agero Inc., BOX Telematics Ltd., CalAmp, Ctrack, Davis Instruments, Fleetmatics Group PLC, Geotab Inc., Intelligent Telematics, OnStar Corporation, Orbcomm Inc., Telit Wireless Solutions, Transport Management Solutions Ltd., Trimble Transport & Logistics, QUALCOMM, Inc., OmniTRACS, WebTech Wireless, Inc., and Zonar Systems, among others.

The research report titled “Commercial Vehicle Telematics: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America) and Rest of World. The global market is analyzed by following types – Aftermarket and OEM. The global market is also analyzed by the following End-use sectors – Insurance, Transport & Logistics, and Others.