Global Commercial Telematics Market 2016-2020
Outlook of the global commercial telematics market
Telematics is an automated system designed for vehicles that contain communication systems for real-time information transfer. Embedded telematics, tethered telematics, and integrated smartphone telematics are examples of some automated systems that are used by vehicle manufacturers. The growing demand for better vehicle fuel efficiency and safety in vehicles will spur the prospects for growth in this market. The utilization of telematics in vehicles will improve the driver’s behavior, reduce fuel consumption, improve driver safety, and enable cost savings. Also, the ability of telematics to send ad hoc alerts to drivers when a journey's risk score is high will result in its augmented usage during the predicted period. A comprehensive market study carried out by the analysts at Technavio has shown that the global market for commercial telematics will grow at an impressive CAGR of more than 27% until 2020.
The growing availability of free telematics services is an important factor that will drive the prospects for growth in this market. Recently, it has been observed that the advent of free services, such as content upgrades, will help to drive the sale of telematics systems among the clients. Vehicle OEMs are promoting this technology by offering free subscriptions to new car buyers. Brands such as Audi are also launching cloud-based telematics services that will facilitate the customization of service packages to meet their customer’s demands. Also, some car manufacturers have also started launching app stores that will enable car owners to download apps directly to the in-car infotainment systems.
Segmentation by end user and analysis of the commercial telematics market
- Vehicle manufacturers
- Media and entertainment
- Logistics and transportation
In this market study, analysts have estimated the logistics and transportation segment to be the highest revenue generating segment during the forecast period. At present, this market segment dominates the commercial telematics market and is envisaged to continue its market dominance until 2020 owing to the rising need to improve customer safety and security, eliminate idling, and optimize routing. This market segment is envisaged to surpass USD 29 billion by 2020.
Geographical segmentation of the commercial telematics market
Technavio’s market research analyst has estimated the Americas to be the highest revenue generating segment during the forecast period. This region is estimated to post an impressive market value of more than USD 23 billion by 2020, and the prospects for market growth in the region will be driven by the presence of a strong LTE connectivity infrastructure in the Americas.
Competitive landscape and key vendors
The commercial telematics market is highly fragmented due to the presence of numerous hardware and software suppliers. The market is gaining momentum due to the formation of global partnerships and increasing competition among the vendors. The rising focus on fuel efficiency, safety, asset tracking and monitoring, and compliance is anticipated to bolster growth in this market.
Key vendors in this market are -
- MiX Telematics
- TomTom Telematics
- Trimble Navigation
Other prominent vendors in this market are Actsoft, Ctrack, FleetBoard, Kore Telematics, Masternaut, Octo Telematics, Omnitracs (Astrata Group), OnStar, PeopleNet, Scania, Spireon, TeleNav, Teletrac, Telogis, Telular (Avista Capital Partners), Traceon, Trakm8, Verizon Telematics, Webtech Wireless, and Wireless Matrix (CalAmp).
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global commercial telematics market?
- What are the key market trends impacting the growth of the global commercial telematics market?
- What are the challenges to market growth?
- Who are the key vendors in the global commercial telematics market?
- What are the market opportunities and threats faced by the vendors in the global commercial telematics market?
- What are the trending factors affecting the market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the global commercial telematics market?
Technavio also offers customization on reports based on specific client requirement.