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The Commercial Telematics Market Size is estimated to grow by USD 13.01 billion between 2022 and 2027 accelerating at a CAGR of 5.88%.
This commercial telematics market report extensively covers market segmentation by product (solutions and services), platform (embedded systems, tethered systems, and smartphone integration systems), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Increasing adoption of driver assistance is the primary factor driving the commercial telematics market growth. Autonomous vehicles offer social, economic, and mobility benefits, with advanced technology allowing them to navigate difficult terrain and perform repetitive tasks. Digital maps, using sensor inputs such as video and radar, provide drivers with useful information on roads and can improve fuel efficiency. On-drive management features offer real-time traffic updates, parking and fuel consumption details, and medical assistance in emergencies. The growth of the commercial telematics market is also being driven by usage-based insurance and smart apps.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Globalization of telematics supply chains is another prime factor driving the commercial telematics market growth. The increase in global trade has led to the fragmentation of logistics and production centers, resulting in a demand for commercial vehicle telematics systems. Manufacturing costs are reduced by outsourcing assembly operations to countries with lower costs. M2M connectivity is crucial for businesses that require continuous tracking and asset management, with global M2M connectivity enabled by GPS, Wi-Fi, and RFID technologies. Effective management of wireless technologies is necessary for real-time visibility of global supply chains, customer services, and telehealth delivery, driving the growth of the commercial telematics market.
Advanced analytics on telematics data to reduce severity of risks is a major trend in the commercial telematics market. Data privacy and cyber-attacks are causing customers to hesitate in using connected features in their vehicles. To gain transparency, companies are using advanced analytics on telematics data to provide personalized solutions in a connected environment. Telematics also helps control recall issues, potentially saving billions of dollars for OEMs. Partnerships between OEMs and telecoms service providers are expected to be profitable, and cloud-based solutions enable OTA updates, security monitoring, and UBI. Insurers can gain a competitive edge through real-time data monitoring and visualization, with companies like Intel and Cloudera using telematics data to personalize auto insurance coverage. These factors are expected to drive growth in the commercial telematics market.
The complexity of telematics software and hardware designs is a major challenge hindering the commercial telematics market. Embedded telematics systems have complex hardware and software designs, and open-loop and closed-loop concepts used in embedded telematics for data processing have been further added to the sophistication of telematics systems. The number of hardware systems needed for each application has made automobile-embedded telematics more complex and sophisticated. For instance, service innovation, standards, and availability are crucial factors that drive the adoption of mobile hardware, both onboard (in commercial vehicles) and off-board (in cell phones). As mobile devices can continually innovate and upgrade themselves for any new services because of their lifecycle properties, fixed onboard telematics systems are not flexible to this level. This creates a challenge for consumers to adapt to the complexity, innovation, and new design upgrades of the hardware in vehicles. Such factors may hinder the growth of the global commercial telematics market during the forecast period.
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The market share growth by the solutions segment will be significant during the forecast period. The rise in global commercial vehicle production and the increased deployment of infotainment systems for communication, entertainment, and navigation are driving the overall market value of OEM and aftermarket telematics systems. Insurance telematics solutions provide advantages such as improved risk management, competitive pricing, and increased competitiveness.
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The solutions segment showed a gradual increase in the market share of USD 23.19 billion in 2017 and continued to grow by 2021. The healthcare telematics infrastructure connects the IT systems of doctors, pharmacies, hospitals, and health insurers with each other to protect and monitor critical data. Therefore, the adoption of telematics solutions in the healthcare industry is expected to witness significant growth during the forecast period.
Embedded systems provide robust connectivity for fleet management and navigation services, with telecom operators partnering with automobile OEMs to offer M2M solutions. OEMs are striving to control the connected car segment and deploying business models to capture the center stage of the ecosystem. Collaboration among OEMs and other players has risen to encourage the adoption of embedded solutions, with a focus on in-vehicle infotainment playing a crucial role in their adoption. Governments worldwide have mandated telematics services, such as emergency calling and stolen vehicle tracking, in vehicles. Developing nations are expected to follow suit, boosting the market share of embedded solutions. The luxury car segment will drive high adoption rates of embedded solutions, as OEMs differentiate their product by developing unique systems. The demand for embedded solutions will continue to rise, driven by the need for better navigation and driver assistance services.
North America is estimated to contribute 33% 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.
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The volume of sale of luxury cars in North America is higher than in other regions. This allows OEMs to encourage the adoption of advanced connected car technologies such as advanced driver assistance systems (ADAS). The adoption of infotainment systems in this region is increasing. Such features provide consumers with enhanced driving experiences. Moreover, vendors are investing in technology to develop integrated solutions for their customers. Advanced telematics tools provide extensive information, such as fuel usage and the condition of the vehicle. These factors will drive the growth of the commercial telematics market in North America during the forecast period.
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This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The initiation of vaccination drives and the reopening of manufacturing units of commercial telematics systems have helped automotive sales reach pre-COVID levels. This has led to an increase in the demand for commercial telematics systems in the region. Hence, the commercial telematics market in North America is expected to witness growth during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Commercial Telematics Market. One of the major vendor in the market include:
Volkswagen AG- The company offers commercial telematics with complete solutions for keeping track of the fleet.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Commercial Telematics Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.88% |
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Market growth 2023-2027 |
USD 13.01 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.34 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 33% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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