Global Fleet Telematics Systems Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Fleet Telematics Systems Market Forecast 2024-2028

The Fleet Telematics Systems Market size is forecast to increase by USD 88.48 billion, at a CAGR of 23.87% between 2023 and 2028. Growing developments in OEM-installed systems notably drive market growth. Aftermarket dominates the market share, with success attributed to its wider product offerings and the absence of OEM-installed telematics solutions. Telematics devices have become integral for modern fleets, as fleet operators strive to continuously enhance efficiency benchmarks. However, the extra time and costs for deployment pose challenges. The increased adoption of IoT and fleet management telematics technologies is an emerging trend shaping market growth. These advancements benefit businesses in the automotive and transportation industry, improving fleet operations and competitiveness.

Cloud computing, mobility solutions, and real-time data collection enable swift, informed decisions, enhancing customer service. Market analysis and reports underscore these trends, supporting organic growth strategies for fleet management companies amidst challenges like travel bans and delivery schedules in the transportation and logistics industry. Communication tools monitor vehicle position, speed, and fuel consumption, aiding in effective fleet management.

What will be the Size of the Market During the Forecast Period?

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What is the Largest-Growing Segments in the Market?

 The aftermarket fleet telematics systems segment is estimated to witness significant growth during the forecast period. Aftermarket are those that are offered by third-party companies and are retrofitted into the existing fleet via an onboard diagnostics (OBD) port. The larger share of this segment in the market can be attributed to the low penetration of OEM-installed telematics systems in fleets. 

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The aftermarket fleet telematics systems was the largest and was valued at USD 19.92 billion in 2018. Additionally, prominent companies such as Omnitracs LLC, a subsidiary of Solera Holdings LLC and Geotab Inc. offer various customizable to meet the respective fleet operators' demands. Based on the solution required by fleet operators, Omnitracs LLC offers various products. Aftermarket fleet telematics system providers also offer solutions based on the data collected by the vehicle's diagnostic device. This expands the application of fleet telematics in the fleet of vehicles. As most existing fleets under various fleet operators are witnessing a shift toward the adoption of this, the aftermarket segment is expected to grow steadily, which, in turn, boosts the market growth analysis of the global fleet telematics system market during the forecast period.

Which are the Key Regions for the Market?

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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. The US was one of the major revenue contributors to the market. The country is witnessing a rising demand for advanced telematics in CVs. Additionally, the US has the largest fleet of CVs in the world and is a prominent market for the sales of new CVs. Also, the demand from fleet managers in North America is high, which contributes to its dominant position in the market. The market in North America is expected to witness a rise in the adoption of advanced telematics services owing to the increased number of offerings from automotive OEMs and the availability of strong aftermarket solutions.

Additionally, the region is a frontrunner in the adoption of fifth-generation (5G) technology, which will strengthen the adoption of connectivity technologies in modern fleets. It also has a strong presence in road freight transportation, which contributes to its dominant position in the market. The primary mode of transportation of goods is via roads, with freight transportation increasing every day. For instance, the freight tonnage in the US is expected to increase by more than 25% by 2030. This will drive the market in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by the growing developments in OEM-installed telematics systems, which are increasingly integrated into trucks, vans, and other commercial vehicles. A notable trend in this market is the increasing adoption of IoT and fleet management telematics technologies, allowing fleet operators to efficiently monitor and manage their vehicles in real-time. However, a significant challenge facing the market is the high costs associated with this, which can deter adoption among smaller fleet operators. Despite this challenge, advancements in on-board diagnostics systems and vehicle engine data sensors are enhancing the capabilities of telematics systems, providing valuable insights into vehicle performance and driver behavior. To overcome cost barriers and drive market growth, collaboration between fleet management companies and telematics system providers is essential, ensuring the development of cost-effective solutions that meet the needs of fleet operators worldwide.

Key Market Driver

Growing developments in OEM-installed is notably driving the market growth. Aftermarket accounts for the major share of the market. The success of after-market products can be attributed to the wider range of product offerings and the lack of OEM-installed telematics solutions. The have become an integral part of modern fleets as the market dynamics challenge fleet operators to enhance the efficiency benchmark continuously. However, the extra deployment time consumed for installing telematics devices and the extra costs incurred for the deployment becomes a hassle for fleet operators.

As a result, prominent automotive manufacturers are collaborating with key fleet telematic system providers to pre-install telematics systems in their vehicles, thereby eliminating the need to spend additional money on the development of an in-house system. This also acts as a significant product differentiator for automotive manufacturers in the highly competitive market. Thus, the growing developments in OEM  boost the growth of the market during the forecast period.

Significant Market Trends 

An increase in the adoption of IoT and fleet management telematics technologies is an emerging trend shaping market growth and trends. Businesses have greatly benefited from the developing Internet of Things (IoT) and fleet-management telematics technologies, which have improved fleet operations and helped them compete better in today's highly competitive marketplace. Cloud computing, mobility solutions, automated procedures, and near real-time data collection give businesses the means to make better business decisions more quickly, which can enhance customer services.

However, in addition to being able to track and monitor their fleets and cargo remotely, modern solutions for tracking systems also enable predictive monitoring, maintenance analytics, and other cutting-edge, data-driven solutions that support increased efficiency, lower costs, and quicker reaction times. Thus, the advantages of using IoT and other advanced technologies will boost market growth and forecasting during the market forecast period. 

Major Market Challenge

High costs associated with fleet telematics systems are a significant challenge hindering market growth. The initial costs while setting up a fleet telematics system include license, setup, and installation fees, in addition to the payment for customization and integration with the existing systems. Additionally, the license fee must be renewed periodically, which adds to the overall cost. The integration or customization can be more expensive than the price of telematics devices and license fees. Additionally, the high cost of embedded telematics makes it difficult for vehicle manufacturers to keep their product prices low. As a result, vehicle manufacturers have to either keep their profit margins low or shift the pressure onto end-users.

However, in the current price-sensitive market, where customers search for products that give them the highest value for money, manufacturers find it difficult to shift the pricing pressure onto their customers. Therefore, they are compelled to keep their margins low. Furthermore, vehicle manufacturers are looking for low-cost solutions that help keep their profit margins high. They achieve cost reduction either by launching low-cost, no-frills products or by optimizing operational processes, which pose a challenge for the market during the forecast period.

Market Customer Landscape

The market research 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 research and growth strategies.

 Customer Landscape

Who are the Major Market Companies?

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.

Bridgestone Corp. - The company offers fleet telematics solutions that provide a wide range of features, including live view maps, fleet-dashboards, automated reporting, event notifications, video telematics, and OEM and electric vehicle connectivity all accessible from the web or mobile app.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AT and T Inc.
• Continental AG
• Danaher Corp.
• Fleet-Complete
• Garmin Ltd.
• Geotab Inc.
• Inseego Corp.
• KORE Group Holdings Inc.
• Liebherr International Deutschland GmbH
• Michelin Group
• Microlise Group Plc
• MiX Telematics Ltd.
• Robert Bosch GmbH
• Solera Holdings LLC
• Trimble Inc.
• Verizon Communications Inc.
• Zoho Corp. Pvt. Ltd.
• Actsoft Inc.
• Sprint Group Holdings Ltd.

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.

Market Analyst Overview

The market is witnessing significant growth driven by various factors, such as the increasing demand for vehicle type and the expansion of commercial vehicle fleet operations. With the integration of Global Positioning System (GPS) technology and sensors, fleet managers can access real-time vehicle engine data to optimize operations.

In this manufacturing environment, where the cost of manufacturing is a concern, advanced technology is embraced to streamline processes. Trusted companies provide recommendations for future hot spots in the transportation industry, benefiting logistics companies and modern technologies adoption.

With in-vehicle tools and specialized intervention, drivers' feedback and training become essential, supported by incentive programs. Web-based applications ensure safety and promote fuel-efficient driving amid stringent automotive safety regulations.

Despite challenges such as data hacking and high installation costs, the market is driven by innovations in the wireless system segment and active tracking systems leveraging cellular networks and satellite systems. Geofence technology enhances security, while on-board diagnostics systems provide real-time insights into vehicle performance.

Overall, the market offers technology-driven solutions to boost operational efficiency, improve driver safety, and provide data-driven insights for efficient transportation and logistics management.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • Aftermarket-fleet-telematics systems
  • OEM-fleet-telematics systems

• Component Outlook 
  • Active
  • Passive

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	171
Base year	2023
Historic period	2018-2022
Market forecasting period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 23.87%
Market Growth 2024-2028	USD 88.48 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	22.49
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 33%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AT and T Inc., Bridgestone Corp., Continental AG, Danaher Corp., Fleet-Complete, Garmin Ltd., Geotab Inc., Inseego Corp., KORE Group Holdings Inc., Liebherr International Deutschland GmbH, Michelin Group, Microlise Group Plc, MiX Telematics Ltd., Robert Bosch GmbH, Solera Holdings LLC, Trimble Inc., Verizon Communications Inc., Zoho Corp. Pvt. Ltd., Actsoft Inc., and Sprint Group Holdings Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market trends and analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
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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What are the Key Data Covered in this  Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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