USD 57.65 Billion
Commercial Telematics Market Size, Share, Growth Analysis, By Offering (Software, Services), By Solution Type (OEM, Aftermarket), By End User (Transportation & Logistics, Healthcare), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2269 |
Region:
Global |
Published Date: October, 2024
Pages:
159
|Tables:
87
|Figures:
71
Commercial Telematics Market Insights
Global Commercial Telematics Market size was valued at USD 57.65 Billion in 2023 and is poised to grow from USD 70.13 Billion in 2024 to USD 372.33 Billion by 2031, growing at a CAGR of 23.2% in the forecast period (2024-2031).
For better fleet economy and driver performance, fleet owners, Original Equipment Manufacturers, and insurers are rapidly adopting commercial telematics for real-time information from a vehicle, such as location, speed, braking, engine temperature, fuel consumption, and so on. In the industry, Telematics devices are of various types, including dash cameras, mobile applications, sensors, GPS trackers, and car engine diagnostic tools. These devices together present the operating efficiency of the fleet. The growth in telematics usage within emerging world economies drives the market to grow exponentially. Government regulations regarding road safety and fleet management are predicted to drive further growth in the commercial telematics market during the forthcoming years. The COVID-19 pandemic continues to impact the automobile industry. Democracy is a concept as it does not have a universal conceptual definition. Democracy is the most argued chain and is controlled by laws and government restrictions. Consequently, market growth resulted in a slower increase because of supply chain uncertainty along with a sharp reduction of fleet management and a reduction in demand from the trucking industry. However, the increased need for usage-based insurance fueled by the pandemic has positively impacted the growth of the COVID-19 market. In turn, those advantages of telematics devices are closely tied to the industry's adoption rate. With the proliferation of advanced vehicles, such as connected cars, which currently have multiple technologies and sensors that connect the vehicle to the internet and its environment and to the cloud services, growth in the market is expected. The trucking and fleet industries are very sensitive to this.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
aftermarket
Fastest Growth
OEM
Growth Rate
23.2%
Global Commercial Telematics Market ($ Bn)
Country Share for North America Region (%)
To get more reports on the above market click here to Buy The Report
Commercial Telematics Market Segmental Analysis
Global Commercial Telematics Market is segmented by Offering, by Solution Type, by End User and by Region. Based on Offering, the market is segmented into software, service. Based on Solution Type, the market is segmented into OEM and Aftermarket. Based on End User, the market is segmented into Transportation & Logistics, Insurers, Healthcare, Media and Entertainment, Vehicle Manufacturers/Dealers, Government Agencies. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis By Solution Type
The aftermarket segment headed the market in 2023 mainly due to the increase in telematics solutions that are developed to improve services in infotainment and navigation. Automotive customers can now change their old cars to embrace the latest technologies from the production line through modification using aftermarket telematics systems. This is because only a few OEMs preinstall telematics in automobiles, as telematics is still an evolving technology. Due to this scarcity, drivers are searching for aftermarket solutions that will be able to integrate current technology into vehicles. Consequently, there has recently been a boom in demand. Thus, the aftermarket industry should continue to expand further as customers still very much value connection and improved functionality.
However, due to the growing strategic collaborations between automobile manufacturers and telematics service providers, which will continue to propel strong growth in the OEM segment during the forecast period despite the aftermarket industry's remarkable success. This trend can be witnessed through partnerships like the one that BMW announced in February 2023 with Targa Telematics, an IoT solution firm for connected mobility. This co-operation has helped Targa Telematics integrate information from BMW and MINI automobiles onto the platform of the company, thus enhancing their service package with assurance of compliance with GDPR laws. OEM solutions are of more attractiveness to the manufacturer and the clients themselves because there is a direct linkage created with the BMW automobiles, which reduces the logistical issues inherent in the installation of hardware from the after markets.
Analysis By End User
The transport and logistics segment led the commercial telematics market because the sector happens to be one of the commercial sectors in which the use of commercial telematics for location tracking and in real time positioning is most rife. This kind of technology can enable the fleet manager to reduce transit times and optimally alter routes, hence increasing operational efficiency. In addition, market development is anticipated to be further aided in the upcoming years by the increased focus on higher fuel efficiency, increased productivity, and preventative maintenance. Government laws requiring telematics device installation in the logistics and transportation sector contribute significantly to the acceleration of market growth. Organizations are implementing telematics solutions more often to satisfy regulatory compliance requirements and enhance service quality.
During the projection period, the insurers' segment is expected to increase at the fastest rate due to the growing demand for usage-based insurance (UBI) in developed nations. UBI has been popular because customers look for insurance solutions that are more flexible and represent real driving behavior. Global government policies requiring the development of UBI systems and increasing consumer accessibility contribute to this movement. Using telemetry data, insurers can analyze risk much better and offer customized insurance, resulting in higher consumer satisfaction. This industry is likely to grow dramatically as these regulations continue to evolve, making the state of insurance generally better.
Global Commercial Telematics Market By Solution Type
To get detailed analysis on other segments, Request For Free Sample Report
Commercial Telematics Market Regional Insights
North America dominated the commercial telematics market with the highest penetration rate when compared to other regions and had significant market value in USD 18.19 billion in 2023. The North American market has grown, and telematics systems have become widespread and integrated into many industries. Growth is furthered by reputable suppliers, including Omnitracs and Verizon Connect. Accordingly, the trend for connected commercial vehicles and the further development of electromobility is increasing the demand for high-end telematics solutions. The North America market shall be relatively flat because companies are struggling to meet their demands, which are respectively regulatory and operationally efficient.
Asia-Pacific is projected to grow at a CAGR of 27.2% during the projection period with significant growth. This, in turn, is primarily because of the increased telematics adoption in all the developing countries across China, India, Japan, and South Korea. The automobile and transportation industries are going well in these countries, and the increasing usage of telematics technology in these places. Furthermore, the increased import-export activities in this region are propelling demand for efficient fleet management systems. The telematics business for Asia-Pacific is poised for booming growth as companies want to make their processes streamlined and enhance logistics, which is going to significantly impact the global market.
Global Commercial Telematics Market By Geography
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Commercial Telematics Market Dynamics
Drivers
Rising Demand for Fleet Management Solutions
- With greater concern towards cost containment and efficiency in operations, businesses from a variety of industries are making advanced solutions in fleet management their top priority. Commercial telematics systems are the most indispensable because they provide real-time data on where vehicles are, the behavior of drivers, and fuel consumption patterns. This data can also provide them with the opportunity to offer better services and save costs as they schedule repairs on time, optimize routes, and reduce idle time. In the current market, fleet management systems play an important role in optimizing the efficiency and profitability of a business, and increased enterprise telematics adoption seeks a strategic advantage in these logistics and transportation industries, which are increasingly competitive.
Regulatory Compliance
- Rules from several government regulations in industries mandate organizations to have enhanced telematics tracking and reporting. All these pieces of legislation are on track to reaching the final goals for an improved environment, security and responsibility in transportation and logistics. To comply, organizations are compelled to adopt proactive telematics solutions, such as driver safety monitoring and emissions tracking. These systems will allow firms to better their operating practices, mitigate risks, and improve their reputation apart from complying with regulatory requirements. Telematics solutions are predicted to be in much more demand because ongoing changes in the regulatory frameworks underpin the crucial position of modern fleet management.
Restraints
High Implementation Costs
- Despite the long-term benefits of telematics technology being quite apparent, many businesses may avoid implementing such a technology because of this cost barrier. Acquisition of equipment, software, installation, and maintenance costs are very high and expensive, especially for SMEs having a low budget. Despite the long-term benefits of telematics technology being quite apparent, many businesses may avoid implementing such a technology because of this cost barrier. Of course, enterprises will also have to factor in the possible need for personnel training and the integration of existing systems with new operations, which adds to the total expense. Thus, very high implementation costs are among the main obstacles to greater market acceptance.
Data Security and Privacy issues
- With telematics systems capturing and transmitting sizable volumes of sensitive data, data security and privacy issues have come to pose an increasingly critical concern. Companies do not want to jump into the use of telematics solutions for fear of breach, unauthorized access, or misuse of personal data collected from the driver. An organization is at pains to ensure that they have complied with the data protection rules and regulations, such as the GDPR, when subject to intense regulation scrutiny adding another twist to the complexity. The key issue is the integration of telematics solutions by companies, which are predicted to be somewhat hindered by privacy concerns and ancillary issues of poor management and concomitant negative legal and reputational outcomes. These problems need to be solved to build trust and foster wider market acceptance.
Request Free Customization of this report to help us to meet your business objectives.
Commercial Telematics Market Competitive Landscape
Established firms and next-generation entrepreneurs compete in the commercial telematics business. Amongst those big firms holding so much market share and well-founded solutions are Verizon Connect, Omnitracs, and Geotab. They continue innovating their products with big data analytics and the Internet of Things. Other than that, strategic alliances and partnerships have taken the market quite often as companies try to enhance or offer better service and expand their reach in the market globally.
Top Player’s Company Profile
- Mix Telematics
- Fleet Complete
- Microlise Limited
- Vontier Corporation
- Trimble Inc.
- Navistar, Inc.
- Geotab Inc.
- Solera Holdings, Inc.
- Daimler AG
- Karooooo Ltd.
- Michelin
- Verizon Communications Inc.
- Continental AG
- Omnitracs LLC
- Philips Connect
- Verizon Connect
- PTC
- Trimble
- Tomtom
- Masternaut Limited
Recent Developments
- February 2024: Geotab and Daimler Truck North America (DTNA) have partnered to make fleet management easier, companies announced. Fleets can aggregate a single source of data that leads to better decisions through Geotab's MyGeotab software, paired with Freightliner truck data provided by DaaS from DTNA. The comprehensive solution enhances the operation, sustainability, and safety without adding any hardware.
- In February 2024, Connect1 trailer data integration marked the start of collaboration between Phillips Connect and Noregon. This cooperation ensures better fleet maintenance by providing detailed insights about brake and trailer health. Any goals are increasing fleet productivity and simplification of the know.
- In September 2023, Airbiquity and Tessolve collaborated, connecting OTAmatic and LOGmatic with TERA devices by Tessolve. It streamlined and developed the OEM development and its deployment procedures while putting forward advanced application gateways for connected automobiles. With OTAmatic, secure software updates are managed, while data recording is customizable using LOGmatic. Other TERA devices by Tessolve include the OBD Dongle, featuring edge computing and high-performance automotive connectivity.
Commercial Telematics Key Market Trends
- Integration with IoT and Big Data Analytics: Amidst all the changes in the commercial telematics industry, the integration of telematics with IoT and big data analytics appears to be a defining trend. Companies can collect vast data on an automobile, including environmental conditions, with the use of IoT devices. Real-time performance indicators can also be derived. The data, when added with complex analytics, is helpful in enabling companies to come up with useful insights that help them improve their decision-making procedures. Organizations can increase their fleet efficiency by proactively identifying their need for repair, optimizing routing plans, and monitoring driver behavior. Some of these ways will shape the future of fleet management with integrated telematics, IoT, and analytics as demand for data-driven decision-making increases.
- Transition to Electric and Driverless Cars: Telematics is commercially evolving to assist the automobile industry in that revolutionary changeover to electric and driverless cars. More money is being invested in telematics systems specifically designed for their fleets of electric vehicles, focusing on energy efficiency, battery health, and charging station availability. In addition, telematics will be crucial in providing the information that performance monitoring and safety assurances will be based on once autonomous vehicles start rolling into dealerships. The trend not only helps companies transition to more environmentally friendly forms of transportation but also gets them ready for fleet operations in an increasingly automated world.
Commercial Telematics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, increasing requirement for fleet management solutions and regulatory compliance is expected to drive the commercial telematics market. Big data analytics has converged with the Internet of Things and never-ending technological breakthroughs to transform the environment, though persistent hurdles include high implementation costs and issues of data privacy. Furthermore, the shift towards electric and driverless cars also offers new avenues for innovation. The market would change as major companies cooperate and improve their products in a way that eventually results in increased operational effectiveness and safety in several sectors. Commercial telematics seems to have a bright future as the companies embrace these game-changing technologies.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 57.65 Billion |
| Market size value in 2031 | USD 372.33 Billion |
| Growth Rate | 23.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Commercial Telematics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Commercial Telematics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Commercial Telematics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Commercial Telematics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Commercial Telematics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Commercial Telematics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
