Market analysis and insights
The global computer-aided design, or By 2032, the size of the global commercial vehicle telematics market, which topped USD 32 billion in 2022, is expected to increase by 12% CAGR.
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"The Global Vehicle Telematics Market 2022-2032 (USD Billion)")
Vehicle telematics is an arrangement that gathers information from cars and sends it to a centralised server for analysis. In addition to fleet management, vehicle monitoring, insurance, and safety, this information can be utilised for several other applications as well. Several factors, such as rising fleet management solution demand, regulatory compliance requirements, rising safety concerns, and the emergence of new technologies like the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, are propelling the vehicle telematics market’s expansion.
Segments of the Global Commercial Vehicle Telematics Market include Supplier types: OEMs (original equipment manufacturers), suppliers of aftermarket goods and services, and service providers. OEMs control a sizable portion of the revenue in the Global Commercial Vehicle Telematics Market, making them the leading providers. This is a result of OEMs providing factory-installed telematics solutions in their automobiles. No matter the make or model, aftermarket suppliers provide telematics solutions that may be fitted in any car. This renders aftermarket telematics systems a well-liked option for consumers and small enterprises. Telematics services are provided by service providers to both enterprises and consumers. These offerings may include insurance, fleet management, and vehicle tracking. Vertical: Public transportation, commercial vehicles, and passenger cars. The Global Commercial Vehicle Telematics Market’s main section is the passenger vehicle market, which accounts for a sizeable portion of revenue. Because passenger cars are the most common kind of vehicle, this is the case. The Global Commercial Vehicle Telematics Market is also seeing growth in the commercial vehicle segment.
This is because organisations are utilising telematics solutions more frequently to enhance fleet management and operational effectiveness. The Global Commercial The vehicle Telematics Market is also seeing growth in the public transit segment. Governments are progressively implementing telematics solutions to increase the security and effectiveness of their public transport networks, which is the reason for this. North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa are the regions in which the Global Commercial Vehicle The Telematics Market is divided. On the worldwide car telematics market, North America holds the greatest market share. In the years to come, it is anticipated that the Global Commercial Vehicle The Telematics Market will expand quickly.
This rise is being fuelled by several causes, such as the rising need for fleet management systems, legal compliance requirements, escalating security issues, and the introduction of new technology. Because they have several advantages over on-premises solutions, cloud-based telemetry solutions are growing in popularity. Telematics systems can now offer more sophisticated and beneficial insights to both enterprises and individuals thanks to their integration with other technologies like the Internet of Things, artificial intelligence, and big data analytics. Emerging markets are seeing a rapid expansion of the car telematics business.
Commercial Vehicle Telematics Market scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | USD 32 billion |
| Growth Rate | CAGR of 12% during 2022-2032 |
| Segment Covered | By Provider Type, By Vertical , By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America Middle East and Africa |
| Key Players Profiled | Continental AG, Geotab Inc., Inseego Corporation, Masternaut Limited, Microlise Group Ltd., Octo Telematics Ltd., Omnitracs, ORBCOMM, Samsara, Spireon, Teletrac Navman, TomTom Telematics BV, Trimble Corporation, Verizon Telematics, Inc., WEBFLEET Solutions, and Zonar System, Inc. |
Market Definition
Vehicle telematics is an apparatus that gathers information from cars and sends it to a centralised server for analysis. In addition to fleet management, vehicle monitoring, insurance, and safety, this information can be utilised for several other applications as well. Vehicle telematics systems typically collect and transmit data using a mix of GPS, on-board diagnostics (OBD-II), plus cellular connectivity. While the OBD-II data offers details about the vehicle’s performance, including speed, engine RPM, and fuel consumption, the GPS data gives information about the vehicle’s position.
Data can be delivered in real time to the main server thanks to cellular connectivity. Vehicle location, speed, engine RPM, fuel consumption, idle time, harsh braking and acceleration, airbag deployment, and vehicle maintenance status are just a few of the several types of data that may be gathered by using vehicle telematics systems. The data can be analysed to offer insights into several areas once it has been delivered to the central server, including car location, fuel usage, and maintenance status can all be tracked using car telematics data. Fleet managers can use this information to streamline their processes and cut costs. Data from vehicle telematics can be used to trace down a stolen car’s position or to keep tabs on the whereabouts of a fleet of cars. Insurance firms may utilise vehicle telematics data to evaluate risk and determine premiums. Data from vehicle telematics systems can be utilised to spot risky driving behaviours and create safety initiatives.
The field of vehicle telematics is expanding quickly and has many potential uses. We may anticipate seeing many more creative and advantageous applications for vehicle telematics data as the technology advances.
Key market segments
Insights on Key Provider type
After market Segment to create Ample financing opportunities
By 2022, the aftermarket sector will command a market share exceeding 63%. Existing commercial cars without telematics systems installed during manufacture or assembly can have their needs satisfied by aftermarket solutions. To provide vehicle tracking, fleet management, remote monitoring, driver behaviour monitoring, and fuel management, these solutions are frequently customized to meet the demands of individual vehicles. These gadgets can track a vehicle's location, direction, and driving style. It typically has a connection to the car's onboard diagnostic system or other relevant components to gather and send data.
OEM
With a sizable revenue share, OEMs are the market’s most powerful providers of car telematics. Being a factory-installed option in the automobiles they sell, OEMs provide telematics systems, which is why this is the case. General Motors, Ford, and Toyota are a few of the well-known OEMs that provide telematics solutions. Throughout the forecast period, the OEM segment is anticipated to maintain a prominent position in the vehicle telematics market. This is because OEMs are spending more money on telematics technology and incorporating them into their vehicles as standard equipment. The most dominant suppliers in the worldwide vehicle telematics industry are OEMs, who account for a sizeable portion of sales. This is a result of OEMs providing factory-installed telematics solutions in their automobiles.
Service providers
Telematics services are provided by service providers to both enterprises and consumers. These offerings may include insurance, fleet management, and vehicle tracking. A few of the well-known telematics service providers are AT& T, Trimble, and Vodafone. During the projected period, the service provider category is anticipated to increase at the fastest rate. This is a result of organisations’ increasing requirements for fleet management as well as vehicle tracking services
Insights of Key Vertical
With a substantial portion of the market’s income coming from passenger vehicles, this sector dominates the Global Commercial Vehicle Telematics Market. The most popular kind of vehicle is a passenger car, thus this is the reason. The development of the telematics market in this vertical is also being fuelled by the rising need for security and safety measures in passenger vehicles. In the market for vehicle telematics, the passenger vehicle vertical is anticipated to continue to have a commanding position. Given the reality that passenger cars are the most common kind of vehicle and the rising need for security and safety measures in them, this is the case. The segment that dominates the Global Commercial Vehicle Telematics Market and generates the largest portion of revenue is passenger vehicles. This is because passenger vehicles become the most common kind of vehicle and because there is a rising need for security and safety equipment in them.
Commercial vehicles
Another sector in the market for vehicle telematics that is expanding is commercial vehicles. To enhance fleet management and operational efficiency, businesses are implementing telematics solutions more frequently. Businesses can follow the whereabouts of their fleets, measure fuel usage, and spot maintenance problems with the aid of telematics solutions. During the forecast period, the commercial vehicle vertical is also anticipated to expand as more companies implement telematics solutions to boost their fleet management and operational effectiveness.
Public transportation
The vehicle telematics market’s smallest vertical, public transport, is expanding quickly. To enhance the security and effectiveness of their public transit systems, governments are increasingly implementing telematics technology. Governments can follow the whereabouts of their public transport vehicles, keep track of fuel usage, and spot maintenance problems with the aid of telematics technologies. During the projected period, the public transport vertical is anticipated to increase at the quickest rate. This is a result of governments using telematics solutions more frequently to increase the security and effectiveness of their general transport networks.
Insights on regional analysis
North America
With a large portion of the revenue coming from this region, North America dominates the global market for automobile telematics. This is because North America is a highly technologically advanced continent with a sizable vehicle fleet and an increasing need for security and safety equipment in automobiles. With a sizeable portion of the market’s income attributable to it, North America dominates the Global Commercial Vehicle Telematics Market. The reason for this is that a huge number of automobiles are present in North America, which is an extremely sophisticated region. The expansion of the telematics industry in this region is also being driven by the increasing need for security and safety amenities in cars. In the automotive telematics industry, North America is anticipated to continue to have a dominant position. This is a result of the reality that North America is an extremely industrialised region with a sizable vehicle fleet and a rising need for security and safety technologies in automobiles.
Europe
Another significant location in the market for vehicle telematics is Europe. The Global Commercial Vehicle Telematics Market in this region is expanding as a result of the rising demand from enterprises for fleet management solutions.
Asia Pacific
In the market for car telematics, Asia Pacific is the region with the quickest growth. The telematics market is expanding as a result of the increasing demand for cars and trucks in this area. The automotive telematics market is anticipated to grow at the quickest rate during the projected period in Asia Pacific. This is a result of Asia Pacific’s rapid development and rising demand for both passenger and commercial automobiles.
Latin America the Middle East and Africa
Latin America the Middle East and Africa are relatively smaller regions in the vehicle telematics market, but they are growing rapidly. The growing demand for passenger vehicles and commercial vehicles in these regions is driving the growth of the telematics market.
Key players
The major market participants in the global telematics for vehicles are in a good position to profit from the rising demand for telematics products. These businesses are increasing their worldwide reach and investing in cutting-edge technologies.
Leading businesses in the commercial vehicle telematics sector include Continental AG, Geotab Inc., Inseego Corporation, Masternaut Limited, Microlise Group Ltd., Octo Telematics Ltd., Omnitracs, ORBCOMM, Samsara, Spireon, Teletrac Navman, TomTom Telematics BV, Trimble Corporation, Verizon Telematics, Inc., WEBFLEET Solutions, and Zonar System, Inc.
COVID-19 Impact and Recovery Analysis
The COVID-19 epidemic has had a considerable effect on the commercial vehicle telematics industry globally. Due to supply chain interruptions, decreased fleet operations, and business financial restrictions, the market experienced a short-term decline in demand. The market’s long- term forecast, however, is still optimistic due to fleet operators’ growing adoption of telematics systems to increase operational effectiveness and safety.
Negative effects include:
Disruptions to the supply chain: Due to the pandemic’s effects on the worldwide supply chain, it was challenging for telematics producers to get their hands on the raw materials and components they needed. As a result, there were delays in the creation and distribution of telemetry products.
Reduced fleet operations: As a result of many firms being forced to close or operate at a decreased capacity, the pandemic also had an impact on fleet operations. As a result, telematics solutions were in less demand. Financial restraints were brought on by the epidemic, which prevented many businesses from investing in modern technologies like telematics.
Positive effects include
The pandemic has brought to light how crucial telematics solutions are to fleet operators’ efforts to increase operational effectiveness and safety. As a result, there is now a broader understanding of the advantages of telematics as well as a willingness to spend money on these products. The epidemic has also spurred demand for telematics-based fleet management solutions and other contactless solutions. This is so that fleet managers can handle their fleets from home, without having to physically interact with the drivers, thanks to telematics systems. Globally, COVID-19 has had a mixed effect on the commercial vehicle telematics market. The aforementioned variables caused a short-term fall in demand on the market. The market’s long-term forecast, however, is still optimistic due to fleet operators’ growing adoption of telematics systems to increase operational effectiveness and safety.
The COVID-19 epidemic has had a considerable effect on the commercial vehicle telematics industry globally. The market’s long-term forecast, however, is still optimistic due to fleet operators’ growing adoption of telematics systems to increase operational effectiveness and safety.
Latest trends and analysis
The following most recent advancements in the Global Commercial Vehicle Telematics Market are included together with the relevant development year:
2023:
• A fresh telematics platform for commercial vehicles is being developed in collaboration with Continental and Qualcomm Technologies. The platform will be built on Continental’s telematics hardware and software as well as Qualcomm’s Snapdragon Automotive 5G Platform. Numerous services will be available, such as fleet management, predictive maintenance, and real-time vehicle tracking.
• A new telematics option for electric cars (EVs) is made available by Verizon Connect. The solution is meant to assist fleet managers in successfully and efficiently managing their EV fleets. It offers features including location-based charging stations, real-time range monitoring, and proactive maintenance.
• The fresh cloud-based telematics platform from TomTom Telematics is now available. Fleet managers of all sizes may better manage their fleets with the platform’s assistance. Numerous functions are available, such as fleet management, fuel management, and real- time vehicle tracking.
2022:
• A new telematics system for commercial vehicles is being developed in collaboration between Microsoft and Webfleet Solutions. The telematics hardware and software from Webfleet Solutions and Microsoft Azure will be the foundation of the solution. Numerous services will be available, such as fleet management, predictive maintenance, and real-time vehicle tracking.
• A new long-haul trucking telematics system has been introduced by Trimble Transportation. The concept is intended to assist long-haul truckers in increasing both their safety and fuel economy. It offers features including predictive maintenance, real-time fuel monitoring, and driver behaviour monitoring. New construction fleet telematics software is introduced by Geotab. Construction fleet managers may better manage their fleets with the assistance of the solution. It offers features including fuel management, asset management, and real-time vehicle tracking.
Significant Growth Factors
Fleet managers are increasingly using telemetry solutions to boost their fleets’ productivity and efficiency. Fleet managers can track the whereabouts of their vehicles, keep an eye on driver behaviour, and reduce fuel usage with the aid of telematics systems. Fleet managers may increase security and adherence by using telematics solutions to keep an eye on driver behaviour and vehicle performance. The detection and correction of potential safety concerns can also be done using telematics data.
Governments all over the world are progressively requiring commercial cars to utilise telematics technologies. For instance, the use of tachographs in all commercial trucks weighing more than 3.5 tonnes is required by the European Union. The creation of fresh and cutting-edge telematics solutions is made possible by technological developments like the evolution of 5G and artificial intelligence (AI). For instance, the transmission of data in real-time from cars will be made possible by 5G, enabling fleet operators to gain real-time insights regarding their fleet operations. AI can be applied to create telematics systems that foresee and avert foreseeable issues. The growing usage of electric vehicles (EVs) and autonomous vehicles, in addition to the aforementioned factors, is fuelling the development of the global commercial vehicle telematics market.
Restraining factors
Some fleet operators, particularly small and medium-sized companies, may find it difficult to enter Fleet managers can better control their EV fleets with the aid of telematics solutions. The effectiveness and security of autonomous vehicles can also be checked using them. Overall, it is anticipated that the commercial vehicle telematics market will expand significantly in the upcoming years due to rising fleet management solution demand, growing emphasis on safety and compliance, governmental restrictions, and technological advancements.
Frequently Asked Questions (FAQ) :
The vehicle telematics market size is expected to reach USD 32 billion by 2032.
North America dominated the market for vehicle telematics market and accounted for the largest revenue share.
The vehicle telematics market is Segmented on the By Provider Type, By Vertical , By Region.
To get latest version of vehicle telematics market report can be obtained on demand from the website.
The base year for the report is 2023 in vehicle telematics market.
Definition
Vehicle telematics is expected to play a very major role when we talk about the future of mobility. Vehicle telematics can be defined as the system which helps the vehicle communicate with its environment using embedded or tethered networks. It is a method of monitoring a vehicle using GPS and onboard diagnostics.
Market Analysis
The adoption of telematics in the automotive industry is expected to increase in coming years. This can be attributed to two major reasons, first is the increasing government's willingness to mandate specific telematics services, such as E-call capabilities, which is already happening in the European Union and Russia. Second is the increasing demand from consumers for greater connectivity and intelligence in their vehicles.
The urge to attain full autonomy along with developments happening in the field of vehicle connectivity to increase safety and security along with the convenience of vehicle owners is driving the vehicle telematics market. Amazon teamed up with two automotive giants, General Motors and Volvo to launch a new delivery model. Amazon will be delivering packages directly into the trunk of the car using embedded connected vehicle telematics technology such as Onstar for accessing the vehicle trunks. This way Amazon plans to give a never before delivery experience to its clients.
To sum up, vehicle telematics is expected to have a lot of impact on the automotive industry and human life in many different ways. With the help of telematics people will be able to monitor their car's health, call their neurons, have meetings in cars, and automotive companies are also planning to achieve autonomous vehicle technology with the help of telematics. Vehicle telematics can help achieve fuel savings and reduce emissions by tracking vehicle routes and optimizing vehicle and driver perfromace by tracking them.