Global Commercial Vehicle Telematics Market - 2022-2029

Global Commercial Vehicle Telematics Market - 2022-2029

Market Overview

The global commercial vehicle telematics market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

Telematics is a means of tracking a vehicle's location and movement using GPS and onboard diagnostics devices. The GPS and diagnostics systems can be used to record the vehicle's speed and internal behavior. Automobile insurance firms, fleet management businesses and others use telematics systems to track the position and behavior of cars. The global commercial telematics market encompasses the services and solutions used to monitor and control a commercial vehicle via a communications device. A Fleet Telematics System (FTS) allows information between a commercial vehicle fleet and a central authority to keep track of vehicle diagnostics and location.

There are numerous types of telematics devices available on the market today. The device records a variety of factors while driving, including speed, acceleration and turning force. A connection to a car computer can provide additional information about mechanical usage and vehicle condition. The data can be transferred to a central database for analysis via mobile networks. It is advanced to correctly create supplementary services portrayed due to the provided information, such as Usage-Based Insurance (UBI).

Telematic devices are becoming more ubiquitous in modern automobiles, allowing greater processing power and increased vehicle performance. Road accidents and deaths can be avoided by utilizing data from telematics devices, additional benefits such as reduced emissions, driver distraction, and the maintenance or augmentation of vehicle value. Inter-car communication is also possible using telematics data, improving traffic flow and vehicle routing. In commercial vehicles that use telematics to improve fuel efficiency, battery life and performance will dramatically improve.

Market Dynamics

The growing government mandate for implementing vehicle monitoring in commercial vehicles and increased demand for smartphones are the primary drivers of the market. The adoption of the NGTP protocol, rising smartphone usage, the reducing cost of media & entertainment and the expanding government mandate for deploying telematics in commercial vehicles contribute to the market's rapid growth. These elements are also predicted to shape the worldwide market's future. However, the market is hampered by security and privacy concerns.

Increased NGTP uses to improve telematics service delivery

NGTP is a telematics protocol that was created to give end-to-end telematics services. NGTP is an open-source framework developed by BMW, TSP, Connexis LLC and WirelessCar. Many car manufacturers have embraced this framework, built on a standardized and highly adaptable infrastructure. NGTP provides the flexibility feature, which solves the changing requirement of users to access new services without requiring any technological adjustments inside the vehicle.

NGTP establishes a single interface between the vehicle's Telematics Unit (TU) and the TSP. This technology-agnostic interface allows seamless integration of all back-end components such as dispatchers, TSPs, contact centers and content suppliers. Because NGTP uses an open interface, OEMs can supply new services to future vehicles. As a result, the adoption of NGTP is increasing due to its benefits and paving the way for rapid service delivery.

Increased communication creates worries about security and privacy

The advancement of V2V & V2I communication technology and self-driving vehicles increases the number of cars that can communicate, generating privacy and security concerns about GPS location, braking habits, speed and how users will manage this data.

The linked systems access medical information, family information, addresses and routes. Infringement on data privacy is one of the most significant barriers to end-user adoption of telematics solutions, particularly in countries where rules are pretty stringent, such as North America and China.

COVID-19 Impact Analysis

The COVID-19 epidemic had a global impact on the automotive industry. The outbreak will immediately affect the worldwide commercial vehicle telematics market. 2020 was a bad year for the commercial vehicle telematics industry, owing to the negative demand and supply outlook from COVID-19 crisis constraints among end-users such as car manufacturers, insurance and fleet owners.

End-user demand has decreased due to restricted operational activity and their primary attention has switched to the origination's core strengths. These industries' overall output activities have diminished due to operations with limited staff capacity, inadequate health safety measures and changes in customer mood.

Furthermore, end-users such as automotive OEMs, dealers, insurers and fleet operators are expected to focus on working capital management, with little room for significant investment in advanced technology. Furthermore, the automotive industry faces several obstacles: decreased purchasing power due to COVID-19, charging infrastructure improvements and consumer expectations of future technological advancements to cut car prices and provide a broader range.

Segment Analysis

By end-user, the commercial vehicle telematics market is segmented into transportation & logistics, media & entertainment, government & utilities, travel & tourism, construction, healthcare and education.

The rapidly growing manufacturing process

During the projection period, transportation and logistics will have the most significant market share. The global economy is expanding, government rules are changing and other reasons result in more opportunities in the freight industry. Trends in the national or regional economy are shifting, affecting the manufacturing and distribution processes and hence the demand for transportation. Carriers must be efficient in light of technological advancements, today's market and government-assisted rules. The world's middle-class population is growing faster and several small and large-scale businesses are eager to expand their market presence.

Geographical Analysis

Increased awareness about drivers’ safety in Asia-Pacific

Due to untapped market strength, increasing awareness about driver safety and accident prevention, upcoming regulations to improve road safety, the presence of leading OEM players, growing transportation & logistics industries and the introduction of 4G LTE technology and smartphones, Asia-Pacific is expected to witness significant growth in the commercial vehicle telematics market in the projected period. Regional economic integration, free trade agreements, e-commerce and digitalization, are just a few of the primary drivers predicted to reshape the region. International firms are moving into the region to capitalize on this trend and the associated growth possibilities.

China is at the epicenter of this growing New Asia, as low-cost manufacturing leaves the country and relocates to Vietnam, Cambodia, Laos and frontier markets. Furthermore, new markets are expected to provide market participants with significant growth potential. Furthermore, beneficial government policies and regulations are expected to drive the region’s growth.

Competitive Landscape

The commercial vehicle telematics market is highly competitive. For scalability, the competitive climate necessitates technology updates, large capital requirements and investment in research and development. For example, TomTom Telematics and OBS Logistics, a transport management software provider, collaborated in May 2017 to develop a new vehicle checking solution for haulage and logistics businesses. The new system would aid in collecting accurate data for Driver and Vehicle Standards Agency (DVSA) and Fleet Operator Recognition Scheme (FORS) compliance records.

Major players operating in the global market for commercial vehicle telematics include PTC Inc., Trimble Inc., TomTom Telematics Bv, Verizon Telematics, Inc., Mix Telematics International (PTY) Ltd., Zonar Systems, Inc., OCTO Telematics Ltd., Omnitracs, LLC, Masternaut Limited and Microlise Group Ltd.

Zonar Systems, Inc

Overview: Zonar's telematics solutions stack, founded in 2001, provides the components required to deliver an entire platform. Maintenance to track and trace software and software to manage business efficiency to fuel efficiencies; ridership visibility solutions and other ridership solutions are among the solutions available.

Product Portfolio: Zonar's comprehensive telematics platform delivers the necessary tools and data to optimize fuel efficiency, uptime, safety and compliance. Zonar is one of the first ELD vendors to complete FMCSA end-to-end testing, be independently third-party validated and FMCSA self-certified using Zonar's V4TM telematics hardware units and mounted and detachable tablets.

Key Development: In 2020, Zonar, the leader in smart fleet technology, announced a strategic agreement with Navistar, a manufacturer of International brand commercial trucks, proprietary diesel engines and IC Bus brand school and commercial buses. The collaboration enables Navistar customers to use its OnCommand Connection platform to access rich and comprehensive fault and diagnostic data from Zonar Telematics Control Units (TCUs) across an entire fleet with a single portal, regardless of vehicle make or model, to streamline operations.