Analysis of Telematics in the Vehicle Leasing and Rental Industry, Americas

Analysis of Telematics in the Vehicle Leasing and Rental Industry, Americas

Economies across the world are bouncing back in full force after the pandemic-induced lull. Despite a slump in the recent past, automotive sales are slowly recovering in the Americas, and fleet leasing and rental markets are on the path of recovery. Telematics adoption is on the rise as connected cars are gaining traction in the region, primarily the United States, Canada, and Brazil. Leading automotive OEMs are rolling out factory-fit telematics devices in their vehicles, and automobile manufacturers are partnering with telematics service providers to offer telematics and fleet management as a standard service. Features, such as vehicle theft recovery, driver-based solutions, vehicle diagnostics, and usage-based insurance, are more popular. This research service discusses the role and impact of telematics connectivity and the future scenario for fleet companies in the United States, Canada, Argentina, Brazil, and Mexico. The study aims to understand and correlate the ecosystem of telematics, services offered to leasing and rental fleets, and the features which benefit the industry. The companies identified in this study include stakeholders from key fleet leasing and rental companies, OEMs, and telematics companies which complement each other within the business and enjoy mutual benefits in the region. Over the years, vehicle leasing and rental companies have enjoyed tremendous benefits from implementing telematics technology and improving overall control over their fleets in terms of cost and effort. Using telematics, fleet companies can capture relevant data points, improve driver behavior, enhance safety and security, identify abusive drivers, improve vehicle lifespan and claims ratio, and protect residual vehicle value. This study further sheds light on the market parc data in the leasing, rental, and corporate outright purchase fleets. It provides a view of the installed base and penetration analysis of telematics in each segment of the leasing, rental, and company car parc, technology, and associated industry trends, market overview, and future outlook.