North America Commercial Vehicle Telematics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The North America Commercial Vehicle Telematics Market size is estimated at 10.53 Million units in 2025, and is expected to reach 20.53 Million units by 2030, at a CAGR of 14.28% during the forecast period (2025-2030).

North America is witnessing significant strides in the commercial vehicle telematics sector, driven by the infusion of cutting-edge technologies. A notable shift in the market is the adoption of advanced vehicle telematics solutions. These empower fleet managers to oversee and control their fleets with heightened efficiency. Not only does this technology bolster the safety of fleets and their drivers, but it also offers fleet managers an enriched perspective on operations.

Key Highlights

• Driven by rising demands for safety, security, and comfort, commercial vehicle telematics is gaining traction. Advanced technologies empower industry players to roll out innovative offerings, from fleet and asset management to telehealth services and navigation systems.
• In North America, government legislation and adherence to vehicle safety standards fortify the commercial telematics sector. Additionally, the widespread adoption of smartphones and connectivity solutions across North America has further propelled the growth of the commercial vehicle telematics market.
• Cloud-based telematics systems offer scalable solutions that can easily adapt to the changing needs of businesses, whether they have a small fleet or a large one. This flexibility allows companies to expand their telematics applications without the need for significant upfront investments in hardware and infrastructure.
• In August 2024, Salesforce launched Connected Vehicle, a new Automotive Cloud application that gives automakers a faster and easier way to build and deliver safer, more personalized driver experiences. With a single console and ready-to-use set of industry-specific and low-code/no-code development tools, the application helps automakers roll out new services and features to drivers faster with bidirectional, over-the-air (OTA) capabilities, enabling data sharing and software updates between the cloud and vehicle over a wireless or cellular network.
• The commercial telematics market in North America is witnessing robust growth; however, privacy and security concerns present significant challenges that could impede its expansion. These concerns primarily revolve around safeguarding data, ensuring regulatory compliance, and mitigating the risks associated with the misuse of sensitive information.

North America Commercial Vehicle Telematics Market Trends

Original Equipment Manufacturer (OEM) Segment to Lead the Market

• OEMs are embedding telematics systems directly into vehicles during manufacturing, underscoring the OEM segment's dominance in the commercial vehicle telematics market. This integration equips fleet operators and logistics firms with ready-to-use solutions, facilitating swift activation of fleet management systems and boosting adoption rates. The built-in nature of these systems eliminates the need for aftermarket installations, reducing downtime and ensuring compatibility with the vehicle's existing systems.
• By directly integrating telematics technology, OEMs are ensuring that consumers receive seamless solutions, solidifying telematics as a cornerstone of contemporary vehicles. OEM telematics typically consists of two primary elements: embedded telematics hardware and fleet management software. The software, often cloud-based, gathers, processes, and relays data from the hardware to fleet managers. This integration allows for real-time monitoring and decision-making, enhancing operational efficiency and enabling predictive maintenance.
• North America stands out as a dominant player in the commercial vehicle market. For instance, the Organisation Internationale des Constructeurs d'Automobiles (OICA) reported that in 2023, the U.S. led with sales of approximately 12.89 million commercial vehicles. Canada also made its mark, selling around 1.5 million units. Such robust sales figures underscore a thriving ecosystem for the commercial vehicle sector, driven by strong demand across industries such as logistics, construction, and e-commerce, which rely heavily on commercial vehicles for operations.
• Driving this momentum is the increasing adoption of factory-fitted telematics solutions by commercial vehicle OEMs. Take Volvo Trucks North America, for example. They've partnered with Geotab, a leader in the Internet of Things (IoT) and connected transportation, to integrate advanced telematics solutions. This collaboration, spanning several years, aims to enhance fleet management, diagnostics, compliance, and driver support. These solutions not only improve operational efficiency but also help fleet operators reduce costs, ensure regulatory compliance, and enhance driver safety, making them a critical value addition for businesses.

United States Holds Market Major Share

• The automotive industry is undergoing a significant transformation as a result of the development of new areas such as Advanced Driver Assistance Systems (ADAS), Mobility-as-a-Service providers (MaaS), Connectivity, Autonomous, Sharing/Subscription, and Electrification (CASE), and the entry of new industries utilizing IoT technology and the emergence of new services like ride-sharing and car-sharing. All of these applications necessitate speedy data transfer, analysis, and deployment. All of these factors are propelling the North American video telematics industry forward.
• The United States, particularly, stands out as a leading adopter of LCVs in North America. Data from the International Organization of Motor Vehicle Manufacturers (OICA) highlights that in 2023, the US produced over 8.5 million light commercial vehicles, accounting for over two-thirds of North America's total production. This high production volume reflects the strong demand for LCVs in the region, driven by the need for efficient transportation solutions in sectors like construction, agriculture, and logistics.
• Various US consumers are switching insurers because their premiums have increased despite driving less. Lockdown measures during the pandemic led consumers to drive less, laying bare the inflexibility of traditional coverage that doesn't typically adapt its premiums to changing habits. This pushed more policyholders to demand behavior-based pricing. It can offer lower premiums by analyzing auto usage and behavioral data to personalize mileage-based policies.
• The United States is anticipated to be the significant market for connected cars in the country due to the substantial presence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehicles, widespread adoption of 4G/5G and increasing sales of electric, connected and autonomous cars in the country.

North America Commercial Vehicle Telematics Industry Overview

The studied market comprises several global and regional players vying for attention in a highly competitive market, with players like Mix Telematics, Verizon, AT&T Inc., etc., and OEM Telematics players like Volvo Trucks Corporation, General Motors Company, Volkswagen Truck & Bus, etc. Although the market poses high barriers to entry for new players, several new entrants have gained traction.

Acquisitions with a motive to expand their market presence have been the existing players' most prominent strategy.

For instance, Wheels, Inc. and Donlen, LLC announced a merger, allowing a single entity to offer integrated and enhanced mobility solutions and products for recognized SMEs and large fleets. The company plans to maintain a measured approach towards the integration process, retain a level of individuality of both, and ensure the continuity of client-facing contacts to enable a smooth transition.

Further, companies have opted for cloud-based services that provide faster security updates. This has led to increased demand for cloud-based vehicle telematics solutions, as the updates can be received in real-time. The service-based industry prefers such deployment.

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