Global Commercial Telematics Market 2022-2028

Global Commercial Telematics Market 2022-2028

Global Commercial Telematics Market Size, Share & Trends Analysis Report by Solution (Fleet Tracking and Monitoring, Driver Management, Insurance Telematics, Safety & Compliance, V2V and V2X systems and Others), by End-user ( Insurance, Government, Healthcare, Media and Entertainment, Transportation & Logistics and Others) Forecast Period (2021-2028)

According to the OMR, the global commercial telematics market was valued at around $XX million in 2021, which is estimated to reach $XX million in 2028, by projecting a CAGR of more than 15.8%, during the forecast period (2021-2028). Telematics is the interdisciplinary field that encompasses telecommunications, vehicular technologies, road transportation, road safety, electrical engineering (sensors, instrumentation, wireless communications,), and computer science. Commercial telematics is broadly adopted in vehicles that merge telecommunications and informatics. The commercial telematics industry remains to grow as commercial fleets are implementing the technology at a significant rate. Telematics solutions are extensively used to coordinate vehicles to manage the profitability and productivity of a vehicle. A tracking device installed in a vehicle telematics system allows the sending, receiving, storing of telemetry data and keeps the vehicle connected. Rapid advancements in connected cars have gradually raised the share of connected vehicles in the new vehicles sold. The key aspects that drive the growth of the global commercial telematics market include the rising inclination towards connectivity solutions for vehicles. Telematics solutions aid in minimizing fuel consumption and emissions and minimizes carbon footprint. Hence, these solutions enhance the operational efficiency of the vehicle and create less environmental impact.

Moreover, the increased encouragement by the government towards the implementation of intelligent transport system technology in order to increase the vehicle’s safety and reliability also accelerates the adoption of commercial telematics solutions among the vehicles. Additionally, the rising smartphone adoption, increased internet penetration along various benefits of using telematics solutions such as enhanced safety, increased efficiency, ability to monitor the safety habits, reduced cost of operation, and optimized vehicle performance are also flourishing the growth of the market. However, the factor that hinders the growth of the market includes the lack of the presence of uninterrupted internet services and higher costs associated with the installation of these solutions, mature automotive market, decreased automotive sales due to COVID-19, lack of the presence of uninterrupted internet services and higher costs associated with the installation of these solutions. High implementation of the telematics system for fleet management including vehicle tracking, trailer, and asset tracking for the predictive maintenance, safety tracking, and insurance risk assessment creates ample opportunities for market growth. Furthermore, with the introduction of 5G technologies along with connected vehicles; and the increased electric vehicle sales, telematics will find enormous opportunities for growth in the near future.

Segmental Outlook

The global commercial telematics market is segmented based on the solution, end-user, and sales channel. Based on the solution, the market is further segmented into fleet tracking and monitoring, driver management, insurance telematics, safety & compliance, V2V and V2X systems, and others (fuel monitoring). The fleet tracking and monitoring segment hold a major market share of nearly 45.0% during the forecast period. The fleet tracking and monitoring segment is projected to reach $ 9.1million in 2028 as compared to $7.4 million in 2021 at a CAGR of 3.0% during the forecast period. The major aspect that drives the segmental growth of the market is the increased demand for the seamless management of the fleet. The fleet tracking & monitoring solutions provide plans for opting for efficient routes, continuously regulates the fuel usage by the vehicle, identify the driver behavior, and eliminate risky driver habits among many other factors. It also optimizes vehicle performance. It sends alerts regarding engine problems and other issues. The cache of vehicle data also aids drive fleet overhaul and replacement planning.

Based on the end-user, the market is segregated into insurance, government and utilities, healthcare, media and entertainment, transportation & logistics, and others (manufacturing). The insurance segment holds a major market share of more than 36.0% during the forecast period owing to the technological advances in the automotive insurance industry led by integration with commercial telematics technology. The segment is expected to reach $6.4 million in 2028 as compared to $5.2 million in 2021 at the fastest CAGR of 2.8% during the forecast period.

Based on the sales channel, the market is segregated into OEM and aftermarket. The OEM segment holds a major market share of more than 36.0% during the forecast period owing to the significant number of manufacturers of commercial telematics solutions such as Bridgestone Corp., General Motors Co., Omnitracs LLC, Verizon Communications Inc., and others. The segment is expected to reach $6.4 million in 2028 as compared to $5.2 million in 2021 at the fastest CAGR of 2.8% during the forecast period.

Regional Outlook

Based on geography, the market is further segmented on the basis of four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World (Latin America and Middle East and Africa (MEA)). Among these, North America is estimated to hold a significant share, around XX%, in the global market. In 2021, the global commercial telematics market was estimated at $XX million, which is further estimated to reach $XX million in 2028, by projecting a CAGR of XX%, during the forecast period. In North America, the US contributes a significant share in theNorth American commercial telematics market. The main factor of dominance includes accredited to the mandatory government regulations for embedding the telematics solutions, and the higher percentage of connected cars of the total fleet. Whereas Asia-Pacific is estimated to witness significant growth in the market. The telematics market is at the introduction stage in many emerging economies such as India which will provide significant market growth to the region. For instance, in October 2021, Tata Motors became the first automotive OEM to install 100,000 telematics systems in its commercial vehicle in India.

Market Players Outlook

Furthermore, the global commercial telematics market is characterized by the presence of several market players that are catering to a wide range of customers across the globe. Some of the key players in the market include Aplicom Inc., Bridgestone Corp., General Motors Co., Omnitracs LLC, Verizon Communications Inc., and others. These players adopt various strategies to remain competitive in the market and gain a competitive advantage over other players. Mergers and acquisitions, product launches, partnerships and collaborations, and geographical expansion are some of the major activities adopted by the market players.