A new report by Allied Market Research has revealed the global commercial telematics market is expected to reach US$49.12 billion by 2020.
The transportation and logistics segment is observed to have the largest share in the total market size by revenue in 2015, and will remain the largest revenue-generating end user segment, given the need for vehicle diagnostics and vehicle tracking etc.
Fleet/asset management as an application segment, is the highest revenue-generating solution, contributing about 50% of the total commercial telematics solutions market revenue.
The study titled, Global Commercial Telematics Market (Type, Application, End- User and Geography) – Size, Share, Global Trends, Company Profiles, Demand, Insights, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2013 – 2020, includes an analysis of drivers, restraints, opportunities and competition, in the key geographies which include Australia, Asia-Pacific (APAC), North America, Europe, Latin America, and the Middle East.
In economies such as Brazil and China, government legislation mandates the adoption of telematics given the rising concern of vehicle tracking and safety and security, thereby driving the demand for telematics solutions.
The telematics industry has grown from traditional navigation services to broadened scope in vehicle tracking, monitoring, fleet management, location-based services and traffic and weather information. The report segments the market by type such as, OEM and aftermarket.
Among these, the OEM is expected to grow at a higher rate given the technological alliance between telematics service providers and device manufacturers due to its varied application in many verticals including healthcare, insurance and logistics.
Aftermarket, a segment categorised on the basis of type of telematics, is expected to grow swiftly and remain the largest revenue generator, contributing to over 50% of the total market revenue throughout the forecast period (2014-2020).
Key findings of the study:
The need for vehicle tracking, safety and security, government regulations would continue to drive the global commercial telematics market over the analysis period (2014-2020)
Fleet/Asset management solution is one of the most prominent solutions present in the market. It led the market with a share of almost 50% of the global telematics market, followed by insurance telematics solution and expected to remain dominant in the analysed period; and
Asia-Pacific as well as Latin America and the Middle Eastern area is forecast to be one of the most lucrative markets, in terms of growth given the supportive government regulations and the growing automotive market.
The report also outlines the competitive environment of the commercial telematics market, providing a comparative study of the key organic and inorganic strategies that the market leaders are adopting to achieve an edge over their competitors.
In addition to the product launches, the companies are adopting alliance and partnership as key strategies to gain a higher market share. Companies such as AT&T, Harman and TomTom have collaborated with different industry experts to gain access to the market and technologies.
Companies profiled in the report include Verizon, Harman, TomTom, AT&T, Vodafone, Ford, BMW, Telefonica, Mix Telematics and Trimble Navigation Ltd.
