Telematics encompasses telecom, road transport, vehicular technologies, computer science, electrical engineering, and such other fields. Commercial telematics helps the businesses to send, store and receive information of vehicle fleets. Vehicular telematics include various services like fleet management, mobile data, satellite navigation, wireless vehicle safety, mobile television, emergency warning systems, and such other solutions. The global commercial telematics market is growing with the rising demand from various parts of the world. Although the market is getting saturated, advancing technology and rising adoption from different regions is creating hopes of healthy growth for the industry.
Segments is Telematics Industry
The commercial telematics market is segmented on the basis of the types of solution providers, solutions, services, end users, and geographic regions. The solutions of the market include OEM and aftermarket telematics. The solutions and services segment includes navigation and location based, fleet management, asset management, Telehealth solutions, V2I, V2V, consulting and design, remote alarm and incident monitoring, maintenance, training, integration and deployment services. End users of commercial telematics include transportation and logistics, building and construction, insurance, energy and utilities, government, healthcare, manufacturing, and so on. Geographic regions of the market include Asia Pacific, North America, Latin America, Middle East and Africa.
Drivers and Forecasts
The technology of commercial telematics has evolved over the last few years, making it easy for the navigation and mobility platforms. The devices enabled with this technology provide real-time location information, driver behavior analysis, geo-fencing, early notification of accidents and technical faults, remote diagnostics, monitoring devices, and vehicles. Revolutionary developments in mobile telematics are creating strong growth prospects for the industry during the forecasting period of the next four to five years. Various technologies like pay-as-you-drive, pay-how-you-drive, telematics for auto insurers, and intelligent machine monitoring systems are expected to grow in terms of size and their rate of adoption. As a result, the industry is expected to flourish during the forecasting period.
From 2014 to 2019, the commercial telematics market is expected to grow at a CAGR of over 17%, to reach $39.15 billion by the year 2019. As of 2014, the market is set at $ 17.31 billion, which shows the healthy rate of progress the industry is poised to achieve during the next five years. The OEM telematics segment is expected to dominate the global industry. Higher costs of the technology and services are expected to be a major challenge for both the vendors as well as customers in the market. Reluctance of the customers to invest high amount on the technology and apprehension about the return on investment are the basic regions behind the industry challenge. Changes in marketing strategy and innovation in drawing new clientele will help business succeed in the industry.