Telematics encompasses different fields including electrical engineering, road transportation, vehicular technologies, telecommunication and such other fields. The field of commercial telematics has evolved from handheld free calling devices and screen-based navigation systems. Such devices provide geo-fencing, real-time location information, driver behavior analysis and early notification of accidents. Different advancements of technology like PAYD and PHYD are increasing the rate of adoption for the industry. Overall rise of the telecommunication industry, advancements in technology and growing demand for smartphones are expected to drive growth in the global telematics market in future.
Segmentation in Telematics Industry
Researchers segment the global industry on the basis of the types of solutions and services, solution providers, end-users and demand across different geographic regions. The types of solutions and services include remote alarm and incident monitoring systems, navigation and location based management, fleet and asset management, integration and deployment, Telehealth solutions, V2V and V2I, training and maintenance services, insurance telematics and such other services and solutions. The end-users include industries like healthcare, construction, manufacturing, transportation, logistics, utilities, and government. The solution providers include OEM and aftermarket telematics.
Drivers and Restraints
The global telematics market is strongly driven by three crucial factors. These driving factors include smartphone revolution and growing demand and importance of smartphones and decreasing costs of connectivity. Changing government regulations are also expected to play a crucial role in driving the global market. Growing concerns over privacy issues and lack of a standardized system are expected to be the major restraints for the market. According to the experts, the industry is expecting major growth opportunities from insurance segment. Integration of mobile and web media are also expected drive business in this market during the next few years to come.
From 2014 to 2020, the global telematics market is expected to grow at a CAGR of over 17.7%. At the projected compound annual growth rate, the market is anticipated to be worth $39.15 billion by the end of the year 2019. As of 2014, the market is expected to be poised at $17.31 billion. During the forecasting period, North America is expected to drive the global market on the basis of demand and technological advancement. Emerging markets on the other hand are set to witness rapid growth rate during the next few years to come. Growth in demand for pay-as-you-drive and pay-how-you-drive, mobile telematics, and intelligent machine monitoring systems are expected to drive the market.