Commercial Telematics Market Size, Share, Growth Report 2032

Commercial Telematics Market Insights

Zion Market Research has published a report on the global Commercial Telematics Market, estimating its value at USD 55.28 Billion in 2023, with projections indicating that it will reach USD 174.17 Billion by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 13.6% over the forecast period 2024-2032. The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Commercial Telematics Market industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

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Market Overview

The global commercial telematics market accounted for USD 39 Billion in 2020 and is expected to reach USD 108 Billion by 2028, growing at a CAGR of 13.9% from 2021 to 2028.

Telematics is a field that combines telecommunications with vehicle technologies and information technology. Telematics is generally referred to as joining of telecommunications and computer systems. Telematics has been increasingly used for integrating various computer-based systems for increasing operational efficiency. Telematics is also being utilized in integrating data from Global Positioning System (GPS) with various data collection systems.

Commercial telematics is referred to as telematics technology used by commercial fleets and fleet managements companies for transmission of information over a long distance. Commercial telematics is becoming a popular among automotive manufacturers as it helps in wireless communication and easy data transfer. Commercial telematics also helps in vehicle safety, interchanging safety information, receiving vehicle maintenance data, and fleet productivity. It helps companies in reducing overall fuel costs, planning destination, monitor driver behavior, help in maintenance, and increase driver safety.

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COVID-19 Impact Analysis

Global automotive industry sector has been significantly affected by the global COVID-19 pandemic around the world. There has been drastic decrease in commercial as well as passenger vehicles sales owing to closure of car showrooms and vehicle dealerships. Such closures have been caused by government restrictions on travel and trade globally. Such norms have also affected the global automotive manufacturing industry during the pandemic. Further, trade restrictions have also hampered the global supply chain, transportation, and logistics industry worldwide. Decrease in transportation and logistics has hindered the adoption of connectivity solutions by fleet management and transportation and logistics companies, which should affect the global commercial telematics market growth. Further, lack of availability of raw materials and technology around the world should also decrease the global commercial telematics market growth.

Growth Factors

Transportation and logistics by road has increased in recent years owing to growth in trade on global, regional, and country levels, which has been proliferating the demand for transportation by road. Fleet owners have been emphasizing on meet new market demands such as fast, reliable, and safe product transportation. Such trend has influenced fleet managers to adopt new technologies to ensure effective and safe logistic support, which has been a key growth fueling factor for the global commercial telematics market growth.

Global telematics industry has experienced significant growth as there has been increasing adoption of various communication technologies by vehicles manufacturers for data collection and analyzing. Automotive companies are focusing on adopting telematics for exchanging information at large distances and offering enhanced safety. This trend is anticipated to generate opportunities for the global commercial telematics market. Further, rise of data analytics and advanced computing technologies are expected to extend capabilities of telematics in vehicle management applications, which may drive the global commercial telematics market in the future.

Commercial Telematics Market: Report Scope

Type Segment Analysis Preview

Depending upon types of commercial telematics, the OEM telematics segment held a major share in the global commercial telematics market in 2020. Automotive companies are introducing new technologies in their newly developed vehicles extending product capabilities of fleets. Adoption of advance technologies by vehicle manufacturers for ensuring lower fuel cost, effective management, and improving data-based decision-making abilities should increase in the OEM commercial telematics market growth. Further, rising investment in emerging technologies by companies is also expected to generate avenues for the market growth.

Aftermarket commercial telematics segment is anticipated to grow significantly over the projected period, registering a CAGR of 14.5% over the period 2021-2028. Growing trend of fleet upgrading and modification is likely to trigger integration of new technologies in old fleet systems. Consumers with fleet in good condition may opt for integration of existing components with commercial telematics. Such a trend should also drive the aftermarket commercial telematics market.

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Application Segment Analysis Preview

Based on applications, the satellite navigation segment is anticipated to record highest CAGR of nearly 15.0% in the future. Commercial telematics and GPS can be combined to access precise location and safety maintenance information of a fleet. Commercial telematics navigation has gained traction among fleet managers for tracking vehicle through cellular networks and get real time access. Such trends in the fleet management is expected to trigger the use of telematics for satellite navigation applications.

End User Segment Analysis Preview

Based on end users, the transportation and logistics segment is likely to constitute largest market share in the global commercial telematics market in 2020. Transportation and logistics companies have been extensively focusing on reducing operational costs, maintaining vehicle safety, and monitoring driver health and behavior. Such trend has bolstered the demand for advance technologies that can offer real time data for tracking, which should create growth opportunities for commercial telematics in transportation and logistics market.

Regional Analysis Preview

North America region dominated the global commercial telematics market in 2020. Advancements in telematics and development of new communication technologies have lured companies to utilized such technologies to extend their product abilities in offering real time data exchange and collections. This should boost the North America commercial telematics market. Also, presence of major companies that provide integration and development services is expected to attract fleet owners, which should generate new growth avenues for the market.

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Key Market Players & Competitive Landscape

Some of key players in commercial telematics market are Verizon Communications Inc., AT&T, TomTom, MiX Telematics Ltd., OnStar LLC., BMW, Trimble Navigation Limited, and Telefonica.

The global Commercial Telematics market is segmented as follows:

By Type

• OEM Telematics
• Aftermarket Telematics

By Application

• Insurance Telematics
• Fleet / Asset Management
• Satellite Navigation
• Infotainment
• Remote Alarm and Monitoring
• Telehealth Solutions

By End User Type

• Healthcare
• Construction
• Transportation and Logistics
• Government and Utilities

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa