New York, June 14, 2023 (GLOBE NEWSWIRE) -- The commercial telematics market size is anticipated to surpass USD 95 billion by 2033, as per latest study by Research Nester.
The industry growth is attributed to the rising adoption of global positioning systems (GPS) in vehicles for the tracking and monitoring of vehicles, backed by the increasing sales and production of vehicles across the globe. The International Organization of Motor Vehicle Manufacturers (OICA) estimates that 21,787,126 commercial cars were produced globally in 2020, and that number rose to 23,091,693 in 2021. In addition to this, commercial telematics is a system that incorporates a broad vehicle management system that includes tracking, maintenance, scheduling, fuel monitoring, diagnosis and monitoring of a vehicle’s health and safety, and improving overall vehicle efficiency and productivity. Additionally, increasing efforts by vehicle manufacturers to improve and innovate telematics are supported by the rising adoption of 5G network systems across the globe, as the high-speed network is the key to the faster and more accurate functions of commercial telematics.
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Increasing vehicle safety rules, regulations, and concerns to boost commercial telematics market
The growth of the market can also be attributed to the increasing concern among the government and vehicle owners regarding vehicle safety owing to rising instances of accidents. For instance, pedestrians, cyclists, and motorcyclists make up more than half of all road traffic fatalities. As a result, governments around the world are putting significant effort into and deploying stringent vehicle safety norms to reduce accidents and other vehicle fatalities. One important factor in doing so is incorporating telematics into vehicles for proper tracking, monitoring, and providing drivers with signals and warnings about potential threats. Therefore, government mandates for vehicle telematics are estimated to propel market expansion during the forecast period.
Increasing adoption of 5G technology to drive growth in the Asia Pacific region
The commercial telematics market in the Asia Pacific region is estimated to garner the largest revenue by the end of 2033 owing to the rising adoption of 5G technology in the region, supported by the increasing manufacturing of vehicles. It was noted that, including Vietnam and India, there are 14 markets in the region where 5G is commercially accessible, and by 2025, there will be more than 400 million 5G connections spread over Asia-Pacific. Additionally, in 2021, China manufactured around 4.65 million commercial vehicles and about 21 million passenger cars.
Moreover, the rising efforts by the government and non-government organizations to curb the increasing vehicle accidents, backed by the growing implementation of various innovative ideas to incorporate tracking systems in all types of transport systems, are expected to propel commercial telematics market growth during the forecast period. For instance, in India, in accordance with the directives of the Union Ministry of Road Transport and Highways, the UT administration has made it necessary for public service cars to be equipped with vehicle location tracking devices and panic buttons for maxi cabs, motor cabs, and buses. Further, the increasing investment by key market players in the region in the development of high-tech speed sensor telematics is predicted to boost market growth over the forecast period.
Growing GPS adoption to drive the growth in the North America region
The North America commercial telematics market is estimated to garner highest CAGR by the end of 2033 due to the rising GPS adoption, which is being supported by increased investment in 5G technologies in the region. For example, more than 60% of American drivers have a GPS system in their cars, and there are around 295 cities in the USA where 5G is available. In addition to this, the increasing usage of GPS in mobile and other smart devices and the growing demand for smartphones and other portable devices in the region are expected to accelerate the market's growth during the forecast period. It was noted that more than 50% of Americans use mobile GPS for maps and navigation purposes. Also, the possession of smartphones has exceeded that of all other smart devices. 84% of households had smartphones, compared to 78% that had a laptop or desktop computer. Furthermore, the growing adoption of smart technologies among each age group, including the increasing usage of GPS by all age groups, rising urbanization, and expanding road infrastructure are predicted to propel market growth in the region during the forecast period. It was found that more than 52 percent of the GPS users belong to the age group of 51 to 65 years old.
Market Segmentation by Solution Type (OEM, Aftermarket)
Commercial telematics market from the OEM segment is anticipated to hold the largest revenue by the end of 2033, impelled by the rising adoption of commercial telematics by vehicle manufacturers and the growing partnership between various key manufacturers and the telematics provider for the smooth implementation of technology in the vehicle. For instance, it was noted that one of the leading automobile manufacturers, General Motors, has a partnership with Spareon for the implementation of telematics in their automobiles. In addition to this, the fact that the structuring, fitting, and implementation of all the technical systems are being done by the original equipment manufacturers (OEMs) is anticipated to foster segment growth during the forecast period.
Market Segmentation by End-User (Transportation & Logistics, Insurers, Healthcare, Media & Entertainment, Vehicle Manufacturer, Government Agencies)
The transportation & logistics segment in the commercial telematics market is anticipated to hold the largest revenue by the end of 2033. The growth of the segment can be attributed to the expanding transportation and logistics sector across the world. Transportation services generally employ fleet services, a large number of drivers, and apart from that, these services commonly run throughout the day and night. Hence, the tracking and monitoring of vehicles is the prime requirement. It was noted that around 14.5% of India's GDP is thought to be accounted for by the logistics industry. Furthermore, the increasing export and import of various products across the globe requires solid transportation and logistics systems, which in turn is predicted to escalate segment growth during the forecast period.
Top participants in the commercial telematics market are Zonar Systems, Inc., Trimble Inc., Verizon Telematics, Inc., Omnitracs LLC, Inseego Corporation, MiX Telematics, Octo Group S.p.A, Microlise Telematics Pvt. Ltd., Harman International Industries, Webfleet Solutions B.V.
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