February 25, 2024
Commercial Telematics Market

Commercial Telematics Market is expected to be Flourished by Integration of IoT and Connected Technologies

Commercial telematics incorporates wireless and web innovation into vehicle frameworks to give fleet the board, route and diagnostics arrangements. It tracks vehicle area, fuel utilization, speed, diagnostics issues and considerably more utilizing GPS innovation and its related innovation. It empowers remote checking and controlling of vehicles and helps with following motor vehicle administrations. Commercial telematics comes in lightweight gadgets that can be effectively introduced in vehicles and interfaces them to a focal monitoring arrangement. It has applications across transportation, logistics, shipping, taxi benefit, and crisis vehicle.

The global commercial telematics market is estimated to be valued at US$ 63.32 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The integration of IoT and connected technologies is expected to drive the growth of the commercial telematics market over the forecast period. Connected commercial vehicles have emerged as important aspects of IoT ecosystems in various industrial settings such as logistics and fleet management. IoT streamlines processes across various business functions including driver behavior analysis, vehicle maintenance, real-time location tracking, fuel management etc. Improved operational efficiency and reduced costs associated with integration of IoT in commercial fleets is attracting more end-users. Furthermore, increasing adoption of autonomous and semi-autonomous vehicles for commercial applications also offers growth opportunities for key players in the market. Integration of additional data-driven services such as predictive maintenance, insurance telematics etc. with IoT-enabled fleet management solutions is estimated to boost the commercial telematics market during the forecast period.

Segment Analysis:

There are four key segments in the commercial telematics market – OEM, aftermarket, platform, and solutions. Among these, the OEM segment dominates and accounts for more than 50% share owing to new vehicle mandates for in-built telematics devices for safety, security, and connectivity applications. The OEM segment offers telematics systems that are factory-installed and integrated with new vehicles. Increasing adoption of advanced fleet management solutions by commercial vehicle owners also boosts the demand for OEM telematics devices.

PEST Analysis:

Political: Regulations mandating safety technologies like electronic logging devices (ELD) have accelerated commercial telematics adoption. Privacy laws in some countries can impact data collection.
Economic: Rising fuel costs and vehicle maintenance expenses encourage fleet operators to use telematics to improve productivity and reduce costs. Commercial telematics also allow insurance discounts for safer driving.
Social: Younger workforce expects advanced connected vehicle technologies. Digitalization trends influence demand for data-driven fleet management solutions.
Technological: Advances in IoT, cloud, artificial intelligence, and 5G connectivity facilitate fleet/asset management, predictive maintenance, and data analytics applications using commercial telematics systems.

Key Takeaways:

The Global Commercial Telematics Market Growth is expected to witness high during the forecast period.

Regionally, the market in North America currently dominates owing to large fleet operations and stringent safety regulations for commercial vehicles. However, Asia Pacific is anticipated to emerge as the fastest growing regional market with countries like China and India heavily investing in advanced fleet management.

Key players operating in the commercial telematics market are Infineon Technologies AG, Vishay Intertechnology, Inc., Mitsubishi Electric Corporation, STMicroelectronics N.V., Fuji Electric Co. Ltd., Toshiba Corporation, Hitachi Power Semiconductor Device Ltd., Fairchild Semiconductor International, Inc., Semikron Elektronik GmbH & Co. KG, and ABB Ltd. These players focus on technological innovations, strategic partnerships, and expansion in high growth regions to strengthen their market position.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it