by Commercial telematics provide connectivity solutions for fleet management, risk assessment, driver behavior monitoring, tracking, and other productive services. Telematics technology enables remote monitoring of vehicles and analytics of terabytes of data. Growing connectivity and rising adoption of advanced driver-assistance systems (ADAS) features in commercial vehicles is fueling the demand for telematics solutions. Telematics devices installed in commercial vehicles seamlessly integrate with smartphones and tablets to provide real-time insights on fleet logistics. This helps reduce operating costs, improve efficiency, and enhance safety.
The global Commercial Telematics Market is estimated to be valued at US$ 54.96 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Connectivity and data analytics are emerging as important trends in the Global commercial telematics market Size. Telematics devices generate huge volumes of data from sensors and GPS systems. Advanced data analytics tools are being implemented to gain actionable insights from this data. This helps fleet managers optimize route planning, reduce fuel costs, track driver behavior, ensure safety compliance and improve overall efficiency. With growing connectivity of vehicles, commercial telematics providers are also focusing on improving cybersecurity of connected fleets. As autonomous driving technologies advance, commercial telematics will play a vital role in remotely monitoring autonomous commercial vehicles. This will help expand market opportunities over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up telematics solution requires high capital investments. However, opportunities are available through partnerships.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various vendor options. However, switching costs are high if buyers change vendors.
Bargaining power of suppliers: Key component suppliers like chip providers have high bargaining power due to the lack of substitutes and consolidations in the supply chain.
Threat of new substitutes: Substitutes like GPS trackers offer some threat, but telematics provide additional services so threat is low.
Competitive rivalry: Competition is intense as vendors try to differentiate through new offerings and pricing.
Key Takeaways
The global Commercial Telematics market is expected to witness high growth. The market in North America region dominates currently due to stringent regulations and early technology adoption. However, Asia Pacific region is expected to grow at fastest pace due to increasing fleet operations.
Regional analysis: North America holds the major share currently mainly due to stringent government regulations for fleet and vehicle safety. Asia Pacific is expected to grow at the highest CAGR during the forecast period with China, India, and Japan being major markets. This is attributed to the rising number of fleet operations in these countries.
Key players: Key players operating in the Commercial Telematics market are Xilinx, Intel Corporation, Lattice Semiconductor Corporation, Microchip Technology Inc., Achronix Semiconductor Corporation, QuickLogic Corporation, Efinix Inc, Microsemi Corporation, S2C Inc., Flex Logix Technologies Inc, Gowin Semiconductor Corp., Synopsys Inc, Tabula, and Analog Devices Inc. Key players are focusing on new product launches and partnerships to gain more revenue share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
