December 5, 2024
Commercial Telematics Market

Commercial Telematics Market is driven by Connected Cars

Commercial telematics refers to applications and services that use telecommunications and digital processing technologies to support remote monitoring and management of vehicles, freights, assets, and drivers. Commercial telematics systems involve hardware components such as fleet management systems, onboard computers, dash cams, and GPS devices that relay real-time data to fleet managers. This data includes vehicle location, speed and idling time, route deviations, fuel levels and usage, and driver behaviors like harsh braking, acceleration and safe/risky driving. The global commercial telematics provides valuable insights for fleet owners and managers to enhance operational efficiency, reduce costs, ensure regulatory compliance, and improve 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:

One of the major trends driving the commercial telematics market is rapid adoption of connected cars technologies. Connected cars refer to vehicles equipped with internet access and the ability to transmit data in real-time. These connected cars leverage telematics hardware and software to offer value-added services like navigation, emergency response, diagnostics, software over-the-air updates, and infotainment. As connected cars become more mainstream, they will spur greater deployment of commercial telematics solutions for fleet management. Other key trends include development of 5G networks for vehicle telecommunications which will allow even more real-time data exchange. Additionally, adoption of AI and IoT technologies in telematics is allowing for more predictive and prescriptive analytics.

Porter’s Analysis

Threat of new entrants: The commercial telematics market requires a large capital investment as well as pre-existing relationships with customers. Bargaining power of buyers: Commercial fleet managers have significant bargaining power due to the fragmented nature of the market and availability of various service providers. Bargaining power of suppliers: Leading connectivity providers hold some bargaining power due to their technical expertise and established relationships with OEMs. Threat of new substitutes: Alternatives such as fleet management software pose a moderate threat as telematics providers continue to invest in new technologies. Competitive rivalry: Competition is highly intense with vendors competing based on product offerings and pricing.

Key Takeaways

The Global Commercial Telematics Market Forecast is expected to witness high growth over the forecast period of 2023 to 2030.

Regional analysis: North America dominated the global commercial telematics market in 2024 and is expected to continue its dominance over the forecast period. This is attributed to the presence of major players and advanced telematics infrastructure in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing adoption in countries like China and India.

Key players: 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. Vendors are focusing on development of value-added service offerings and integrated solutions to strengthen their position.

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

Ravina Pandya

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.

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