About Commercial Vehicle Telematics
The telematics system involves the integrated use of telecommunications that facilitates communication (sending, receiving, and storing information) in the vehicle. The telematics system receives information from different sensors such as airbags, vehicle speed, advanced driver assistance system, braking system, and transmission control system. The global automotive telematics market is dominated by the commercial vehicles segment as nearly two-thirds of the global automotive telematics market was occupied by the segment in 2016.
Technavio’s analysts forecast the global commercial vehicle telematics market to grow at a CAGR of 14.19% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global commercial vehicle telematics market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Commercial Vehicle Telematics Market 2017-2021
Technavio recognizes the following companies as the key players in the global commercial vehicle telematics market: Continental, TomTom, Trimble, and Verizon.
Other Prominent Vendors in the market are: AT&T, Bynx, Ericsson, Luxoft, Magneti Marelli, Masternaut, Octo Telematics, Omnitracs, Bosch, Telenav, and Valeo.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growing adoption of usage-based insurance (UBI) model. UBI is a service wherein the insurer is charged based on the information collected by the vehicle telematics system regarding the driving style and other parameters such as driving speed and distance driven. By using UBI, insurance companies can create risk profiles of insurers based on the data gathered from telematics systems. It has already been adopted in the passenger vehicle and commercial vehicle segments.”
According to the report, one driver in the market is high demand for fleet management solutions in the logistics sector. The growth in the logistics sector has led to the demand for the efficient fleet management services to reduce the delivery time. The adoption of telematics systems leads to the reduction in the fuel expenses. Fleet management solutions help in the reduction of the empty runs, and thus, reduce the operational cost. As a result, the fleet management solutions are adopted by several fleet owners to reduce the overall vehicle downtime. This has also fostered the evolution of the fleet management solutions over the years. Earlier, the fleet management solutions used to offer basic telematics services such as fleet tracking with GPS and geographical information systems (GIS).
Further, the report states that one challenge in the market is issues arising due to data insecurity. Machine to machine (M2M) communications, earlier, involved the use of proprietary private networks or protocols for connectivity. However, the growing demand for connectivity has forced the industry players to provide the Internet connectivity in their offerings. In the process of adopting Internet connectivity, the industry has neglected many non-functional and security requirements of systems, like data security. Several security vulnerabilities can also arise due to the incorporation of multiple web applications and connecting Bluetooth in automobiles. It also makes users data susceptible to hacking. In 2015, a Jeep Cherokee was remotely hacked by renowned hackers Charlie Miller and Chris Valasek.
Continental, TomTom, Trimble, and Verizon, AT&T, Bynx, Ericsson, Luxoft, Magneti Marelli, Masternaut, Octo Telematics, Omnitracs, Bosch, Telenav, and Valeo.