Telematics is a technology which allows vehicles to communicate with each other on wireless networks. Connected vehicles share information with each other and access central repository.
Commercially, telematics market companies embed telematics facility to sell it with bunch of commercial applications. The market is driven by increased market penetration of smartphones, lowered connectivity cost, availability of high speed internet technologies such as LTE. However, the market faces limitations due to privacy concerns among end-users, lack of standards in technological implementation, absence of regulatory bodies, etc. The market has opportunities to grow in emerging economies where connectivity is being upgraded to faster technologies such as 3G, 4G and beyond.
Commercial Telematics Market Analysis by Solution Providers
From the viewpoint of solution providers, market is broadly segmented into two areas; OEM telematics and aftermarket telematics. Currently, revenue shares of OEM telematics are marginally higher, due to early adoption. Even in future, both segments are expected to be competent to each other. Aftermarket telematics segment is expected to beat OEM telematics segment in future due to advantages of shorter product development lifecycle. However, both of these platforms are expected to be integrated into one technology in the longer run due to deployment of customized telematics solutions. Integration of both platforms would allow leveraging the benefits of both technologies.
Commercial Telematics Market Analysis by Services
From services perspectives, commercial telematics market is segmented into fleet/asset management, navigation and location based telematics, infotainment, insurance telematics, v2v, v2i, telehealth solutions, remote alarm and incident monitoring solutions, consulting and design, integration and deployment, maintenance and training services. Fleet/asset, management and location based services are commonly used in the market due to early adoption and ability to function using GSM/GPRS systems. In future infotainment, insurance, v2v and v2i are expected to gain momentum as a result of ongoing enhancement in quality of networks to facilitate data intensive applications.
Commercial Telematics End User Market Analysis
Based on user types, market is classified into transportation & logistics, healthcare, construction, manufacturing, insurance, government & utilities and others. Transportation and logistics segment is expected to continue driving this market even in future, due to need of fleet management and stolen vehicle tracking services. Insurance and government & utilities segment is expected to experience high growth due to increasing adoption of applications such as electronic tolling, PAYD insurance.
Commercial Telematics Geographic Market Analysis
Geographically, market is classified into segments such as North America, Europe, Asia Pacific, and Rest of the World (RoW). Largest revenue generating region is North America, where high speed connectivity is available. Even Europe and countries such as Japan contribute significantly to market due to presence of efficient networks. Emerging economies in Asia Pacific are expected to contribute to the market growth, due to improvements in high speed connectivity and network technologies.
Companies are adopting expansion through partnership models to capitalize on commercial telematics market. Market is experiencing competition among numerous strong players such as General Motors, Masternaut, Teletrac, Verizon, Volvo, Tomtom, Trimble, Omnitracs, Mix Telematics and Orbcomm.
High Level Analysis
The report provides detailed analysis of global commercial telematics market using Porter’s five forces model. Threat of bargaining powers of customers and suppliers is analyzed based on study of partners. Possible set of substitutes are studied to analyze threat of substitutes. Threat of new entrants and intersegment rivalry is estimated based on due analysis of nature of the business. The report analyzes value chain that explains competitive advantages from key intermediaries operating in this market. Market dynamics is analyzed with the strategic consideration for the benefit of stakeholders.
The global commercial telematics market is classified based on solution providers, end users, services and geographies
MARKET BY SOLUTION PROVIDERS
MARKET BY SERVICES
MARKET BY END USERS
MARKET BY GEOGRAPHY