Commercial Vehicle Telematics Market

Growing digitalization in automotive industry to boost the market growth

In recent years, the automotive industry has seen significant digital change. The way things are done in the automobile industry has changed as a result of IoT and mobility integration. Modern automakers are integrating cutting-edge technology into their vehicles to provide passengers and drivers with the utmost comfort and individualized experiences. This has caused the development of car telematics systems to receive increased attention.

The telematics market can only grow if its ecosystem is well connected. A successful telematics program is built on the collaboration of numerous parties, including OEMs, cloud infrastructure providers, telecom operators, and fleet owners. It is financial potential for the Transit Signal Priority (TSP) because there is an increasing emphasis on creating the ecosystem. TSPs have a promising future as many governmental rules as AIS-140 and the requirement for vehicle tracking, primarily commercial vehicle tracking.

The commercial vehicle telematics market is expanding rapidly owing to rising consumer awareness and adoption rates. Government mandates improve the value for TSPs in the market in ways like the ELD Mandate by the governments of North America and Canada, where a set of standards governs the operating hours of commercial vehicles. Favorable government initiatives are anticipated to positively impact the commercial vehicle telematics market CAGR in the coming years.

Telematics can help keep track of the battery's health and charge level and supply the necessary information needed to enhance car algorithms. EV manufacturers are continually adopting upgrades and improvements in terms of charging time, battery size, and weight. TSPs can provide firmware updates of the EV Software because of ongoing advances in an electric vehicle's charging algorithms and software. According to IEA, Despite supply chain snags and the ongoing Covid-19 epidemic, electric car sales hit a new high in 2021. 

Sales nearly doubled to 6.6 million, representing a sales share of approximately 9%, compared to 2020, increasing the total number of electric vehicles on the road to 16.5 million. In 2021, the sales share of electric vehicles rose by 4%. Furthermore, according to the Net Zero Emissions by 2050 Scenario, more than 300 million electric vehicles will be on the road by 2032, making up 60% of all new car sales. Their sales share must rise by less than 6% percentage points annually to be on track with the Net Zero Scenario.

Thus, the growing adoption of electric vehicles among consumers is one of the key factors driving the growth of the Commercial Vehicle Telematics market revenue during the forecast period.

The Global Commercial Vehicle Telematics Market Industry experiences a surge in demand for enhanced fleet efficiency. Companies are increasingly adopting telematics solutions to optimize routes, reduce fuel consumption, and improve overall operational performance. For instance, businesses utilizing telematics report an average fuel savings of 10 to 15 percent. This trend is expected to contribute to the market's growth, projected to reach 76.6 USD Billion in 2024. The integration of real-time data analytics allows fleet managers to make informed decisions, thereby enhancing productivity and reducing operational costs.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the rest of the World. Asia Pacific Commercial Vehicle Telematics market accounted for USD 1.8 billion in 2022 and is expected to exhibit the fastest CAGR growth during the study period. The automobile sector is witnessing the introduction of new electronic safety aids, such as Advanced Driver Assistance Systems (ADAS) and Mobility-as-a-Service providers (MaaS), boosting the need for telematics in this area as electric vehicles and autonomous vehicle technologies gain popularity.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Commercial Vehicle Telematics Market Share By Region 2024 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The North America Commercial Vehicle Telematics Market accounts for the second-largest market share. This is due to increased interest in connected and electric car applications. Due to ongoing technological improvements, the percentage of linked cars among newly sold vehicles has increased. The U.S. Commercial Vehicle Telematics market held the largest market share and is anticipated to be the fastest-growing market in the North American region.

Europe Commercial Vehicle Telematics market accounts for the second-largest market share due to the application's emphasis having changed from vehicle analytics to driver safety and other facets of personalized service. By paying attention to driving habits, vehicle health, driving dynamics, and maintenance schedules, undesirable events like collisions, traffic infractions, and downtime can be reduced. Such integration of telematics in the automotive sector is siding the market growth in this region. Further, the Germany Commercial Vehicle Telematics market held the largest market share, and the UK Commercial Vehicle Telematics market was the fastest-growing market in the European region.

Major market players are investing in developing their products to help the commercial vehicle telematics market grow. Companies in the market are also taking initiatives to expand their worldwide footprint, with key market developments such as new product launches, contractual agreements, increased investments, mergers & acquisitions, and collaboration with other companies. Players in the Commercial Vehicle Telematics industry are offering solutions that help in ensuring safety.

One of the key strategies manufacturers adopt in the global Commercial Vehicle Telematics industry is introducing new products in the market. In recent years, the Commercial Vehicle Telematics industry has also been collaborating with other companies In the market. The Commercial Vehicle Telematics market major player such as PTC Inc., Trimble Inc., TomTom Telematics BV, Verizon Telematics Inc., Mix Telematics International (PTY) Ltd., Zonar Systems Inc., OCTO Telematics Ltd., Omnitracs LLC, Masternaut Limited, and Microlise Group Ltd, and others are working on expanding the market demand by investing in research and development activities.

TomTom Telematics is a company that develops mapping and location technologies that developers, businesses, and governments globally use. It is one of the largest fleet management and logistics software companies. In February 2018, TomTom Telematics launched a new product line-up to enable faster and more efficient fleet management. WeBFLEET, a Software-as-a-Service (SaaS) product, has undergone a thorough redevelopment and now offers brand-new features and a redesigned, more user-friendly interface with advanced customization capabilities.

Also, Trimble is a company that focuses on providing hardware, software, and service solutions to industries that help deal with challenges and the most complex solutions. In June 2020, Trimble launched a Hardware-as-a-Service option for transportation fleet mobility solutions. This new service, which consists of four bundles, enables fleets to buy Trimble hardware and software solutions and upgrade without a large initial financial outlay. Each of these packages aims to give fleets access to the newest Trimble technology, including 4G LTE connectivity and an Android-powered user interface, while assisting them in budgeting their technology costs realistically.