Benefits of Telematics and Connectivity Solutions to Fuel Growth of Commercial Vehicle Telematics Market
Concept of connectivity has evolved significantly with advancements in the smartphone technology. Need for connectivity has prevailed since past few decades and with availability of advanced technology, users are able to stay connected during travel. Considering the pervasiveness of this trend, manufacturers of commercial vehicles are adopting novel connectivity solutions in a bid to boost sales, thus boosting commercial vehicle telematics market. Technological developments have not only facilitated vehicle to vehicle or vehicle to infrastructure communication but also provided fleet managers to monitor their assets and operating procedures. Commercial vehicle telematics can facilitate improved operational efficiency of the commercial vehicle, reduction in costs associated with accidents and overall safety quotient.
Using commercial vehicle telematics, it is possible to acquire data related to location, engine idling, speed, acceleration and harsh braking, temperature, vehicle faults/breakdown analysis and fuel consumption. Using new telematics and connectivity solutions, fleet management can efficiently synchronise their vehicle activities in real time. This aspect continues to remain instrumental in driving sales of telematics and associated solutions, consequently contributing towards growth of the commercial vehicle telematics market on the global front.
Enhancement of Telematics Service Delivery through NGTP Adoption to Trigger Market Growth
NGTP (Next Generation Telematics Protocol) co-developed by BMW, WirelessCar, TSP (Telematics Service Providers), and Connexis LLC provides end-to-end services to drivers and vehicle owners. This open source framework is based on a highly flexible and standardised infrastructure and is being adopted by automotive manufacturers owing to the functional benefits it offers. For instance, NGTP establishes single interface between vehicle TU (Telematics Unit), and Telematics Service Providers. This interface being technology neutral, allows hassle-free integration of back end components. Using NGTP, OEMs can now offer new services to existing and upcoming commercial vehicles, which is expected to further trigger its adoption. That said, use of NGTP in enhancing service delivery of telematics is expected to contribute to the growth of the commercial vehicle telematics market.
Aftermarket Likely to Witness Momentum in the Coming Years; OEMs to Reign Supreme
Demand for aftermarket commercial vehicle telematics is expected to witness boost in the years to follow. Aftermarket in the automotive sector has prevailed as a lucrative segment owing to various aspects such as cost-effective vehicle component alternatives, quicker availability, and better aftersales service. Even the telematics space being no exception, aftermarket is likely to remain a potential growth factor for the commercial vehicle telematics market. Moreover, being its adolescent stage, pre-installed commercial vehicle telematics and solutions are being provided by few OEMs which has accelerated demand for aftermarket telematics in the commercial vehicle sector.
On the other hand, the OEM telematics have been on the forefront since the past years, largely contributing towards value growth of the market. This can be attributed towards rising partnerships and collaborations between telematics providers and OEMs. For instance, in 2020, collaboration between General Motors, and Geotab was agreed. According to this collaboration, Geotab would provide one integrated platform to manage assets and fleets of General Motors. In 2021, with this collaboration an expanded telematics offering for fleet management was made available to customers of General Motors in Canada.
Asia Pacific Poised to Showcase Momentous Growth in the Coming Years
Commercial vehicle production and sales have witnessed steady growth since past couple of years across emerging nations of Asia Pacific. For instance, according to OICA (International Organization of Motor Vehicle Manufacturers), production of commercial vehicles in India in 2020 was 543,178 units which increased to 768,017 units in 2021. In addition, pervasiveness of technology in the region has transformed the automotive sector on the back growing need for advanced location tracking, infotainment, and security systems.
Moreover, growth in the transportation and logistics sector in emerging economies in the region is likely to pave potential opportunities for commercial vehicle telematics. Additionally, favourable government regulations associated with public transport has further fuelled adoption of commercial vehicle telematics. For instance, in India, MoRTH (Ministry of Road Transport and Highways) has imposed a regulation under 35(2) in Section 2 of the act. This regulation states that public transport must be equipped with GPS, tracking devices and emergency buttons as a public safety measure. Such initiatives are expected to augur well for the commercial vehicle telematics market.
Commercial Vehicle Telematics Market: Competitive Landscape
Major players in the commercial vehicle telematics market include PTC Inc., Tom Tom Telematics BV, Mix Telematics International Ltd., Trimble Inc., Verizon Telematics, Inseego Corporation, and Zonar Systems Inc.
The global commercial vehicle telematics market is segmented as below:
By Provider Type
By End User
Key Elements Included In The Study: Global Commercial Vehicle Telematics Market
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