Commercial telematics offers a range of benefits for businesses across various industries. Telematics refers to the integration of telecommunications and informatics to transmit, store, and receive data from remote objects, such as vehicles. Telematics provides real-time tracking of vehicles, enabling businesses to optimize routes, reduce fuel consumption, and enhance overall fleet efficiency. This leads to cost savings and increased productivity. Telematics systems monitor driver behavior, such as speeding and harsh braking, allowing companies to promote safer driving practices. This can reduce accidents and lower insurance premiums.
Telematics collects vehicle health data, allowing for proactive maintenance scheduling and minimizing downtime. This helps prevent costly breakdowns and extends vehicle lifespans. With GPS tracking, businesses can quickly locate and recover stolen vehicles, reducing the risk of asset loss and potential insurance claims. Telematics aids in complying with government regulations related to hours of service (HOS) and electronic logging, ensuring legal and safe operations. It generates valuable insights through data analytics, enabling businesses to make informed decisions to optimize operations and increase profitability.
Rising acquisitions by key players are estimated to augment growth of the global commercial telematics market during the forecast period. For instance, Trimble acquired Kuebix, a leading transportation management system, in January 2020. This acquisition will help Trimble in bringing together their entire network of private fleet and commercial carrier customers in North America. Moreover, increasing installation charges and rising threat of Data Hacking are anticipated to restrain growth of the global commercial telematics market during the forecast period.
Impact of COVID-19:
The pandemic was first reported in 2019 in China. It was then transmitted to other nations globally. Several nations had to impose strict nationwide lockdowns in order to prevent transmission of the virus. The pandemic also hampered the growth of several industries globally. Restrictions like quarantines, nationwide lockdown, travel bans and social distancing were imposed in m any countries. This affected the demand for commercial telematics, as travel restrictions were imposed. This had a negative impact on the growth global commercial telematics market. However, the market is estimated to witness growth in the post-pandemic era, as all restrictions have been eased.
The global Commercial Telematics Market is expected to witness high growth, exhibiting CAGR of 16 % over the forecast period, due to increasing product launches. For instance, Trimble introduced a Hardware-as-a-Service option, in June 2020. This service enables fleets to purchase Trimble hardware and software solutions.
Asia-Pacific is anticipated to witness significant growth in the global commercial telematics market during the forecast period, due to growing awareness regarding safety of drivers and increasing government policies.
Key players operating in the global commercial telematics market are Omnitracs LLC, Geotab Inc, MiX Telematics, AirIQ Inc, TomTom Telematics BV, Microlise Telematics Pvt. Ltd., Trimble Inc., OCTO Telematics S.p.A, WirelessCar AB, and Verizon Communications Inc.