Wednesday, 26 November 2014

Commercial Telematics Market Analysis 2014 - 2020

The global commercial telematics market was valued at USD 14.67 billion in 2013 and is estimated to grow at a CAGR of 18.0% during the forecast period from 2014 to 2020. The growing adoption of commercial telematics in insurance and transportation and logistics industries has emerged as the most significant growth driver for the commercial telematics market. In 2013, North America was the largest market for commercial telematics with a share of 31.9% in terms of revenue owing to the significant demand for commercial telematics due to increased internet penetration and early adoption of technology.

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Aftermarket telematics was the largest segment in terms of revenue in 2013 and accounted for around 59% share of the total commercial telematics market owing to applications such as satellite navigation and infotainment. In recent years, the market for OEM telematics is increasing as compared to aftermarket telematics owing to the increasing partnerships between automobile manufacturers and telematics service providers. Government rules mandating the installation of telematics devices such as GPS tracker and satellite navigation are driving the adoption of commercial telematics solutions. Embedded OEM telematics accounted for around 68% share of the total OEM telematics market. Mandatory installation of telematics devices in light commercial vehicles is driving growth of the embedded OEM telematics segment. Furthermore, in 2013, the portable aftermarket systems segment accounted for around 71% of the aftermarket telematics market revenue. However, over the forecast period, embedded aftermarket systems segment is expected to grow at a higher rate than portable aftermarket telematics.

Fleet and asset management was the largest application for commercial telematics in 2013, holding a share of over 30% of the total market. Growing adoption of commercial telematics among medium and small-sized fleets is driving market growth. Insurance telematics is expected to be the fastest growing application segment for commercial telematics during the forecast period from 2014 to 2020, growing at a CAGR of 34.7%. Increasing adoption of insurance programs such as pay as you drive and children driving behavior management are the driving factors for the growth of commercial telematics market in insurance industry. Further, transportation and logistics was the largest end-use industry for commercial telematics in 2013. The segment held a share of around 55% of the total commercial telematics market. The market for commercial telematics in healthcare and government and utilities sectors is also expected to record high growth during the forecast period. The adoption of commercial telematics is increasing in the healthcare industry owing to the increased spending on healthcare services by various countries.


Key players in the global commercial telematics market include MiX Telematics Ltd., Omnitracs LLC, Verizon Communications Inc., WirelessCar AB, ORBCOMM Inc., Masternaut Limited, TomTom N.V., Trimble Navigation Limited, and OnStar LLC. The market is witnessing entry of automobile manufacturers into commercial telematics market with dedicated business units for commercial telematics, which will intensify the competition among market players in the near future.


The global commercial telematics market has been segmented as follows:

Commercial Telematics Market, by Type

OEM Telematics
Embedded OEM Systems
Hybrid OEM Systems

Aftermarket Telematics
Embedded Aftermarket Telematics
Portable Aftermarket Telematics

Commercial Telematics Market, by Application
Fleet / Asset Management
Satellite Navigation
Infotainment
Insurance Telematics
Telehealth Solutions
Remote Alarm and Monitoring
Others

Commercial Telematics Market, by End-use Industry
Transportation and Logistics
Healthcare
Construction
Government and Utilities
Insurance
Manufacturing

Commercial Telematics Market, by Geography
North America
Europe
Asia Pacific
Rest of the World

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