Global Commercial Vehicle Telematics Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 23.97 Billion |
| Market Size (2029) | USD 47.58 Billion |
| CAGR (2024 - 2029) | 14.70 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Global Commercial Vehicle Telematics Market Analysis
The Global Commercial Vehicle Telematics Market size is estimated at USD 23.97 billion in 2024, and is expected to reach USD 47.58 billion by 2029, growing at a CAGR of 14.70% during the forecast period (2024-2029).
- Commercial vehicle telematics underlines the usage of two technologies, namely global positioning systems (GPS) and on-board diagnostics (OBD). GPS, as a satellite-based navigation system, provides geo-spatial positioning, and OBD enables telematics systems to access information about various systems in an individual vehicle. The market is expected to be driven further by the growing need for connected vehicles for better safety management and the deployment of navigation systems and fleet tracking and monitoring solutions.
- With significant research and development in the connected automotive sector, the demand for technology is from North America. The use of commercial vehicles for logistics, construction, and other applications has expanded in regions such as Europe and Asia-Pacific, which is driving the commercial vehicle market. As a result, the telematics market in these regions is analyzed to grow.
- The Indian Government announced the Production Linked Incentive (PLI)-Auto Scheme, allocating a budget of USD 3.527 billion (INR 25,938 crore) over a 5-year span (FY2022-23 to FY2026-27). The primary aim of the PLI-AUTO Scheme is to enhance the production of advanced automotive technology (AAT) Products. Additionally, it seeks to streamline and encourage extensive localization for AAT products, fostering the development of domestic and international supply chains. Thus, these investments help in investment in building commercial vehicle telematics software for vehicle safety purposes.
- As the telematics sector is dependent on vehicle demand, the increased demand for mall trucks, pick-up vans, and other light commercial vehicles, alongside the increasing demand for safety management solutions, insurance telematics, and fleet tracking systems, is set to boost the market's growth.
- Commercial vehicles such as pick-up vans, small trucks, and other light commercial vehicles are rapidly increasing due to the ease of commute that they provide. For instance, the rise in logistics industries and e-commerce businesses has resulted in an increase in commercial vehicle production. According to Shopify's data, around 23% of total retail sales are expected to happen online by 2027, which is expected to boost the growth of the telematics market.
- Smartphones and tablets have become an integral part of everyday lives, and these devices are combined with vehicles to allow for the transfer of onboard data to smartphones for quick examination of real-time data. This allows vehicle owners to keep track of speed-related accidents, control maintenance expenses, and save money on gas, among other things.
- The complexity of telematics solutions poses a challenge for the industry. The need for substantial upfront investments in hardware, software, and communication protocols is a barrier, especially for small and medium-sized enterprises (SMEs). Moreover, protecting large amounts of data from vehicles, such as location, driver behavior, and vehicle performance. Maintaining data security and compliance with privacy regulations is complex and costly and restricts the market's growth.
- The COVID-19 pandemic impacted the market as there is a need for remote work and monitoring capabilities, which increased the value of the telematics system, facilitating fleet managers to oversee operations without being physically present. Moreover, with the growth of online shopping and home deliveries, there is a need for efficient fleet management to handle the increasing delivery volumes, leading to the adoption of telematics.
Global Commercial Vehicle Telematics Market Trends
The OEM Segment Holds the Largest Share in the Market
- The OEM segment holds a major share in the commercial vehicle telematics market, which emphasizes integrating telematics systems directly into commercial vehicles during manufacturing. This approach provides fleet operators and logistics businesses with comprehensive, embedded solutions. This facilitates the ability to instantly activate and use the fleet management solution, which is driving the adoption.
- OEMs are deploying telematics technology directly into vehicles, offering consumers seamless and integrated solutions, and telematics technology is becoming a crucial part of vehicles. For instance, as per data from the International Organization of Motor Vehicle Manufacturers (OICA), a growing number of commercial vehicles are produced in Asia. China's production volume was 4.03 million in 2023, followed by Thailand, which produced approximately 1.26 million commercial vehicles. Thus, with the growth of production, OEMs are leveraging telematics to enhance their offerings, facilitating features such as advanced driver assistance systems, connectivity, and telematics-enabled services.
- Telematics technology aids in the optimization of a variety of elements, including fuel usage and truck maintenance. Furthermore, the high adoption rate of modern technologies in the commercial vehicle industry, such as AI, machine learning, and advanced driver assistance systems, and the growing demand for autonomous trucks are positively impacting the market's growth.
- The growing product innovations are analyzed to significantly contribute to the market. For instance, in October 2023, Cummins Inc. announced the collaboration with the Eclipse Foundation and Microsoft to introduce the Open Telematics Framework. This innovative framework aims to revolutionize the development of telematics software for commercial vehicles. By enabling companies to craft their telematics applications once and deploy them across any hardware compatible with the Open Telematics Framework, the initiative is expected to reduce time-to-market and operational costs.
- Telematics and connected solutions are pivotal in elevating productivity, performance, safety, and the driving experience in the global commercial vehicle industry. In the coming five years, they are expected to grow in telematics device adoption from medium to heavy-duty trucks.
Asia-Pacific is Expected to Witness Significant Growth
- Asia-Pacific is expected to hold a significant share of the market, with a significant growth rate during the forecast period, which is largely attributed to the presence of large automotive manufacturers in countries such as China, India, and Japan. The growing government initiatives in the region are further contributing to the market's growth.
- As consumer preferences, regulations, and technology have evolved, vehicles have become increasingly complex during the last decade. Connectivity, autonomy, shared transportation, and electrification investments are expected to continue to grow. Manufacturing centers are expected to spend to become more agile as product complexity grows while continuing to develop lean manufacturing concepts.
- The Chinese government's support for 5G is a significant reason why automakers are rushing to the nation to develop 5G-connected vehicles. For instance, in June 2023, ZTE Corporation, a global leader in information and communication technology solutions, and Tianyi Transportation Technology, a prominent transportation operator, introduced the 5G+ intelligent connected vehicle system at the Mobile World Congress (MWC) Shanghai 2023. This system, integrating Vehicle-Road-Cloud technologies, is expected to drive the automotive industry. The joint partnership was accompanied by the signing of a strategic cooperation agreement, with the commitment to fast-tracking the adoption of autonomous driving services.
- Many original equipment manufacturers (OEMs) are integrating vehicles with telematics technology in Asia-Pacific, allowing seamless connectivity with aftermarket software. This software, tailored for fleet management analytics and commercial insights, is becoming essential. Telematics empowers OEMs to wirelessly collect diverse data to cater to geo-location and maintenance requirements.
- Furthermore, growing product innovations in Asia-Pacific are expected to boost the market's growth. For instance, in January 2024, Tata Motors, India's commercial vehicle manufacturer, announced a milestone achievement by linking 500,000 commercial vehicles to Fleet Edge, its advanced connected vehicle platform. Fleet Edge leverages advanced technologies to increase vehicle uptime and elevate road safety. This facilitated real-time, actionable insights on metrics like vehicle status, health, location, and driver behavior. Fleet Edge empowers owners and fleet managers to optimize operations, reduce logistics expenses, and bolster profitability.
Global Commercial Vehicle Telematics Industry Overview
The commercial vehicle telematics market is semi-consolidated, with many regional and global players. Market vendors are focusing on expanding their customer base across foreign countries and leveraging strategic collaborative initiatives to increase market share and profitability.
- March 2024: Navistar Inc., a member of the TRATON Group, announced that it is advancing its autonomous driving technology in anticipation of rolling out an autonomous commercial pilot program. In a strategic collaboration with Plus, Navistar is set to embed Plus's Level 4 autonomous SuperDrive technology into its international vehicles and other TRATON-branded models. The SuperDrive system, tailored for international trucks, offers comprehensive solutions spanning maintenance, telematics, safety, and reliability.
- January 2024: Ford Pro, the commercial arm of Ford Motor Company, announced the launch of a suite of enhanced software and technology features. These innovations were designed to empower fleet managers with deeper insights and greater control over their commercial vehicle operations, specifically to mitigate fleet risks. Ford Pro's advanced solutions harness data from connected vehicles by integrating it into the Ford Pro Intelligence platform. This integration equips fleet managers with visibility into their vehicles on the road and the usage of fitted equipment.
Commercial Vehicle Telematics Market Leaders
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Navistar International Corporation
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Ford Motor Company
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Lytx Inc.
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Tata Motors Ltd.
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Trimble Inc.
*Disclaimer: Major Players sorted in no particular order
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Commercial Vehicle Telematics Market News
- March 2024: HERE Technologies and Netstar, a telematics solutions provider in Australia, announced an extension of their strategic partnership. The collaboration aims to bolster asset management and navigation capabilities for commercial and heavy vehicles in Australia and neighboring regions. This phase of the partnership explicitly targets the enhancement of truck navigation. Netstar is leveraging HERE's SDK Navigate to ensure they can access advanced location-based tools. This move is designed to assist businesses across Australia, New Zealand, and the broader Asia-Pacific in efficiently tracking their assets and developing more intelligent navigation applications, ultimately promoting safer driving practices.
- September 2023: CARUSO and Toyota joined forces to revolutionize fleet management solutions through optimized, connected car data. Leveraging Toyota's telematics data, the collaboration targets the challenge of managing in-vehicle data. CARUSO initiated the change by offering extensive standardization, specialized consultancy, and complementary services. This empowered the fleet customers to streamline operations by seamlessly integrating in-vehicle data into their offerings.
Commercial Vehicle Telematics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of the Aftereffects of the COVID-19 pandemic and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Connected Trucks
5.1.2 Reduction of Fuel Costs with Real Time and Historical Data
5.2 Market Restraint
5.2.1 Increased Communication, Leading to Security and Privacy Concern
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Solutions
6.1.1.1 Fleet Tracking and Monitoring
6.1.1.2 Driver Management
6.1.1.3 Insurance Telematics
6.1.1.4 Safety and Compliance
6.1.1.5 V2X solutions
6.1.1.6 Other Solutions
6.1.2 Services
6.2 By Provider Type
6.2.1 OEM
6.2.2 Aftermarket
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Navistar International Corporation
7.1.2 Ford Motor Company
7.1.3 Lytx Inc.
7.1.4 Tata Motors Ltd
7.1.5 Trimble Inc.
7.1.6 PTC Inc.
7.1.7 Volvo Trucks Corporation
7.1.8 Fleetmatics Pvt. Ltd
7.1.9 Hino Motors Ltd
7.1.10 General Motors Company
8. INVESTMENTS ANALYSIS
9. FUTURE OPPORTUNITIES
Global Commercial Vehicle Telematics Industry Segmentation
A software solution that leverages GPS tracking, communication systems, and data analytics to oversee and optimize commercial vehicle fleets. Fleet managers and drivers can use IoT-enabled fleet telematics to address various issues, including unplanned repairs, excessive fuel expenses, insurance rates, and administrative complexity.
The Commercial Vehicle Telematics Market is Segmented by Type (Solutions [Fleet Tracking and Monitoring, Driver Management, Insurance Telematics, Safety and Compliance, V2X solutions, and Other Solutions] and Services), Provider Type (OEM and Aftermarket), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The Report Offers the Market Size and Forecasts for all the Above Segments in Value (USD).
| By Type | ||||||||
| ||||||||
| Services |
| By Provider Type | |
| OEM | |
| Aftermarket |
| By Geography*** | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Commercial Vehicle Telematics Market Research FAQs
How big is the Global Commercial Vehicle Telematics Market?
The Global Commercial Vehicle Telematics Market size is expected to reach USD 23.97 billion in 2024 and grow at a CAGR of 14.70% to reach USD 47.58 billion by 2029.
What is the current Global Commercial Vehicle Telematics Market size?
In 2024, the Global Commercial Vehicle Telematics Market size is expected to reach USD 23.97 billion.
Who are the key players in Global Commercial Vehicle Telematics Market?
Navistar International Corporation, Ford Motor Company, Lytx Inc., Tata Motors Ltd. and Trimble Inc. are the major companies operating in the Global Commercial Vehicle Telematics Market.
Which is the fastest growing region in Global Commercial Vehicle Telematics Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Commercial Vehicle Telematics Market?
In 2024, the North America accounts for the largest market share in Global Commercial Vehicle Telematics Market.
What years does this Global Commercial Vehicle Telematics Market cover, and what was the market size in 2023?
In 2023, the Global Commercial Vehicle Telematics Market size was estimated at USD 20.45 billion. The report covers the Global Commercial Vehicle Telematics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Commercial Vehicle Telematics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Commercial Vehicle Telematics Industry Report
Statistics for the 2024 Commercial Vehicle Telematics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Commercial Vehicle Telematics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
