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Growth in Telematics Demand Suggests Entry of Non-traditional Providers 

| August 10, 2018

Telematics

The telematics industry is hot and about to get even hotter according to new industry research.

Consider the context: Globally 73.1 million trucks are expected to be connected by 2025 and penetration of telematics is set to rise. These macro factors coupled with trends such as rising sales due to economic development, stricter regulations, and more importantly advent of autonomous trucking have driven the interest of non-traditional telematics players toward truck telematics.

Currently, Non- traditional telematics providers such as Truck OEMs, Aggregate manufacturers, Telcos, Map providers, and Tire manufacturers make up the eco system along with Traditional Telematics providers.

As of 2017, Non-traditional telematics providers make up for 42.6% out of a total installed base of 12.9 million units in Europe and North America. Truck OEMs initially paved the way for truck telematics starting as early as 1995, via their in-house solutions. Later, they were emulated by other Non-traditional players, who forayed into truck telematics via partnerships and acquisitions.

With the emergence of value trucks’ and their demand amongst fleet owners, telematics has become a key differentiator amongst Truck OEMs. Telematics is also helping OEMs to strengthen their customer association to their brand – converting one-time sales into continual service centred relationships. OEMs currently cater to 10.9% of the total installed base and is expected to increase with the prospect of V2V communication and autonomy, as this necessitates OEMs to be the fore-runners with their connectivity solutions.

Category: Connected Fleet News, General Update, News

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