How Fast will the Telematics Market Grow?
New research on the global telematics market shows that connected fleet and asset management services are poised to grow at an annual rate of more than 18% over the next four years.
Driving the trend in the commercial telematics market is the increased awareness of safety and security services among consumers, as well as more efficient management of fleet assets.
Behind the scenes, global trade activities have increased the fragmentation of logistics and production centers, creating new markets for commercial vehicle telematics. Supply chains have to be broken up into multiple stages with an increase in manufacturing costs in developed countries and the continued search for low-cost sources. Assembly operations are outsourced to countries, such as China, where the manufacturing costs are lower to reduce costs.
Rohan Roy Thomas, a lead machine to machine (M2M) and connected devices research analyst at Technavio, says, “Business-driven M2M services are urged to witness globalization in a seamless and cost-conscious manner, which is specifically high for a business that includes activities to ensure continuous tracking and asset management. M2M connectivity serves across international boundaries as well as over sea and land for innovative technology developments, such as satellite network services. These networks, such as GPS, Wi-Fi, and radio frequency identification technologies, enable organizations to track their modes of transport.”
Another driver of the trend will be autonomous vehicles (AVs) — which will be commercially available in the market in the near future.
“On-drive management includes features that allow the car driver to reach the destination in a quicker and a cost-efficient way. For instance, it provides real-time information regarding the traffic updates, parking information or garage space availability, and fuel consumption details. It creates comfort and fitness to drive and provides medical assistance in case of emergency situations. It automatically alerts drivers as per environmental adjustments,” adds Rohan.
Automotive companies are increasingly deploying embedded telematics in vehicles to monitor system failures and vehicle performance to meet customer demand for wireless connectivity. The percentage of new vehicle sales with embedded telematics is expected to reach more than 75% of the on-road cars in the US and more than 35% globally by 2018.
Europe is slightly ahead of North America and the Asia-Pacific in terms of the penetration of telematics in new vehicles shipped. The growing volume of vehicles with embedded devices helps to cut down device prices.
Category: Connected Fleet News, News
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
