Commercial vehicle telematics market to top $11.2B in 2014, says Visiongain
The commercial vehicle telematics market is forecast by Visiongain to reach $11.2 billion this year.
Visiongain identifies three factors driving market growth: intense competition among logistics companies to gain competitive advantage, the global safety regulations and increased demand for wireless connectivity.
"Firstly, the increasing fuel prices accompanied with strong price-competition in logistics drive transportation companies and fleet operators to adopt telematics to sustain profitability and gain competitive advantage," explains Visiongain.
"Secondly, global regulatory mandates… require the usage of telematics for safety purposes and the installation of basic telematics control units (TCU) in all new commercial vehicles in Europe from 2015 and in other countries from 2016 onwards," the research firm notes.
"Thirdly, the increased demand for wireless connectivity, demonstrated by the high level of penetration of smartphones and tablets, offers the opportunity to substitute functions of the onboard computer with smartphones and tablets," it adds.
Auto makers, aftermarket firms, software developers and telematics providers have an opportunity to provide a range of new services and generate new revenue streams as the market expands.
Leading telematics firms include AirIQ, Digicore, Fleetmatics, Masternaut, MiX Telematics, Navman Wireless, Omnitracs and Telogis.
Two factors that could hold back market growth are the high cost of telematics hardware and concerns about data privacy, Visiongain cautions.
- check out Visiongain's release
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