The global commercial telematics market has been witnessing exponential growth over the last couple of years. The world at present has entered an early stage of showcasing a paradigm shift in the prevailing work culture and technology. This change has been triggered by a potent economic catalyst sweeping across the global industries. As a consequence, the next-generation cloud-powered technology called telematics is introduced to facilitate:
Using telecommunications devices to send, receive, and store information to affect control on remote objects.
The integrated use of informatics and telecommunications for applications in vehicles to affect vehicle control on the move.
A recently published market research report predicted impressive growth for the global commercial telematics market. According to the findings of the report, the global market for commercial telematics, which was worth US$14.67 billion in 2013, is estimated to register growth at a CAGR of 18.0% between 2014 and 2020. Factors such as accelerated adoption of commercial telematics across different industries including insurance and infotainment, government regulations calling for the use of telematics technology, and growing partnerships between telematics service providers and automobile manufacturers have bolstered the demand for commercial telematics globally.
Browse Research Report: http://www.transparencymarketresearch.com/commercial-telematics-market.html
Market Segmentation: OEM Telematics and Insurance Telematics to Register Fastest Rate of Growth
The commercial telematics market can be segmented into aftermarket telematics and OEM telematics. The OEM telematics is sub-segmented into hybrid OEM systems and embedded OEM systems, and the segment of aftermarket telematics is further divided into portable aftermarket telematics and embedded aftermarket telematics. In terms of revenue, aftermarket telematics emerged as the largest segment in 2013. The segment accounted for 53% of the overall commercial telematics market owing to its increased application in satellite navigation and infotainment. In recent years, however, the demand for OEM telematics is increasing as compared to aftermarket telematics due to the growing partnerships between automotive manufacturers and telematics providers.
On the basis of application the global market for commercial telematics can be segmented into fleet and asset management, infotainment, satellite navigation, telehealth solutions, insurance telematics, remote alarm and monitoring, and others. Fleet and asset management emerged as the largest application segment in 2013, accounting for 30% of the global commercial telematics market. However, insurance telematics is projected to register the fastest rate of growth, at 34.7%, in the next couple of years.
Geographically, North America was the largest market for telematics in 2013 in terms of revenue. However, Europe is expected to emerge as the fastest growing region in the forthcoming years. Moreover, increasing demand for commercial telematics in countries such as India, China, Japan, and Australia will drive the market for telematics in Asia Pacific.
Increasing Application across Industries to Boost Commercial Telematics Market
The exponential growth in demand experienced by the global commercial telematics market can be attributed to a number of factors. Its increasing application across varied industries, especially in the insurance and healthcare segments, has contributed significantly to the rapid growth of the commercial telematics market. Additionally, the increasing penetration of LTE (long term evolution) technologies and high speed broadband worldwide and escalating demand for high-end luxury have also bolstered the demand for commercial telematics in the global market.
High Cost of Deployment to Hinder Growth
Deploying telematics technology is likely to incur high cost at the initial stage. This is one of the major hindrances restraining the smooth growth run of the global commercial telematics market. Privacy and security concerns have also emerged as potential bottlenecks to the industry’s growth. However, growing demand for the integration of web and mobility across different industries is expected to spur growth in the global commercial telematics market.
The global market for commercial telematics at present is led by companies such as Omnitracs LLC, Trimble Navigation Limited, Verizon Communications Inc., TomTom N.V., MiX Telematics Ltd., Masternaut Limited, WirelessCar AB, ORBCOMM Inc., and OnStar LLC.