The vendor landscape in the global commercial telematics market is highly competitive and is the scenario is projected to remain so over the next few years, states a new research report by Transparency Market Research (TMR). Verizon Communications Inc., Masternaut Ltd., WirelessCar AB, Omnitracs LLC, OnStar LLC, and MIX Telematics Ltd. are some of the key players in this market. These players are increasingly being involved into agreements and collaborations on the basis of technology. For example, AT&T has been working in collaboration with various automotive manufacturers to provide its customers with contextual voice controls, which can help them in having a safer driving experience.
According to the research report, the global market for commercial telematics was worth US$14.7 bn in 2013. Increasing at a CAGR of 18.0% during the period from 2014 to 2020, the market’s opportunity is anticipated to touch US$46.2 bn mark by the end of the period of the forecast. Commercial telematics solutions find significant application in fleet and asset management and insurance telematics and are anticipated to remain doing so over the next few years. The demand for OEM telematics is relatively higher than aftermarket telematics. Analysts anticipate this trend to continue in the near future. Geographically, North America has been dominating the global market and is anticipated to remain on the top over the forthcoming years, states the research report.
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Rising Penetration of Smart Phones to Boost Growth
The global market for commercial telematics has been witnessing tremendous growth over the past few years and market trends point towards a bright future. According to a TMR analyst, “the significant rise in the demand for smart phones among consumers and the lowered cost of connectivity across the world are reflecting positively on the sales of commercial telematics, globally.” The increasing implementation of government rules and regulations regarding road safety, such as road infrastructure policies and safety compliance mandates, and the easy availability of high-speed Internet technologies, such as LTE, are likely to support the growth of this market in the years to come, reports the research study.
High Initial Costs to Hamper Market
On the other hand, the high initial costs incurred in the deployment of telematics technology may create obstacles in the otherwise smooth growth trajectory of the global commercial telematics market in the near future. The increasing concerns over privacy in relation with the exposure of sensitive data may also hamper the market over the next few years, states the market report.