Commercial Telematics are information and telecommunication products which combine computers and telecommunication services used to transfer large amounts of data in vehicles. Commercial telematics are used to provide rapid informational access and to assist the companies to manage their supply chain and logistics operations. The growth of commercial telematics market can be attributed to the changing governmental regulations as well as growth in the fleet management market. Another driver for this market is the growth of smartphones which has resulted in growth in integrated telematics services that are used for real time updates and alerts. The increased sales of automobiles as well as smartphone devices are set to propel the telematics market. India is considered to be one of the emerging markets for commercial telematics industry on the back of thriving infrastructure projects and also due to the integration of technology and communications into all industry verticals.
IndustryARC estimates Indian commercial telematics market size for the year 2014 to be around $XX billion. Commercial telematics market is forecast to exhibit a growth rate of XX% through 2020 and reach $XX billion by 2020. This high growth rate is attributed to the increased demand for connected vehicles and a surge in fleet management services customers across each industry.
Major Commercial Telematics solutions offered are fleet management, Logistics and Supply Chain Solutions, Scheduling, Routing and Planning and also GPS navigation. Fleet Management System is the largest market in the commercial automotive telematics market. Usage Based Insurance (UBI) and GPS Navigation Systems are the fastest growing segments on the back of favorable government regulations in the Indian market.
The use of sensors in numerous sorts of vehicle applications such as Vehicle tracking, vehicle maintenance alerts and other telematics applications have considerably gained the pace over the past few years. Wireless and Bluetooth based systems are also being vigorously deployed in vehicles to assist the drivers regarding scheduling and planning of the fleets and logistics activities. In 2014, Satellites support systems and GPS powered applications were remarkably adopted by the fleet management companies at a higher scale. The communication device containing telematics application market was estimated to be $XX billion in 2014 and is expected to reach $XX billion by 2020 at a CAGR of XX%. Sensors in any embedded technology application govern the accuracy and credibility of the output generated by those applications. Door sensors, fleet sensors, hook/unhook sensors and many others type of sensors are being used as a key component for designing telematics solutions for fleet control and management. The market for the sensors used in commercial automotive telematics was reported to be $XX billion and is projected to grow at a CAGR of XX% accounting to $XX billion by 2020.
The safety regulations imposed by the government in these countries have mandated the deployment of vehicle tracking system in all classes of automobiles. The commercial telematics market is perceived to grow at a promising rate of XX% in emerging economies of the world such as BRIC countries that have been included in the other published reports.
The report is segmented based on the vehicle types, components, services offered and geographic regions. The market share analysis, strategies and future opportunities are also discussed in the report. The service market has been aiding the market in earning significant revenues apart from the hardware and software sales, with an augmented segment of the end-users, preferring the maintenance and outsourcing services instead of the in-house purchase and the subsequent maintenance.