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Telematics to Power Over 73 Million Commercial Vehicles by 2020
October 16, 2015 | ABI ResearchEstimated reading time: 1 minute
The commercial telematics industry is set for very strong growth in the next five years, especially in the enterprise and SMB segments, with players such as Telogis and Fleetmatics leading the way in these respective verticals in the United States. It is just a matter of time before the first vendor exceeds 1 million vehicles under management, with Fleetmatics having set a target of 1.2 million subscriptions by 2020.
“We are witnessing the emergence of a very dynamic ecosystem characterized by cut-throat competition, aggressive marketing, mergers and acquisitions galore, and high levels of equity investment with high expectations about quick returns. This results in accelerating awareness about the many benefits of telematics far beyond the traditional asset tracking, diagnostics and fuel saving paradigms,” says VP and GM Dominique Bonte.
Technologies such as onboard diagnostics (OBD) dongles and Cloud/SaaS solutions linked to hardware agnostic approaches leveraging third party application developer ecosystems on smartphones and ruggedized tablets are critical growth drivers. They allow vendors such as Telogis, PeopleNet (Trimble), Astrata, Zonar, CalAmp and Geotab to cost-efficiently address wide ranging requirements across a large number of segments, including the growing commercial vehicle OEM opportunity.
Optimized routing and truck-based navigation capabilities enabling low-cost delivery are becoming critical assets for addressing exploding e-commerce retail models, goods distribution and work flow management. However, while telematics increasingly empowers the knowledge worker, new smart mobility paradigms are already appearing on the horizon, threatening to disrupt the status-quo with autonomous trucks and self-driving taxis expected to redefine the role of the driver or even removing it completely.
Finally, commercial telematics and fleet management solutions are no longer mainly confined to the United States and Western Europe with China, Southeast Asia, Africa and the Middle East, and Eastern Europe representing increasingly important opportunities for both local and foreign players.
These findings are part of ABI Research’s Commercial Vehicle Telematics Research Service, which includes Research Reports, Market Data, Insights, and Competitive Assessments.
About ABI Research
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990.
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