Research and Markets said a new study indicates the commercial vehicle telematics market is expected to increase to $18.4 billion in the next five years from the current figure of $7.3 billion tied to the growth of mobile device usage.
This leap equates to a compound annual growth rate of 20.3 percent. The report covers the commercial vehicle telematics market analysis by solutions and services offered, provider type, vertical market and region.
While focusing primarily on medium- and heavy-duty trucks, the research indicates student transporters should become familiar with vehicle telematics solutions if they aren't already.
“The school bus market is increasingly demanding more real time technology driven information and communication to and from buses and between dispatch and bus drivers,” commented H. Kevin Mest, senior vice president and GM of passenger services at Zonar Systems in Seattle.
The report cites growing government mandates for deploying vehicle tracking in commercial vehicles and a rising demand for smartphones or tablets as the major drivers of adopting telematics solutions and services. It found that the safety and compliance solutions segment is expected to grow at the highest rate, citing the fact that many countries have already passed regulations that define the driver work hours, fuel efficiency and consumption and safety policies.
The OEM telematics provider type segment is also expected to grow at the highest rate due to to the increasing trend of providing OEM-embedded telematics solutions and due to their extensive foothold in manufacturing embedded modules and strong technological leadership.
“When it comes to telematics, we have only seen the tip of the iceberg,” commented GP Singh, CEO and founder of technology analytics firm ByteCurve, LLC in Chicago. “Especially with an increase in the adoption of IOT (internet of things) devices and autonomous vehicles, there is going to be significant growth in volume and usage of telematics devices.”
Singh pointed out that data received from devices are already being used to improve operational efficiency, vehicle and driver safety and repair time through remote diagnostics. While solutions have historically been after market, he said telematics devices are becoming an “integral part of vehicles like any other component.”
“But having these devices alone will not change the game,” he added. “Companies will need to adapt to robust data analytics and manage their business driven by this new-found intelligence. The ones who adapt will be winners. Others will be left behind.”