South Korea’s Commercial Vehicle Telematics Market to Grow at CAGR of 5.5% to Reach US$275.7 million in 2015

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South Korea’s Commercial Vehicle Telematics Market to Grow at CAGR of 5.5% to Reach US$275.7 million in 2015

The commercial vehicles telematics market in South Korea is expected to grow at a compound annual growth rate (CAGR) of 5.5 per cent (2010-2015) to US$275.7 million, says Frost & Sullivan.

Ms. Samjeen Yun, Research Analyst, Automotive Practice Asia Pacific at Frost & Sullivan said that the South Korean telematics market is expected to reach the advanced growth phase from 2012 to 2015. She noted that the commercial vehicle telematics market in South Korea is mainly driven by the aftermarket as original equipment (OE) telematics service is not available currently.

Ms. Yun said:

“Hyundai is likely to enter the OE-CV telematics market space in coming years. Frost & Sullivan estimates market share of OE-CV telematics to be 10 percent by 2017 in South Korea.”

She added that penetration rate of the commercial vehicle telematics is expected to increase in South Korea as the Government plans to make the installation of vehicle black boxes in commercial vehicles mandatory. The total registered commercial vehicles in South Korea were estimated at 4.3 million units in 2010.

Ms. Yun is predicting that commercial vehicle telematics unit shipments to increase at a CAGR of 12.4 per cent (2010-2015) to reach 569,630 units in 2015, driven by increased penetration of commercial vehicle telematics across segments.

She noted that car black boxes will be compulsorily installed on trucks, buses, and taxis by 2013 in South Korea. She added that the black box is evolving into a multi-functional device and is expected to increase the demand for commercial vehicle telematics in South Korea.

Ms. Yun said that one of the key challenges for telematics suppliers in the commercial vehicle market is the lack of a unified customer’s market especially for the trucking service sector.

She noted that telematics systems and services are not standardized in South Korea for CV applications. Hence, system and service suppliers are finding it hard to increase their volumes because different customers expect different solutions based on their requirements, she added.

Ms. Yun also said that the price of telematics systems and services are considerably higher in South Korea as compared to those in Europe and NA.

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