According to the latest research study released by Technavio, the global commercial telematics market is expected to grow at a CAGR of more than 27% from 2015-2020.
“Sophisticated telematics tracking systems are helping manage availability, access, and use of vehicles for the emerging vehicle rental model market. This system uses telematics units to provide all necessary captured data and operational control, which includes activating and accessing remote vehicles using Radio-frequency identification (RFID) or a smartphone app to capture journey data for proper billing,” said Faizan Akthar, one of Technavio’s lead analysts for ICT research.
“Over the next four years, the market is predicted to witness a growing adoption of driver ID technologies that would allow organizations to authenticate drivers based on approval lists and member subscriptions. Such advanced telematics solutions will help obtain driver behavior feedback in real-time through an in-vehicle device or a smartphone app. These trends are predicted to positively impact market growth over the next four years.”
Global commercial telematics market by end-user 2015 (USD billions)
|Media and entertainment||0.87|
|Logistics and transportation||8.70|
Source: Technavio Research
Top three segments of the global commercial telematics market:
- Logistics and transportation
Logistics and transportation: largest segment of the commercial telematics market
Telematics is widely adopted in the logistics and transportation sector to improve customer safety and security, eliminate idling, and optimize routing. This technology maximizes the efficiency of dispatching jobs as it enables monitoring logistical movement and the number of parts on service vehicles.
In addition, telematics systems, through its feedback mechanisms, helps improve driver behavior significantly and helps avoid accidents. Telematics also reduces fuel consumption and maintenance costs, while improving customer services and asset utilization.
Insurance: second largest segment of the global commercial telematics market
As M2M telematics applications help reduce vehicle crashes, its implementation reduces insurance premiums. Insurance premiums are calculated based on driver behavior information, which can be easily obtained through M2M devices integrated into vehicles.
Over the forecast period, many insurance companies are expected to rely extensively on digital technologies to prevent false claims and offer different products and services. As per this market forecast, insurance telematics solution providers are expected to foray into improved risk management, competitive pricing of insurance products, and increased competitiveness due to more targeted offerings thanks to advanced telematics.
Global commercial telematics market by the healthcare segment
The adoption of telematics solutions in the healthcare industry is also stipulated to increase significantly during the forecast period. M2M remote patient monitoring solutions include tracking-type systems in managed care facilities, or for Alzheimer patients, and prescription compliance use-cases that are designed to monitor and maintain patient prescription use efficiently. Healthcare telematics infrastructure connects IT systems of doctors, pharmacies, hospitals, and health insurers to protect and monitor critical data and its popularity is expected to further expand the market for commercial telematics during the forecast period.