TELEMATICS MARKET - GROWTH, TRENDS, AND FORECAST (2019 - 2024)
The global telematics market is expected to register a CAGR of 20.7%, over the forecast period (2019-2024). The focus shifted from vehicle location and routing to solutions focused on drivers and their respective safety. By monitoring the driving behavior, vehicle health and maintenance intervals, telematics solutions help minimize accidental incidents, the number of speeding tickets, and downtime.
- The mobile resource management (MRM - traditional telematics and GPS tracking) and machine-to-machine sectors will continue to drive the market and include better commercial fleet productivity (fuel cost reduction, routing, reduced maintenance, driver monitoring), improved customer service (real-time status, timely response times), and improved risk management, driver behavior and safety, and control and improvement.
- Organizations are increasingly turning to EVs. In June 2018, Geotab, a global leader in IoT and connected transportation, acquired clean-tech solution provider, FleetCarma. They are specializing in EV telematics, that provides technology for the adoption and operation of EVs. This is because organizations have turned to EVs while setting goals to reduce emissions and improve operational fleet efficiency.
- As a huge amount of data that is getting generated about the driver and the behavior involved there are huge risks related to cyber attacks that could occur.
Key Market Trends
Smartphone Solution is Expected to Hold a Major Market Share During the Forecast Period
- Leveraging the smartphone development is cheap for OEM manufacturers. The easiest and the most straightforward connected-car choice is an app that turns your phone into both a telematics sensor and transmitter. With the huge adoption of smartphones, it gets easy for the OEMs to implement the activities related to telematics. Typically capable of autonomously detecting trips, these apps offer trip scoring based on driving behavior, habits, and the driving context, although the quality of the data collected may not be the best.
- Smartphone applications usually provide proactive notifications about traffic alerts, weather alerts, and service workshop locations. They are also used in sync with hardware solutions to heighten service offerings such as warnings, driving tips, reporting, and gamification. They tend to be modular, fully configurable, and work on open platforms to facilitate additional app development.
- With electric vehicles coming into the picture with advanced developments, there is critical information about the charge levels. With charging taking several hours it becomes more user-friendly to provide facilities on a smartphone due to its easier accessibility. The smartphone will act as a crucial link between the driver and the vehicle.
- Smartphone has become the primary choice for implementing the activities related to telematics due to its huge adoption rate. Different platforms have coincided to avail their services on smartphones which makes it easier for the user.