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Automotive telematics market to register a CAGR of over 27% by 2020

Published: February 20,2016|London

Embedded telematics, tethered telematics, and integrated smartphone telematics are examples of some automated systems that are used by vehicle manufacturers. The growing demand for better vehicle fuel efficiency and safety in vehicles will spur the prospects for growth in this market. The utilization of telematics in vehicles will improve the driver’s behavior, reduce fuel consumption, improve driver safety, and enable cost savings. Also, the ability of telematics to send ad hoc alerts to drivers when a journey’s risk score is high will result in its augmented usage during the predicted period. A comprehensive market study carried out by the analysts at Technavio has shown that the global market for commercial telematics will grow at an impressive CAGR of more than 27% until 2020.

This research report titled ‘Commercial Telematics Market 2016-2020’ provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all leading regions.

“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,” added Faizan

The growing availability of free telematics services is an important factor that will drive the prospects for growth in this market. Recently, it has been observed that the advent of free services, such as content upgrades, will help to drive the sale of telematics systems among the clients. Vehicle OEMs are promoting this technology by offering free subscriptions to new car buyers. Brands such as Audi are also launching cloud-based telematics services that will facilitate the customization of service packages to meet their customer’s demands. Also, some car manufacturers have also started launching app stores that will enable car owners to download apps directly to the in-car infotainment systems.

The Top three segments of the global commercial telematics market are-logistics and transportation; insurance and healthcare.

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.

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.

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.

 

Source: Technavio

 

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