Press Release, 7 March 2025
The commercial vehicle telematics market is poised to expand in response to the increasing consumer preference for electric vehicles (EVs). In essence, an electric vehicle is a vehicle that runs on one or more electric motors, drawing power from rechargeable batteries or other external sources. Within these vehicles, telematics plays a crucial role by capturing important data pertaining to the vehicle’s functioning, position, among other aspects, thereby boosting its efficiency and safety quotient. In a report published by the International Energy Agency, an autonomous, France-based intergovernmental organization, it was mentioned that, as compared to 2022, there was a jump of 3.5 million units in electric car sales in 2023. This implied that nearly 18% of the total car sales in 2023 were of electric vehicles, an increase from the 14% figure recorded in the previous year. Hence, the heightened popularity of electric vehicles is fuelling the progress of the commercial vehicle telematics market
What is the future CAGR of the commercial vehicle telematics market, and how will it impact industry expansion?
The size of the commercial vehicle telematics market has seen significant expansion in the last several years. This trend is expected to continue, with market size predicted to increase from $69.39 billion in 2024 to $79.91 billion in 2025- a compound annual growth rate (CAGR) of 15.2%. The unprecedented growth observed in the historic period is linked to regulatory mandates, the desire for optimized fleet management, cost reduction measures and operational efficiency and a rise in e-commerce and logistics. There is also an increased demand for real-time data and analytics.
The size of the commercial vehicle telematics market is anticipated to experience swift growth in the upcoming years, with an expectation to reach $147.03 billion by 2029, growing at a compound annual growth rate (CAGR) of 16.5%. Factors contributing to the growth in the predictive period include the expansion of connected vehicles, an increase in demand for last-mile delivery services, a prioritization of green and sustainable fleets, the development of autonomous vehicles, and the necessity for predictive maintenance. The forecast period is expected to witness significant trends such as improved cybersecurity measures, the emergence of telematics-as-a-service (TaaS) model, optimization of telematics for EVs, solutions for real-time traffic management, and incorporation with cloud-based platforms.
What are the most significant trends transforming the commercial vehicle telematics market today?
Leading corporations in the commercial vehicle telematics market are innovating advanced technologies like fleet management software to accommodate more customers, enhance sales, and amplify revenue. This kind of software is an explicit technology that supports businesses and institutions in maintaining and optimizing their fleet of vehicles. For example, in September 2022, US-based auto manufacturer Ford Motor Company introduced the Ford Pro Fleet Management Software. The unique advantage of the Ford Pro Fleet Management Software is its capacity to streamline administrative operations, replacing bulky paperwork with a constantly accessible and user-friendly digital platform. It’s built on Fleetio software and is compatible with both Ford and non-Ford vehicles, accepts unlimited fuel payment cards, offers flexible maintenance program options, and integrates smoothly into the complete range of Ford Pro fleet solutions. This innovative approach allows real-time monitoring of the total cost of ownership and digitalizes extensive fleet vehicle reports, providing an effective and integrated approach for fleet management.
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