Skip to main content

Commercial telematics shipments to exceed 6.4 million by 2016

A new report from ABI Research predicts that global shipments of commercial telematics equipment will increase from 1.94 million in 2011 to 6.43 million in 2016. While North America is still the leading market, Asia-Pacific is set for strong growth driven by economic expansion, a booming automotive industry, and urgent requirements to use increasingly scarce resources more efficiently.
May 18, 2012 Read time: 2 mins
RSSA new report from 2130 Allied Business Intelligence Research predicts that global shipments of commercial telematics equipment will increase from 1.94 million in 2011 to 6.43 million in 2016. While North America is still the leading market, Asia-Pacific is set for strong growth driven by economic expansion, a booming automotive industry, and urgent requirements to use increasingly scarce resources more efficiently.

ABI Research senior practice director Dominique Bonte comments: “The renewed post-recession dynamics observed in the commercial telematics industry do not conceal the structural problems which still haunt this vertical industry: extreme levels of fragmentation with too many ‘Me Too,’ ‘dots on a map’ providers and proprietary solutions still dominating the industry. This results in penetration levels remaining low."

However, positive signs are visible. The industry is finally embracing convergence, as demonstrated by Mix Telematics (Mix Mobile iPad tracking application) and PeopleNet’s Windows 7 tablet on-board computer. At the same time awareness grows about the need for better business intelligence tools – tools that allow fleets to use the wealth of available data and achieve deeper integration of the concept of “location” into existing business processes and technology investments through the use of SaaS (Software as a Service) models.

Many traditional fleet management vendors such as 213 Qualcomm, 1985 Trimble and 5635 Transics remain largely focused on the high-end trucking segment, offering customised solutions via a consultative sales process. Non-trucking segments such as delivery, utility, service, oil and gas, and public and private transport are addressed by a second tier of vendors such as Mix Telematics, 1692 TomTom Business Solutions, DigiCore, and Pointer Telocation which adopt indirect sales models based on distributors, solution sellers and integrators, and offer more standardised solutions and/or APIs while leaving the integration challenge to third party vendors.

Trailer tracking is gaining momentum as awareness grows about the benefits of telematics solutions for what until recently were considered dumb assets. New players such as Transics are entering this segment. Other promising segments include construction and off-road vehicles, and the government market.

ABI Research’s new “Fleet Management and Trailer Tracking Systems” study covers both in-cab trucking and non-trucking fleet management systems and trailer tracking solutions. It contains detailed descriptions of segments and verticals, applications and functionality, market drivers and barriers, ROI, regulation and legislation, as well as subscribers, shipment and revenue forecasts.

For more information on companies in this article

Related Content

  • TomTom Telematics and Continental partner on transportation compliance solution
    September 26, 2016
    TomTom Telematics and Continental have announced a collaboration to create a more efficient data archiving solution for heavy goods vehicles (HGVs), an alliance which combines fleet management and transportation compliance solutions, enabling users to remotely transfer data from the truck to the back office without having to return the vehicles to base. The new integration links TomTom WEBFLEET with TIS-Web, part of Continental’s VDO brand. Fleet managers using the new solution will have greater control
  • Harman to acquire Interchain Solution of Bangalore
    August 8, 2012
    Harman, the global audio and infotainment group has entered into a definitive agreement to acquire Interchain Solution, based in Bangalore, India. The company has an array of cost-effective hardware platforms which are deployed for fleet tracking, connectivity, telematics applications and an Android-based Infotainment solution for automotive OEMs. Some of Interchain’s current customers include TeleAtlas, Aljacs Toyota, MapmyIndia and government institutions such as police and transport departments of variou
  • EVs stir interest but face obstacles – IBM study
    May 18, 2012
    Many automobile industry executives believe that sales of traditional vehicles will peak before 2020 and are looking to electric-only vehicles (EVs) as one of the next hot products, but they will first have to address stringent consumer requirements about EV performance, recharging, and convenience, according to a new IBM survey of consumer attitudes and a recent study of auto industry executives.
  • In-car electronics and user demand for connectivity make case for automotive Ethernet
    January 22, 2014
    According to Frost and Sullivan, the use of Ethernet technology in automotive is gaining pace in Europe and North America. The paradigm shift towards connected cars and associated services such as automotive app stores and connected location-based services is fuelling the uptake. Along with the need to integrate multiple consumer electronic devices, the importance of offering prioritised, personalised services and maintaining brand identity are compelling automotive OEMs (original equipment manufacturers) t