Commercial telematics shipments set for solid growth

At a CAGR of 27 per cent, commercial telematics systems shipments are set for solid growth. However, the fleet management industry continues to be haunted by structural problems: extreme levels of fragmentation with too many ‘me too’ and ‘dots-on-a-map’ providers and proprietary solutions littering the landscape.
April 18, 2012 Read time: 2 mins
RSSAt a CAGR of 27 per cent, commercial telematics systems shipments are set for solid growth. However, the fleet management industry continues to be haunted by structural problems: extreme levels of fragmentation with too many ‘me too’ and ‘dots-on-a-map’ providers and proprietary solutions littering the landscape.

According to 5725 ABI Research telematics and navigation group director Dominique Bonte, “The commercial telematics industry faces aggressive consolidation which should ultimately result in the reduction of the hundreds of vendors into at most ten major global players. This process is already well underway with recent mergers and acquisitions including 748 Masternaut and 1060 Cybit, 1985 Trimble and Punch Telematics, and, most recently, Trimble and PeopleNet.”

ABI Research says that 213 Qualcomm, 1692 TomTom Business Solutions, Mix Telematics, 2069 Daimler Trucks, 609 Volvo Trucks, Digicore / Ctrack, and Trimble are emerging as true global players. However, consolidation is only effective when tight technical and commercial integration is achieved, a process which can take years. Also required are the adoption of open software approaches, scalable Software as a Service (SaaS)-based platforms, telematics standards, and new business models, as well as the embrace of convergence and a far-reaching willingness to cooperate across the whole value chain in the form of partnerships.

ABI Research’s new Commercial Telematics Market Data report contains forecast data per region on hardware shipments, hardware revenue, system users, subscribers and service revenues in the commercial telematics sector. Statistics on vehicle sales and vehicles in operation are also included.
Location Based Systems

For more information on companies in this article

Related Content

  • New revenue streams for transit operators through NFC
    May 9, 2012
    NXP has claimed the top spot in the contactless ticketing market in ABI Research’s new market analysis. Shipments of the Mifare range (Classic, Plus, Ultralight, and DESFire) remain strong despite some security concerns around the Classic product. ABI says that overall, Mifare has withstood scrutiny and demonstrates that the highest level of security is not an overriding factor in adoption with the focus on cost effectiveness, convenience, and reliability. The lack of alternative solutions has helped cement
    Read More
  • Interior cameras and eye-tracking ‘to dominate driver monitoring technology’
    November 14, 2014
    Global shipments of factory-installed Driver Monitoring Systems (DMS) systems based on interior facing cameras will reach 6.7 million by 2019, according to recent findings from ABI Research. “DMS solutions are expected to gain new momentum as critical support systems for human-machine interactions (HMI) related to ADAS active safety alerts and autonomous-to-manual handover but also as solutions enabling smart dashboards and contextual HMI in an in-vehicle environment increasingly characterized by inform
    Read More
  • Global traffic management system market ‘to rise at 33.8% CAGR to 2020’
    January 18, 2016
    The traffic management system market is forecast to grow from USD 4.12 billion in 2015 to USD 17.64 billion by 2020, at a compound annual growth rate (CAGR) of 33.8 per cent during the forecast period (2015 - 2020), according to the latest research report by Markets and Markets. Increasing environmental concerns, rapid urbanisation and population explosion, and demand for real-time information are the main drivers driving the growth of the traffic management system market. In 2015, parking space and toll
    Read More
  • Growth of embedded car OEM telematics subscribers
    December 22, 2016
    According to a new research report by Berg Insight, the number of telematics service subscribers using embedded systems will grow at a compound annual growth rate (CAGR) of 36.4 per cent from 26.5 million subscribers at the end of 2015 to 170.2 million subscribers at the end of 2021. In addition, Berg Insight forecasts that shipments of embedded car OEM telematics systems worldwide will grow from almost 13.8 million units in 2015 at a CAGR of over 25.1 per cent to reach 52.8 million units in 2021. In Eur
    Read More

Highlighted Content