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 initiative aims to establish best practice in fleet data strategy
    February 10, 2015
    A new industry body is aiming to improve standards across British business fleets by establishing best practice in the use of fleet data. Fleet Data Insight brings together thought leaders from across the fleet industry, including both operators and suppliers, to share practical advice about using data to achieve operational excellence in fleet performance. Founded by TomTom Telematics, with partners Zurich, the FTA and the Energy Saving Trust, Fleet Data Insight will meet twice a year, using the coll
    Read More
  • Success of ITS Belgium's annual congress
    March 12, 2012
    In October, ITS Belgium staged its most successful annual congress to date. However, as Stijn Van Cauwenberge outlines, the association is not going to rest on its laurels in 2008. This last year has been an important one for ITS Belgium. That may seem like a cliché. However, with Peter Van der Perre being appointed as Managing Director of ITS Belgium almost one year ago (after a career with Ertico - ITS Europe for the past 10 years); a first commercial spin-off; a successful ITS Congress; and a number of a
    Read More
  • 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
    Read More
  • European car manufacturers face world’s toughest CO2 targets
    July 12, 2012
    Following the adoption yesterday of the European Commission's proposals to reduce CO2 emissions from cars and vans, the European Automobile Manufacturers' Association (ACEA) says it will now work with its members to conduct a full analysis of how the proposed targets should be reached as well as their feasibility, and what this means in practice for the industry as a whole.
    Read More

Highlighted Content