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

  • Huge global OEM connected car system shipments predicted
    May 2, 2012
    OEM connected car system shipments are expected to grow from 8.22 million in 2012 to 39.5 million in 2016. While the United States and Western Europe remain the leading regions, car OEMs such as GM, Toyota, Nissan, Hyundai, and Mercedes Benz increasingly look to China as the next major expansion area for launching connected car solutions in order to maintain or enhance their competitive position in this fledgling market.
    Read More
  • Global toll revenues $8.5bn while technology ‘battles’ continue
    April 9, 2014
    ABI Research’s Dominique Bonte talks to Jason Barnes about trends in tolling and how a wider appreciation of technology options is sorely needed. Global Electronic Toll Collection (ETC) solution revenues will grow to $8.5bn by 2018, with ETC becoming a main source of funding for both Intelligent Transport Systems (ITS) and Vehicle-to-X (V2X) cooperative infrastructures, according to a new report from ABI Research (Chart 1). But, says the report’s author, ABI Research vice president and practice director Dom
    Read More
  • Trimble to acquire PeopleNet
    April 19, 2012
    Trimble has signed an agreement to acquire privately-held PeopleNet, a leading provider of integrated onboard computing and mobile communications systems for fleet management. The transaction is expected to close in the third quarter of 2011.
    Read More
  • Truck digitisation and tech developments in freight ‘will boost Europe’s CV telematics market’
    January 11, 2017
    According to research by Frost & Sullivan, growth opportunities are strengthening in the commercial vehicle (CV) telematics market in Europe with the imminent arrival of value-added services such as video-based safety solutions, mobile base on-demand freight exchange platforms, and field service management solutions. While penetration of fleet management services (FMS) in large and medium fleets is relatively high, addressing challenges such as awareness, adequate training, and better business cases are key
    Read More

Highlighted Content