by Brianna Crandall — May 15, 2015—Of interest to facilities managers who count managing a fleet among their duties, new analysis from growth partnership company Frost & Sullivan indicates that falling hardware prices will give a push to the purchase of advanced commercial vehicle (CV) telematics services. The report highlights the importance of CV telematics in Big Data and cyber security.
According to the analysis, North America and Europe will continue to lead in terms of commercial vehicle (CV) telematics adoption, but will focus more on advanced solutions such as video surveillance. Positive telematics adoption trends will also be seen in India, China, and South Africa, where the CV market has been growing. Similarly, the Latin American and Turkish markets will benefit from their proximity to North America and Europe, respectively.
The report finds that the installed base of CV telematics stood at 14.7 million in 2014, and estimates this will reach 37.9 million by 2020. The study covers segments of light, medium and heavy CVs. Light CVs contributed to nearly 60 percent of the telematics installed base last year, even though medium and heavy CVs were the prime revenue-generating segments in countries like India and China.
“Going forward, hardware prices are expected to dip, encouraging fleet operators to invest in advanced telematics services,” said Frost & Sullivan Automotive and Transportation Research Analyst Gokulnath Raghavan. “In fact, by the end of 2015, the pricing of both hardware and solution offerings will be restructured due to the influx of new business cases, lending further pace to market development.”
Much like 2014, embedded solutions will be widely preferred due to their ability to provide accurate data through a controller area network bus (CAN bus), adds the report. In contrast to last year, the growth of independent smartphone solutions is likely to outpace that of portable solutions. 2015 will also see driver behavioral management using in-cab training and simulators emerge as sought-after services.
Overall, the CV telematics space will be dominated by the aftermarket segment, in which vehicle original equipment manufacturers are expected to contribute approximately 23 percent of total telematics penetration. As the European and North American markets become less fragmented due to continued consolidation among vendors, competition in the telematics aftermarket will decrease in these regions, adds the report.
“To widen their reach, telematics vendors will embrace Big Data technologies in order to provide business intelligence and prognostics solutions,” noted Raghavan. “Along with this, they should customize offerings to suit the needs of the specific industry, fleet, and region.”
Strategic Outlook of Global Commercial Vehicle Telematics Market in 2015 is part of the Frost & Sullivan Automotive and Transportation Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. An Executive Summary is available online, and the complete report is available for purchase from Frost & Sullivan.
