Global Commercial Telematics Revenues to See Rapid Growth, Exceeding US$41 Billion by 2027
NEW YORK, Feb. 8, 2023 /PRNewswire/ -- Deploying highly configurable and scalable fleet management solutions is commonplace in operating commercial fleets of all sizes and vehicle types. Technological advancements continue to create new use cases and capabilities of telematics to enhance fleet performance, improve efficiency, and save costs. According to global technology intelligence firm ABI Research, commercial telematics revenues will reach US$41.67 billion globally by 2027. These revenues include sales of hardware telematics units such as Telematics Control Units (TCUs) and subscription fees charged by telematics services vendors for Software-as-a-Service (SaaS) which would include a range of functionalities such as vehicle diagnostics, broader data sharing, and real-time data-enabled analytics. This growth guides competition, partnerships, and investments to address continued labor shortages in the trucking industry, sustainability considerations, and high fuel charges.
Due to recent innovations, the fleet management industry has also been experiencing an extensive adoption of video telematics solutions. "Video telematics, for example, solutions have been improving and are fulfilling more and more use cases. The fact that solution providers can now provide dashcams with more annotations and run Artificial Intelligence on the edge for various use cases has widely expanded its usage," explains Adhish Luitel, Senior Analyst, Supply Chain Management & Logistics at ABI Research. The kind of transparency that video telematics solutions provide enables drivers and fleet managers to track critical infractions during a trip and over time—information that can increase accountability and encourage safer driving habits. It can also reduce liability, as video can be stored as evidence in case of accidents.
"We are witnessing advancements in cloud and machine-to-machine (M2M) technologies, enabling quick and much more accurate tracking of GPS data and enabling other sensor parameters accessible for real-time reporting.Data aggregation platforms that provide fleet managers with a single data view combined from disparate sources are also growing. Current fleet management technology is synonymous with fleet management systems and represents the heart of M2M- and IoT-based business model innovation," Luitel adds. Some key fleet management vendors include Targa Telematics, Verizon Connect, Samsara, Ridecell, and Geotab.
"The industry is also witnessing a movement of commercial telematics solutions shifting from aftermarkets to trucking OEM factory fits, allowing connected commercial vehicles to be the norm. Such developments, coupled with recent supply chain disruptions have allowed fleet managers to realize the importance of collecting actionable data about how their vehicles, drivers, and mechanics are performing to optimize fleet utilization or make those concise and well-informed decisions in the future," concludes Luitel.
These findings are from ABI Research's Road Freight Transportation Technology Trends application analysis report. This report is part of the company's Supply Chain Management and Logistics research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
SOURCE ABI Research