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Broad Range of Telematics Products and Solutions has Enabled the End Users Such as Transportation Companies
With the growing demand for hybrid and portable solutions, onboard computers are increasingly substituted with smart solutions, thereby, reducing the hardware cost. These factors facilitate new opportunities to the OEM, aftermarket, software, and services providers to expand one’s product line and customer base. The broad range of telematics products and solutions has enabled the end users such as transportation companies and fleet operators to adopt telematics, sustain low operational costs, and maintain competitive edge in the business.
However, the increasing cost of hardware solutions hinders the growth of telematics in the commercial arena, especially for small fleet operators and logistics companies. Most of these companies already have an individual fleet management system and remote diagnostics solutions, and hence, are reluctant to install and deploy new solutions. Moreover, the companies facing financial crunch are also unwilling to spend. Privacy infringement is also one of the major reasons restraining the development of commercial telematics market. The extensive growth of multiple devices interacting with each other has raised privacy concerns in certain countries especially in the U.S. and U.K. The government has enforced laws to prevent privacy infringement, thereby, hindering the growth of V2V and V2I solutions.
Integration of telematics with the insurance industry has given rise to a whole new market providing opportunities for both existing and new vendors. Both the vendors are entering into mutual partnerships to develop new solutions such as PAYD (Pay-As-You-Drive) and PAHD (Pay-How-You-Drive). These solutions are being rapidly adopted in NA and in the key European markets, especially in Italy and U.K. It is also anticipated that the market growth would largely increase in APAC.
In future, it is expected that there would be addition of new partners in the value chain who would build low cost offerings with more features. These stable offerings would increase the ROI scenario, resulting in the wide adoption of telematics across the globe.
Commercial Telematics Market [OEM & Aftermarket, Solutions (Fleet Management, Navigation & Location Based, Infotainment, V2V, V2I, Insurance, Telehealth, Alarm Monitoring), Professional Services] - Global Market Forecasts & Analysis (2014 - 2019)
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