Fleet Telematics Market

The report "Fleet Telematics Market by Vehicle Type (LCV, HCV), Package Type (Entry Level, Mid Tier, Advanced), Vendor Type (OEMs, Aftermarket), Solution Type (Embedded, Portable, Smartphone/Cellular), and Region – Global Forecast to 2032" is projected to grow from USD 10.42 billion in 2025 and to reach USD 21.95 billion by 2032, at a Compound Annual Growth Rate (CAGR) of 11.2% during the forecast period.

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The growth of the fleet telematics market can be attributed to the adoption of telematics in commercial vehicles, as operators need detailed visibility into hydraulic operations and other auxiliary functions to manage operating costs and verify job performance. Cross-border transport in Europe and North America is also driving the demand for interoperable telematics platforms. These platforms harmonize data across differing regulatory environments, tolling systems, and fleet management platforms. Leasing companies and maintenance providers are embedding telematics into service agreements, using fault code data and utilization insights to improve uptime guarantees and refine residual value models. At the same time, insurers are partnering with telematics vendors to develop risk scoring and incident reconstruction tools, creating new monetization opportunities based on reliable, verifiable operational data.

“The embedded segment is projected to grow at the fastest rate during the forecast period.”

By solution type, the embedded segment is projected to grow at the highest rate, as commercial vehicle manufacturers are increasingly installing factory-embedded connectivity as standard, removing the need for fleets to invest in retrofit hardware. Additionally, many players are developing telematics hardware for better performance. For example, in 2024, Daimler Truck rolled out embedded telematics hardware and integrated connectivity platforms across all major vehicle models, resulting in more than 1 million connected trucks and buses worldwide.

Embedded systems offer high-quality, tamper-proof data by accessing the full vehicle CAN network, enabling advanced diagnostics, predictive maintenance, safety monitoring, and compliance workflows that are often beyond the reach of aftermarket devices. Regulatory pressure in major markets is also encouraging the use of OEM-grade data sources for emissions, safety, and driver hours compliance. As vehicles move toward software-defined architectures, OEM telematics becomes critical for over-the-air updates, remote servicing, and full lifecycle management.

The adoption of telematics is also rising across logistics, construction, utilities, and last-mile fleets as more new vehicles are delivered with integrated telematics units, such as TCUs or T-Boxes. In line with this, many players are undertaking strategies to capture the rising demand for embedded telematics. For example, in November 2025, Targa Telematics and Conneqtech formed a strategic partnership to strengthen connected mobility services in Central Europe by combining Targa’s OEM data access and keyless mobility capabilities with Conneqtech’s IoT-based fleet management platform, creating a unified connected mobility service offering.

“The entry level segment is projected to grow at a significant rate during the forecast period.”

The demand for entry-level telematics, centered on GPS tracking, geofencing, and basic diagnostics, is expected to see an increase during the forecast period. Entry-level telematics meets the essential needs of many small and mid-sized fleets at the lowest adoption cost. Fleets in logistics, construction, rental, and last-mile delivery often prioritize simple visibility, asset security, and basic compliance rather than advanced analytics, making these packages sufficient for daily operations. They are easy to deploy, frequently plug and play, and avoid the cost and complexity of multi-sensor or video systems, which supports broad adoption across mixed fleets. In price-sensitive emerging markets, entry-level packages dominate because fleets rely on telematics mainly for theft prevention, route monitoring, and simple vehicle health alerts. A large base of low-cost devices and minimal activation expenses further strengthen the position of entry-tier solutions. Moreover, OEMs and tier-1 telematics providers are expanding entry-level offerings to capture the rising demand. For instance, Ford Pro’s Telematics Essentials provides basic fleet tracking and vehicle health alerts on modem-equipped commercial vehicles as an easy-to-activate tier. Similarly, ZF has introduced simplified trailer telematics solutions that deliver core operational insights for uptime and performance.

“Europe is projected to grow at a significant rate during the forecast period.”

Europe is projected to grow at a significant rate in the fleet telematics market due to tightening regulations, such as smart tachograph requirements, CO2 reporting rules, and updated road safety directives, which are making telematics essential for compliance. Increasing cross-border freight activity is also driving the demand for interoperable platforms that can unify tracking, driver hours management, tolling, and documentation across multiple EU countries. Large logistics and postal operators are expanding digital fleet programs, leading to greater adoption of advanced telematics packages that support maintenance planning, fuel optimization, and multi-asset visibility. Additionally, the rising labor, fuel, and emissions-related costs are further encouraging fleets to use telematics for route efficiency, idling control, and predictive maintenance.

Moreover, strong OEM involvement is also accelerating the shift toward embedded telematics in LCVs and HCVs through factory-fitted connectivity and digital service ecosystems. In January 2025, Samsara announced a collaboration with Mobilisights to provide businesses across Europe with seamless, hardware-free access to vehicle telematics data. Samsara’s Connected Operations platform aims to integrate directly with Stellantis’ built-in telematics hardware across brands, such as Citroën, FIAT, Opel, Peugeot, and Vauxhall, covering most vehicles manufactured after 2024 and select models from 2018–2024, including commercial fleets.

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