Global commercial telematics system revenue to reach $24B by 2022
Dec 22, 2017
Oyster Bay, New York - 21 Dec 2017
The explosive growth stimulated by the Electronic Logging Devices (ELD) Mandate in the U.S., emerging market opportunities, and last mile delivery is providing tremendous upside for numerous telematics service providers. ABI Research, a market-foresight advisory firm providing guidance on the most compelling transformative technologies, forecasts that opportunities for further telematics penetration exist, especially for segments such as services, government and public transport, with CAGR’s all between 16-19%.
“According to the Federal Motor Carrier Safety Administration (FMCSA), in 2017, 67% of U.S.-based fleets have 20 or fewer units. Many of these fleets were without telematics units, providing a significant upside this year for ELD’s,” says Susan Beardslee, Senior Analyst at ABI Research. “Substantial growth in e-commerce is putting further emphasis on last mile delivery and the need to manage capacity for fleets, both in North America and across multiple geographies.”
ABI Research anticipates global commercial telematics system subscriptions to rise across trucking segments from 33 million this year to over 67 million by 2022. The industry continues to develop innovative solutions, targeted to specific geographies and/or verticals as well as evolve existing technologies to support Advanced Driver-Assistance Systems (ADAS) and regulatory requirements. Companies such as Verizon, Omnitracs, G7, Trimble, TomTom Telematics, Gurtam, Geotab and MiX Telematics are addressing many of these segments.
“Commercial telematics providers will continue to expand their market presence through the introduction of connected, secure and scalable innovations including gateways, prognostics, open APIs/SDK’s, and ecosystem marketplaces. More nascent technologies such as blockchain, autonomy, and electrification will impact the industry in the coming years," concludes Beardslee.