Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 18.48 Billion |
| Market Size (2030) | USD 36.89 Billion |
| Growth Rate (2025 - 2030) | 14.83% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Commercial Vehicle Telematics Market Analysis by Mordor Intelligence
The Commercial Vehicle Telematics Market size is estimated at USD 18.48 billion in 2025, and is expected to reach USD 36.89 billion by 2030, at a CAGR of 14.83% during the forecast period (2025-2030). Demand accelerates as fleets shift from reactive maintenance to predictive, data-driven optimization, aided by regulatory mandates such as electronic logging devices and safety regulations. Modern heavy-duty trucks generate up to 20 GB of data per minute across more than 100 sensors, enabling machine-learning models that prevent 77% of unplanned breakdowns [1]Volvo Trucks, “How Connectivity Is Reshaping the Transport Industry,” volvotrucks.com. Growth is reinforced by subscription-based data monetization models, hybrid cellular-satellite connectivity for remote routes, and the economic imperative to reduce total cost of ownership. Consolidation is reshaping the competitive landscape, as illustrated by Platform Science's acquisition of Trimble’s telematics units for USD 300 million in trailing revenue.
Key Report Takeaways
- By offering solutions, it captured 63.4% of the commercial vehicle telematics market share in 2024; services are projected to expand at a 16.33% CAGR through 2030.
- By provider type, OEM telematics held a 58.1% share of the commercial vehicle telematics market size in 2024, while aftermarket solutions are forecast to grow at a 15.83% CAGR to 2030.
- By vehicle class, light commercial vehicles accounted for 66.7% deployment share in 2024; heavy and medium commercial vehicles are advancing at a 16.72% CAGR through 2030.
- By communication technology, cellular connectivity led with 71.2% revenue share in 2024; hybrid cellular-satellite systems are rising at a 15.0% CAGR to 2030.
- By end-user vertical, transportation and logistics commanded 39.5% of demand in 2024; the public sector and emergency services recorded the highest projected CAGR at 16.83% through 2030.
- By geography, North America contributed 32.6% revenue in 2024, while Asia-Pacific is set to grow at 17.33% CAGR over the forecast horizon.
Global Commercial Vehicle Telematics Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increasing adoption of factory-installed OEM telematics in heavy trucks | +2.8% | Global, with highest penetration in North America and Europe | Medium term (2-4 years) |
| Mandatory electronic logging-device (ELD) and safety regulations | +3.2% | North America primary, expanding to EU and Asia-Pacific | Short term (≤ 2 years) |
| Demand for AI-driven fleet optimisation to cut total cost of ownership | +2.5% | Global, led by developed markets with high labor costs | Medium term (2-4 years) |
| Rapid expansion of last-mile e-commerce delivery fleets | +2.1% | Global, concentrated in urban centers and developed economies | Short term (≤ 2 years) |
| Emergence of subscription-based telematics data marketplaces | +1.4% | North America and Europe initially, expanding globally | Long term (≥ 4 years) |
| Integration of telematics with zero-emission truck energy and charge management | +1.7% | Europe and China leading, North America following | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Increasing adoption of factory-installed OEM telematics in heavy trucks
OEM integration shifts value from aftermarket retrofits to factory systems that leverage native vehicle networks, enhancing data integrity and reducing installation costs. Volvo’s latest platform connects 85,000 trucks across Europe, issuing 4,000 predictive-maintenance alerts per month and preventing 77% of breakdowns. Fleets gain higher ROI through warranty alignment and seamless over-the-air updates. OEMs now bundle telematics as standard equipment, altering competitive dynamics against stand-alone providers.
Mandatory electronic logging-device and safety regulations
The FMCSA’s 2025 update incorporates automatic emergency braking, speed limiters, and expanded drug and alcohol testing into existing ELD requirements, thereby increasing compliance pressure. The EU mirrors this trend with Regulation 2024/2220, which mandates the use of event data recorders by January 2026 [2]InterRegs, “New EU Regulation on Event Data Recorders for Heavy Duty Motor Vehicles Published,” interregs.com. Uniform standards increase scale economies for vendors and automate documentation, reducing audit burdens for carriers.
Demand for AI-driven fleet optimization to cut total cost of ownership
Telematics platforms equipped with machine learning can detect hidden inefficiencies, ranging from early signals of component failure to suboptimal driver behavior. Volvo’s analytics engine processes millions of log messages to recommend prescriptive actions, cutting downtime and fuel use. VC funding, such as Motive’s USD 150 million round, underscores confidence in AI-enabled cost reduction of 15-25%.
Rapid expansion of last-mile e-commerce delivery fleets
High stop density, tight delivery windows, and urban access rules demand real-time route optimization, customer notifications, and proof-of-delivery features. Lightweight telematics that scale to thousands of vans allow e-commerce fleets to maintain service quality amid surging parcel volumes. Growth aligns with broader e-commerce adoption, positioning vendors that offer flexible APIs and mobile workflows for a competitive advantage.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cyber-security vulnerabilities in connected commercial vehicles | -1.8% | Global, with heightened concerns in developed markets | Short term (≤ 2 years) |
| Fragmented connectivity infrastructure in developing regions | -1.5% | Africa, parts of Asia-Pacific, rural Latin America | Medium term (2-4 years) |
| Cost and ROI concerns for small fleet operators | -1.2% | Global, particularly affecting fleets with <50 vehicles | Medium term (2-4 years) |
| Data-ownership and privacy-compliance hurdles | -0.9% | Europe (GDPR), California (CCPA), expanding globally | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Cyber-security vulnerabilities in connected commercial vehicles
Expanded attack surfaces expose critical systems such as braking and steering to malicious actors. EU safety regulations now require automotive cybersecurity management, imposing compliance complexity but also highlighting potential liability exposure [3]European Commission, “Vehicle Safety and Automated/Connected Vehicles,” europa.eu. Over-the-air updates widen entry points, making robust security frameworks and third-party audits essential for fleet trust.
Fragmented connectivity infrastructure in developing regions
Inconsistent cellular networks degrade real-time data flow, forcing fleets to adopt hybrid cellular-satellite hardware that raises costs. Diverse telecom standards and data-sovereignty rules complicate multinational operations, reducing telematics value where coverage gaps persist.
Segment Analysis
By Offering: Services Accelerate Despite Solutions Dominance
Solutions retained 63.4% of the commercial vehicle telematics market share in 2024 as fleets relied on core modules for tracking, compliance, and predictive maintenance. Managed services, however, are growing at 16.33% CAGR because rising system complexity pushes operators to outsource analytics and administration. The commercial vehicle telematics market's expansion in services reflects a shift from technology adoption to value extraction.
Geotab’s marketplace hosts hundreds of third-party apps that layer analytics and workflow automation onto base data feeds. Fleets increasingly pay subscription fees for continuous insight rather than purchasing hardware outright. This service's momentum rebalances revenue streams and creates stickier customer relationships for vendors.
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By Provider Type: OEM Integration Reshapes Market Dynamics
OEM solutions controlled a 58.1% share of the commercial vehicle telematics market in 2024, as truck makers embedded connectivity at the factory. Aftermarket providers still post a 15.83% CAGR by addressing retrofits and niche applications that OEM bundles overlook. The commercial vehicle telematics market size tied to OEM platforms grows with every new vehicle roll-off, yet openness to third-party software ecosystems blurs traditional boundaries.
Platform Science’s purchase of Trimble’s units for USD 300 million creates an integrated in-cab marketplace that can run on OEM hardware while supporting customized workflows. Data access wars center on proprietary CAN signals, with regulators monitoring to ensure fair access for independent service providers.
By Vehicle Class: Heavy Vehicles Drive Premium Growth
Light commercial vehicles made up 66.7% of installations in 2024, driven by parcel delivery and service vans. Heavy and medium trucks show a 16.72% CAGR because stricter safety and emissions mandates amplify ROI on telematics investments. Segment-specific features, such as over-the-air engine calibration and load monitoring, propel the adoption of heavy-duty vehicles, contributing materially to the growth of the commercial vehicle telematics market.
Predictive maintenance on 85,000 Volvo trucks avoided thousands of breakdowns, saving fleets high tow and downtime costs. As electric and hydrogen trucks gain traction, energy-management modules are bundled with telematics dashboards, making heavy-duty fleets a prime revenue pool for vendors.
By Communication Technology: Hybrid Solutions Address Coverage Gaps
Cellular networks generated 71.2% of revenue in 2024, but hybrid cellular-satellite links are growing at a 15.0% CAGR as fleets demand always-on visibility for remote routes. The commercial vehicle telematics market's expansion into a hybrid architecture helps mitigate coverage gaps and supports the collection of safety-critical data. Emerging V2X layers add intersection priority and cooperative perception to the connectivity mix.
5G rollouts lower latency for real-time video and AI inference at the edge. Vendors balance cost, bandwidth, and resilience by offering modular radios that switch between LTE, 5G, and L-band satellite without driver intervention.
Note: Segment shares of all individual segments available upon report purchase
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By End-user Vertical: Public Sector Drives Fastest Expansion
Transportation and logistics accounted for 39.5% of demand in 2024, due to their core reliance on uptime and compliance. Public sector and emergency services exhibit a 16.83% CAGR as smart-city programs standardize telematics in government fleets. The commercial vehicle telematics market size in municipal applications expands through use cases such as snow-plow routing, refuse collection optimization, and digital siren alerts to nearby trucks.
Insurance, leasing, construction, and utilities remain key sectors that require sector-specific dashboards and regulatory features. Vendors differentiate via configurable policy rules and data-sharing controls that respect privacy mandates.
Geography Analysis
North America contributed 32.6% revenue in 2024, underpinned by FMCSA’s tight safety regime and broad cellular coverage. Automatic emergency braking mandates, effective 2025, further elevate adoption, while high labor costs magnify ROI calculations. Platform Science acquired Trimble assets, and GPS Trackit merged with Zonar Systems, reshaping the competitive landscape. Data monetization pilots, where fleets sell anonymized insights to insurers, reflect the region’s appetite for subscription models.
The Asia-Pacific region is the fastest-growing region, with a 17.33% CAGR through 2030. China commands 80% of global electric freight-truck sales, requiring telematics that integrate battery-swap scheduling and charger analytics. Battery swapping already covers 40% of Chinese heavy-duty e-trucks, demanding specialized APIs for real-time energy management. Australia and New Zealand anticipate a rise in penetration from 26.6% to 39.5% by 2028, as agriculture and mining fleets digitize their operations. V2X inclusion in China’s NCAP prompts OEMs to embed C-V2X modules, accelerating the deployment of systemic telematics.
Europe maintains a robust presence due to General Safety Regulation provisions on cybersecurity and event data recorders, which will take effect starting in 2026. Digital tachograph rules, which extend to vehicles weighing more than 2.5 tonnes, broaden the addressable base. Dual-track DSRC and C-V2X standardization allows multi-vendor hardware without fragmentation. Sustainability goals promote zero-emission truck telematics that co-optimize route planning with charge scheduling. Public procurement often requires proof of telematics capability for municipal contracts, further boosting uptake.
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Competitive Landscape
The commercial vehicle telematics market remains moderately fragmented; however, merger activity suggests a shift toward platform scale. Platform Science and Trimble’s combined portfolio integrates hardware, software, and a marketplace, signaling a pivot from one-size-fits-all trackers to configurable ecosystems. GPS Trackit’s acquisition of Zonar Systems expands its vertical reach into the government and school-bus segments.
Competitive differentiation now hinges on AI analytics and data monetization features more than on basic GPS. Motive’s USD 150 million financing to enhance AI compliance coaching highlights investor focus on software depth. Vendors partner with OEMs to access secure vehicle data while assuring cybersecurity compliance. Hybrid connectivity partnerships with satellite operators position suppliers to guarantee uptime for mining and oil-and-gas fleets. White-space innovation encompasses subscription data exchanges, where fleets sell anonymized driving patterns to insurers and urban planners, as pioneered by platforms such as High Mobility and Otonomo.
Regulatory complexity acts as both a barrier and a moat, favoring incumbents with certification expertise. Yet, telecom and cloud players eye V2X opportunities, foreshadowing new entrants that can leverage 5G core assets. Success increasingly depends on open APIs, app marketplaces, and the ability to bundle telematics with adjacent services such as video safety and tire-pressure monitoring.
Commercial Vehicle Telematics Industry Leaders
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Verizon Connect (Verizon Communications Inc.)
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Geotab Inc.
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Samsara Inc.
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Trimble Inc.
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Powerfleet Inc.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2025: Geotab launched GO Focus AI dash-cam with advanced driver-assistance features, expanding its safety-oriented telematics lineup.
- February 2025: Thermo King introduced TracKing Smart Trailer telematics for refrigerated transport, adding temperature-controlled cargo insights.
- January 2025: Zonar Systems released a next-generation light-duty telematics control unit with enhanced processing power.
- December 2024: GPS Trackit acquired Zonar Systems, creating a combined platform strong in government and education sectors.
- April 2024: The Volvo Group has expanded its CampX innovation hub in North America to foster partnerships in telematics and V2X.
Global Commercial Vehicle Telematics Market Report Scope
A software solution that leverages GPS tracking, communication systems, and data analytics to oversee and optimize commercial vehicle fleets. Fleet managers and drivers can use IoT-enabled fleet telematics to address various issues, including unplanned repairs, excessive fuel expenses, insurance rates, and administrative complexity.
The Commercial Vehicle Telematics Market is Segmented by Type (Solutions [Fleet Tracking and Monitoring, Driver Management, Insurance Telematics, Safety and Compliance, V2X solutions, and Other Solutions] and Services), Provider Type (OEM and Aftermarket), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The Report Offers the Market Size and Forecasts for all the Above Segments in Value (USD).
By Offering
| Solutions | Fleet Tracking and Monitoring |
| Driver Management | |
| Insurance Telematics | |
| Safety and Compliance | |
| V2X Solutions | |
| Predictive Maintenance and Diagnostics | |
| Asset and Trailer Tracking | |
| Services | Professional Services |
| Managed Services |
By Provider Type
| OEM |
| Aftermarket |
By Vehicle Class
| Light Commercial Vehicles |
| Heavy and Medium Commercial Vehicles |
By Communication Technology
| Cellular (2G/3G/4G/5G) |
| Satellite |
| Hybrid (Cellular + Satellite) |
By End-user Vertical
| Transportation and Logistics |
| Construction and Mining |
| Public Sector and Emergency Services |
| Utilities |
| Insurance and Leasing |
| Retail and E-commerce |
| Others (Agriculture, Waste Management, etc.) |
By Geography
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Australia and New Zealand | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | GCC |
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Rest of Africa | ||
| By Offering | Solutions | Fleet Tracking and Monitoring | |
| Driver Management | |||
| Insurance Telematics | |||
| Safety and Compliance | |||
| V2X Solutions | |||
| Predictive Maintenance and Diagnostics | |||
| Asset and Trailer Tracking | |||
| Services | Professional Services | ||
| Managed Services | |||
| By Provider Type | OEM | ||
| Aftermarket | |||
| By Vehicle Class | Light Commercial Vehicles | ||
| Heavy and Medium Commercial Vehicles | |||
| By Communication Technology | Cellular (2G/3G/4G/5G) | ||
| Satellite | |||
| Hybrid (Cellular + Satellite) | |||
| By End-user Vertical | Transportation and Logistics | ||
| Construction and Mining | |||
| Public Sector and Emergency Services | |||
| Utilities | |||
| Insurance and Leasing | |||
| Retail and E-commerce | |||
| Others (Agriculture, Waste Management, etc.) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Australia and New Zealand | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | GCC | |
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Rest of Africa | |||
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Key Questions Answered in the Report
How large is the commercial vehicle telematics market in 2025?
The commercial vehicle telematics market size is USD 18.48 billion in 2025.
What CAGR is forecast for commercial vehicle telematics between 2025 and 2030?
The market is projected to advance at a 14.83% CAGR over the forecast period.
Which region will grow fastest through 2030?
Asia-Pacific records the highest CAGR at 17.33% owing to electric-truck adoption and V2X mandates.
Which vehicle class is expanding most quickly?
Heavy and medium commercial vehicles grow at a 16.72% CAGR as stricter safety rules boost ROI.
What technology trend is reshaping connectivity strategies?
Hybrid cellular-satellite architectures are rising at 15.0% CAGR to ensure coverage in remote areas.
How are OEMs influencing the competitive landscape?
OEM telematics hold 58.1% share and increasingly ship as standard, shifting value toward integrated factory platforms.
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