Market Trends of Global Commercial Vehicle Telematics Industry
This section covers the major market trends shaping the Commercial Vehicle Telematics Market according to our research experts:
Growing Demand For The Connected Trucks
- The increasing production of light commercial vehicles is helping to propel the connected truck market further. Telematics technology aids in the optimization of a variety of elements, including fuel usage, truck maintenance, and so on. Furthermore, the high adoption rate of modern technologies in the commercial vehicle industry, such as AI, machine learning, advanced driver assistance systems, and others, as well as the growing demand for autonomous trucks, are positively impacting the market's growth.
- According to Ericsson, IoT connections are predicted to increase from 100 million in 2020 to 292 million in 2030 in the transportation industry, with connected devices sending more data and supplementing growth beyond the number of connected devices accessible.
- The growing product innovations are analyzed to significantly contribute to the market. In January 2021, Mix Telematics announced the launch of a new app-based tracking solution for fleets. The system is specifically designed to provide real-time monitoring capabilities to help customers improve driver safety and minimize risks.
- Tata Motors launched the Ultra Sleek T-Series smart trucks in India in March 2021 to address the increased need for urban mobility. These light commercial and intermediate trucks are offered in three different types.
- Volvo Eicher Commercial Vehicles Ltd (VECV) announced the launch of Eicher LIVE, a connected vehicle fleet management system for its BS 6 trucks and buses, in July 2020.
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Asia-Pacific is Analyzed To Grow At Highest CAGR During The Forecast Period
- The Asia Pacific is estimated to hold the highest share in 2021, with a significant growth rate during the forecast period majorly attributed to the presence of large automotive manufacturers in the countries such as China, India, Japan, and so on. The growing government initiatives in the region are further contributing to the market growth rate.
- Vehicles have become increasingly complex during the last decade as consumer preferences, regulations, and technology have evolved. Connectivity, autonomy, shared transportation, and electrification investments will continue to grow. Manufacturing centers will spend to become more agile as product complexity grows while continuing to develop lean manufacturing concepts.
- The Chinese government's support for 5G is a significant reason why automakers are rushing to the nation to develop 5 G-connected vehicles. China's top-down approach and capacity to use state-owned firms to bridge the public-private gap expedites 5G implementation. A clear road map and government funding are helping to create a 5G environment. Volvo and China Unicom collaborated in 2020 to investigate V2X and other 5G use cases.
- The government of India announced in March 2022 that the production-linked incentive (PLI) scheme for the automobile and auto component sectors had attracted investment proposals totaling INR 74,850 crore over the next five years, which is 76.11% higher than the planned target of Rs 42,500 crore. Therefore, the growing manufacturing sector is analyzed to boost the market growth rate.
- Furthermore, the growing partnerships in North America and European regions are analyzed to boost the market growth rate in these regions. For instance, in April 2022, Nationwide, a US insurance firm, announced a new collaboration with fleet management platform Razor Tracking to provide advanced telematics and fleet management services to Nationwide's agriculture customers at a discounted price. Razor Tracking's real-time vehicle telematics devices, dash cams, and subscription prices would be discounted for Nationwide's agriculture customers as part of the alliance.
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