Europe Telematics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Telematics Market is segmented by Vehicle Type (Commercial, Passenger).

Market Snapshot

Europe Telematics Market Overview
Study Period: 2019- 2026
Base Year: 2021
CAGR: 12.2 %
Europe Telematics Market Key Players

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Market Overview

The Europe Telematics Market is estimated to grow at a CAGR of about 12.2% over the forecast period 2021 to 2026. Also, amidst the pandemic COVID-19, with many businesses expected to be forced into cutting down the expenses leveraging the aggregate data from their vehicles through telematics can help identify the flaws such as overlapping journey upon which businesses can re-strategize both their delivery and sale territories and avoid duplicated trip to potentially reduce the number of vehicles required to the same run operations.

  • One of the primary drivers for the growth of the market in the region is the growing number of accidents caused on the EU roads with a large proportion of victims as the WHO data suggest were victims of work-related road collisions; this has led the government bodies to update their legislation concerning the safety and well-being of the employees with health & safety authorities issuing improved guidance for organizations to help them abide legal responsibilities and encourage them to manage road safety for the workers provocatively.
  • The adoption of mobile resource management and machine-to-machine has led to the utilization of the telematics ecosystem. Furthermore, industries, such as oil, gas, mining, utilities, food, courier delivery, construction businesses, waste management, police and emergency organizations, and transit fleets, such as motorcoach, public transit, taxi, and paratransit are widely employing telematics primarily for movements of workforce and goods across their area.
  • Further, the data generated by the vehicles gives the end-users valuable information to improve their efficiency by avoiding congestion, creating lower stress driving environments, and also the environmental impact on the vehicles, unlike traditional data tracking systems that only provide insight into driver behavior and real-time vehicle location.
  • For instance, a study conducted by ford that tracked light commercial vehicles for a year in London found that one of its test fleets could have saved up to 30 hours per week by setting out two hours earlier in the morning. Such insights could drive companies to gain sustainable productivity. Also, a parallel study conducted on privately owned cars for 12 months with cross-referencing the journey with public transport timetables found that 20% of trips would have been quicker by utilizing public transport. Thereby It also suggests businesses' insights on the saving alternatives.
  • The cost of telematics systems, including installation, maintenance, feedback provision, continues to be one critical factor hindering the market growth in the region. However, studies show that it is more than likely that the reductions in the other costs, such as fuel damage, insurance premiums, would compensate for the initial start-up costs. Also, the European Commission study of vehicle technologies found that the use of event data recorders has a positive benefit-cost ratio.

Scope of the Report

Telematics refers to the set of technologies used to monitor a wide range of information concerning an individual vehicle or fleet. A Telematics system is able to gather the information, including driver behavior, location, engine diagnostics, vehicle activity, and help the fleet operators to visualize the data generated on the software platform to manage their resources. The scope of the study includes the type of vehicle, including passenger and commercial.

The scope of the study is limited to the commercial and passenger vehicle market. The commercial vehicle segment covers LCV and M&HCV vehicles as part of the market study. Buses and off-highway vehicles are excluded from the study scope.

The types of telematics solutions considered in the scope of the study are embedded, portable, and independent smartphones made available through various business models, including contract/leasing, purchasing, and profit-sharing. The market share for the countries (commercial vehicle) is derived considering the penetration rate of telematics in the specific LCV and M&HCV market of the total operational vehicles in the respective segment.

Commercial
Current Market Scenario and Installed Base from 2019-2025
Penetration of LCV Vs. MCV/HCV
Telematics Service Revenue Analysis from 2019-2025
Country-wise Analysis – Trends, Installed Base from 2019-2025 and List of Aftermarket Solution Vendors by Country
United Kingdom
Germany
France
Russia
Spain
Rest of Europe
Passenger
Current Market Scenario and Installed Base of Embedded OEM Telematics Systems from 2019-2025
Country-wise Analysis – Qualitative Analysis of Trends and Dynamics

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Key Market Trends

Commercial Vehicles to Hold Major Market Share

  • The Demand for technology enabling the safety, navigation, and remote diagnostic is elevating the commercial vehicle space. The primary drivers of commercial vehicle telematics remain the European Union regulations, Local policy regulations, Increase in production number of commercial vehicles, small profits margins in the transportation industry added with advancements such as route calculation, vehicle tracking, fuel pilferage is driving the growth of the market.
  • Owing to such instances, global telematics vendors invest in the region through partnerships and acquisitions as their competitive advantage. For Instance, in November 2019, Geotab Telematics, a telematics provider, announced the acquisition of Intendia. This Spanish engineering firm is primarily engaged in integrating tech solutions for the European heavy-truck market. This acquisition leverages the company's engineering capabilities and complements the product portfolio as the company aims to expand its growth opportunities in Europe.
  • Moreover, the commercial vehicle industry is offering new products with telematics to attract various customers in the market. In September 2021, UD Trucks unveiled a new Euro-5 range for the well-established Quester (heavy-duty) and Croner (medium-duty) trucks. The trucks are connected and business-ready with innovative UD telematics. This high-tech wireless communications system allows transportation companies to maximize efficiency with real-time vehicle tracking and geofencing.
  • Going Forward, according to study ordered by Fédération Internationale de l'Automobile suggests that current models allowing access to the vehicle data would potentially cost European consumers and aftermarket service providers EUR 65 billion per year by 2030, owing to this, several OEMs in the region are starting to developing their own models for remote access to vehicle data leveraging service providers.
  • For instance, In May 2021, ALD Automotive partnered with Munic to provide them with OBD-II dongles and a data platform, supporting the global rollout of the connected car solution ALD ProFleet. ALD ProFleet delivers a connected car solution that provides fleet managers, and drivers access to real-time connected car data to monitor overall fleet activity, including preventing prolonged vehicle downtime, applying geofencing policies, managing CO2 emissions, locating stolen vehicles, and identifying fuel optimization opportunities.
  • Further, with the adoption of Next-generation telematics protocol (NGTP), Advanced Driver Assistance System (ADAS), and the automotive industry integrating and deploying telematics for non-traditional usages such as in the UK, telematics is primarily used for usage-based Insurance (UBI) is expected to foster the market growth in the region.
Europe Telematics Market Trends

Fleet Management Service to Hold Major Market Share

  • Amongst all of the services offered by the Telematics solution by vendors, including services such as emergency calling, On-road assistance, driver behavior, billing service, navigation, the fleet management service is expected to hold significant market share as it is considered to be one vital service and also the factors in the region such as changing mobility, adoption of self-driving cars and also the inclination of people towards renting vehicles rather than owning them.
  • For instance, In December 2020, Ford Fleet Management, the company launched by Ford and ALD Automotive, two leading global mobility solutions providers, launched its solution in the United Kingdom. Ford Fleet Management intends to maximize fleet productivity for customers who seek bespoke services with minimum downtime, backed by the strong collaboration expected from the market-leading commercial vehicle brand in the United Kingdom and Europe, and a global fleet and funding management provider.
  • Such instances are pushing the OEMs to pursue opportunities for the growing demand for fleet management services in the region and are driving significant investments. For instance, In April 2020, Autofleet, a startup that primarily developed fleet optimization software to redirect underused vehicles into delivery and ride-hailing services has raised USD 7.5 million in seed and Series A funding led by MizMaa Ventures with participation from Maniv Mobility, Liil Ventures, and Gear Ventures to expand its operation to international markets and support its research.
  • The increasing preference for a safer driving alternative, as well as considerable government support, in terms of policy and regulation creation, for the integration of such systems in automobiles are the key drivers driving the expansion of the German automotive telematics business. In February 2021, German Equity Partners V made a partnering investment in the telematics software supplier YellowFox GmbH for an unknown amount. YellowFox provides cloud-based SaaS software solutions for digital fleet and object management that enable significant productivity and cost savings while also ensuring regulatory compliance. All sectors, fleet sizes, and vehicle kinds can benefit from the solutions. This investment will propel the telematics expert into the next phase of growth.
  • Further, Amidst of global pandemic COVID-19, with asset-heavy businesses such as rental companies experiencing their business upend, fleet management vendors are developing new use cases for their users to help the companies shift fleet to meet the increasing demand for logistic and medical transportation and thereby fostering the market growth.
Europe Telematics Market Forecast

Competitive Landscape

The European Telematics market is moderately competitive and consists of a significant number of global players leveraging investments, acquisitions, partnerships with local fleet manufacturers to capture the market share. Also, Manufacturers are focusing on improving product quality by increasing the relevance associated with buyers. Key Vendors include Verizon, WebFleet, Abax, Masternaut, and Targa Telematics, among others. A few recent developments in the marketplace include;

  • May 2021 - Webfleet Solutions, Europe's telematics solutions provider, expanded its geographical footprint into Hungary. The Bridgestone-owned company will offer customized solutions and services to fulfill the needs of the local business fleet sector with its new presence in Budapest. As a first step, the company's WEBFLEET fleet management technology, connected with the Hungarian electronic toll system HU-GO, is available in Hungarian.
  • November 2021 - GM Europe entered the market by leveraging its USD 35 billion investment in electric and autonomous vehicles and would include opportunities for mobility products, freight, and software services. The products include the BrightDrop EP1, an electrified and connected pallet developed to transport goods and services over short distances, and BrightDrop EV600, an all-electric light commercial cargo van purpose-built to deliver goods and services along with the mid-size EV410.
  • June 2021 - Ford expanded its connected uptime system to European fleet operators by introducing Ford Telematics Essentials, a complimentary new fleet management tool designed to help increase the productivity of connected commercial vehicles. Delivered by Ford Pro, FORDLiive is a key pillar of the automaker's always-on relationship with customers to help enhance their fleet operations.

Recent Developments

  • June 2021 - Masternaut launched its MoveElectric solution to support the management of company fleets as they transition from internal combustion engines (ICE) to electric vehicles (EVs). Masternaut's MoveElectric transition tool enables fleet managers to identify which journeys could be carried out by an EV instead of an ICE vehicle, based on parameters that reflect business needs and working patterns.
  • May 2021 - Volvo trucks and Lytx Partnered to boost safety and performance with video telematics. Onboard technology from Lytx is expected to be available on all model-year 2022 or newer Volvo trucks as a factory-installed option. The integration of this technology reinforces Volvo Trucks' vision toward zero accidents and commitment to offering the latest safety features for its customers.
  • February 2021, ABAX and Linkway announced a partnership that enables carriers using ABAX telematics to share positions with principals easily. The integration results from data sharing and opens new opportunities and services, which increases the number of features of the solution.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

      6. 4.3.6 Market Drivers

        1. 4.3.6.1 Increasing usage of connected cars services

      7. 4.3.7 Market Restraints

        1. 4.3.7.1 Threats to Data Security in the form of Data Hacking

    4. 4.4 Existing Policies and Norms

    5. 4.5 Key Operational Challenges of Fleet Managers in Europe

    6. 4.6 Most Widely Used Non-Telematics Solutions in Europe

    7. 4.7 Assesment of the Impact of COVID-19 on the Industry

    8. 4.8 Technology Snapshot and Pricing Analysis

      1. 4.8.1 Solution Type (Embedded, Portable, Smartphone) & Pricing Model Analysis

      2. 4.8.2 Business Models

  5. 5. MARKET SEGMENTATION

    1. 5.1 Commercial

      1. 5.1.1 Current Market Scenario and Installed Base from 2019-2025

      2. 5.1.2 Penetration of LCV Vs. MCV/HCV

      3. 5.1.3 Telematics Service Revenue Analysis from 2019-2025

      4. 5.1.4 Country-wise Analysis – Trends, Installed Base from 2019-2025 and List of Aftermarket Solution Vendors by Country

        1. 5.1.4.1 United Kingdom

        2. 5.1.4.2 Germany

        3. 5.1.4.3 France

        4. 5.1.4.4 Russia

        5. 5.1.4.5 Spain

        6. 5.1.4.6 Rest of Europe

    2. 5.2 Passenger

      1. 5.2.1 Current Market Scenario and Installed Base of Embedded OEM Telematics Systems from 2019-2025

      2. 5.2.2 Country-wise Analysis – Qualitative Analysis of Trends and Dynamics

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Webfleet Solutions B.V.

      2. 6.1.2 Verizon Connect

      3. 6.1.3 ABAX UK Ltd.

      4. 6.1.4 Masternaut Limited

      5. 6.1.5 Targa Telematics S.p.A

      6. 6.1.6 Gurtam Inc.

      7. 6.1.7 Viasat Group

      8. 6.1.8 MiX Telematics Limited

      9. 6.1.9 Bornemann AG

      10. 6.1.10 Teletrac Navman US Ltd.

      11. 6.1.11 Diamler AG

      12. 6.1.12 Volvo Group

      13. 6.1.13 Scania AB

      14. 6.1.14 Man Truck & Bus SE

      15. 6.1.15 DAF Trucks N.V.

    2. *List Not Exhaustive
    3. 6.2 Vendor Ranking Analysis

      1. 6.2.1 Commercial Telematics Vendor Ranking – 2019

      2. 6.2.2 Commercial OEM Telematics Vendor Ranking – 2019

    4. 6.3 Key Stakeholder Profiles

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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Frequently Asked Questions

The Europe Telematics Market market is studied from 2019 - 2026.

The Europe Telematics Market is growing at a CAGR of 12.2% over the next 5 years.

Webfleet Solutions B.V., Verizon Connect, ABAX UK Ltd., Masternaut Limited, Targa Telematics S.p.A are the major companies operating in Europe Telematics Market.

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