North America Commercial Vehicle Telematics Market (2022-2027) - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Commercial Vehicle Telematics Market is segmented by Product Type (Embedded, Portable and Smartphone).

Market Snapshot

North American commercial vehicle telematics market
Study Period: 2020-2027
Base Year: 2021
CAGR: >15.3 %

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Market Overview

The North American commercial vehicle telematics market is expected to grow with a CAGR of 15.3% from 2022 to 2027. The North American commercial vehicle telematics market refers to solutions and services that employ telecommunication equipment to monitor and operate a commercial vehicle. Commercial vehicle telematics uses GPS and onboard diagnostics technologies to monitor, map, and guide commercial vehicles.

  • Commercial Vehicle Telematics is becoming more popular as the need for safety, security, and comfort grows. Next-generation technology enables the industry participants to provide novel solutions such as fleet/asset management telehealth solutions, navigation, and location-based systems. Government laws, regulations, and compliances for vehicle safety and security support the worldwide Commercial Telematics industry. The increasing adoption of smartphones and connectivity solutions across the North American regions enabled the growth of the Commercial Vehicle Telematics market.
  • The advancement of ADAS (Advanced Driver Assistance Systems) and the increased usage of electric cars are driving up demand for the telematics industry. However, high cost, lack of awareness, and standardized systems are the growing concern for the global commercial telematics market.
  • Since the sensors and capabilities are incorporated directly into the vehicle, OEM (Original Equipment Manufacturer) systems provide high data accuracy and detect vehicle health events during vehicle operation. This gives an appealing option for end users without the need to install additional hardware. It also allows access to information not typically available in aftermarket choices, such as odometer readings.
  • Newmarket challenges have emerged with the increased adoption of Commercial Vehicle Telematics. Security and privacy concerns are a few primary reasons limiting North American commercial vehicle telematics market growth.
  • The transportation and logistics industry was the first to be completely shut down during the COVID-19 lockdown. The most direct effect of COVID-19 on the automotive sector is the standstill of many OEM and supplier factories. However, due to the growing vaccination numbers globally coupled with considerable demand for commercial vehicles, the commercial telematics market is expected to expand significantly in the near future.

Scope of the Report

The North American Commerical vehicle telematics market study covers the key drivers, restraints, and opportunities with a detailed impact analysis. The study also covers existing regulations and frameworks related to the commercial vehicle telematics market.

The scope of the report includes penetration of Product type (Embedded, Portable and Smartphone) in 2021, Prospects of Fleet Management Services Integration, Pricing, and Service Model Analysis – Low-level, Mid-level, and High-level Package (Comparison between hardware cost and service cost), Telematics Installed Base from 2019-2027, Telematics Service Revenue Based on Average Annual Service Package from 2019-2027, Market Breakdown by Vehicle Type (LCV and M/HCV) – 2021 Vs. 2027, Contribution of OEM vs. 3rd Party Telematics Solution Providers – 2021 Vs. 2027.

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Key Market Trends

Smartphone based connectivity services is expected to have more demand in future

  • There is an increasing demand for smartphone-based connectivity services. Automobile manufacturers use connectivity features in their vehicles to increase their automobile sales. Consumers expect their cars to do duties similar to computers and smartphones. Automobile manufacturers have prioritized integrating connectivity solutions into their vehicles. Many connectivity solutions are incorporated into modern cars.
  • Smartphones are primarily a communication medium, but consumers use them for non-communication-related applications, including in-vehicle services. These services generally take the form of an installed app. Like Blackbox applications, a smartphone-based telematics app would not provide good data on how a vehicle functions. Still, it could provide data for assessing an RUC (Road User Change), such as distance traveled and travel location. Due to the widespread utilization of smartphones, these telematics-related services are among the most popular on the market. So the demand for the commercial vehicle telematics market will significantly grow.
North American commercial vehicle telematics market share

Increasing Sales of Electric Vehicles

  • Over the last five years, North America has seen tremendous growth in electric vehicles, especially in the United States. For instance, plug-in electric light vehicle sales in the United States increased by 97%, from 307,590 in 2020 to 607,570 in 2021, According to EERE; US Department of Energy; Argonne National Laboratory. However, EV sales fell somewhat in 2021; though overall vehicle sales in 2021 were flat compared to 2020, the rate of increase since 2013 has been excellent. Even though the worldwide markets crashed in 2020 due to the COVID-19 pandemic, the BEVs segment has witnessed significant growth, and the long-term forecast of BEVs sales is optimistic.
  • The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) in the United States proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule from 2021 to 2026. The proposal may set corporate average fuel economy standards and greenhouse gas emissions for passenger and light commercial vehicles. OEMs must sell clean and zero-emission vehicles under the Zero-Emission Vehicles (ZEV) Program (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). By 2030, the ZEV strategy hopes to have 12 million ZEVs on the road.
North American commercial vehicle telematics market trends

Competitive Landscape

The Commercial Vehicle Telematics market in North America is medium fragmented, with many players actively developing innovative solutions to stay competitive. Key competitors are pursuing product development and strategic partnerships to extend their product portfolios and achieve a significant presence in the North American market. Some key companies in the market include Trimble Inc, Verizon Connect, Samsara, Zonar Systems Inc, and Geotab Inc.   Manufacturers are collaborating and delivering innovative products, resulting in market expansion. Telematics systems and solutions are being offered by enterprises in the market for rail electronics, traffic control, and fleet management.

  • The Commercial Vehicle Telematics market is driven by government regulations that encourage the use of automobile telematics. For instance, The US government signed a contract with Geotab in 2022 to implement fleet management telematics technology in 217,000 vehicles.
  • January 2020 - Geotab has announced the release of its EV Battery Degradation Tool, which uses aggregated data from 6,300 EVs to compare and evaluate battery health in EVs over time. The Geotab Connect 2020 announced that the tool leverages data processed from EVs representing 64 makes, models, and years to illustrate how real-world circumstances affect battery health. Currently, the tool is focused on light-duty vehicles.

Recent Development

  • December 2021 - Zonar, the smart fleet technology pioneer, announced the release of its Light-Duty Telematics Control Unit (TCU), which was developed in collaboration with Continental, a prominent connectivity solution supplier. The Zonar LDTM TCU is built to meet the changing demands of fleets with light-duty vehicles, including access to extensive vehicle telematics data and diagnostics to increase performance, efficiency, and security.
  • April 2022 -Geotab and Surecam have teamed together to offer fleet operations with additional video and telematics capabilities features. SureCam's current version includes a new technique for gathering video footage from SureCam cameras utilizing Geotab's telematics device and rule-based system, resulting in a video display within the MyGeotab platform.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Impact of COVID-19 on the Industry (Business Models, Services, Industries, etc.)

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitutes

    4. 4.4 Existing Regulations and Mandates

    5. 4.5 OEM Telematics Value Chain

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Challenges

  6. 6. MARKET PENETRATION COMPARISION

    1. 6.1 Penetration of Product Types (Embedded, Portable and Smartphone) in 2021

    2. 6.2 Prospects of Fleet Management Services Integration

    3. 6.3 Pricing and Service Model Analysis – Low-level, Mid-level and High-level Package (Comparison between hardware cost and service cost)

  7. 7. MARKET SCENARIO

    1. 7.1 Telematics Installed Base from 2019-2027

    2. 7.2 Telematics Service Revenue Based on Average Annual Service Package from 2019-2027

    3. 7.3 Market Breakdown by Vehicle Type (LCV and M/HCV) – 2021 Vs. 2027

    4. 7.4 Contribution of OEM vs 3rd Party Telematic Solution Providers – 2021 Vs. 2027

  8. 8. COMPETITIVE INTELLIGENCE

    1. 8.1 Vendor Ranking Analysis for 2021

    2. 8.2 Key Stakeholder Profiles - Products, Strategies and Recent Developments

      1. 8.2.1 Verizon Connect

      2. 8.2.2 Geotab Inc.

      3. 8.2.3 Omnitracs LLC

      4. 8.2.4 Lytx Inc.

      5. 8.2.5 Trimble Inc.

      6. 8.2.6 Samsara

      7. 8.2.7 Fleet Complete

      8. 8.2.8 Navistar Inc.

      9. 8.2.9 KeepTruckin Inc.

      10. 8.2.10 Zonar Systems Inc.

      11. 8.2.11 Teletrac Navman

      12. 8.2.12 MiX Telematics

      13. 8.2.13 Webfleet Solutions

  9. 9. KEY OEM SOLUTIONS BENCHMARKING

  10. 10. FLEET OPERATORS/LEASING COMPANIES AND CONTACT DETAILS OF KEY STAKEHOLDERS (DESIGNATIONS & EMAIL)

  11. 11. FUTURE OUTLOOK AND OPPURTUNITY ANALYSIS

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Frequently Asked Questions

The North America Commercial Vehicle Telematics Market market is studied from 2020 - 2027.

The North America Commercial Vehicle Telematics Market is growing at a CAGR of >15.3% over the next 5 years.

Verizon connect, Samsara, Zonar Systems Inc, Geotab Inc., Trimble Inc. are the major companies operating in North America Commercial Vehicle Telematics Market.

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