LONDON--(BUSINESS WIRE)--The global on-board diagnostics (OBD) telematics market is expected to grow by USD 1.74 billion during 2020-2024. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. The impact can be expected to be significant in the first quarter but gradually lessen in subsequent quarters – with a limited impact on the full-year economic growth according to the latest market research report by Technavio. Request a free sample report
Fleet telematics systems have become an integral part of modern fleets owing to their ability to enhance efficiency. Hence, fleet operators adopt third-party fleet telematics systems based on their requirements. However, installation of telematics devices can consume additional time and resource. This has led commercial vehicle manufacturers to provide OBD telematics systems. Prominent commercial vehicle manufacturers are collaborating with key telematics system providers to preinstall telematics systems in their vehicles, thereby eliminating the need to spend an additional amount on the development of an in-house system. For instance, in 2018, AB Volvo collaborated with Trimble to develop OBD telematics systems for Volvo Trucks, which would be sold in North America. Such developments allow the integration of third-party telematics services on OEMs’ telematics platforms through OBD systems. This development is expected to drive the growth of the global OBD telematics market during the forecast period.
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As per Technavio, increasing penetration of 5G technology will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other significant trends and market drivers that will influence market growth over 2020-2024.
On-Board Diagnostics (OBD) Telematics Market: Increasing Penetration of 5G Technology
Internet access is an integral part of modern vehicles, and its adequate performance allows the seamless operation of telematics applications. During the forecast period, the automotive market is expected to witness a shift from the fourth-generation (4G) long-term evolution (LTE) to 5G technology, which can generate data 33 times faster than 4G LTE. In addition, latency is expected to drop to about one-tenth of the current speed. Additionally, the adoption of 5G technology will allow software updates at a faster speed than while using 4G LTE through over-the-air (OTA) networks. This will enable the efficient operation of advanced telematics applications, such as truck platooning and emerge as a crucial revenue generator in the global OBD telematics market.
“Factors such as the standardization of telematics platform through next-generation telematics protocol (NGTP), and the use of advanced analytics to optimize vehicle efficiency will have a significant impact on the growth of the OBD telematics market value during the forecast period,” says a senior analyst at Technavio.
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On-Board Diagnostics (OBD) Telematics Market: Segmentation Analysis
This market research report segments the on-board diagnostics (OBD) telematics market by type (passenger cars and commercial vehicles) and geography (APAC, Europe, MEA, North America, and South America).
The North American region led the on-board diagnostics telematics market share in 2019, followed by Europe, APAC, South America, and MEA respectively. During the forecast period, the North American region is expected to register the highest incremental growth due to factors such as favorable regulations, consumer demand, technological focus, innovation, industrial stability, and affordability.
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Some of the key topics covered in the report include:
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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