DUBLIN--(BUSINESS WIRE)--The "Telematics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The telematics market is expected to register a CAGR of 20.7% over the forecast period from 2021 to 2026. By enabling the capabilities of telecommunication and information technology, telematics is now being used across various industries for adequate transportation and logistics purposes. Recently, the application's focus has shifted from vehicle location and routing to solutions focused on drivers and their safety. By monitoring the driving behavior, vehicle health and maintenance intervals, telematics solutions help minimize accidental incidents, speeding tickets, and downtime.
Key Market Trends
Smartphone Solution is Expected to Hold a Major Market Share
- Smartphone telematics uses GPS and mobile phone sensors to collect data about driver behavior, location patterns, and apply it to urban transportation, insurance, fleet logistics, automotive, and other market verticals. This information helps to analyze crucial metrics like locations, geo zones, driving style, performance, and points of interest.
- There are many advantages of smartphone telematics, such as reducing the cost of adopting UBI technology while retaining the benefits of usage-based insurance. The data collected through it remains highly accurate, while the insurance company does not have to pay for the manufacturing and distribution of UBI hardware. The shift to smartphone-based UBI policies is helping the insurance providers reduce their operating costs, increase their profit margin, and pass some of their savings on to clients.
- TrueMotion, a Boston-based start-up, harnesses mobile technology's power to improve driving habits, including distracted driving. The company reports that it has reduced distracted driving up to 20% through safe driving programs. The start-up also developed a way of getting driving data from sensors on smartphones when the car insurer started to move away from the plug-in devices it uses in its Snapshot usage-based insurance (UBI) program.
- Moreover, Zurich insurance company ltd and Driveway software launched a smartphone-based telematics platform to power new mobility solutions. Zurich driver uses Driveway's telematics platform to analyze data collected from smartphone sensors. The app automatically detects driving and score drivers on excessive speeding and aggressive braking, acceleration, and cornering. It also measures the driver's phone distraction and provides feedback to drivers about their phone use while driving, encouraging distraction-free driving.
Asia-Pacific is Expected to Witness Significant Growth
- With the emergence of electric vehicle and autonomous vehicles technology, the automotive industry is witnessing a massive transformation including the development of new areas such as Advanced Driver Assistance System (ADAS), Mobility-as-a-Service providers (MaaS) and CASE, the entry of new industries utilizing IoT technology, and the emergence of new services such as ride-sharing and car-sharing. All these applications require fast data transmission, analysis, and implementation. All these factors are mainly driving the growth in the Asia Pacific telematics market.
- The regional government is also playing a significant role in the studied market growth. For instance, in January 2019, the Indian government released a new AIS 140 Motor Vehicles Order that mandates all new public transport vehicles in the country (excluding taxis and rickshaws) to be fitted with location tracking devices and emergency panic buttons. In April 2020, the Chinese Ministry of Ecology and Environment (MEE) has published a draft regulation on heavy-duty vehicle telematics (remote OBD, OBD III) telematics is required for all HD vehicles.
- According to a study conducted by market vendor Tech Mahindra, to understand the buying behavior and level of awareness of automotive telematics technologies in India, 90% of respondents preferred buying a vehicle with telematics capabilities (in a four-wheeler), 45% of respondents deemed it necessary to use telematics for safety and security, and 65% of respondents are comfortable with sharing their location details and driver behavior with fleet managers.
The Global Telematics market is moderately fragmented and consists of a significant number of players actively launching new solutions to maintain market relevance. Companies such as AT&T, Verizon and Cisco currently actively involved in the deployment of telematics across regions. Manufacturers are collaborating and delivering new products, which are leading to the growth of the market. The companies in the market are offering their telematics systems and solutions to rail electronics solutions, traffic management solutions, and fleet management.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rise in Connected Devices
5.1.2 Huge Demand of Easy Vehicle Diagnostics
5.2 Market Restraints
5.2.1 Threat of Data Breaches
5.2.2 High Costs Associated With Installations
5.3 Technology Snapshot
6 MARKET SEGMENTATION
7 COMPETITIVE LANDSCAPE
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
Companies Mentioned
- Mix Telematics
- AT&T Inc.
- Geotab Inc.
- Verizon Telematics
- Cisco Systems Inc.
- Aplicom Oy
- Microlise Ltd
- LG Electronics Inc.
- Trimble Inc.
- Ctrack Global (Inseego Corp. Company)
For more information about this report visit https://www.researchandmarkets.com/r/bu36be
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