Table of Contents
Commercial telematics are vehicle-centric information and communication technologies (vehicle ICTs) and services. While safety and security are the cornerstones of commercial telematics offerings, the current global economic scenario also indicates development of a market for technologies which provide the end-user with a system which ensures ease of driving along with ubiquitous net connectivity without compromising on safety and security. With the fuel prices on the rise, applications that contribute to cost savings, by increasing engine efficiency will become a necessity in the future. Focus has also shifted to information and navigation devices, which experts believe is going to be a big market in the coming days led by the remote vehicle diagnostics market.
As the services offered by telematics systems are quite wide-ranging, this market requires the participation of a number of industries such as Automotive OEMs, which have to come up with economically-viable and high quality telematics systems. These systems again are made of a number of components such as telematics control units, navigation systems, communication devices, audio video interfaces, sensors etc., so electronics manufacturing industries have a major role to play in this segment. Finally the onus to carry out these services falls on the tele-communications industry that are the key to supply mobile data-connections, satellite connections, and also the customer service industry to provide hassle-free 24x7 service to the end-users.
In the current market scenario for commercial telematics, market size is estimated to be around the $14.2 billion mark in 2014. Based on the growth rate seen in the various services and the market share of the major players in this sector, we have forecasted the market numbers for the year 2020.
As the safety of the user is the most important factor, governments in some countries have been considering the idea of implementing compulsory safety measures in passenger vehicles such as emergency notification in case of accidents which include the vehicle making an emergency call to the state helpline, and sending the exact GPS co-ordinates of the place where the accident has occurred. Emergency crash notification and remote diagnostics are preventative measures designed for the anticipation, avoidance and fast reconciliation of troublesome situations. These services include continuous automotive manufacturing systems, non-continuous monitoring systems, diagnostic services as well as communication networks. These services monitor the vehicle information such as oxygen and fuel monitoring and ignition and catalyst monitoring through in-built devices and alert user in case of problems.Telematics insurance applications are becoming more popular as they allow drivers to reduce their premiums. With schemes such as Pay-as-you-Drive (PAYD), Pay-how-you-drive (PAHD) the passenger has the opportunity to save money by avoiding over-priced premiums. Fleet management is one more area wherein telematics play a vital role, as telematics can be used to make the management system more efficient by maintaining a real-time track of all the vehicle in the fleet not only with regards to location, but also with speeds, uptime, downtime etc.,. Fleet Telematics System (FTS) facilitates the exchange of information between a commercial fleet of vehicles and their central authority i.e., their dispatch office. With high fuel prices in the market, implementation of telematics systems seems like a logical step especially in fast growing markets like China. For service providers looking to expand to markets that have yet to reach maturity, China and other developing markets (especially in Asia-Pacific) provide an ample scope of opportunities in the future.
As a healthy growth has been forecasted for the commercial telematics industry, it has generated a lot of interest in the automotive, tele-communications and information technology segments as companies look to gain a foot-hold in this market Major players in these industries are either investing into the R&D of their own telematics platform or are collaborating with already existing commercial telematics suppliers to to produce vehicular telematics systems.
Key Players in Telematics Services:
Astrata Group (Omnitracs)
Fleetmatics and others
This market is oligopoly in nature and is highly fragmented. The report also highlights the developments taking place in the market such as improvement of security of telematics systems by identifying the ad hoc security communication issues plaguing the market. In order to assist Vehicle to Vehicle (V2V) and Vehicle to Infrastructure (V2I) communication, a Vehicle Link layer standard was introduced. This Link Layer enhances the geographical addressing, security of communication and multihop forwarding feature thereby facilitating improved intra vehicular wireless communication. Another key standard introduced is a standard randomized MAC address in order to improve privacy and security of information and the network. The co-operative vehicle infrastructure (CVIS) project has focused on development of standards for the components in a telematics system and various initiatives that drive cooperation, communication, safety and efficiency of vehicles and their movements. These standardizations and other communication and integration platform unifications are analyzed to understand the growth and opportunity prospects of the commercial telematics market.
Please note: this report requires certain updates. We have all the information available but require 2 business days to complete the process and ensure it is as up-to-date as possible.
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