News on U.S. government agencies, U.S. politics, companies doing business with U.S. federal government. Read U.S. national and local news. This site is not affiliated with United States Government.
(USGovernment-News.Com, October 28, 2019 ) The Commercial Vehicle Telematics Market expected to grow from $7.31 billion in 2017 to $18.43 billion by 2022 at a Compound Annual Growth Rate (CAGR) of 20.3%, as per a report by MarketsandMarkets.
The major drivers of the commercial vehicle telematics market include increasing adoption for the Next-Generation Telematics Protocol (NGTP) enhancing the telematics service delivery, proliferation of telematics technology due to decreasing sensor and connectivity cost, growing government mandate for deploying vehicle tracking in commercial vehicles, and rising demand for smartphones supplementing the adoption of telematics solutions and services.
How ELD mandate offers a new revenue stream opportunity for the existing vendors?
The Federal Motor Carrier Safety Administration (FMCSA), an agency in the US Department of Transportation, has mandated the use of ELD for most commercial vehicles, no later than December 18, 2017, and a 2-year window till December 16, 2019 has been provided for the vehicles that already have electronic logging devices in place to update the device as per the FMCSA-ELD technical specifications. An ELD synchronizes with a vehicle engine to automatically record the driving time, for easier, more accurate Hours of Service (HOS) recording. The ELD is expected to replace paper logs and an earlier type of recorder, known as Automatic On-Board Recording Device (AOBRD). This mandate has opened up a new revenue stream for the telematics providers. As per the information by the existing vendors, around 3 million vehicles are likely to be impacted. This has propelled the need for introducing new products and services, which are scalable to meet the present as well as future regulations. For instance, Fleetmatics, a software-as-a-service fleet management provider, announced Logbook app for iOS. This app would automatically record the HOS, once the driver logs in and starts driving, and this app will be updated based on future regulatory requirements. The vendors are now becoming ELD ready and offering ELD solutions and services. In addition, many vendors are emphasizing on the sale of AOBRD devices, as they have been exempted for 2 years for upgradation or replacement.
Why complete network coverage and elimination of blind spots remain a challenge?
Telematics solutions and services require a network or satellite coverage to function at high efficiency. This coverage is provided either through relay towers or satellite networking. However, there exists various spots and locations that have not yet been tapped by the network coverage. Such locations or patches are known as blind spots. When vehicles pass through these patches, communication is hampered due to inconsistent network coverage, thus hampering the overall efficiency of the telematics systems for a certain period of time. This issue has been a major challenge for the growth of this market, as the emerging economies in regions such as APAC, MEA, and Latin America constitute a major part of their land masses, which are blind spots for network coverage. Overcoming this challenge will not only help the telematics industry to grow further, but also help the overall network-based solutions and systems industries, such as telecom, networking, and IT, to flourish in these regions.
The scope of this report covers the commercial vehicle telematics market analysis by type (solution and service), provider type, vertical and region. The safety and compliance solution segment is expected to grow at the highest CAGR during the forecast period. The major factor for its growth is the increased demand for driver and vehicle safety along with adherence to compliance. Government throughout the globe have slowly started forming policies and regulations for the traffic and transport management focusing on the technological aspect. Various governments across the globe have passed regulations to define the driver work hours, fuel efficiency and consumption, safety policies, laws and others. Commercial vehicle telematics solution providers offer solutions which integrate the compliance aspect into them.
About MarketsandMarkets™
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, and strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets’s flagship competitive intelligence and market research platform, "Knowledge Store" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Industry resource center today to browse our selection of 600+ complimentary Industry magazines, white papers, webinars, podcasts, and more. Get popular titles including:
