ABI Research (News - Alert) forecasts that the international shipments of commercial telematics equipment will rise to 6.43 million in 2016, compared to 1.94 million in 2011. North America is continuing to lead the commercial telematics equipment market. A booming automotive industry and economic expansion are pushing the growth of the commercial telematics equipment market in Asia Pacific. These forecasts are part of a survey named ‘Commercial Telematics Research Service’, conducted by ABI Research.

In a release, Dominique Bonte, Senior Practice Director at ABI Research, said that “The renewed post-recession dynamics observed in the commercial telematics industry do not conceal the structural problems which still haunt this vertical industry: extreme levels of fragmentation with too many ‘Me Too,’ ‘dots on a map’ providers and proprietary solutions still dominating the industry. This results in penetration levels remaining low.”

The commercial telematics equipment market seems to be increasingly adopting technology convergence, better business intelligence tools, and using the of SaaS (News - Alert) (Software as a Service) models. Conventional fleet management vendors like Transics, Trimble (News - Alert) and Qualcomm mainly focus on the high-end trucking segment, providing customized solutions through a consultative sales process. Second-tier vendors like TomTom Business Solutions, DigiCore, Pointer Telocation (News - Alert), and Mix Telematics cater to the non-trucking segments like utility, delivery, public and private transport, and oil and gas. These vendors provide more standardized solutions and APIs that are sold indirectly through retailers, distributors, and third party integrators.

The increasing awareness of the benefits of telematics solutions is encouraging the growth of trailer tracking, which was earlier considered a non-important asset. Other growing segments of the commercial telematics equipment market are off-road vehicles, construction, and the public sector market.

ABI Research, established in 1990, offers in-depth analysis as well as quantitative forecasting of trends in emerging technologies and global connectivity. It has offices in Europe, North America and Asia. The company offers more than 30 research and advisory services across the world.
Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Jamie Epstein