Emerging Applications to Drive Growth in the Commercial Vehicle Telematics Market, According to New Report by Global Industry Analysts, Inc.
San Jose, California (PRWEB) March 26, 2012
Follow us on LinkedIn As connected vehicle technologies merge into the mainstream market, commercial vehicle (CV) telematics ecosystem is poised to witness refining technology developments, and expansion in application services. Third generation telematics services are expected to gradually make their presence felt in the telematics space. The novel services would be a combination of a host of innovative functionalities including driver interactive vehicle applications (DIVA), vehicle relationship management (VRM), valuable inputs about vehicles surrounding environment, voice-activated Web access, and diagnostics information related to performance of the vehicle. As cars become more technologically advanced and even complex, they would increasingly depend upon driver information systems that act as user interface for both on-board and off-board information. The growing use of embedded controllers has more or less acted as a catalyst for Telematics, which means that varied kinds of onboard and off-board diagnostics, inclusive of the downloadable ones, and other updates can move via wireless technology between the automobiles and service providers.
The trucking industry continues to remain the largest and most lucrative end-user of CV telematics. Deregulation of the trucking industry in the US and the ensuing competition has positively impacted the market, as companies leveraged telematics enabled fleet information systems to compete and differentiate themselves in the marketplace. Pushed against the wall to generate cost savings, greater efficiencies and conform to stringent delivery requirements, trucking companies are turning to telematics as a panacea for solving operational issues of commercial and private fleets. As fleets and transportation industry become more conversant and dependent upon vehicle electronics and wireless data networks, its opportunities galore in this space.
Government intervention will also support growth in the upcoming years. For instance, governments across the world are emphasizing on the use of telematics technologies to tackle safety and traffic congestion issues. Legislations that mandate the use of telematics for quicker emergency response is helping drive demand for telematics hardware. Interest from automakers also promises to offer opportunities on a platter. The importance of telematics can be put into perspective by the belief that in the future consumer loyalty to automotive brands will be influenced by connected vehicle services supported by auto OEMs. Auto manufacturers are quickly and smartly latching onto the opportunity to transform their static map-readers into intelligent devices that can offer a host of services such as traffic avoidance. Telematics systems in the commercial vehicle segment are expected to increase significantly on account of OEMs efforts to differentiate their product offerings from competitors. With telematics systems, vehicle owner can improve route planning, effectively analyze, monitor, and optimize driver behavior, and consumption of fuel for operation cost optimization.
While the automobile industry in most regions across the world is continuing to recover from the 2007-2009 world recession, the industry in Europe is running into fresh set of challenges. The European automobile industry currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering auto industry in the region. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region. At the extreme pessimistic end of the spectrum, bearish market outlook indicates that multiple defaults by debt ridden economies could trigger a collapse of the Euro as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession. A more balanced outlook is the possible exit of the debt ridden economies, Portugal, Italy, Ireland, Greece and Spain, from the European Union. A return to local currencies, which would be massively devalued, will also bring in critical implications for the industry in Western Europe.
The odds are in favor of the automobile industry given the current guarded optimism over the governments latest attempts to rein in the debt crisis, which in effect discounts the impact of a possible Eurozone crisis, which is still not confirmed as a technical recession. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases, and shrewd expansion into developing countries to minimize risk exposure in domestic markets, now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown.
Nevertheless, auto makers in the region remain concerned and are continuing to lobby for a quicker intervention of the European leaders in resolving the debt crisis. Currently, however production continues to hold up even in the face of weaker than expected growth and optimism remains with no downgrade in the outlook for auto production. Although short-termed, concerns of the automobile industry are currently alleviated with news about the governments in EU legislating additional bailouts which in effect kicks the EU debt can further down the road. Although these short-term solutions do not provide a permanent solution to the crisis and in reality indicates deferring of conclusive, corrective action, market sentiments are nevertheless encouraged.
As stated by the new market research report on Commercial Vehicle Telematics, United States ranks as the largest market worldwide. Asia-Pacific is forecast to witness the strongest growth trailing a projected CAGR of 22.5% over the analysis period.
Major players in the marketplace include AirIQ, ETAS Group, OnStar Corporation, Agero Inc., QUALCOMM, WebTech Wireless, Ctrack, Trimble Transport & Logistics and Wireless Matrix Corporation, among others.
The research report titled Commercial Vehicle Telematics: A Global Strategic Business Report announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in US$ Million) for major geographic markets including the United States, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. North American and European markets are further analyzed by Telematics (TM) Hardware and TM Services.
For more details about this comprehensive market research report, please visit
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.
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