Commercial Telematics Market Report 2025

The commercial telematics market size has grown rapidly in recent years. It will grow from $54.85 billion in 2024 to $64.14 billion in 2025 at a compound annual growth rate (CAGR) of 16.9%. The growth in the historic period can be attributed to initial adoption challenges, legacy systems replacement, evolving consumer behavior, demonstrated ROI, rise of IoT and big data.

The commercial telematics market size is expected to see exponential growth in the next few years. It will grow to $134.11 billion in 2029 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to shift towards sustainability, industry-specific applications, increasing demand for real-time insights, cost efficiency demands, emergence of autonomous vehicles. Major trends in the forecast period include connectivity evolution, fleet management optimization, safety and compliance, data analytics and ai, integration with autonomous vehicles.

The rising sales of commercial and passenger vehicles are projected to drive the growth of the commercial telematics market in the future. Economic expansion and technological advancements have led to an increase in the demand for both commercial and passenger vehicles. As economies grow, consumers gain more purchasing power, resulting in higher demand for transportation services and automobile sales. Additionally, fleet managers are attracted to vehicles equipped with advanced safety systems and telematics solutions, which enhance vehicle appeal, efficiency, and operational effectiveness. For example, in January 2024, the International Organization of Motor Vehicle Manufacturers, a trade association based in France, reported that commercial vehicle sales reached 12,892,621 units in 2023, a significant rise from 11,371,749 units sold in 2022. Similarly, passenger vehicle sales increased from 2,858,575 in 2022 to 3,116,647 in 2023. Both segments experienced substantial growth, indicating a robust recovery and rising demand in the automotive sector. Therefore, the growing sales of commercial and passenger vehicles are fueling the expansion of the commercial telematics market.

The commercial telematics market is poised for growth, propelled by the expanding e-commerce industry. E-commerce, involving online buying and selling of goods and services, utilizes commercial telematics to enhance operational efficiency, enhance safety, and optimize delivery processes. The e-commerce sector witnesses increased transactions, and the adoption of telematics solutions contributes to improved business operations. For instance, in August 2023, the United States Census Bureau reported a 7.5% increase in e-commerce estimates for the second quarter of 2023 compared to the same period in 2022. Online sales accounted for 15.4% of total sales during the second quarter of 2023. This data underscores the growing significance of the e-commerce industry in driving the commercial telematics market.

Technological advancements are a prominent trend in the commercial telematics market, with companies actively innovating to maintain their market positions. For example, in December 2022, ATrack Technology Inc., a Taiwanese telematics hardware manufacturer, introduced the AK300 LTE vehicle tracker. This device enhances fleet management efficiency by offering real-time vehicle tracking with detailed information on positioning, mileage, speed, fuel consumption, and engine status. It also detects abnormal vehicle conditions and negative driving behaviors, allowing fleet managers to perform preventive maintenance and improve driver conduct.

Leading companies in the commercial telematics market are prioritizing innovative solutions such as Commercial Pulse, a comprehensive telematics AI system for commercial vehicles. Commercial Pulse, developed in-house, provides real-time vehicle location, driver safety information, battery state of charge, and more. In September 2023, Mullen Technologies launched Commercial Pulse as part of its fleet telematics software. This solution aims to maximize vehicle uptime, equip businesses with tools for efficient fleet management, and streamline operations. The system is accessible through two mobile applications, Mullen Commercial Pulse Fleet and Mullen Commercial Pulse Driver, currently available for the Mullen One (all-electric Class 1 cargo van) and the Mullen Three (all-electric Class 3 low-cab forward).

In March 2023, Cambridge Mobile Telematics, a US-based software company, completed the acquisition of Amodo for an undisclosed amount. This strategic move merges two telematics companies with significant footprints in Europe, providing Amodo's clients with access to Cambridge Mobile Telematics' extensive resources and expertise. Amodo, based in Croatia, is recognized for developing an insurance telematics platform focused on establishing direct digital channels and delivering customer behavior analytics.

Major companies operating in the commercial telematics market include Geotab Inc., Masternaut Limited, MiX Telematics Limited, Omnitracs LLC, TomTom International BV, Verizon Communications Inc., American Telephone and Telegraph Company, OnStar Corporation, Bayerische Motoren Werke AG, Zonar Systems Inc., Inseego Corporation, Vontier Corporation, Microlise limited, Solera Holdings Inc., Continental AG, Daimler AG, Karooooo Ltd., Michelin SCA, CalAmp Corp., Fleetmatics Group PLC, Garmin Ltd., Transics International NV, Trimble Navigation Limited, Webtech Wireless Inc., Wireless Matrix Corporation, XRS Corporation, Actsoft Inc., AirIQ Inc., AssetWorks LLC, Autotrac Comércio e Telecomunicações Ltd., Azuga Inc., Blue Tree Systems Ltd., CarrierWeb LLC.

North America was the largest region in the commercial telematics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global commercial telematics market report during the forecast period. The regions covered in the commercial telematics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the commercial telematics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Commercial telematics involves the utilization of technology to gather data pertaining to the operation of commercial vehicles, encompassing trucks, buses, and delivery vans. This data encompasses details about the vehicle's location, speed, fuel consumption, engine performance, and driver behavior, among other relevant parameters.

Commercial telematics is categorized into two main types, solutions and services. A solution refers to a specific approach or method designed to address a particular problem or challenge. It entails providing a comprehensive and effective resolution to a specific issue or requirement. These solutions are offered in various system formats, including embedded, tethered, and smartphone-integrated solutions, which are delivered through original equipment manufacturers (OEM) and aftermarket channels. Commercial telematics solutions find application across diverse end-user sectors, such as transportation and logistics, insurance, healthcare, media and entertainment, vehicle manufacturers or dealers, government agencies, and other entities.

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The commercial telematics market includes revenues earned by entities by providing services including vehicle tracking, remote diagnostics and maintenance monitoring, fuel management and optimization, and driver behavior monitoring and coaching. The primary goal of commercial telematics is to improve the efficiency and safety of commercial vehicle operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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