Commercial Vehicle Telematics Market Report 2025

The commercial vehicle telematics market size has grown rapidly in recent years. It will grow from $69.39 billion in 2024 to $79.91 billion in 2025 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to regulatory mandates, fleet management optimization, cost reduction and operational efficiency, rise in e-commerce and logistics, and demand for real-time data and analytics.

The commercial vehicle telematics market size is expected to see rapid growth in the next few years. It will grow to $147.03 billion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth in the forecast period can be attributed to growth in connected vehicles, rising demand for last-mile delivery services, focus on green and sustainable fleets, expansion of autonomous vehicles, and demand for predictive maintenance. Major trends in the forecast period include enhanced cybersecurity measures, a telematics-as-a-service (TaaS) model, telematics for EV optimization, real-time traffic management solutions, and integration with cloud-based platforms.

The rising demand for electric vehicles is anticipated to drive the growth of the commercial vehicle telematics market in the future. Electric vehicles (EVs) are defined as vehicles powered by one or more electric motors, using electrical energy stored in rechargeable batteries or sourced from an external supply. Telematics in electric vehicles collects and transmits data regarding the vehicle's performance, location, and other aspects, enhancing the efficiency and safety of EVs. For example, the International Energy Agency, a France-based intergovernmental organization, reported that in 2023, electric car sales rose by 3.5 million units compared to 2022. Electric vehicles accounted for about 18% of total car sales in 2023, an increase from 14% in the previous year. Thus, the increasing demand for electric vehicles is fueling the growth of the commercial vehicle telematics market.

The growing demand for fuel efficiency is expected to enhance the growth of the commercial vehicle telematics market in the coming years. Fuel efficiency is defined as the measure of how well a vehicle uses fuel to produce energy for propulsion, usually expressed as the distance traveled per unit of fuel consumed. The rising need for fuel efficiency in commercial vehicles propels the telematics market forward as businesses implement systems to monitor and optimize fuel consumption, enabling real-time data on driving habits and performance to adopt fuel-efficient practices, lower operational costs, and meet sustainability objectives. For instance, a report from the Energy Information Administration (EIA), a U.S. government agency, indicated that vehicle efficiency increased by an average of 2% from April 2021 to April 2022 in the United States. Additionally, in April 2022, the U.S. Department of Transportation announced new fuel economy standards that aim to improve fuel efficiency by 8% annually for model years 2024-2025 and by 10% annually for model year 2026. Consequently, the increasing demand for fuel efficiency is driving the growth of the commercial vehicle telematics market.

Major players in the commercial vehicle telematics market are actively developing advanced technologies, particularly fleet management software, to cater to larger customer bases, increase sales, and boost revenue. Fleet management software is a specialized technology designed to assist businesses and organizations in efficiently managing and optimizing their fleet of vehicles. An example of this trend is seen in the actions of Ford Motor Company, a US-based automobile manufacturer. In September 2022, Ford Pro Fleet Management Software was launched, featuring distinctive capabilities that streamline administrative processes by replacing cumbersome paperwork with a user-friendly digital program. Developed on Fleetio software, it is compatible with both Ford and non-Ford vehicles, accommodating unlimited fuel payment cards, offering versatile maintenance program choices, and seamlessly integrating into the comprehensive suite of Ford Pro fleet solutions. This innovative fleet management software enables real-time tracking of the total cost of ownership and digitizes comprehensive fleet vehicle reports, providing an efficient and integrated solution for fleet management.

Major companies operating in the commercial vehicle telematics market are also adopting strategic partnership approaches to enhance the efficiency of managing vehicle fleets. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. An illustrative example is the partnership between Hertz, a US-based vehicle rental company, and Amazon Web Services Inc. (AWS), a US-based provider of cloud computing platforms. Established in April 2022, this partnership aims to modernize and digitize the Hertz customer experience and integral aspects of its new mobility platform. By incorporating advanced data analytics and vehicle telematics features, Hertz aims to expedite the transition to the cloud, utilizing AWS analytics and machine learning capabilities to harness the potential of customer and fleet data. The objective is to create personalized, connected vehicle solutions, enhance the overall driver experience, optimize existing operations, and seamlessly integrate sustainable electric vehicles and future mobility options into its services. This strategic collaboration reflects a commitment to innovation and efficiency in the commercial vehicle telematics market.

In February 2024, Geotab, a global telematics provider based in Canada, entered into a partnership with Daimler Truck North America (DTNA) to optimize fleet management. The collaboration aims to enhance fleet management by incorporating Daimler truck data into Geotab’s platform, facilitating quicker, data-driven decisions that improve safety, efficiency, and sustainability. Daimler Truck North America (DTNA) is a prominent commercial vehicle manufacturer in the U.S. and a subsidiary of Daimler Truck AG.

Major companies operating in the commercial vehicle telematics market include Verizon Communications Inc., Cisco Systems Inc., Continental AG, Navistar International Corporation, Garmin Ltd., Trimble Inc., Tata Motors Limited, PTC Inc., Element Fleet Management Corp, Solera Inc., Samsara Inc., TomTom International BV, Omnitracs LLC, Geotab Inc., CalAmp Corp, Inseego Corporation, Mix Telematics International (Pty) Ltd., Lytx Inc., Zonar Systems Inc., Motive Technologies Inc., Platform Science Inc., Microlise Group PLC, Azuga Inc., Masternaut Limited, Spireon Inc., GPS Insight LLC, NexTraq LLC, Cetaris Co, Telemax Telematics Pty Ltd, AirIQ Inc.

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

Commercial vehicle telematics involves the integration of telecommunications and information technology systems within commercial vehicles to collect, transmit, and analyze operational data.

The primary categories within commercial vehicle telematics are solutions and services. A solution represents a method or approach to resolve specific challenges or issues, typically offered through original equipment manufacturers (OEM) and aftermarket providers. These telematics solutions cater to various industries or verticals, including transportation and logistics, government and utilities, travel and tourism, construction, education, healthcare, and other sectors. The technology is designed to address specific needs within these industries by enhancing vehicle operation, performance, and data-driven insights.

The commercial vehicle telematics market research report is one of a series of new reports that provides commercial vehicle telematics market statistics, including commercial vehicle telematics industry global market size, regional shares, competitors with a commercial vehicle telematics market share, detailed commercial vehicle telematics market segments, market trends, and opportunities, and any further data you may need to thrive in the commercial vehicle telematics industry. This commercial vehicle telematics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The commercial vehicle telematics market consists of revenues earned by entities by providing commercial vehicles telematics services such as vehicle tracking and location services, navigation and routing assistance, fleet management and optimization, and route planning and optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The commercial vehicle telematics market also includes sales of telematics devices, GPS tracking devices, electronic logging devices, sensors, onboard diagnostics (OBD), port adapters, and telematics control units that are used in providing commercial vehicle telematics services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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