Commercial Vehicle Telematics Global Market Opportunities and Strategies to 2033

This report describes and explains the commercial vehicle telematics market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global commercial vehicle telematics market reached a value of nearly $60.8 billion in 2023, having grown at a compound annual growth rate (CAGR) of 11.45% since 2018. The market is expected to grow from $60.8 billion in 2023 to $129.4 billion in 2028 at a rate of 16.32%. The market is then expected to grow at a CAGR of 15.21% from 2028 and reach $262.7 billion in 2033.

Growth in the historic period resulted from increased demand for enhanced user comfort, safety and convenience in vehicles, growing automotive industry and rapid growth in urbanization. Factors that negatively affected growth in the historic period were data privacy and security concerns and high costs associated with telematic systems.

Going forward, increasing demand for fuel efficiency, growing demand for electric vehicles, increasing integration with IoT and AI and growing demand For E-commerce will drive the growth. Factor that could hinder the growth of the commercial vehicle telematics market in the future include lack of skilled professionals.

The commercial vehicle telematics market is segmented by type into solutions and services. The solutions market was the largest segment of the commercial vehicle telematics market segmented by type, accounting for 67.9% or $41.3 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the commercial vehicle telematics market segmented by type, at a CAGR of 21.54% during 2023-2028.

The commercial vehicle telematics market is segmented by provider type into original equipment manufacturer (OEM) and aftermarket. The original equipment manufacturer (OEM) market was the largest segment of the commercial vehicle telematics market segmented by provider type, accounting for 62.6% or $38 billion of the total in 2023. Going forward, the original equipment manufacturer (OEM) segment is expected to be the fastest growing segment in the commercial vehicle telematics market segmented by provider type, at a CAGR of 17.79% during 2023-2028.

The commercial vehicle telematics market is segmented by vertical into transportation and logistics, insurance, healthcare, media and entertainment, vehicle manufacturers and dealers, government agencies and other verticals. The transportation and logistics market was the largest segment of the commercial vehicle telematics market segmented by vertical, accounting for 42.1% or $25.6 billion of the total in 2023. Going forward, the insurance segment is expected to be the fastest growing segment in commercial vehicle telematics market segmented by vertical, at a CAGR of 19.68% during 2023-2028.

Asia-Pacific was the largest region in the commercial vehicle telematics market, accounting for 42.6% or $25.9 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the commercial vehicle telematics market will be Asia-Pacific and North America where growth will be at CAGRs of 17.41% and 16.68% respectively. These will be followed by Western Europe and South America where the markets are expected to grow at CAGRs of 16.16% and 13.79% respectively.

The global commercial vehicle telematics market is highly concentrated, with a few large players dominating the market. The top ten competitors in the market made up 56.13% of the total market in 2022. Continental AG was the largest competitor with a 18.30% share of the market, followed by Navistar, Inc. with 9.99%, Tata Motors Limited with 7.94%, Michelin with 7.02%, Ford Motors Company with 5.67%, Vontier Corporation with 4.64%, TomTom Telematics BV with 0.89%, Geotab Inc. with 0.75%, Lytx Inc. with 0.49% and Zonar Systems Inc. with 0.43%.

The top opportunities in the commercial vehicle telematics market segmented by type will arise in the solutions segment, which will gain $36.4 billion of global annual sales by 2028. The top opportunities in the commercial vehicle telematics market segmented by provider type will arise in the original equipment manufacturer (OEM) segment, which will gain $48.2 billion of global annual sales by 2028. The top opportunities in the commercial vehicle telematics market segmented by vertical will arise in the transportation and logistics segment, which will gain $31.1 billion of global annual sales by 2028. The commercial vehicle telematics market size will gain the most in China at $15.8 billion.

Market-trend-based strategies for the commercial vehicle telematics market include advancements in commercial vehicle telematics through advanced 5G modems, development of innovative telematics devices with AI-powered solutions, strategic partnerships and collaborations driving telematics evolution and development of telematics apps transforming commercial vehicle operations.

Player-adopted strategies in the commercial vehicle telematics market include focus on expanding business through new product developments, its business through strategic partnerships, launching its products in different geographic areas and launching new products to expand its business.

To take advantage of the opportunities, the analyst recommends commercial vehicle telematics companies to focus on advanced telematics solutions with 5g modems, focus on AI-powered telematics solutions, focus on innovative telematics apps, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, provide competitively priced offerings, continue to use B2B promotions, participate in trade shows and events, focus on transportation & logistics and insurance segments and target electric vehicle manufacturers.