Rising Adoption of Fleet Management Solutions by the Transport and Logistics Sector
According to our latest market study on " Automotive Telematics Market Forecast to 2030 –Global Analysis – by Offering, Connectivity, Vehicle Type, and Application," the market is expected to grow from 42,410.97 million in 2022 to US$ 1,57,485.12 million by 2030; it is anticipated to grow at a CAGR of 17.8% from 2022 to 2030.
Fleet management solution systems help streamline logistics and transportation processes in organizations. It helps logistics companies monitor vehicle performance, reduce operational and maintenance costs, and improve driver safety. Fleet management solutions consist of automotive telematic devices that reduce fuel and additional maintenance costs and offer labor safety. As per the fleet management company survey, ~32% of the GPS tracking device users showed a positive return on investment in just six months in 2021. The adoption of fleet management solutions across transportation and logistics companies increased by 8% in 2021 compared to 2020. Further, ~64% of fleet managers use GPS fleet tracking solutions in their logistics and transportation organizations across the US. Small and medium-scale enterprises adopt automotive telematics technology faster to solve day-to-day logistics problems. The automotive telematic solutions help in tracking vehicle location, managing fuel efficiency, and enhancing the drivers' safety. Vehicle telematics are applied in every logistics and transportation industry that uses vehicles for goods transportation and helps in providing fleet managers with valuable vehicle data that enhances productivity, reduces additional costs, and offers driver safety.
Automotive Telematics Market Share — by Region, 2023
Automotive Telematics Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Offering (Hardware Software, and Services), Connectivity (Integrated, Tethered, and Embedded), Vehicle Type (Passenger Cars and Commercial Cars), Application (Infotainment, Remote Diagnosis, Navigation (GPS), Safety and Security, and Others), and Geography
Automotive Telematics Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis
Download Free Sample
Source: The Insight Partners Analysis
Automotive telematics solutions are widely installed across rental vehicles to track fuel consumption and vehicle location and offer safety to drivers. The rising adoption of the vehicle rental business globally drives the automotive telematics market. The car rental market in the US generated US$ 56.3 billion in revenue in 2022, which increased by 9.8% compared to 2021. Such rental businesses have created massive demand for the adoption of telematics solutions around the globe. Telematics is used for fleet management in car rental, mainly for tracking and diagnosing vehicles. Increasing adoption of intelligent telematics solutions is projected to generate lucrative opportunities in the near future. Intelligent telematics gateways are the next-generation neural processing chips with AI integration that help track vehicle locations in real-time. This chip tracks and communicates with the fleet owners and offers data processing and storage solutions. The rise in AI in the transition to intelligent telematics gateways and 5G technologies is expected to create a lucrative opportunity for the automotive telematics market. These gateways are embedded with advanced, powerful processors, such as multi-core CPUs, and can handle high volumes of data using AI.
In North America, the US significantly contributes to the automobile industry. According to the Alliance for Automotive Innovation Report in 2021, the automotive industry's ecosystem, from automotive component manufacturers to the original vehicle manufacturers, generates over US$ 1 trillion annually for the US economy.
The automotive sector in the US contributed 4.9% of its overall GDP, with manufacturing of vehicles and their parts representing 6% of the overall manufacturing in the country. Motor vehicles and parts, including gears, seating systems, doors, and transmission systems, are heavily exported from the US. Automotive vehicles and their components were the second-largest exporting goods in 2021, valued at ~US$ 105 billion.
The rising demand for automotive components by the original vehicle manufacturers worldwide is anticipated to create ample opportunity for the automotive gears market. The original vehicle manufacturers widely use automotive telematics to produce advanced features-based vehicles. The US-based ports have executed over US$ 400 billion in trade volume in vehicles and components.
Verizon Communications Inc., Geotab Inc., Omnitracs, Samsara Inc., Lytx Inc., TomTom International BV, Harman International, Denso Corp, and Valeo are among the key automotive telematics market players profiled during this market study. In addition, several other important automotive telematics market players were studied and analyzed to get a holistic view of the market and its ecosystem.
Contact Us
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com