Commercial Telematics Market Trends

Growth Drivers

• Rising Instances of Road Accident – Telematics can help in reducing the risk of accidents by analyzing the data and predicting the accident occurrence. For children and young adults aged 5 to 29 years, fatal road accidents are the main cause of death. Moreover, an estimated 1.3 million individuals each year pass away in automobile accidents.
• Increasing Adoption of GPS Connectivity in Automobiles- Telematics monitors the presence of other vehicles around and presents the data regarding the traffic status on the roads. It uses on-board diagnostics technology and GPS technology to manage the function. For instance, over 60% of American drivers use GPS service in their vehicles. 
• Higher Usage of MAAS (Mobility-as-a-Service) – telematics has revolutionized mobility as a service. It enables both drivers and passengers to directly access information, such as traffic, time of arrival, navigation, driver’s behavior, and others.  As of June 2021, around 68% of Americans used Uber, on the other hand around 32% of people chose the second-best cab service Lyft.
• 5G Connectivity to Create Opportunities for Market of Commercial Telematics - The growing development of 5G technology for enhanced internet connectivity solution is anticipated to generate lucrative growth opportunities for the market over the forecast period. For instance, 5G subscriptions grew by 70 million in 2021 to around 620 million in 2022.
• Growing Adoption of IoT Connected Devices- In the connected vehicles, the in-car infotainment is installed that majorly runs on telematics. In 2021, there were nearly 240 million IoT-connected automobiles in the world. Furthermore, it is expected to reach to around 400 million by 2025.

Challenges.

• Network Safety Concerns to Limit Market Growth of Commercial Telematics- there is huge threat to cyber security due to network breaching, that can cause release of sensitive data. While accessing the telematics server it grants unauthorized access to multiple vehicles, after receiving the control of remote of the vehicle illegally, the hacker can easily maneuver or even steal the vehicle. It can also impose serious threat to the lives of drivers, passengers, and pedestrians. Therefore, network breaching is expected to hamper the market growth.
• Inaccessibility of constant and continuous connectivity
• Unawareness of commercial telematics