Market Challenges And Opportunities

Global Commercial Telematics Market Drivers:

Rise in trend of connectivity solutions

Smartphones have changed the definition of connectivity over time. People want to stay connected to the outside world while traveling. As connectivity becomes the need of the day, automakers are integrating connectivity solutions into their vehicles to boost vehicle sales. Consumers expect cars to perform tasks similar to computers and smartphones. Integrating connectivity solutions into vehicles is a top priority for car manufacturers. Modern automobiles incorporate many connectivity solutions. They require Internet services to perform their respective functions. Connectivity can be provided inside the vehicle through embedded, integrated, or tethered connectivity solutions. The automotive industry is on the cusp of a digital revolution. In the next few years, the car will completely transform into an object of communication. For instance, on August 2, 2021, Bridgestone Corporation is a Japanese multinational tire manufacturer that acquired Fleet Management Software Provider Azuga a leading global connected vehicle platform to accelerate mobility solutions business Bridgestone Americas (Bridgestone), With this acquisition, Bridgestone will accelerate its efforts to develop and deploy sustainable mobility solutions as a core part of its progressive mobility strategy. The transaction has been approved by the boards of directors of both companies and is expected to close by the end of the third quarter

Ease of vehicle diagnosis

Advanced diagnostic systems are expected to drive the growth of the commercial telematics market. In-vehicle systems with advanced diagnostic capabilities provide vehicle data to both auto dealers and customers to help predict potential vehicle problems before they occur. For fleet management, connected solutions make it easier to track vehicle records, determine which vehicles have traveled the furthest, and provide service accordingly. The diagnostic service provided is an efficient way to diagnose the condition of your vehicle. This gives consumers control over vehicle maintenance, saving money and time by avoiding unnecessary costs and breakdowns. The system provides consumers with maintenance schedules and timely reminders. A diagnostic system tracks the vehicle's smoke emissions and fuel consumption, thereby monitoring the condition of the engine. This service sends detailed reports about vehicles to decision-makers who determine vehicle maintenance schedules. Therefore, the simplification of vehicle diagnostics using mobile applications is expected to drive market growth.

Global Commercial Telematics Market Opportunities:

Intelligent transportation system

Safety services provided by vehicles equipped with telematics solutions are a good example of cutting-edge aftermarket technology that exchanges data between vehicles and humans. Safety combines communications and automotive technologies designed to improve vehicle efficiency, reduce fuel consumption and maintenance costs, enhance safety measures, and improve the overall driving experience for drivers. It's a thing. Capabilities such as live traffic updates, automated fare transactions, insurance telematics, roadside assistance during accidents and breakdowns, and intelligent routing and tracking provide significant growth opportunities for the major players in the commercial telematics market.

Improved performance of autonomous vehicles

There are several solutions on the market that collect, manage, study, interpret, and analyze driving data for a given driver. Vehicles equipped with telematics systems generate enormous amounts of data every minute, improving the customer experience and creating new business opportunities in the field of autonomous driving.

Global Commercial Telematics Market Restraints:

Threat of data hacking

Telematics is a relatively new technology. Events such as unauthorized access to multiple in-vehicle connectivity solutions and intrusion into in-vehicle connectivity systems can limit the commercial telematics market. The biggest security risk is hackers gaining access to car's computer systems and the data they collect and store. Hence, the threat of hacking vehicles equipped with telematics systems is one of the factors expected to hamper the growth of the market.

High installation cost

The additional cost of providing in-vehicle connectivity is expected to slow the growth of the commercial telematics market. By offering in-vehicle connectivity solutions, consumers incur additional costs in the form of hardware, connectivity solutions, and communication service charges. These additional costs borne by consumers have a significant impact on the commercial telematics market. Therefore, the high installation cost of commercial telematics systems is expected to hinder the market.