EUROPE TELEMATICS SOFTWARE AND SERVICE MARKET ANALYSIS

Telematics software is any device which merges telecommunications and informatics. Telematics software allows the communication between an electronic device and other devices, or human users over a network. Telematics addresses dynamic mobility management and is critical in measuring real-time vehicle data such as speed, location, routes, performance, on-road behavior, energy consumption, battery levels, estimated time of arrival and much more.

Telematics software encapsulates a broad range of technologies. For instance, telematics solutions are behind navigation and GPS systems, hands free calling, driving sensors, wireless communications, in-car multimedia use, and other modern vehicular technologies that involve the transfer of data over a network.

In the European automotive market, sales of high-end vehicles such as sports utility vehicles (SUVs), luxury vehicles is increasing, owing to the rising disposable income of people in many European countries. For instance, according to Stratagem Market Insights, in the year 2019, among the top five high disposable income countries, three are European countries, which is boosting the sales of high-end vehicles in the region.

In addition, the presence of large luxury automotive vehicle manufacturers such as Mercedes-Benz, Audi, BMW, Rolls-Royce plc, is boosting the adoption of telematics software in the region. For instance, luxury Germany-based car manufacturer, Mercedes-Benz has delivered the highest number of cars 2,456,343 in the year 2019, furthermore, Germany and Great Britain were in the top five markets of the company.

The players involved in the market are continuously focusing of merger and acquisition strategy and continuously adding new products in its offering.

Merger and Acquisition:

• In December 2019, Octo Telematics acquired Nebula Systems, a U.K.-based company. This acquisition would help Octo to gain expertise in intelligent vehicle diagnostics technology.
• In January 2018, Verizon Communications Inc. announced the acquisition of Movildata Internacional, a Murcia, Spain-based provider of commercial fleet management solutions.
• In August 2016 Verizon Communications Inc. acquired Fleetmatics, a leading global provider of fleet and mobile workforce management solutions.

Product Launch:

• For instance, in April 2021, Astrata launched VideoLinc, a video surveillance solution, to improve road safety and reduce accident claim costs.
• In January 2021, Trimble Inc. launched VisionLink software equipped with Association of Equipment Management Professionals (AEMP) 2.0/ ISO-15143-3 telematics standard for fleet management.
• In December 2020, Octo Telematics launched OCTO IoT4 Insurance using Salesforce Platform which helps customers to analysis driver behavior.
• In April 2020, Aplicom launched Aplicom Data Service, ADS, a secure cloud-based service that delivers the data from Aplicom A-series telematics devices using RESTful application programming interfac or REST API, in a parsed JavaScript Object Notation or JSON format

Europe Telematics Software and Service Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 pandemic adversely effected various businesses across the globe including consumer electronics, manufacturing, transportation, and others. Companies providing telematics software, fleet management software have experienced a decrease in revenue, due to a decrease in demand for software from the European automotive industry. In 2020, automotive companies have experienced a decrease in automotive sales and production primarily due to the impact of COVID-19. The automotive industry has seen disruptions across vehicle production resulting in a temporary shutdown of several major automobile production facilities. The disruptions across vehicle production are attributed to the lockdown imposed, international borders sealed, and short-term imbalance in demand. For instance, according to ACEA (European Automobile Manufacturers Association), the automotive sector has witnessed an EU-wide production loss of around 3.6 million vehicles, worth around US$ 112 billion, in the first half of the year 2020. The pandemic also impacted the spending pattern of people in Europe. Consumers have reduced their spending on the buying of automotive cars and the market is expected to regain its position by the year 2022.

Germany held dominant position in the Europe Telematics Software and Service market in 2020

Statistics:

Germany held dominant position in the Europe Telematics Software and Service market in 2020, accounting for 21.7% share in terms of value, followed by UK and Central & Eastern Europe.

Figure 1: Europe Telematics Software and Service Market Share (%), By Country, 2020

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UK and Central & Eastern Europe expected to contribute notable share in Europe Telematics Software and Service market and is anticipated to follow same trend over forecast period. Germany is expected to account for the largest market share during the forecast period.

Secured Onboard Communication segment is expected to drive the market growth during the forecast period

In 2020, the secured onboard communication segment generated revenue of US$ 1,506.8 Mn and is expected to reach US$ 4,997.9 Mn by 2028, with a CAGR of 18.1% over the forecast period 2021 – 2028

Telematics software is used in vehicles to provide secure communication between human users and electronic devices over the network. The telematics system consists of telematics devices installed in vehicles in order to send, receive, and store telemetry data. Vehicle and driver behavior data helps businesses or fleet managers to get a daily record of both fixed and movable assets in the organizations. This data is used for analysis and can predict the overall business performance through customized dashboards and analytics. The driver behavior monitoring systems help to monitor and track fuel waste and related costs, idle time including power take-off, and driving habits for entire vehicles. GPS tracking software can provide a full report on fleet performance data and increases fleet lifespan and productivity level and cost-saving.

Figure 2: Europe Telematics Software and Service Market Value (US$ Mn) Analysis and Forecast, 2017 - 2028

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The Europe Telematics Software and Service market was valued at US$ 6,032.0 Mn in 2020 and is expected to reach US$ 20,483.0 Mn by 2028 at a CAGR of 18.4% between 2021 and 2028.

Major players operating in the Europe Telematics Software and Service market include MiX Telematics, Octo Telematics, Trimble INC, Verizon, Aplicom, Astrata and Key Telematics.