Recent acquisitions by the likes of Continental and Verizon reflect the significant worldwide growth opportunities for commercial telematics, with ABI Research predicting global subscribers to reach 59 million by 2021. The spike will see fleet management hardware and recurring commercial telematics subscription revenues generate double-digit growth across many regions and businesses, like last mile deliveries, with fleet management system revenues to exceed $22 billion by 2021.
"The regulatory environment and strong ROI combined with driver retention and shortages are all factors leading to rapid adoption of fleet management solutions from companies like Verizon, Trimble and TomTom Telematics," says Susan Beardslee, Senior Analyst at ABI Research. "The ELD, or electronic logging device, mandate in the U.S. is leading to extensive adoption by smaller fleets; driver safety and performance issues, as well as vehicle wear and tear, can be mitigated or removed to significantly reduce accident and maintenance expenses."
ABI Research expects fleet management penetration to rise over the next five years--the fastest in Eastern Europe and Asia Pacific--with a global CAGR of over 11 percent as commercial telematics innovations drive new business models. The industry's rapid convergence is evident in the new partnerships arising, such as the one between prognostics supplier Noregon with Geotab and Omnitracs, as well as another in which fleet safety solutions provider Lytx infused its video capabilities with artificial intelligence and analytics from Olea Sensor Networks.
"We expect further consolidation and key acquisitions as multiple supply chain players exhibit a fear of missing out on this key market opportunity," concludes Beardslee.
These findings are from ABI Research's Commercial Telematics (https://www.abiresearch.com/market-research/product/1025258-commercial-telematics/) report.
