Commercial telematics market to hit revenues of £42.21bn by end of 2021
A new report published by Zion Research argues that global demand for the commercial telematics market is set to grow from $20.42 billion (£15.6 billion) in 2015 to $55.14 billion (£42.21 billion) by the end of 2021, at a CAGR of a little over 18% between 2016 and 2021.
Commercial telematics finds application in a variety of areas such as infotainment, insurance telematics, fleet/asset management, satellite navigation, tele-health solutions, and others like including emergency warning systems. The technology is in use in a number of industries such as healthcare, construction, transportation and logistics, government and utilities, insurance, and manufacturing.
Fleet and asset management applications account for a large portion of the market with a share of 28% in 2015. Increasing demand from insurance telematics and the infotainment sector is also anticipated to support market growth in the coming years. The transportation and logistics segment dominated the commercial telematics sphere in 2015 with a share of 54%. However, insurance and healthcare are also expected to see substantial growth in the following years.
North America accounted for a major share of the commercial telematics on account of demand for transportation and logistics. Europe is anticipated to the region to see the quickest growth in coming years. The Asia Pacific commercial telematics market will be driven by demand from countries such as Japan, China, India, and Australia.
Meanwhile, Octo Telematics has joined a number of others in urging the UK government to boost safety and provide Insurance Premium Tax relief (IPT) on telematics insurance products for drivers under 25 years old.
Jonathan Hewett, Executive Vice President at Octo Telematics, said: “The cost of motoring goes beyond the soaring insurance premiums for younger drivers. Younger drivers make up a disproportionate amount of casualties in accidents on our roads. They need every incentive to be educated and informed about their driving behaviour, for their own safety and that of other road users. However, telematics is not just for younger drivers. A telematics policy can be a ‘guardian angel’ that encourages safer driving and a more reflective approach to motoring for motorists of all ages as well as saving them money.”