The introduction of 5G connectivity and advancements in artificial intelligence (AI) technology has opened endless growth opportunities for the commercial telematics market, according to ABI Research.
In fact, telematics subscriptions are forecasted to increase by 86% between 2022-2025, and reach 126 million by 2027.
“Falling hardware costs have also helped boost commercial telematics adoption in emerging economies, helping fill gaps in these regional markets,” says Alex McQueen, research analyst, supply chain management and logistics at ABI Research. “Continued global disruption related to the COVID-19 pandemic, global supply chain uncertainties, port congestions and other events have highlighted the need for full end-to-end supply chain visibility. We will continue to see rising telematics adoption in commercial fleets over the next five years and beyond.”
From ABI Research:
- ABI Research expects subscriptions to grow at a compound annual growth rate (CAGR) of 12% across the forecast period.
- These new technologies are transforming fleet management capabilities across vehicle types and verticals, creating new use cases. The increasing use of smartphones and tablets to collect data and government regulations regarding fleet management are other factors contributing to the growth of the commercial telematics market.
- Increased use of trailer tracking is also helping to propel growth in the market.