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Telematics Penetration to Grow Ten Folds by 2021
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The main drivers of the commercial vehicle telematics market is increasing fuel prices and wafer thin profit margin in the transportation industry which compels the fleet operators to gain competitive advantage by vehicle tracking, route calculation, checking on oil pilferage, and other telematics offerings. However, the initial cost of telematics hardware is interrupting growth in the smaller fleets (up to 5 trucks) which account for around 70% of the transport industry. Even the larger fleets (more than 20 trucks), holding around 14% of the share, get pinched by the effects of debilitated economic climate, and are unwilling to update or continue subscription of any Fleet Management Systems. Another growth deterrent stalks from anxieties about sensitive company data being exposed to third party or competitors.
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