Growth Opportunities in the Connected Truck Telematics Market, China, 2024 2030

Revenue Forecast

The revenue estimate for the base year 2024 is $1,705.6 million, with a CAGR of 23.4% projected for the study period from 2024 to 2030.

The Impact of the Top 3 Strategic Imperatives on the Connected Truck Telematics Sector

Industry Convergence

Why

• To improve product competitiveness and align with government supervision and encouragement, truck original equipment manufacturers (OEMs) have been participating in telematics services.
• The innovative development of the automotive industry has accelerated the application of the internet, Big Data, AI, and machine learning (ML), leading to integration among industry stakeholders.

Frost Perspective

• Frost & Sullivan expects that industry convergence will increase the flexibility of telematics solutions and freight operations. For example, collaborations between truck OEMs and fleet operators focus on on-time delivery and the truck life cycle.
• More stakeholders will participate in the connected truck telematics ecosystem, including truck OEMs, parts suppliers, telematics users, and respective government agencies. For example, truck OEMs with their own telematics solutions will strengthen their partnerships with hardware and software providers.

Disruptive Technologies

Why

• The application of the 5G network helps to achieve low-latency data transmission and communication, enabling real-time interaction between vehicles, between vehicles and infrastructure, and between vehicles and cloud services.
• Connected truck telematics has disrupted traditional fleet and truck operations in favor of more integrated solutions, such as truck tracking, fuel management, and safety.

Frost Perspective

• Connected truck telematics will improve trucks’ operational efficiency and resiliency. Smart telematics solutions will optimize truck loading, route selection, fuel cost saving, and recommend maintenance schedules.
• Developments in digitalization, AI, and ML will disrupt transportation and logistics operations, and truck OEMs will move toward all-in-one solutions, from truck sales to after-sales solutions.

Transformative Megatrends

Why

• The development of autonomous driving capabilities accelerates improvements in connected truck telematics.
• For instance, the use of technologies such as Big Data, AI, and the Internet of Things (IoT) has improved the new ecology between users, trucks, and roads. This transformation can facilitate a higher level of intelligence, safety, energy saving, and operating efficiency.

Frost Perspective

• In the context of rapid urban development, intelligent transportation has become an important measure. The development of telematics will improve user experience and intelligent applications.
• In the next 3–5 years, vehicle-to-everything (V2X) will develop rapidly through the building of interconnected, multi-level data platforms.
• High-precision maps have safe and stable use in interactive applications.

Key Findings

Connected Truck Telematics:

1. Government regulations and fleet management efficiency advantages are driving relative supply and demand stability and growth. As of 2024, 7.9 million units of the total installed base of connected truck telematics exist.
2. The largest contribution comes from embedded telematics solutions, which account for 84% in 2024. The Chinese government accelerates the OEM-level installations on new truck sales, especially heavy-duty trucks, for connecting to public road freight monitoring and management platforms. Aftermarket installations come primarily from fleet operators’ requirements or regional government requirements for special vehicles to improve vehicle management efficiency and optimize the urban environment.
3. China’s connected truck telematics sector has formed a vertical value chain, including terminals, cloud, and user application solutions. Major commercial truck OEMs have independently or jointly developed their own telematics. In addition, the connected truck telematics sector is highly concentrated, with leading companies dominating the majority share. For instance, CNHTC offers a free bundled telematics service package to enhance its competitiveness in the commercial truck market.
4. Leading connected truck telematics service providers offer similar and competitive solutions, especially one-stop information services for enterprises, logistics companies, dump truck operators, fleet operators, owner-operators, and financial operators. These solutions include location tracking, vehicle status, remote diagnostics and control, dynamic exhaust emission monitoring solutions (such as OBD records for environmental regulatory agencies), and financial alerts (such as when a loan is outstanding).
5. The average annual price of the connected truck telematics service package is approximately $216, which is equivalent to a monthly cost of $4–$40. The adoption of advanced annual service packages will increase to 8% in 2024. Vital value-added services include the rise of aftermarket services, fleet management functions, life cycle asset management, and financial services, bringing greater supervision efficiency to large fleets and enterprises.

Key Competitors

Telematics Service

• Zhinentong
• Jiefangxing
• Tianxingjian
• Cheguanjia
• iTink

Telematics Service

• G7
• Huabao
• E6 Yun
• Maliang
• Zhonghuan

Hardware Equipment

• Hopechart
• Yaxon Networks
• Smartlink
• Hirain
• Intest

Content

• Amap
• Baidu
• BDStar Navigation
• Manbang
• NavInfo

Cloud Service Data

• Alibaba
• Baidu
• Huawei
• JD
• Tencent