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Telematics Solutions are Vital to Transportation Companies and Private Fleets in Terms of Addressing Pain-points Across Different Types of Industries
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The Mexican connected truck market is highly fragmented and comprises more than 50 telematics companies and leading OEMs. The transportation start-up ecosystem is small but is beginning to grow. Since 2016, the country has faced declining commercial vehicle (CV) sales; however, a marginal recovery has been recorded this year (2019). This growth trend is anticipated to continue, supported by emission norms, economic recovery, and fleet renewal. Telematics penetration is also expected to rise, driven by rising awareness and the installation of fleet management systems across a large number of vehicles. For more than a decade, the Mexican fleet telematics ecosystem has been driven by aftermarket providers whose main focus is track and trace solutions. Today, other solutions are also in demand, including vehicle / driver management systems. The key pain-points in the country are fuel consumption, safety and security, total cost of ownership, and sustainability. Independent telematics service providers (TSPs) constitute more than 98% of the market, while OEM solution providers account for the remaining 2-3%. CV fleets in Mexico serve different industries such as food and beverage, automotive, healthcare, retail, oil and gas, and chemicals. These industries face specific challenges that can be addressed by telematics solutions; examples include temperature monitoring, real-time client delivery management, cargo security, and monitoring of driver behavior. This study provides a comprehensive outlook of the Mexican connected truck market with meaningful insight on TSPs, OEMs, tier 1 suppliers, start-ups, and other companies looking to explore this unique and competitive space.
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