Platform Modularity and Flexible Bundling Options to Drive European Trailer Telematics Market

The European trailer telematics market remains largely fragmented, despite its presence exceeding a decade; yet competition amongst individual players is too fierce for any sizable market consolidation to happen. However, an influx of new stakeholders from various points in the supply chain, such as manufacturers of hardware, engines, brakes, tires, and the like, is on the rise. These competitors are vigorously expanding their market portfolios to include telematics, which is a step-change from their traditional role as non-telematics companies. The telematics market is attractive to many original equipment manufacturers (OEMs) and Tier I suppliers that are penetrating in-organically through partnerships, mergers, and acquisitions. In Europe, trailer OEMs have a significant presence as they operate their own solutions to tap into this market space. Moreover, the market is undergoing a transformation in terms of increased platform openness to integrate and complement various other ecosystem vendors as a way to offer more value to clients. Overall, hardware platforms are becoming modular while software architecture is becoming more open, thus allowing for extensive solution customization. The role of telematics hardware providers is crucial in bridging the gap between platforms and end users. Along with offering hardware solutions, an obvious and effective strategy for companies is to include a comprehensive telematics suite and provide a holistic package directly to the user, where advanced AI-powered solutions in tandem with smart sensors, platform modularity, and innovative business models will create new revenue possibilities and drive the European trailer telematics market into the foreseeable future. This research on the European trailer telematics market focuses on key market parameters, growth indicators, innovative business models, and micro and macro trends. Key trends include hardware modularity, truck-trailer integration, real-time freight matching, and visibility. In addition, this research analyses region-specific trends in services, solutions, and technologies in comparison to the global market scenario. The report includes a key analysis of the regional market in both as-is and to-be scenarios between advanced Western European markets and their developing Eastern European counterparts. Frost & Sullivans comprehensive analysis reveals that the European trailer telematics market is penetrated at a modest 14% as of 2019, leaving many avenues for growth and improvement. Of the total trailer telematics installed base in Europe, the research takes a deep dive and identifies the market penetration rates of different trailer types including flatbed, dry box, reefers, tanker, and others. Installed base contribution by refrigerated trailer units and dry units is explored in detail, and their growth analyses are projected for a period of 3 years, from 2019 to 2022. The growth projections of contributions by different trailer types are also analyzed and discussed to provide a glimpse of the markets short-term growth potential. Author: KrishnaChaithanya Bathala