A new report forecasts the global commercial telematics market to grow from $17.3 billion this year to $39.15 billion in 2019, representing an compounded annual growth rate of 17.7%.
The report, “Commercial Telematics Market - Global Market Forecasts & Analysis 2014 – 2019,” is from the market research and consulting firm Markets and Markets.
The consumer and business demands for telematics devices have increased over the period of time, according to the report. Businesses are continuously leveraging the benefits of telematics such as GPS fleet tracking to help streamline overall operations and detect anomalies for vehicle safety and fleet management.
In the consumer segment, the majority of applications are automotive navigation, infotainment solutions, real-time vehicle information and reporting.
The report says the telematics industry has evolved from traditional navigation services to new opportunities in vehicle tracking, monitoring, fleet management, route optimization, location based services and traffic and weather information.
Despite this it says there are still two major barriers to telematics expansion: set-up and running costs. “Due to increasing set-up and running cost fleet companies are reluctant towards installing telematics devices to their existing systems,” said the report.