The number of commercial vehicles (CV) with telematics solutions is estimated to reach 37.9 million by 2020, compared to 14.7 million last year, according to a report by Frost & Sullivan.
Commercial vehicle (CV) telematics market will continue to be driven by North America and Europe with focus on advanced solutions such as video surveillance.
For its Strategic Outlook of Global Commercial Vehicle Telematics Market in 2015 study, the consulting firm considered light, medium and heavy CV segments.
In 2014, the telematics installed base was majority from light CV segment with nearly 60%; however, medium and heavy CVs have driven revenues in countries such as India and China.
Frost & Sullivan automotive and transportation research analyst Gokulnath Raghavan said: "Going forward, hardware prices are expected to dip, encouraging fleet operators to invest in advanced telematics services.
"In fact, by the end of 2015, the pricing of both hardware and solution offerings will be restructured due to the influx of new business cases, lending further pace to market development."
Aftermarket segment will drive the CV telematics segment with vehicle original equipment manufacturers representing around 23% of total telematics penetration.
Continuous consolidation among vendors in Europe and North America will result in less fragmented markets thereby decreasing competition in telematics aftermarket in these regions.
Raghavan said: "To widen their reach, telematics vendors will embrace big data technologies in order to provide business intelligence and prognostics solutions.
"Along with this, they should customize offerings to suit the needs of the specific industry, fleet, and region."
