The global telematics market is expected to grow at a compound annual growth rate (CAGR) of 20.7% over the next five years, with developments in North America leading the way.
A report titled “Telematics Market - Growth, Trends and Forecast (2019 - 2024)” observed the trend that telematics solutions are being considered more on driver behavior and safety, not just for the vehicle location and routing capabilities.
North America is expected to hold a major market share of the telematics market over the next five years, with major companies in the region leading the way, including Geotab, the report observed.
“By monitoring the driving behavior, vehicle health and maintenance intervals, telematics solutions help minimize accidental incidents, the number of speeding tickets, and downtime,” the report stated.
The report also observed that, with the growth of this type of technology, the likelihood of cyber attacks may increase due to the abundance of data that the technology is capable of gathering. However, It noted that traditional telematics and GPS tracking will continue to drive the market by way of providing improved productivity, customer service, risk management, and safety capabilities.
The capabilities of smartphones, moving forward, will help provide affordable and straightforward telematics solutions, and could aid in supplying traffic alerts and service workshop locations, according to the report. The large adoption rate of smartphones also makes the application of the technology with telematics easier to accomplish.