Commercial Telematics Market to Grow at a Healthy 18.0% CAGR, Owing to High Rate of Adoption in Global Industries

Global commercial telematics market was valued at USD 14.67 billion in 2013 and is estimated to grow at a CAGR of 18.0% during the forecast period from 2014 to 2020

Cloud-based telematics has emerged as the latest obsession for automotive industry. In the recent years, telematics has become an important addition to automotive applications as it offers more options to normal onboard vehicle navigation and guidance systems. Introduction of cloud-based telematics has propelled the growth of the global commercial telematics market. The worldwide market for commercial telematics is expected to develop at a CAGR of 18.0% during the period between 2014 and 2020. The market stood at a valuation of US$14.67 billion in 2013 and is estimated to reach US$46.18 billion by 2020.

What Are the Possibilities Offered by Cloud-based Telematics?

Cloud-based telematics has brought up a host of additional possibilities that would make GPS aided navigation in automobiles look old-fashioned. Following are some of the interesting options offered by cloud-based telematics:

Information and access control through handheld devices: Cloud-based telematics could provide real time updates regarding traffic congestion as well as weather forecasts. Driving alerts and smarter routing would help in preventing accidents on road. Further, the technology also enables to unlock or turn off or on vehicles through smartphone.

In-Vehicle Entertainment: Streaming video or music onto car would be possible through cloud-based telematics.

Real time information to fleet operators: Through cloud-based telematics, fleet operators would be able to get real time updates about navigation routes, vehicle location, fuel efficiency, and other such information.

Automobile Manufacturers Increasingly Adopting Cloud-based Telematics

Automakers have realized that embedding telematics in even the cheapest of cars would be profitable. Big players in the automotive industry such as Ford, Nissan, and BMW are partnering with technology companies such as Microsoft and Apple to offer cloud-based telematics services. Following are some of the cloud-based telematics services offered by automotive manufacturers:

OnStar: General Motors was among the first companies in the automotive sector to offer embedded telematics system, OnStar in 1996. Some of the services offered by OnStar system are automatic crash response, roadside assistance, stolen vehicle assistance, and turn-by-turn navigation instructions.

MyFord Mobile: Technology giant Microsoft has tied up with Ford to create a Ford Service Delivery Network over Microsoft Azure, a cloud computing network. The auto manufacturer has mentioned that in future, consumers would be able to gather information such as fuel level status, battery charge level, and tire pressure through MyFord Mobile connected services offerings.

Mbrace2: Mercedes-Benz, through its Mbrace2 telematics system offers automatic software updates via the cloud. Over-the-air (OTA) updates save the user from additional trips to the dealer to update the software installed in the car.

Toyota is introducing clean energy management into its telematics platform by linking hybrid and electric vehicles to the smart grid. The applications will allow customers to manage energy use for their cars.

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