OEMs are on the Path to Overtake TSPs in The Fleet Telematics Market

Aftermarket Telematics Service Providers (TSPs) currently dominate the commercial fleet telematics market, but this is about to change, as PTOLEMUS Consulting Group has found in its new Commercial Fleet Telematics Global Study.

PTOLEMUS forecasts that 83% of all new on- and off-road vehicles will have embedded telematics by 2024. The number of active fleet telematics subscriptions for on- and off-road fleet vehicles is expected to multiply sixfold, surpassing 150 million in 2030.

By then OEMs will be near parity with TSPs in the fleet management services market, worth €24 billion globally. The fastest growth will come from Asia Pacific, which will expand twice as fast as Europe and North America.

A free abstract of the 635-page report is available here.

Dr Andrew Jackson, Research Director at PTOLEMUS, said: “The majority of OEMs have adopted the strategy of offering free, but often time-limited, telematics solutions with new vehicle or machinery purchases. Scania and John Deere are good examples in this regard.”

This shift from third-party to embedded connectivity will strengthen OEMs’ positioning and help them become a major source of vehicle data for both fleets and TSPs. Furthermore, OEMs’ integrations with TSPs are on the rise, as the examples of Navistar´s partnerships with Geotab, Samsara and Cloudera as well as Daimler’s fully “open” Virtual Vehicle™ illustrate.

The report analyses the strategies, challenges and opportunities for all key players and demonstrates how telematics can provide a 10% cost reduction in the Total Cost of Ownership (TCO) of commercial vehicles. Spanning 18 key countries and regions across 5 continents, the research includes in-depth profiles of 39 TSPs and OEMs. Its market forecasts to 2030 cover Light Commercial Vehicles (LCVs); Heavy Goods Vehicles (HGVs); buses and coaches; construction equipment such as excavators and backhoe loaders; mining vehicles; forestry vehicles and agricultural equipment including tractors and combines.

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PTOLEMUS Consulting Group is the first strategy consulting & research firm entirely focused on connected & autonomous mobility. It assists all leading mobility stakeholders including vehicle manufacturers, tier-1 suppliers, leasing companies and Telematics Service Providers in defining and deploying their strategies.

For more information, please contact Andrew Jackson, Research Director, at [email protected] or visit: www.ptolemus.com.

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