Digital Lifescapes

Today's supply chain leaders seek to access the most cost-effective road transportation. Deploying configurable and scalable fleet management solutions is enabling the efficient operation of commercial truck and van fleets of all sizes. Digital hardware and software advancements continue to create new use cases and capabilities of telematics to enhance the commercial fleet performance, improve efficiency, and save operating costs. According to the latest worldwide market study by ABI Research, commercial telematics revenues will reach $41.67 billion globally by 2027. Commercial Telematics Market Development The revenue includes hardware telematics units such as Telematics Control Units (TCUs) and subscription fees charged by telematics services vendors for Software-as-a-Service (SaaS) apps. These technology-based solutions could include a broad range of functionalities -- such as vehicle diagnostics, broader data sharing, and real-time data-enabled analytics. This upside growth po...

Commercial fleet vehicles are the driving force behind commerce and public mobility. Fleet managers have the important role of organizing and overseeing vehicles for performance, maintenance, and tracking purposes. Telematics solutions collect, store, and analyze data that can be sent to fleet managers. This data helps fleet owners and managers evaluate vehicle maintenance, driver operation, and cargo management. Today's Internet of Things (IoT) technology is transforming fleet management with the ability to connect vehicles and capture a wide range of data about vehicle performance, route, passengers, and cargo. IoT Asset Tracking Market Development According to the latest worldwide market study by Juniper Research , global spending on asset tracking by enterprises will increase from $16 billion in 2022 to reach $45 billion in 2027 -- that's a substantial growth rate of 184 percent. The management and security of high-value assets are becoming of increasingly significant impor...

Applications for the Internet of Things (IoT) in the aviation industry have evolved, as new use cases are identified. According to the latest worldwide market study by Berg Insight, the global installed base of active airport asset tracking systems was over 0.2 million units in 2019. This includes all airport asset tracking systems deployed for various motorized ground support equipment (GSE), non-motorized equipment (NME) as well as other applicable mobile airport assets such as on-road vehicles used in airport environments. Airport Asset Tracking Market Development Growing at a compound annual growth rate (CAGR) of 15.4 percent, the active installed base of airport asset tracking systems is estimated to reach close to 0.5 million units worldwide in 2024. That said, the current crisis in the aviation industry that's due to the COVID-19 pandemic will likely also slow down the airport asset tracking market in the short-term. Berg Insight nevertheless anticipates increasing...

The global automotive industry continues to explore ways to integrate the internet of things (IoT) technology into vehicles during the manufacturing process. Connected car capabilities provide the foundation for third parties to offer innovative new telematics-related applications. According to the latest worldwide market study by Berg Insight, the number of active aftermarket car telematics units will grow at a compound annual growth rate (CAGR) of 20.6 percent from 58.7 million at the end of 2018 to 150 million at the end of 2023. Automobile Telematics Market Development Berg Insight’s definition of an aftermarket car telematics solution includes both cellular GNSS and RF-based solutions. A growing number of aftermarket telematics services have in the past few years become available for consumers that want to add services and connectivity to automobiles. Berg Insight forecasts that shipments of aftermarket car telematics devices for consumer applications will grow from 20.3 m...

Applications for the Internet of Things (IoT) are helping to transform the global cargo sector. According to the latest market study by Berg Insight, the number of active tracking devices deployed for cargo loading units -- including trailers, intermodal containers, rail freight wagons, air cargo containers, cargo boxes and pallets -- reached 6.1 million worldwide in 2018. Growing at a compound annual growth rate (CAGR) of 27.3 percent, the number of devices is expected to reach 20.4 million by 2023. Cargo Tracking Market Development Trailer telematics is today the most developed market, followed by tracking devices for general cargo applications and intermodal containers. The markets for rail freight wagon and air freight cargo tracking are considerably smaller but will grow substantially during the coming five years. The total market value for trailer and cargo container tracking solutions reached at the same time an estimated € 857 million in 2018. The market for remote trac...

In-vehicle technologies and telematics, in particular, will transform the automotive industry. The term ‘connected cars’ refers to devices installed in the vehicle which allow Machine-to-Machine (M2M) communication or machine-to-human interaction. M2M is communication between two single machines with no human interaction. In terms of vehicle telematics, this allows data to be sent from the vehicle to another location and used for vehicle conditioning or to monitor driver behavior. Connected Car Market Development According to the latest worldwide market study by Juniper Research, over 62 million vehicles will be capable of Vehicle-to-Vehicle (V2V) communication by 2023 -- rising from just over 1.1 million in 2019. This adoption represents an average annual growth rate of 173 percent over these 4 years. Juniper believes that V2V solutions will enable low-latency communications between vehicles, notably for the purpose of driver safety. The new market analysis found that th...

The online tracking of trailers, containers, rail wagons and cargo boxes is becoming increasingly common in all markets across the globe. New technology, such as the Internet of Things (IoT) and blockchain, will enable more secure automation of this activity. Berg Insight released the findings from their latest global market study. The number of active tracking devices deployed for cargo loading units -- including trailers, intermodal containers, rail freight wagons, air cargo containers, cargo boxes and pallets -- reached 3.7 million worldwide in 2017. Market Development of Cargo Tracking Devices Growing at a compound annual growth rate (CAGR) of 19.6 percent, the number of devices is expected to reach 8.9 million by 2022, according to the Berg Insight forecast. Based upon the current assessment, the tracking solutions market will greatly benefit from a digital transformation. Trailer telematics is the most developed market today, however in terms of installed units the interm...

The notion of Connected Cars refers to devices installed in a vehicle which allow Machine-to-Machine (M2M) communication. Moreover, M2M is typically wireless communication between two single machines or systems, without requiring any human interaction. In relation to vehicle telematics, this capability enables data to be sent from the vehicle to another location and thereby used for vehicle conditioning, or to monitor the vehicle driver's behavior. Beyond the connected car ecosystem, there are opportunities for integration with other emerging technology ecosystems -- such as the smart home and smart city technology. The ultimate commercial value of the ecosystem will be determined by others, such as government policymakers and Mobile Network Operators (MNOs). Connected Car Market Development A new market study by Juniper Research has revealed that, by 2022, 50 percent of consumer vehicles on the road will have at least one connectivity service -- such as telematics, vehicle...

The term connected cars refers to devices installed in the vehicle which allow Machine-to-Machine (M2M) communication or machine-to-human interaction. M2M is communication between two machines that require no human interaction. In contrast, vehicle telematics enables data to be sent from a vehicle to another location, and used for vehicle conditioning or to monitor driver behavior. Beyond the connected car ecosystem, opportunities will present themselves for integration with other ecosystems, such as the smart home and smart city technology. The full value of the ecosystem will be felt by others outside the connected car ecosystem, such as law makers and mobile network operators. Connected Vehicle Market Development According to the latest worldwide market study by Juniper Research, 50 percent of new vehicles will be shipped with Vehicle-to-Vehicle (V2V) hardware by 2022 -- it's a wireless communication technology that enables real-time short-range communication between veh...

The Internet of Things (IoT) has many use cases within the public sector, but none will likely have the positive economic impact of comprehensive smart city initiatives across the globe. A key component of these plans is transportation optimization and enhancement in congested urban areas. Berg Insight released new findings about the growing market for Intelligent Transport Systems (ITS). The market value for ITS deployed in public transport operations in Europe was €1.35 billion in 2015. Growing at a compound annual growth rate (CAGR) of 7.2 percent, this number is expected to reach € 1.91 billion by 2020. ITS Technology Market Development The North American market for public transport ITS is similarly forecast to grow at a CAGR of 8.1 percent from €0.59 billion in 2015 to reach €0.87 billion in 2020. According to the Berg Insight assessment, the market for ITS in public transport is in a growth phase which will continue throughout the forecast period. Increased funds made ava...

Telecommunication service providers are exploring new business models, and some have already experienced growth. Mobile network operator revenues from the Internet of Things (IoT) has reached €11 billion in 2016, according to the latest worldwide market study by Berg Insight. During the course of 2016, a few leading telecom service providers have reported impressive IoT revenues on a regular basis. In the third quarter (Q3) of 2016, Vodafone and Verizon generated around €200 million each in direct sales from IoT connectivity and other associated services. Next year, Berg Insight predicts that a handful of established network operators could generate more than €1 billion each from the Internet of Things related products and services. Service Provider IoT Market Deveopment "Until recently, the principal financial metrics for IoT has been projected, not actual, revenues. Now the market has entered a new phase in which hard business facts take precedent over lofty projections,...

Machine-to-Machine (M2M) connectivity has become a key product offering from global telecom service providers and a significant new revenue stream. They've also developed complex service propositions, designed to reduce costs and increase efficiency for their wireless network customers. Unique business models will apply emerging technology concepts to enable innovative applications for the Internet of Things (IoT). As an example, in-vehicle infotainment services, such as Apple CarPlay and Android Auto, will generate large amounts of new cellular M2M mobile data traffic. Exponential Growth of M2M Data Traffic Over the next five years, this explosion of new mobile applications will account for up to 98 percent of all M2M data traffic, according to the latest worldwide market study by Juniper Research. Most of that new data will be saved in hyperscale cloud object storage platforms. Their study found that data intensive applications -- such as Internet radio, music streaming a...

Growing applications for Internet of Things (IoT) and Machine-to-Machine (M2M) technologies will transform commercial vehicle fleets. Moreover, the active fleet management systems already deployed in commercial vehicle fleets in North America was 5.8 million during the fourth quarter (Q4) of 2015, according to the latest market study by Berg Insight. Increasing at a compound annual growth rate (CAGR) of 17 percent, the fleet management systems installed base in North America is expected to reach 12.7 million units by 2020. In Latin America, the number of active fleet management systems is expected to increase from 2.3 million in Q4 2015, growing at a CAGR of 12.8 percent to reach 4.1 million in 2020. Fleet Management Systems Market Development The top fifteen providers of fleet management systems in the Americas now have a combined installed base of more than 4 million active units in the region, and the top five vendors account for 2.5 million units. The leading sol...

Sensors in automobiles that produce data for analysis by insurance companies are a compelling use case for Internet of Things (IoT) technologies. The number of Insurance Telematics policies in force on the European market already reached 5.3 million in the fourth quarter of 2015, according to the latest worldwide market study by Berg Insight. Increasing at a compound annual growth rate (CAGR) of 37.2 percent, that nascent market is expected to reach 25.8 million by 2020. In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 45.8 percent from 6.3 million in 4Q15 to reach 42.1 million by 2020. Moreover, the European insurance telematics market is largely dominated by hardwired aftermarket black boxes, while self-install automotive on-board diagnostic (OBD) devices instead represent the vast majority of all active policies in North America. Automotive Telematics Market Development Several major U.S. providers of usage-based insuran...

There are numerous travel-related applications for machine-to-machine (M2M) technologies within the Internet of Things (IoT) domain. Many of these apps include enhancements to automobiles. ABI Research forecasts shipment of new cars featuring Autonomous Parking technologies will grow at 35 percent compound annual growth rate (CAGR) between 2016 and 2026, and for revenues to growth at a 29.5 percent CAGR. ABI Research identifies three phases of autonomous parking, with each successive stage set to gradually displace the former and all three coexisting to some degree over the next decade. Ultimately, technology will reach a point in which the car parks itself entirely, with no driver assistance or presence within the car required. In Phase 1, the car will provide steering assistance with the driver still inside the vehicle and in control. Phase 2 shows autonomous parking with the driver outside the vehicle but still in control, and Phase 3 introduces autonomous valet parking in which...

When consumers think about purchasing a new car, they typically give consideration to features that accommodate their lifestyle choices. In 2016, and beyond, wireless connectivity will be a key factor. Besides, the Internet of Things (IoT) phenomenon will be driven by compelling use-cases, not technology. ABI Research is reporting that the global penetration of embedded and hybrid factory installed OEM telematics within new passenger automobiles will exceed 72 percent by 2021. Growth will mainly be driven by key volume car OEMs in the North America, European Union, and China markets. Car brands within these markets showing accelerated growth include GM, which expects to reach 12 million OnStar subscribers globally by the end of 2016, including its Opel brand in Europe and Cadillac in China; and Ford, which claims to have already 15 million SYNC-equipped vehicles on the road worldwide. Connected Car Market Development Trends "While lower cost hybrid approaches remain attrac...

Converged devices, such as media tablets, are driving the telematics market with global shipments forecast to reach more than 5 million units by 2020, according to an ABI Research study. Moreover, the introduction of these devices creates the emergence of new business model opportunities and more data applications. The key advantages of utilizing converged devices, such as tablets in commercial vehicles, include the ability to employ automated vehicle inspection in rental car fleets, signature capture for delivery truck fleets, as well as aggregating crowdsourced data and generating customer community feedback. "The adoption of converged devices opens the door for entire application ecosystems and the emergence of dedicated commercial telematics application marketplaces," said Dominique Bonte, vice president at  ABI Research . Case in point: telematics service providers (TSPs) will accumulate crowdsourced data as a means to provide drivers with updated information on r...

The automotive industry is transforming rapidly as it embraces new paradigms -- such as active safety, on-board automation and car sharing services. The onset of the Internet of Everything (IoE) has also created new applications for sensor data that can be applied toward the development of new business models. As an example, the Usage Based Insurance (UBI) subscriber base broke through the 10 million member barrier, mainly driven by the ongoing adoption of these offerings within the U.S. and Italy. While it's been a turning point for the market, many obstacles remain. According to the latest market study by ABI Research, fundamental UBI impediments include privacy concerns, low awareness and perceived value, lack of scalability of on-board diagnostics (OBD) approaches and unclear future business models. Market Development Challenges UBI first-mover profitability gains -- based on the self-selection of low-risk drivers -- will ultimately not be sustainable. The auto insuranc...

Worldwide spending on the Internet of Things (IoT) will grow at a 17 percent compound annual growth rate (CAGR) from $698.6 billion in 2015 to nearly $1.3 trillion in 2019, according to the latest market study by International Data Corporation (IDC ). To date, the Asia-Pacific region is the global leader of IoT spending, with more than 40 percent of the worldwide total coming from this region in 2015. North America and Western Europe are the second and third largest regions with combined spending of more than $250 billion in 2015. Looking to the future, the regions that will experience the fastest growth in IoT spending over the five-year forecast period are Latin America (26.5 percent CAGR), followed by Western Europe, also Central and Eastern Europe. "The Asia-Pacific region's robust IoT spending outlook is due to the developing country technology investment needs that are not fully met with traditional IT, which is allowing IoT investments to accelerate, and a burgeon...

During 2016, commercial vehicle applications of sensor technology will drive more use cases for the Internet of Things (IoT). As market demand grows, vendor merger and acquisition activity will continue, as a catalyst to combine the most compelling technology and services foundation for ongoing market development. The number of active Fleet Management (FM) systems deployed in commercial vehicle fleets within Europe was 4.4 million in the fourth quarter of 2014. Growing at a compound annual growth rate (CAGR) of 15.1 percent, this number is expected to reach 8.90 million by 2019, according to the latest market study by Berg Insight. The vendor activity over the last twelve to eighteen months has been remarkable. A group of international aftermarket solution providers have now emerged as leaders in the European fleet management market. TomTom Telematics was the fastest growing vendor in 2014 and has climbed to the number one spot in Europe, ahead of Masternaut. TomTom has about 450...