THE UK led the European market for commercial vehicle telematics in 2017, and is expected to show a further 25% incremental growth according to market research analysts Technavio.
Technavio said it expected the commercial vehicle telematics market in Europe to grow at a compound annual growth rate of close to 14% in its latest report.
And that the biggest growth would be in the LCV sector.
The market research report segments the commercial vehicle telematics market in Europe into LCV and M&HCV and the key regions of the UK, Germany, France, and Rest of Europe.
It says that the growth of the commercial vehicle telematics market in Europe will be down to three key drivers:
- Growing need for fleet management solutions
- Rise in the number of subscribers using UBI (Usage Based Insurance)
- Growing need for fleet management solutions
The report noted that the logistics sector had been the largest contributor to fleet management services in the telematics industry, thanks to the increased consolidation of logistics players and the growing demand for fleet tracking to mitigate transit losses and reduce fuel consumption.
A senior analyst at Technavio said:
“Fleet management solutions have significantly evolved over time. Basic telematics services like fleet tracking with GPS and geographical information systems are offered by the traditional fleet management solutions.
“Currently, fleet management solutions offer features like vehicle management, load monitoring, driver management, and logistics management. As a result, the growing need for effective fleet management services is driving the demand for telematics system in Europe even among small fleet owners.”
Commercial vehicle telematics market in Europe
Nevertheless, the Technavio report says that the LCV segment held the largest market share in 2017, and accounted for nearly 83% of the market. Market share is expected to increase nearly 3% by 2022. This segment will dominate the market throughout the forecast period.
The UK was the leading region for the commercial vehicle telematics market in Europe in 2017.
