Global Commercial Telematics Market - Procurement Intelligence Report

Commercial Telematics Market Analysis

The commercial telematics market is a technology-sensitive sector. There is no doubting the fact that any disruptive trends or inadequacy to scale up to these trends which herald major setbacks for buyers as well as suppliers in the commercial telematics market. According to the observations made, the spend momentum of this market will be affected owing to the presence of inadequate technology infrastructure across some of the geographies. This is expected to impact the demand and supply equilibrium across the global commercial telematics market that is currently posing as a significant challenge for both the buyers and suppliers in this market. The thorough market study offered in this report further reveals that the technical flaws are impacting the performance of these products. These factors are expected to impact the prospects of the commercial telematics market spend growth which is predicted to reach a value of over USD 40 billion. Factors such as the demand for advanced telematics solutions in electric vehicles to ensure passenger safety and to assist drivers will contribute to the spend growth in the commercial telematics market during the forecast period.

Inconsistencies in the function and monitoring process of the telematics systems tend to be common as buyer's employees tend to forget to reverse the changes after they change the settings of the telematics systems post installation. To avoid such instances, it is imperative that buyers engage with commercial telematics suppliers who can automate the resetting process in commercial telematics products. This will help buyers to reduce the chances of accidents arising due to the malfunctioning of telematics systems and maintain their service quality.

Download the free sample of this report to know what the key category management objectives that you must adopt to address demand dynamism in the commercial telematics market.

Top 3 Commercial Telematics Price Trends that will Impact Buyer's TCO in the Commercial Telematics Market

According to the commercial telematics price trends, procurement expenses borne by buyers will increase at a substantial rate primarily due to the predicted volatility in raw materials prices and employee expenditure incurred by suppliers. These factors will pose as major hindrances for buyers in determining their TCO in the commercial telematics market. This will affect the stability in their pricing strategies which will ultimately ramify into excess procurement spend in the commercial; telematics market.

Commercial Telematics Price Trends:

• The prices of raw materials such as lead, steel, tin, aluminum are predicted to undergo frequent phases of dynamism during the forecast period. This will invariably increase the manufacturing cost incurred by commercial suppliers which will have a subsequent inflationary impact on the procurement expenditure of buyers.
   
• The manufacturing of telematics products is highly dependent on skilled professionals such as product managers, technicians, software engineers, testers, and electrical engineers. However, the growing shortage of such skilled professionals and coupled with the stringency of minimum wages is increasing supplier's employee expenses. This will subsequently impact the buyer's procurement expenditure in the commercial telematics market.
   
• The sharp rise in crude oil prices across countries will increase logistics costs borne by commercial telematics suppliers which will further inflate their OPEX.
   

Download the free sample of this report to know what the key category management objectives that you must adopt to address demand dynamism in the commercial telematics market.
 

Key Commercial Telematics Suppliers Selection Criteria

While it is evident that supplier's increasing OPEX will drive the buyer's procurement spend, there are no immediate strategies that will stabilize such the OPEX. However, keeping the market dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the commercial telematics market.

Collaborate with commercial telematics suppliers to understand and obtain significant data that provide values

Commercial telematics solutions generally produce large amounts of data. It is essential to filter the same to get the information that is pertinent to the buyer's needs. In this respect, buyers should partner with commercial telematics suppliers who offer a greater understanding of the data generated by commercial telematics solutions and aid in the analysis of data points that are vital to their business needs. Such a partnership will aid buyers in understanding information that can truly predict future incidences based on their fleet operation data

Alignment with business needs

Buyers can ask for demonstrations for a better understanding of the suppliers' telematics capabilities and their use to them. Moreover, prior to large fleet installments, buyers can run a pilot program for a better understanding of the solution and implications of its implementation in practical situations.

Criteria to select suppliers in this dynamic commercial telematics market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access to real-time insights into the changing commercial telematics suppliers selection criteria.

Top Regions in the Commercial Telematics Market

Stringent mandates on electronic monitoring of commercial fleet drivers and the increasing demand for infotainment, navigation, and other allied services will drive the demand growth in the commercial telematics market across geographies.

North America

There are stringent regulations, such as the ELD rule by FMCSA in the US, which mandate electronic monitoring of commercial fleet drivers. These regulations are driving the adoption of commercial telematics solutions by fleet owners, thus bringing investments in the commercial telematics market in the region.
 

APAC

The growing demand for infotainment as well as navigation and its allied services is expected to drive the spend growth in the automotive telematics market. For instance, the increased demand for safety and security in vehicles in Japan has resulted in the introduction of HELPNET services that was also adopted by several other countries in the region. The increase in demand for such services is estimated to drive the sales of commercial telematics during the forecast period in APAC.

Insights Offered in this Commercial Telematics Market Report

• Global and regional spend potential for the commercial telematics market for the period of 2018-2023
• Top commercial telematics suppliers and their cost structure
• Commercial telematics suppliers relationship management practices
• US commercial telematics spend management insights
• Commercial telematics price trends and forecasts
• Commercial telematics market trends and challenges
• Cost-benefit analysis of pricing models in the commercial telematics market
• Cost drivers influencing the commercial telematics market size