The majority of OEMs have adopted the strategy of offering free, but often time-limited, telematics solutions with new vehicle or machinery purchases, John Deere and Scania being good examples in this regard.
Ptolemus expects that by 2024, 83% of all new on- and off-road vehicles will have embedded telematics, and that shift in connectivity will strengthen OEMs' position as they become a major source of vehicle data, gradually supplanting aftermarket hardware.
This does not mean the end of TSPs, as OEM integrations with TSPs are on the rise: for example, Navistar (now owned by Traton Group, corporate parent of MAN and Scania) with Geotab and Samsara, and Daimler’s fully “open” Virtual Vehicle.
Ptolemus predicts that the global fleet telematics market for active subscriptions for on- and off-road vehicles to multiply sixfold between now and 2030. It will then exceed 150 million units and bring OEMs near parity with TSPs, in a global market forecast to be worth €24 billion by 2030.
The study is described as the first to cover all commercial vehicles from trucks and vans to tractors and construction equipment. It also demonstrates how telematics can provide a 10% cost reduction in the annual operating costs of commercial vehicles.