The Europe Telematics Market is estimated to grow at a CAGR of about 12.2% over the forecast period. Also amidst the pandemic COVID-19, with many businesses expected to be forced into cutting down the expenses leveraging the aggregate data from their vehicles through telematics can help identify the flaws such as overlapping journey upon which business can re-strategize both their delivery and sale territories and avoid duplicated trip to potentially reduce the number of vehicles required to the same run operations.
One of the primary drivers for the growth of the market in the region is growing number of accidents caused on the EU roads with a large proportion of victims as the WHO data suggest were victims of work-related road collisions; this has to lead the government bodies to update their legislation concerning the safety and well-being of the employees with health & safety authorities issuing improved guidance for organizations to help them abide legal responsibilities and encourage them to manage road safety for the workers provocatively
The adoption of mobile resource management and machine-to-machine has led to the utilization of the telematics ecosystem. Furthermore, industries, such as oil, gas, mining, utilities, food, courier delivery, construction businesses, waste management, police and emergency organizations and transit fleets, such as motorcoach, public transit, taxi, and paratransit are widely employing telematics primarily for movements of workforce and goods across their area.
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Further, the data generated by the vehicles gives the end-users valuable information to improve their efficiency by avoiding congestion, creating lower stress driving environments, and also the environmental impact on the vehicles, unlike traditional data tracking systems that only provide insight into driver behavior and real-time vehicle location.
For instance, a study conducted by ford that tracked light commercial vehicles for a year in London found that one of its test fleets could have saved up to 30 hours per week by setting out two hours earlier in the morning. Such insights could drive companies to gain sustainable productivity. Also, a parallel study conducted on privately owned cars for 12 months with cross-referencing the journey with public transport timetables found that 20% of trips would have been quicker by utilizing public transport. Thereby It also suggests businesses’ insights on the saving alternatives.
The cost of telematics systems, including installation, maintenance, feedback provision continues to be one critical factor hindering the market growth in the region. However, studies show that it is more than likely that the reductions in the other costs, such as fuel damage, insurance premiums would compensate for the initial start-up costs. Also, the European Commission study of vehicle technologies found that the use of event data recorders has a positive benefit-cost ratio.
Key Market Trends
Commercial Vehicles to Hold Major Market Share
The Demand for technology enabling the safety, navigation, and remote diagnostic is elevating the commercial vehicle space. The primary drivers of commercial vehicle telematics remain the European Union regulations, Local policy regulations, Increase in production number of commercial vehicles, small profits margins in the transportation industry added with advancements such as route calculation, vehicle tracking, fuel pilferage is driving the growth of the market.
Owing to such instances, global telematics vendors invest in the region through partnerships and acquisitions as their competitive advantage. For Instance, in November 2019, Geotab Telematics, a telematics provider, announced the acquisition of Intendia. This Spanish engineering firm is primarily engaged in integrating tech solutions for the European heavy-truck market. This acquisition leverages the company’s engineering capabilities and complements the product portfolio as the company aims to expand its growth opportunities in Europe.
Going Forward, according to study ordered by Fédération Internationale de l’Automobile suggests that current models allowing access to the vehicle data would potentially cost European consumers and aftermarket service providers EUR 65 billion per year by 2030, owing to this several OEMs in the region are starting to developing their own models for remote access to vehicle data leveraging service providers.
For instance, in April 2019, Iveco, an LCV manufacturer, announced a partnership with Verizon Connect to provide its customers comprehensive telematics and mobile workforce management software platforms. Under the partnership, Iveco’s users would be allowed to select among three Verizon Connect plans, i.e., Fleet Essential Plan, Fleet Enhanced, and Verizon Connect Tachograph. The integration of the Verizon Connect Platforms would extend value and benefits to its customers and help them better control their operations.
Further, with the adoption of Next-generation telematics protocol (NGTP), Advanced Driver Assistance System (ADAS) and the automotive industry integrating and deploying telematics for non-traditional usages such as in UK telematic is primarily used for usage-based Insurance (UBI) is expected to foster the market growth in the region.
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Fleet Management Service to Hold Major Market Share
Amongst all of the services offered by the Telematics solution by vendors including services such as emergency calling, On-road assistance, driver behavior, billing service, navigation, the fleet management service is expected to hold significant market share as it is considered to be one vital service and also the factors in the region such as changing mobility, adoption of self-driving cars and also the inclination of people towards renting vehicles rather than owning them.
For instance, In October 2019, Toyota Flee Mobility announced the acquisition of a UK based fleet business Inchcape Plc’ Inspace Fleet Solution (IFS), for USD 123 million in cash. Inspace Fleet Solution operates as a Franchisee to major automobile companies such as Mercedes-Benz, Volkswagen, Porsche, BMW, among others. This acquisition is the Toyota Financial Services’ lastest investment into the UK market as it already invested in ridesharing startup Fax based in London as the company aims to underpin mobility services such as remote delivery, ridesharing across Europe.
Such instances are pushing the OEMs to pursue opportunities for the growing demand for fleet management services in the region and are driving significant investments. For instance, In April 2020, Autofleet, a startup that primarily developed fleet optimization software to redirect underused vehicles into delivery and ride-hailing services has raised USD 7.5 million in seed and Series A funding led by MizMaa Ventures with participation from Maniv Mobility, Liil Ventures and Gear Ventures to expand its operation to international markets and support its research. The company also claims that its major markets are in Europe and the US.
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