According to a report published by Transparency Market Research, the next decade is incredibly promising for telematics. From reaching new markets all over the world to leading the way in safety for high risk industries, this technology is proving revolutionary in every new application.
Current and Forecasted Trends in Telematics
Advanced Technology is Shaping the Market
Mobile accessibility and advanced communication tools help to quickly expand the use of telematics worldwide.
Globalization of Telematics Solution Providers Fuel Growth
While developed countries still lead the telematics charge, we’ve continued to see the telematics industry expand to countries that are still developing. China, India and Japan are expected to drive the Asia Pacific telematics in the heavy equipment market.
North America is Leading the Telematics Revolution
North America has certain tools (such as 5G networks, enhanced GPS functions, and satellite communications) that have given it an advantage in the telematics race. This head-start should continue to prove lucrative for the next decade.
Construction Industry Will Remain Top Revenue Contributor to Overall Market
The addition of telematics to the construction industry has provided a large boost in the global telematics market. Because construction poses the highest safety risks of any industry for their employees, they’ve also had the most to gain from the accidental avoidance capabilities provided to them by telematics data. As a result, the adoption and utilization of telematics has been most prevalent in this sector.
Expect Growth in the Heavy Equipment Market
Global telematics in the heavy equipment market is expected to grow at CAGR of 11.5% during the forecast period from 2017 to 2025. According to estimates, the construction segment held the highest market share in 2016 and is expected to grow at a significant rate during the forecast period.
How Telematics and DMS Work Together
The key to monetizing telematics is integrating your dealership management system (DMS). The gathering of information is useless without the practical storage, organization, and analysis of it. With the help of your DMS, telematics data can transform from mere data points to real-world case studies to propel your business forward in new and innovative ways.
One of the newest ways to use this technology together is to create right from your DMS. Dealers can easily search and separate data from a specific category of clients. Using that data, they can better understand their unique needs and quickly create an email campaign with other integrated tools that target that subsection of their client base.
Telematics will also help give dealers an extra security blanket for keeping valuable data private. Having a DMS that can give you complete data ownership prevents potential cyber-attacks that are otherwise vulnerable on shared networks. Because telematics uses the internet, network security will need to be a top concern moving forward with this technology.
No matter how you choose to integrate telematics into your business, having a dealership management solution in place now will help you smoothly adopt and start benefiting from this technology sooner than later.