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Telematics Aftermarket Vendors Face Intensified Competition in Connected Truck Solutions in Brazil

Non-traditional new market entrants and OEMs stimulate expansion of connected solution offerings, finds Frost & Sullivan


News provided by

Frost & Sullivan

Dec 05, 2019, 08:03 ET

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SANTA CLARA, Calif., Dec. 5, 2019 /CNW/ -- The connected trucks market is gaining traction in Brazil, with fleet companies eager to improve driver and truck performance through data acquisition. In 2018, the installed base of the connected truck market was estimated to be approximately 1 million units. By 2025, this number is expected to grow to more than 1.79 million. Today, independent telematics system providers make up more than 90% of the market, with OEMs and a small number of start-up companies making up the rest. However, this ratio is expected to change as OEMs develop their own fleet management systems.

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Connected Truck Market
Connected Truck Market

"OEMs will become more competitive in the market over the coming years as they develop their own fleet management systems that will come factory-installed in their vehicles," said Ingrid Schumann, Mobility Research Analyst at Frost & Sullivan. "In addition, start-ups are making notable strides into the market, particularly in sectors such as last-mile delivery, routing, and fleet and freight management."

Frost & Sullivan's recent analysis, Future of Brazilian Connected Truck Market, Forecast to 2025, analyzes developments in the telematics industry for medium and heavy commercial vehicles in Brazil and present an outlook of market growth opportunities and performance. It examines key trends, the competitive landscape, market benchmarking, competitor profiles, and growth opportunities for connected truck vendors.

For further information on this analysis, please visit: http://frost.ly/3wj

"In the future, we expect OEMs to increase their market participation while offering a free trial and renewal subscription business model that is not found with aftermarket service providers," noted Schumann. "In addition, the entry of non-traditional telematics companies into the market will stimulate the growth of connected solutions offerings."

In this market, the most successful providers will be the ones that:

  • Embrace portfolio expansion as new customer pain points have opened the door to not-yet common services that can be used as unique offerings
  • Invest in open architecture telematics platforms, which provide a systematic approach to simplify integration through open access to SDKs and APIs
  • Pursue M&A and partnerships, particularly with non-traditional telematics companies entering the market, to allow for enhanced customer value proposition

Future of Brazilian Connected Truck Market, Forecast to 2025 is part of Frost & Sullivan's global Mobility Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Future of Brazilian Connected Truck Market, Forecast to 2025
K392-18

Contact:
Francesca Valente
Corporate Communications – Americas
P: +1 210 348 1012
E: [email protected]
http://www.frost.com

SOURCE Frost & Sullivan

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