The telematics market has been growing significantly in the past several years due to new technology in the field and an increased interest in driver safety. Keeping drivers safe is now a top priority for every fleet, and there are all kinds of technology solutions available to do it, from telematics to dashcams and more. Even despite the recent pandemic, the telematics industry is still seeing growth and will likely see more in the future. In fact, those in the know expect the telematics industry is expected to reach a value of $320.6 billion by 2026, indicating a growth rate of 26.8% from 2019. We will discuss why the industry is experiencing such growth, and what to expect going forward.
Factors Influencing Telematics Growth
At first, one might assume that the ELD mandate is the reason for the increase in telematics use among fleets. The ELD mandate was created in 2012 and required that fleet drivers use electronic logging devices to log driver time. This was an effort to increase driver safety. The deadline to equip fleet vehicles with suitable ELDs was in 2019, so any growth in the industry may have slowed since then.
However, while this has been a primary factor, it naturally will not be a factor in the coming years since the deadline has passed. So, why is the telematics market still projecting so much growth?
Local service and delivery markets are the answer to that question. These markets will likely increase significantly as online shopping grows in popularity and people expect to get their items faster and faster.
What Technologies Are These Industries Seeking?
Naturally, tracking is still at the forefront of any fleet’s priorities. It improves operations, prevents theft, and increases safety all at the same time. Not only is tracking important for vehicles, but also for assets and other equipment that is often the target of theft and loss.
Another technology that fleets will likely emphasize is driver behavior management systems. Improving driver behavior increases a fleet’s safety significantly. There are various technology solutions available through telematics that track driver behavior, reward positive behaviors, and coach drivers who need improvement.
Finally, dashcams are still rapidly growing in popularity among fleets. Being able to record an incident that occurs on the road often proves a business’s innocence in the event of an accident, and in-cab dashcams can often detect driver behaviors that may otherwise go unnoticed until there’s an accident. Dashcams are immensely useful tools that more fleets take advantage of all the time.
Start Taking Advantage of Telematics Today!
Azuga offers top-of-the-line telematics solutions that include all of these features and far more to optimize your fleet’s operations and improve driver safety. You’re sure to enjoy the benefits of Azuga’s software in no time; just try a demo today to see for yourself!