Commercial telematics
Vehicles used by businesses and governments are now routinely manufactured with telematics systems. These systems are used to transmit location data and an increasingly wide range of other types of information, including information related to vehicle health, driver behavior, or battery status in electric vehicles. These technologies enhance efficiency, increase productivity, and provide a wide range of other benefits. They also suit a range of use cases, including logistics, emergency services, public transport, construction, utilities, and more. Furthermore, commercial telematics is a rapidly advancing field with new technologies such as 5G and edge AI opening up many new possibilities.
$78.6bn
Commercial telematics market value by 2034
12.9%
Annual market growth over the next decade
93%
US commercial fleets with 50+ vehicles using telematics
With real-time visibility over vehicles, fleet managers can optimize routes, cut downtime, and respond quickly to changes in conditions. Telematics systems now perform additional functions, such as providing predictive maintenance alerts, monitoring temperature-sensitive or high-value cargo, tracking driving standards, and assisting with energy efficiency. These functions bring benefits, including reduced costs, environmental friendliness, lower insurance premiums, and increased safety. Connected cameras play a key role in many instances. With image recognition systems, for example, performing a range of functions, including monitoring driver posture or steering patterns to detect signs of tiredness.
The latest advances in telematics are extending capabilities even further. For example, edge AI is enabling enhanced in-vehicle analysis and 5G connectivity is delivering faster and more reliable data exchanges. Elsewhere, electric vehicle devices provide detailed insights into battery health, charging cycles, and range prediction. Looking ahead, integration with vehicle-to-everything (V2X) communications and smart city infrastructure will allow fleets to interact dynamically with traffic systems, road networks, and other vehicles. These innovations are paving the way for safer, cleaner, and more efficient transport. Meanwhile, they are also laying the foundations for semi-autonomous and fully autonomous fleet operations.
Local delivery, government, and construction organizations are among the highest adopters of commercial telematics, with respective CAGRs of 14%, 13.5%, and 12.3% expected up to 2032.
Forecasts now indicate the global commercial telematics market will grow by an average of 12.9% a year over the next decade, eventually reaching a total value of $78.6bn by 2034. Notably, in Europe, a 2024 survey found that 78% of fleets now use GPS tracking technology. This figure marks a 5% increase from the previous year and reflects a growing confidence in GPS solutions. In another survey, 41% of GPS tracking users reported a positive ROI in under one year, and 21% after a year. Despite the financial benefits, organizations rarely reported cost savings as the main telematics advantage. In fact, 29% of respondents reported easy location of vehicles as the biggest benefit of telematics. Improved driver safety and behavior followed at 27%. The impact of telematics on safety was also substantial, with 42% reporting considerably fewer safety incidents since using software to monitor driver behavior.
Quectel is well-placed to support commercial telematics with a vast range of durable, compliant, multi-functional modules that include the following features:
Socket Secure Layer to meet strict security and privacy requirements in data transmission
Wide temperature ranges to ensure durability in harsh environments
MIMO technology, which greatly reduces errors and boosts data speeds
Backward network compatibility to enable coverage in remote areas
In some markets, new regulations are helping to fuel growth in telematics. In the EU, for instance, the Mobility Package I made it mandatory to replace older analogue or 1st generation digital or smart tachographs in vehicles used cross-border at the end of 2024. Lighter commercial vehicles (2.5 to 3.5 tonnes) in cross-border traffic must also comply in 2026. And it’s clear why civic authorities are keen to maximize the use of telematics. For example, commercial vehicles can use connectivity to increase compliance with speed limits and traffic signals, enhancing road safety and traffic management.
Telematics are also expected to enable more widespread remote control and monitoring of driverless vehicles. Indeed, there are many trials and pilot projects in operation. In Abu Dhabi, for example, WeRide launched fully driverless Robotaxi trial operations, operating on public roads without safety drivers. Elsewhere, in Germany, the Hannover region has initiated the “albus” pilot project. This features an 8m electric autonomous bus (Karsan e-Atak, Level 4) running in mixed traffic. Also, in Munich, MAN Truck and Bus has developed a fully automated bus that runs with a safety driver.
Quectel is a major supplier to this rapidly growing global market. We have an extensive portfolio of automotive modules, GNSS modules, 4G LTE, 4G LTE-A, and 5G modules. All of which cover the ever-expanding range of solutions in commercial telematics. You can also decide which of our fast-growing range of IoT antennas best suits your needs. And, given the particular attention that must be paid to reliability in this area, you can be assured that purchasing from these product ranges marks only the start of your journey with us – we are here to support in the design, build, and testing of your solutions with end-to-end aftermarket services of which we are justly proud. You can browse our catalogue via the Product Selector. Alternatively, if you’d like to discuss your requirements with us first, please feel free to contact us, and we will get back to you within 24 hours.
