Predictions for 2015 in the Telematics Industry
We now live in the Digital Age with rapid advancements in technology changing the way we live, changing our homes, changing our workplaces and changing our vehicles. 2014 saw an unprecedented level of progress in the telematics industry which is one of the fastest growing sectors at present. In our last news report we looked at some of the most important developments in telematics that took place in 2014 and promised to bring you some of the predictions for how telematics will have even more of an impact in the coming year.
Surprisingly, one of the industries that is most likely to change with the advent of telematics is the insurance industry which is traditionally a sector that is very slow to both change and embrace change. However, cutting edge technology has provided us with ways of monitoring driver behaviour and the insurance giants have taken this on board with cheaper policies for those who drive sensibly and safely.
However, the big insurance providers will need to be on their guard as Forrester Research predicts that they will struggle to combat the threat to the industry by a new wave of agile start-ups. The industry is likely to be disrupted by new companies such as Oscar, PolicyGenius and Friendsurance who are all set to increase the level of competition seen by the current industry leaders.
Dozens of software based start-up companies are attacking market sectors that they view as ripe for disruption and are set to move more aggressively in the coming twelve months putting more pressure on the current market leaders.
Commercial telematics is taking the whole world by storm, with a wide range of applications in fleet/asset management, satellite navigation, infotainment, remote monitoring and alarms and even telematics health solutions. End users industries include transportation and logistics, healthcare, government and utilities, construction, insurance and manufacturing.
Fleet management is one of the most important applications of commercial telematics with vehicle tracking and driver behaviour analysis providing fleet owners with the means to monitor and manage assets and personnel in a manner that ensures a decrease in costs and enhanced productivity.
Healthcare in Japan, the US, Germany and China has been leading the way. Despite the initial high costs incurred in the installation process, telematics applications provide a swift return on investment (ROI) and experiencing rapid growth which is likely to be replicated here in the UK.
In 2013 North America was the most lucrative market for commercial telematics in terms of revenue. The Unite States experienced an appreciable adoption of commercial telematics solutions across a range of industries, including government and utilities and transport and logistics that can be attributed to the high internet penetration in that region. Where the United States leads the way, the rest of us generally follow so we should be looking across the pond for clues as to what will be happening here in the UK in the near future.
Whatever happens in the telematics industry in the coming year, we’re sure to see opportunities opening up and more change and disruption as the tech revolution brings us closer and closer to living a more digital and organised life.