Is the Commercial Telematics Market Ready for Consolidation?

Author: David Alexander, Principal Analyst, Automotive Technology

Published: 20 Jun 2008

A look at the growing number of companies entering the rapidly expanding commercial telematics market recalls similar situations in the automotive industry from a hundred years ago, and the home computer industry almost twenty years ago. In all three cases, a combination of new, affordable technology – and a plentiful supply of customers who perceive value in the new offerings – has provided incentive for investors to support the establishment and expansion of companies eager to get a slice of the action. Then, as the market matures, there is a period of consolidation and elimination of the weaker players. Both autos and home computers have passed through the initial stages of this cycle into the consolidation and elimination stage. Where is commercial telematics market in the cycle?

The full text of this Insight is available to subscribers of the Telematics Research Service and the Connected Car Research Service and the Commercial Telematics Research Service.

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