Leveraging Video Telematics to Meet Regulations and Improve Fleet Safety

This resource provides an overview of the commercial video telematics market, including demand forecasts, types of telematics systems, market drivers, key players, and more.

Market Overview

Below compiles ABI Research’s latest market forecasts for video telematics solutions in commercial fleets: dashcams, Driver Monitoring Systems (DMSs), surround-view camera systems, and Advanced Driver-Assistance Systems (ADASs).

• Just shy of 10 million commercial video telematics solutions will ship by the end of 2023, with dashcams and DMSs being the primary driving forces. Meanwhile, 2.34 million ADASs will ship, while surround-view cameras are a nascent opportunity.
• By 2030, we expect almost 18 million commercial video telematics solutions to ship, with similar proportions.
• Overall, commercial video telematics revenue is expected to grow by 27% Year-over-Year (YoY), from US$4.4 billion in 2023 to US$10.7 billion in 2030.
• The global installed base for commercial video telematics solutions will increase from about 30 million this year to nearly 80 million by 2030—signaling significant investment in driver monitoring capabilities.
• Impetus for the adoption of video telematics solutions comes from safety concerns, regulation, and insurance claims.

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“Today, video telematics is an indispensable tool for modern commercial fleets, revolutionizing the way safety and productivity are managed, and ensuring a more secure and efficient future for the transportation industry.” – Adish Luitel, Senior Analyst at ABI Research

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Key Decision Items

Differentiate the Various Types of Video Telematics Systems

Video telematics systems can be classified into the following categories:

• Outward-Facing Cameras: Externally-facing cameras, due to their low cost and complexity, remain the most common installation type. These cameras can attest to drivers’ behavior, including speeding and braking. Benefits include liability determination for multiple accident types and real-time feedback/coaching.
• Inward-Facing Cameras: A DMS typically includes an interior-facing camera used to alert drivers and fleet managers when in-cab safety issues are detected. Traditional features have included basic eye/facial analysis, driver distraction, and fatigue. More advanced solutions can detect phone usage, smoking, seatbelt compliance, and microsleeping.
• Combination of Dashcam and Driver Monitoring: This is a combination of inward- and outward-facing cameras, also providing driver coaching and additional evidence for insurance claims. The combination of dashcams and DMS solutions can range from recording-only and offline human viewing to smart video telematics with ADAS features and real-time event-based alerts.
• Multi-Camera Solutions: The last few years have seen early momentum for multi-camera systems, some that can support the visibility of the complete vehicle environment, with a 360° view. This helps the driver maneuver and park heavy-duty fleet vehicles more safely.
• Cloud-Based Telematics: Cloud-based video telematics systems store recorded videos and relevant data in the cloud. This allows for remote access to footage, more streamlined data management, and real-time notifications and analysis.
• Safety-Focused Systems: Some video telematics systems primarily focus on improving driver safety. They provide driver coaching tools, scorecards, and performance reports to help reduce risky driving behaviors and promote safe driving habits for fleets.
• Event-Triggered Cameras: These video telematics systems only activate when certain events occur, such as harsh braking, sudden acceleration, or collisions. This approach helps save storage space and allows fleet managers to focus on critical incidents.
• Connected Vehicle Systems: Video telematics can be integrated with connected vehicle technologies, allowing vehicles to communicate with each other and with infrastructure. This integration can enhance safety and traffic management on a larger scale.
• ADAS Solutions: ADAS solutions continue to evolve and will increasingly become part of Original Equipment Manufacturer (OEM) factory-fit options and then standard offerings. They can include both forward-facing and sideways-facing solutions. Features include alerts for the driver to take manual action to reduce accident occurrences.
• Fleet Management Systems: Video telematics systems integrated into fleet management solutions offer additional features like Global Positioning System (GPS) tracking, route optimization, vehicle health monitoring, and driver performance evaluation. These systems are valuable for fleet operators to enhance efficiency, safety, and productivity.

Identify the Market Drivers for Commercial Video Telematics

With a high level of growth expected, experts have cited several factors that will spur the expansion of the dashcam market. There are various significant factors to consider as drivers for increased video telematics adoption:

• Fleet Safety Concerns: As the rate of accidents has increased, so have concerns regarding individual safety for fleet drivers. Dashcams are generally more popular in high-population urban areas.
• Improved Driver Experience: The driver's experience is enhanced through video telematics, as the driver is aware that the footage will shield them from reputational harm and worse in the event of a not-at-fault accident. Alerting the driver is greatly welcomed in rare situations where driving is determined to be dangerous, such as when a driver is inattentive, tired, or has missed a speed limit sign.
• Increasing Adoption of Connected Vehicles: Connected vehicles can share data with other vehicles and infrastructure, providing richer insight into driving conditions and driver behavior.
• Advances in Video Technology: The cost of video cameras and storage has decreased significantly in recent years, making video telematics more affordable for fleets of all sizes. Additionally, advances in video analytics are making it possible to extract more insights from video data, such as identifying risky driving behaviors and detecting accidents.
• Growing Awareness of the Benefits of Video Telematics: Fleet managers are becoming increasingly aware of the benefits of video telematics, such as improved safety, reduced costs, and increased efficiency. This is driving demand for video telematics solutions.
• Increased ADAS Spending: ADAS technology like lane assist, forward collision warning, and adaptive cruise control are highly popular use cases for video telematics solutions. Initiatives are in place to bring dashcams up to speed with these ADAS features by enhancing them with algorithms and sensors.
• Improved Road Safety: AI on the driver-facing camera and the road-facing camera can monitor dangerous circumstances, send out instant alarms to prevent negative outcomes, and offer useful data to use for driver coaching to increase fleet safety. The driver-facing camera searches for indications of distractions like using a cell phone, listening to the radio constantly, turning their head away from the road, etc. Personalized and useful analytics can help fleet managers teach safe driving.

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What Are the Market Inhibitors for Commercial Video Telematics?

Even though the outlook is good for dashcams, there are some factors that the industry should be concerned about in terms of adoption:

• Privacy Concerns: Privacy concerns have grown due to increased technical solutions that violate privacy. Those concerned about privacy may be quite concerned about devices that continuously record video. The complex legislation and ethical rules governing video recording could eventually present issues for the dashcam sector.
• Resiliency: Dashcams are sensitive pieces of technology that must withstand a lot of abuse, considering the extremes in temperature, humidity, and trembling that a vehicle experiences. Dashcams must, therefore, be maintained in order to function at their best and appropriately safeguard the fleet data. The likelihood that drivers will invest in the technology may be reduced if they are aware of the necessity for periodic maintenance.
• High Cost of Installation and Maintenance: The cost of installing and maintaining video telematics systems can be a barrier for some fleets. The cost of the cameras, storage, and software can be significant, and the systems also require regular maintenance.
• Privacy Concerns: Some people are concerned about the privacy implications of video telematics. They worry that the cameras could be used to spy on them or that their personal data could be collected and shared without their consent.
• Data Security Concerns: There is also a risk of data security breaches with video telematics systems. If the data are not properly secured, they could be stolen or hacked, which could lead to identity theft or other problems.
• Lack of Awareness: Some fleet managers are not aware of the benefits of video telematics or how it can be used to improve safety and efficiency. This can be a barrier to adoption.
• Technical Challenges: There are some technical challenges associated with video telematics, such as the need to store and process large amounts of data. These challenges can make it difficult to implement and use video telematics systems.

Assess the Technologies That Enable Commercial Video Telematics

In this section, we identify the various enabling technologies for commercial video telematics.

• 2D Cameras and Stereo Cameras: Two-dimensional (2D) cameras are a widely used type of sensor in DMSs due to their low cost and relatively small size. Many vendors use 2D cameras coupled with Near-Infrared (NIR) lightning pods located in the vehicle’s cockpit focused on the direction of the driver’s face. Stereo cameras have at least two lenses with a separate image sensor for each lens, capturing 3D images. These cameras can capture moving objects at a higher distance, providing both camera image and distance range to objects. They are more difficult to calibrate and have higher computational complexity.
• Regulation: Various governments worldwide are mandating driver monitoring systems to improve road fleets. This serves as a key impetus for adopting video telematics systems.
• Architecture: Newer hardware architecture offers powerful processing capabilities that support onboard video and data processing via Computer Vision (CV) and Machine Learning (ML) in compact devices. Growing partnerships are increasingly developing driver monitoring, occupancy monitoring, intelligent driver assistant, and ADAS in a single chip, a black box, or a single platform.
• Processing: Cloud platforms are best suited for video data storage, in the case of truck fleets. Many vendors focused on the commercial fleet vertical offer edge computing analytics coupled with cloud platforms, so fleet managers can have access to videos for a chosen period of time to develop Key Performance Indicators (KPIs) for coaching or even as evidence for accidents. Some companies store the videos for days, months, or even a year according to customer preference.
• Artificial Intelligence: Using algorithms trained on a large number of pictures of drivers that look alert and tired, a DMS can determine the driver’s level of alertness, focus, and attention. While cameras collect the data (e.g., eye movement and facial features), the software uses algorithms to analyze the data and conclude whether the driver is paying attention to the road. The method that uses algorithms to conclude videos and images is called Computer Vision (CV).

Key Market Players to Watch

• DriveCam Inc
• Geotab
• Lytx
• Samsara
• Seeing Machines
• SmartDrive
• Verizon

Dig Deeper for the Full Picture

Learn more about the revolutionary technologies, competitor offerings, market drivers, regulatory environment, market forecasts, and other key trends within the commercial video telematics industry by downloading ABI Research’s Commercial Video Telematics for Road Freight Transportation and Fleets report. This report prepares supply chain/logistics providers for upcoming telematics adoption, while telematics vendors can accurately assess the most promising market opportunities with hard data.

This content is part of our Video Telematics Research Spotlight, which allows you to pay for just the content focused on this technology.