According to a new market research report by the Internet of Things analysis company Berg Insight, the installed base of telematics equipment in the car rental market will reach 5 million in 2020.
The COVID-19 pandemic and its recent impact on the world economy are believed to have driven the demand for digital business models, which has Telematics in the leasing and leasing industry. It is estimated that by 2025, the global active installation base will reach 10.5 million. Car rental and rental fleet In Europe and North America.
Today, several types of telematics applications are used in the context of car rental and leasing. Martin Svegander, Senior Analyst at Berg Insight, said:
“The main benefit of deploying telematics between car rental and leasing companies is to improve control of assets.”
Fleet managers have a clear interest in tracking vehicle locations and monitoring vehicle status to prevent fraud, theft, and abuse. In the long run, this will reduce operating costs and possibly lower insurance premiums.
“Telematics technology can also enable new business models or services, such as long-term pay-per-use contracts for private cars or automatic mileage reports for company cars, as well as contactless car rental and car sharing experiences.”, Mr. Svigander continued.
The telematics value chain spans multiple industries, including large company ecosystems. The telematics participants active in the car rental and leasing market can be divided into two categories at a high level. One is a telematics expert who is only or mainly active in the field of leasing and leasing, providing solutions for digital access or fleet management. Examples of companies in this market include fleet management solution providers Webfleet Solutions, PowerFleet, Masternaut, and Geotab.
“Geotab has become a leading telematics service provider in the leasing industry and has an installed base of more than 600,000 telematics users in this market segment in 2020”, Said Mr. Swigand.
Other well-known telematics service providers in the leasing and leasing telematics market include IMS, Octo Telematics, Targa Telematics and Zubie, as well as specialized companies such as RentalMatics and Liberkee. Telematics data integration between car OEMs and car rental companies is becoming more and more common, and it is expected that car OEMs will increase their participation in the rental and rental telematics industry in the next few years.
“Examples of automotive OEMs that directly integrate telematics with leasing and leasing companies include General Motors, Ford, Stellatis (Free2Move) and Toyota”, Mr. Swigand added.
