The installed base of active telematics systems in the car rental and leasing market in Europe and North America reached 6.2 million at the end of 2023, according to a new market research report from the IoT analyst firm Berg Insight.
Growing at a compound annual growth rate (CAGR) of 14.8 percent, the total active installed base is forecasted to reach 12.3 million by 2028 across the car rental and leasing fleets in the two regions. The telematics penetration rate across the car rental fleets in Europe and North America is expected to grow from 40 percent at the end of 2023 to 75 percent in 2028. The telematics penetration rate in the total population of leasing vehicles in the two regions reached 36 percent at year-end 2023 and is expected to reach 60 percent by 2028.
The uptake of telematics in the industry is believed to be driven by requirements for fleets to increase fleet utilisation and decrease the carbon footprint, the emergence of new mobility services and the general electrification trend in the automotive industry. The OEM telematics initiatives have intensified over the years and entail opportunities for rental and leasing operators to avoid telematics hardware installations.
“All leading rental and leasing operators have deployed telematics solutions to some extent, some more than others”, said Erica Rickard, IoT Analyst at Berg Insight.
Several players aim to connect all or many of their vehicles in the coming years and strategic partnerships between mobility operators, telematics service providers and OEMs have also been established.
Several categories of telematics applications are today used in the context of car rental and leasing.
“The main benefits of deploying rental and leasing cars with telematics solutions include improved control over assets, optimised fleet utilisation and enhanced customer experience”, said Ms Rickard.
Fleet managers are interested in tracking their vehicles’ location and monitoring vehicle status to prevent fraud, theft and mistreatment. Telematics solutions enable rental and leasing fleet managers to reduce operational costs and potentially lower insurance premiums.
Ms Rickard, continued:
“Telematics technology may also enable new business models and services such as digital and contactless car rental and carsharing experiences.”
Rental and leasing companies can also utilise telematics to facilitate sustainability reporting by monitoring CO2 emissions and driver behaviour.
The telematics value chain spans multiple industries including a large ecosystem of companies, including hardware specialists, software specialists and end-to-end solution providers. Examples of leading companies present in the rental and leasing market are the telematics solution vendors Geotab, Targa Telematics, OCTO Telematics, CalAmp and Webfleet. Additional notable telematics service providers in the rental and leasing telematics market include Powerfleet, Munic, MySmartObject, Connected Cars, RentalMatics and Guidepoint Systems.
The market also consists of telematics specialists who are only or mainly active in the rental and leasing space, offering solutions for digital access or vehicle fleet management. These companies include Fourth Tier, Zubie, HQ Rental Software, Kirrk and TSD Mobility Solutions. Some carsharing telematics providers, including Invers, Vulog, OpenFleet, WeGo Carsharing, Convadis and Atom Mobility, also target rental and leasing companies.
“Telematics data integration between automotive OEMs and rental and leasing companies has become increasingly common. It is anticipated that the involvement of automotive OEMs will accelerate in the rental and leasing telematics industry in the coming years”, concluded Ms Rickard.
The post The rental and leasing car telematics market is expected to grow at a CAGR of 14.8 percent in the next 5 years appeared first on IoT Business News.