Massive e-commerce increases, hundreds of billions of investments in transportation infrastructure and stringent emissions standards for heavy-duty vehicles are propelling up to a 22% CAGR from 2019-2024 for China’s commercial vehicle telematics market.
Says ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.
“China’s logistics market accounts for nearly 15% of the country’s GDP and was expected to produce over one million heavy-duty and over 200,000 medium-duty commercial vehicles last year,” says Susan Beardslee, Principal Analyst at ABI Research. “The market is developing from conventional ‘track and trace’ solutions to increasing use of connected technology and factory-fit solutions.
Coverage includes Beijing-based G7 Technologies a leading commercial telematics provider, with customers including Amazon China, JD.com and FedEx Express, and with at least $510 million in funding, including Tencent. Award-winning supplier 666GPS is the country’s largest GPS manufacturer including more advanced custom solutions. Shenzhen-based Meitrack serves a wide number of industries with multiple solutions including integration with Mobileye. Shenzhen Huabao Electronic Technology supports both domestic and international markets, with some distribution via Alibaba as well as other aftermarket and OEM solutions.
Developing a market presence in China can be a challenge for international companies. There are detailed and lengthy provisions to apply as a foreign-funded enterprise. “Although economic opportunities for the Chinese market are substantial and growing, suppliers wanting to enter must plan for a long-term investment approach, carefully evaluating local partners and considering multimarket agreements and advanced technologies,” Beardslee concluded.
These findings are from ABI Research’s Commercial Vehicle Telematics Influencers in China application analysis report. This report is part of the company’s Intelligent Transportation & eFreight research service, which includes research, data, and Executive Foresights. Based on extensive primary interviews, Application Analysis reports present in-depth analysis on key market trends and factors for a specific application, which could focus on an individual market or geography.