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About the Authors:
David Gearhart, CFA
Vice President
David Gearhart is a vice president specializing in research and investment in software-as-a-service (SaaS) and the Internet of Things sector and has played a key role in establishing First Analysis’s Internet of Things franchise. He is a thought leader in his sectors, having authored several widely read white papers. He uses his industry knowledge and expansive network to uncover promising investment opportunities and help companies navigate their strategic paths and accelerate growth. Prior to joining First Analysis in 2011, he was an accountant with The Northern Trust Co. and an options broker with American Option Services. He earned a bachelor’s degree from Purdue University with a concentration in economics and finance and his MBA at DePaul University with a focus on finance and entrepreneurship. He is a CFA charterholder.
Howard Smith
Managing Director
Howard Smith is a managing director (office of the president) specializing in research and investment in software-as-a-service (SaaS) businesses and other business models based on information technology, particularly Internet of Things, cybersecurity, and internet infrastructure. He also built the firm’s historical research franchises in call centers and computer telephony. He is a thought leader in his sectors, having authored numerous widely read white papers. He uses his industry knowledge and expansive network to uncover promising investment opportunities and help companies navigate their strategic paths and accelerate growth. His work has been cited for excellence by the Wall Street Journal and other publications. Prior to joining First Analysis in 1994, he was a senior tax consultant with Arthur Andersen & Co. He earned an MBA from the University of Chicago and a bachelor’s degree in accounting from the University of Illinois at Urbana-Champaign. He is a certified public accountant.
First Analysis Internet of Things Team
Howard Smith
Managing Director
David Gearhart
Vice President
Matthew Nicklin
Managing Director
First Analysis White Paper
Video telematics
Large and underpenetrated market, stage set for strong growth
July 28, 2020
  • Video telematics, which uses camera technologies combined with traditional telematics capabilities and increasingly advanced driver-assistance systems (ADAS), is experiencing a surge in adoption as fleet operators and managers have become more interested in the situational intelligence afforded by captured footage that can be used to exonerate drivers post-incident and in training them to reduce undesired behaviors.
  • While in-vehicle camera systems have existed for over 20 years, they are finally poised to see much stronger connection growth due a confluence of factors, such as being preceded by broadly accepted traditional telematics monitoring solutions, significant declines in enabling hardware and data costs, improvements in technology, incorporation of automated capabilities, and a growing focus on safety and performance following a rise in accident rates, high-cost legal judgments, and commercial vehicle insurance costs.
  • We estimate the U.S. and Canadian markets generated $950 million in revenue from wireless-enabled video telematics solutions in 2019, aggregating hardware and recurring service components, with a penetration rate below 3%. We expect the market to grow approximately 22% annually to reach $6.8 billion by 2029, representing 31% penetration.
  • The market currently features over 50 video solutions providers, which compares to the several hundred in traditional telematics. We expect the number of video providers to rise significantly and for most of these to be successful in the near term due to the high return on investment (ROI) from deploying an average solution and due to the low market penetration of video, although we anticipate those players that are vertically focused, offer easy to install and use solutions, have some scale, and emphasize video analytics and machine learning to disproportionately benefit over time.

TABLE OF CONTENTS

Includes profiles of DGLY, MIXT, TRAK.L, TRMB, VRRM and 36 private companies

What is video telematics?

Solution overview - components of a modern offering

Features, capabilities

Incorporating advanced driver-assistance systems

Automated video capture triggers

Vertical markets

Why video telematics is needed

Benefits

Return on investment example

Business models

Pricing

Sizing the video telematics market opportunity

Adoption drivers: Why the market is poised for strong growth

Segmenting the market

Competition

Success drivers

Trends, observations, other thoughts

Public and private video telematics company profiles

Introduction

This report presents a high-level overview of the video telematics market, beginning with a description of basic solutions and their components. We then look at industry history, use cases, potential benefits, market size, growth expectations, and factors driving adoption. In addition, we segment the market on a variety of dimensions and outline the attributes we expect successful companies in the space to exhibit in the near and long term. After this overview, we profile some of the public and private players to provide additional market context.

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