Market researcher ABI Research says e-commerce growth, investments in transportation infrastructure and increasingly stringent emissions standards for heavy-duty vehicles will power China’s commercial vehicle telematics market over the next five years to a 22% CAGR over the forecast period.
“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.”
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.