The vehicle dashcam market was valued at $2.8 billion in 2020. It is expected to grow at an annual compound rate (CAGR) of 15.6% for the 2021-2026 period, reaching $7.8 billion in 2026 Commercial vehicles are a significant component of this market.
The vehicle dashcam market is part of the rapidly growing field of motor vehicle telematics, the marriage of telecommunications, and information processing. This branch of information technology is closely related to the emerging Internet of Things (IoT). Fleet dashcams, which can become part of the IoT system if wireless and web-enabled, permit businesses to analyze data processed through the cams to improve their business processes. The telematics business is forecast by some to grow at a CAGR of 20.7% for the 2021-2026 period; others see a market worth $115 billion in 2019 growing at a CAGR of 8.4%, reaching $144 billion by the end of 2027.
The rapid growth in these interconnected areas indicates strong business demand for telematics and IoT tools, including GPS-enabled dashcams. It is easy to see why such demand exists.
The Theoretical Advantages of Dashcams
The benefits of dashcams are numerous:
- They provide definitive proof of who is really at fault for accidents. This allows for speedy resolution of insurance and legal disputes and provides a strong defense to any presumption that the commercial vehicle is at fault.
- They are a shield against false claims. The dashcam is the impartial tie-breaker in any “your word against mine” situation.
- They can provide valuable proof of vandalism of parked vehicles.
- They provide evidence in cases of theft of vehicles.
- The rear dashcam can incentivize good driver behavior and provide evidence of performance during accidents. When coupled with driver training, they can improve fleet safety.
- The rear dashcam can deter bad customer or driver behavior.
- Because of the evidentiary weight of dashcam footage, they minimize the cost of accident investigations and can lower insurance costs.
Web-enabled dashcams with GPS can be used for “fleet tracking,” the monitoring of the real-time performance of business vehicles, including delivery times and the efficiency of delivery routes. A popular model used by businesses for these purposes includes Blackvue’s Full HD Cloud/ DR750X model, which comes in single-channel, dual-channel, taxi, and truck models.
Geofencing can trigger desired driver responses when nearing or entering fenced zones, directing route changes where necessary. More advanced telematics solutions allow fleet tracking data to improve operational effectiveness and to reduce full costs/minimize idling.
Show Me the Money
It is all well and good to repeat what appears to be common knowledge. But where are the numbers that show the real impact on businesses and their costs?
A fleet solutions survey listed reductions of 54% for crashes, 30% in claims, and 50% in the cost of claims.
A 2019 fleet tracking report indicated that 98% of survey respondents indicated that GPS tracking had yielded benefits for their business. 45% of businesses using GPS software generated a positive ROI on their investment in less than a year; 22% in less than 3 months. Of those using the software, 80% reported very high degrees of satisfaction.
Another study showed that 64% of all commercial fleets used GPS tracking. The following percentages of respondents listed the key benefits experienced through telematics/GPS as:
- Improved driver behavior (65.9%)
- Increased fuel savings (58.5%)
- Improved driver safety (46.3%)
- Reduced emissions (29.3%)
- Shorter delivery time (26.4%)
- Reduced maintenance costs (19.5%)
A U.K. case study put numbers to the savings experienced through “connected vehicle technology.” A healthcare waste specialist achieved almost $6 million in savings by using the technology. To achieve this, the business reduced fuel consumption, lowered insurance costs, and rationalized its use of vehicles by removing underutilized units. Savings were identified in four principal areas:
- Improved scheduling of routes ($200k per year)
- Minimizing stopping times ($350k per year)
- Reducing unproductive driver behavior ($600k per year)
- Removal of underutilized vehicles ($2.8 million per year)
A recent insurance blog reported that U.S. federal regulations require commercial vehicles over 10,000 pounds carry ¾ of a million dollars in insurance coverage. Each accident costs a company, on average, some $70,000, not including downtime for the vehicle, loss of associated revenue, and claims by third parties. The U.S. Bureau of Statistics reported that work-related motor vehicle accidents, which represent 40% of all such accidents, cost employers $56 billion a year. On average, the use of telematics can generate insurance discounts of 5 to 15%.
What Are You Waiting For?
For once, the theoretical benefits of dashcams and telematics appear to be backed up by empirical evidence. Blackvue’s fleet tracking solution offers unlimited remote live view, live GPS tracking, and 90-day GPS tracking history, designed to help businesses progress. Faced with the evidence, the question is not whether to use these tools, but when.