Fleet management and trailer tracking system revenues will grow at a CAGR of 19.4 percent in the next five years, rising from about $5 billion in 2011 to exceed $12 billion in 2016.
While commercial telematics in developed markets such as North America and Western Europe is reaching maturity, especially in the trucking segment, the major growth in future is expected to come from developing regions where safety and security requirements are currently the main drivers. This trend is typified by mandates in Brazil (Stolen Vehicle Tracking legislation) and Russia (eCall on commercial vehicles by 2013),” said Dominique Bonte, ABI Research Telematics and Navigation group director.
However, the biggest growth will come from Asia, with China leading the way as it moves from developing” to developed” status. While telematics in China has long been held back by small average fleet sizes, this is changing rapidly with a more organized and larger-scale transportation industry emerging.
As fleets struggle to add a sufficient number of new vehicles to keep up with the surging economy, telematics becomes an important tool for optimizing the use of the limited available vehicle resources. International players such as Navman Wireless have already entered the Chinese market, according to ABI Research.
Though commercial telematics has largely been an aftermarket environment, truck OEMs such as Daimler (FleetBoard), DAF Trucks, the Scania Group, Renault, Iveco, and Volvo Trucks are now ramping up their efforts by offering factory-installed solutions. In most cases, these are also compatible with other truck brands, a major requirement as mixed fleets are common in the transportation industry.
By TelecomLead.com Team
editor@telecomlead.com
