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In June 2006, Frost & Sullivan released a report on European market for Commercial Vehicle Telematics Systems. In the study, Frost & Sullivan analyses the market measurements, assesses the market size and provides forecasts. The study also analyses current and future pricing trends and competitive forces. It traces the key drivers for suppliers to invest in development and identifies the main restraints affecting the telematics systems market.
Previously, limited market adoption of telematics systems has been attributed to a lack of education towards the potential benefits of adopting telematics systems. However, the report highlights the increasing bottom line costs such as fuel and toll charges, coupled with customers demanding continuous improvements on service level agreements, meaning that fleet operators are looking to solve these issues through telematics systems. With increased understanding of the potential for cost saving, the market seeks further return on investment through streamlining of operations to minimise paper work and improve visibility between the vehicles and fleet managers.
Other market trends outlined in the report suggest fleet operators are seeking greater opportunities for reducing bottom line costs, the market requires a flexible system suitable for a range of vehicles and budgets and increasing market demand for risk management practices.
The transport industry is currently at a turning point where the impact of external factors such as government legislations resulting in tighter emissions controls, road charge schemes and safety legislations governing driver work times are prominent in the road transportation industry are adding to the need for the ever increasingly technology driven market.
‘TomTom WORK is supporting the industry, by delivering a service which helps their drivers to navigate the most direct route possible and maintain constant contact throughout a days work. This means they can undertake more jobs in a given timeframe and companies can provide their clients with the level of transparency of reporting they need to meet regulation requirements,’ says Peter Van der Vlis, Sales Director of TomTom WORK.
Frost & Sullivan predicts a healthy outlook for OE telematcis system providers with company annual growth rates, total revenue, telematics aftermarket and ROI of unit sales all on the rise from 2005 to 2011.
The report outlines the following recommendations: