A NEW report has predicted that more than 60% of vehicles sold to fleets will be fitted with telematics hardware by 2005.

Telematics is a key topic in the three-part 'info entertainment' report produced in conjunction with ph impetus and Jato Dynamics.

The report suggests that by the end of 2005, a million-strong telematics-equipped vehicle parc will be supplemented by an estimated 434,000 telematics-fitted units sold per year.

'The non-premium model sector will account for the majority of the growth from 2003, with the premium and sub-premium brands starting to peak from 2004 onwards,' it said.

The total telematics-enabled vehicle parc in 2005 is likely to be driven by vehicle manufacturer-supplied hardware (70%) rather than through the aftermarket (30%). However, the fleet market will account for over 60% of aftermarket telematics sales, the report predicts.

It includes LCV and medium commercial vehicles, as well as cars, amongst its definition of 'fleet fitted with in-car telematics capabilities'.

In the year to the end of 2001, it is estimated that vehicle manufacturers sold less than 10,000 telematics units in Germany and the UK combined.

The report said: 'Germany, to date, has been the lead market for vehicle manufacturer telematics in Europe. Marques with a current telematics offer include BMW, Fiat, Alfa Romeo and Ford.'

The report also cites a recent KPMG survey of senior automotive executives in the US and Europe who, when asked to rank the most important innovations over the next five years, put telematics in fourth position with 41% of votes.

The report is sponsored by telematics company ITIS Holdings, the manufacturer of NavTrak vehicle tracking systems and holder of the national licence for the RDS-TMC (Radio Data System-Traffic Message Channel) protocol.

'Although the term telematics has been broadly banded-about in the past few years, this report confirms that the real growth from this integrated group of technologies is set to occur over the next few years,' said ITIS Holdings business director, Andrew Smith. 'Telematics has a clear application in the fleet sector, where the decision to install systems, or purchase vehicles with embedded telematics capabilities, will be based on commercial return.'

Examples of this, Smith said, include features such as dynamic route guidance, GPS positioning (in conjunction with satellite navigation or providing location assistance in case of breakdown), and in-car computing that can provide a business with a direct return on its investment.'

Smith added: 'We see telematics capabilities becoming a primary influence on fleet purchasing decisions over the next five years, with vehicle manufacturers increasingly responding to the opportunity to provide differentiation between their products through in-car telematics capabilities.'

  • The full, three-part 'info entertainment' report covering telematics, satellite navigation and multi-media is available from Andrew Smith at ITIS Holdings, email asmith@itisholdings.com