Fleet News

Key role of telematics in CV market growth

THE European commercial vehicle telematics market is set to generate revenues of up to €4.7 billion by 2009, a new report predicts.

A study by international marketing consulting company Frost & Sullivan says telematics will be the 'primary battleground' for the hearts, minds and Euros of commercial vehicle users.

It predicts the market to grow from 169.5 million Euros in 2001 to revenues of about 4.7 billion Euros by 2009.

In their quest for leadership, the report says, vehicle manufacturers are launching an aggressive push into the commercial vehicle telematics market. And in response to competition they are revamping their strategy for further development of the technology and it commercial application.

'A rising number of new vehicles will come ready fitted with telematics systems or fleet management systems (FMS) interfaces to enable the implementation of value-added features,' said Frost & Sullivan research analyst Tif Awan.

The company added: 'The promise of harnessing the power of telematics as a key competitive differentiator entices a growing number of automotive manufacturers to enter this marketplace.'

However, the study warns that the use of telematics to establish any degree of competitive edge is 'likely to be unsustainable in the longer term when a glut of system introductions will be diminishing competitive advantage.'

It added: 'Companies involved in providing telematics services, be it vehicle manufacturers portals like Volvo Dynafleet and Scania Infotronics, wireless telecom operators such as Vodafone and T-Mobile or dynamic retrofit application service providers Minorplanet Systems and Gedas Logiweb, are set to reap the benefits from the increasing buoyancy of the commercial vehicle telematics market.

'Those players failing to respond effectively to the changing competitive landscape will lose out on exciting market opportunities'.

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