Commercial Telematics Market to Reach $11B in 2013

(Top News, 11 Jul 2008)

With cost pressures steadily increasing, fleet managers are being challenged to get more productivity from their vehicles and drivers so that customer satisfaction is kept high and corporate goals are met. One option is to invest in new technology that can help optimize factors such as route planning, vehicle usage, driver performance, and vehicle monitoring for safety and to prevent theft.

"The world market for commercial telematics is poised for significant growth," says David Alexander, principal analyst at market research firm ABI Research. "The combination of lower-cost electronics and wireless communication fees was always going to be an incentive for steady growth, but the recent large increases in fuel costs worldwide have had a dramatic effect on ROI calculations."

Over the last year or two, telematics applications from the major suppliers have demonstrated their reliability, and new functionality is being added frequently. New entrants are keeping the existing suppliers on their toes and making sure the market remains competitive. There is plenty of business to go around in the short term, and now is the time for the bigger players to make sure of their futures by staying ahead on the innovation curve.

"We see significant growth in this market over the next five years, from a total of about $3.5 billion in 2007 to over $11 billion in 2013," adds Alexander. "And as volumes grow, the component and communication costs are going to decline even more. The trend towards multiple functions is also likely to provide greater added value for fleet managers."

Click here for more information on the report "Commercial Telematics Forecasts" from ABI Research