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Despite setbacks, commercial telematics market to thrive
27 March 2002, News

2001 marked a prominent lull in the US commercial fleet management systems (FMS) industry as a result of several factors, including the economic recession, the burst of the telecom bubble and more recently, terrorist activities. However, there is a clearly defined need to adopt FMS systems for tracking and remotely controlling vehicles in an emergency, as well as providing significant added-value and return on investment.

This is according to technology research think-tank ABI, who says that commercial fleets more closely examining such solutions include haulers of hazardous materials, explosives, and fuel, as well as those involved in just-in-time delivery.

"Due to deteriorated market conditions, increased competition, and higher debt, many FMS vendors have been forced to restructure and focus on their core competencies," states Frank Viquez, senior analyst, ABI. "As a result of this, 2002 will witness rising competition and market specialisation, progressively more sophisticated distribution channels, and increased product differentiation in commercial vehicle telematics offerings."

Signs of this are evident, he adds, as last year several European vendors began preparations to enter the US market, including Minorplanet Systems PLC and Trafficmaster PLC.

In a new report, ABI states that 'the commercial FMS market promises to be abundant'. It finds that the global FMS market for commercial vehicles is expected to grow from under $2 bn in 2001 to nearly $6 bn by year-end 2007.

www.alliedworld.com


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