Mumbai, Maharashtra, India
The intensely competitive Australian trucking industry, in its quest to increase profitability and efficiency as well as reduce costs, is becoming a lucrative segment for the commercial vehicle telematics systems market.
Frost & Sullivan Research Associate Mr. Satish Kumar Sampath says that major participants in the trucking industry will lead the way in the application of telematics, while the smaller market participants are anticipated to adopt telematics in a phased manner.
He adds that the demand for telematics is expected to increase, with manufacturing and the retail sectors implementing Just-in-time (JIT) practices, which require real-time information on cargo delivery status.
The use of telematics also helps the trucking firms distinguish themselves from other market participants, he says.
New analysis from Frost & Sullivan (www.transportation.frost.com), Australia Commercial Vehicle Telematics Market, reveals that the market earned revenues of US$24.0 million in 2005 and it is estimated to reach US$60.7 million in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Australia commercial vehicle telematics market, then send an e-mail to Ravinder Kaur and Surbhi Dedhia, at ravinder.kaur@frost.com / sdedhia@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
Mr. Sampath observes that trucking companies are also concerned about rising fuel prices. They expect the implementation of telematics in vehicles to help minimize this cost. Besides the demand from this industry, the decreasing costs of telematics systems and favorable government regulations are likely to keep the market buoyant.
Despite market optimism, Australian telematics service providers (TSPs) need to realize that they are involved in an emerging market and they have to conduct campaigns to increase product knowledge among consumers.
"In comparison to other developed markets such as North America and Europe telematics market is in its infancy stage, product knowledge and consumer awareness is very low in the Australian market. The benefits associated with telematics are low even among the fleet operators and the trucking industry that constitute a major portion of the end users," Mr. Sampath says.
He adds that systems manufacturers and TSPs should create awareness and promote the utility of their systems to increase both unit shipment and revenues."
While conventional telematics systems already provide fleet managers with real time information about the vehicle's location, new products enable the monitoring of various engine parameters. This enables the fleet managers to take preventive measures before serious damage can occur to the vehicle.
As the range of commercial vehicle applications in Australia is diverse, market participants have to provide customized telematics solutions for each end-user segment. For example, cargo monitoring is crucial for commercial vehicles transporting biohazardous materials, whereas vehicle parameter monitoring is essential in the mining industry due to the use of high-cost commercial vehicles.
Apart from the basic function of vehicle tracking, service providers have started offering greater value-added features such as driver safety, vehicle condition monitoring, and cargo monitoring to meet the varied requirements. Offering multifunctional systems enhances the value of the product and will lead to increased sales and higher revenue.
The commercial vehicle telematics market obtains revenues from TSPs, original equipment manufacturers (OEMs), hardware manufacturers, content and airtime providers, software developers, and wireless device suppliers. However, TSPs contribute the bulk of the revenues.
"The telematics services segment is expected to be a constant source of revenue, with immense scope for further growth by offering superior content," notes Satish. "This potential is especially visible in the wireless communication sector and call center operations."
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Australia Commercial Vehicle Telematics Market
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Ravinder Kaur , Corporate Communications - India, Frost & Sullivan, + 91(044) 4204 4515 ravinder.kaur@frost.com
Surbhi Dedhia, Corporate Communications - India, Frost & Sullivan, + 91(022) 4001 3431 sdedhia@frost.com
Source: Frost & Sullivan (Business Wire India)
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