iTECH: Truck Telematics Ripe for Growth, Market Study Says
This story appears in the April/May issue of iTECH, published in the April 14 print edition of Transport Topics. Click here to subscribe today.
The market for commercial vehicle telematics in North America may be poised for a second wave of innovation and growth, according to a market study.
Frost & Sullivan, which is a market research firm in Palo Alto, Calif., said the next level of telematics for trucking will integrate telecommunications and focus on operations automation, security, communications, monitoring, prognostics and mobile resource management applications.
Frost & Sullivan said advancements in multimodal communication networks and increasing
safety and security concerns will drive market growth between now and 2013.
The market for commercial vehicle telematics, which the firms said earned more than $1.48 billion in 2007, could be worth $6.47 billion in six years.
Sandeep Kar, program manager for Frost & Sullivan, said local-fleet, regional-fleet and trailer telematics are experiencing “growth momentum.”
He said some initial telematics development failed to deliver desired performance, dampening demand among commercial vehicle operators, but now the fundamentals and supporting structures are in place.
The report recommended that service providers market their ability to improve the productivity and profitability of local fleets.