Portable Telematics Systems to Experience Consistent Demand Despite Growth in Fixed In-cab Telematics

Frost: The lack of standard platforms and defined original equipment is likely to favour aftermarket telematics systems in the commercial vehicles market segment. While their multiple benefits are likely to underpin steady demand for portable telematics systems, the establishment of a unified industry architecture will be critical to promoting sustained uptake.

White Paper Analysis on the Place of Portable Telematics in the European Commercial Vehicle (CV) Market, reveals that revenue in this industry totalled €7.93 billion in 2005 and can reach €23.02 billion in 2011.

Despite end users defining and dictating features of telematics systems, the future of this market depends on the development of portable devices that can support embedded fixed in-cab systems, explains Frost & Sullivan Transportation Practice Programme Director Mrs Miranda Tooth. The aftermarket telematics systems will be replaced by original equipment fixed in-cab telematics systems due to the increased need for standardisation.

The two most important features offered in telematics - fleet management and navigation - vary according to the business category. End-users prefer fleet management systems to be fixed and navigation systems to be portable. The dependence on navigation systems will ensure consistent demand for portable systems in future, despite the presence of more advanced features in fixed in-cab telematics systems.

At present, the greatest challenge that the commercial vehicle segment of the telematics industry is facing is the integration of end-user preferred telematics features with fixed and portable systems at affordable prices. In addition, Government regulations restricting the use of handheld and mobile devices while driving, is deterring the growth of the portable telematics market. The increased importance of telematics in commercial vehicles will drive vehicle manufacturers to build embedded systems in the vehicle thereby potentially hindering the growth of the portable telematics market.

In order to increase the penetration rate of portable telematics systems in the commercial vehicles segment and help end users to gain benefits on a large scale, manufacturers need to restructure the commercial vehicle telematics industry,. Also, manufacturers of commercial vehicles and telematics systems need to work in conjunction to design portable systems that are suited for the automotive environment, as a lack of this acts as a major deterrent to widespread adoption.

An in-depth understanding of fleet/vehicle management and business/transport management needs will create solutions for all participants in the value chain of commercial vehicle telematics. In addition, the cost-effectiveness, adaptability, and simplicity of portable telematics systems will encourage consistent demand for these systems in the future thus boosting market growth.

White Paper Analysis on the Place of Portable Telematics in the European Commercial Vehicle (CV) Market Publ 20060426