An Update on European Heavy and Medium Commercial Vehicle Telematics MarketFrost & SullivanDecember 31, 2008 97 Pages - SKU: MC2286136 |
| Countries covered: Europe This Frost & Sullivan research service titled An Update on European Heavy and Medium Commercial Vehicles Telematics Market provides insights into the various factors affecting the demand for telematics services. It also provides a better understanding of the impact of the economic slowdown on various telematics services by analysing the demand dynamics in two potentially varied scenarios. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: commercial vehicle telematics applications, primarily fleet management system, track and trace, remote vehicle diagnostics, emergency assistance and navigation (as a service with fleet management system). Market Overview Strong Growth Projected for European Commercial Vehicles Telematics Market The impact of the economic downturn on the European heavy and medium commercial vehicles telematics market will be subdued by strong market driving factors such as fleet process optimisation and cost cutting, among others. Moreover, the replacement cycle in mature markets such as Benelux and nascent demand in emerging markets like Poland will further promote market expansion. “The inherent need for fleets to be more profitable and customer-centric in order to establish a competitive edge in tough market conditions is fuelling the demand for various telematics solutions,” notes the analyst of this research. “At the same time, fleet operators are being compelled to consider adopting telematics to meet the increasing customer demand for a high degree of service and information transparency.” In the current economic situation, fleet operators are bound to look for avenues that enable cost cutting and boost their competitive edge. Telematics provides the necessary tools to effectively monitor, analyse and optimise truck driver behaviour and fuel consumption for operation cost optimisation. Moreover, telematics facilitates superior service delivery. Focus to be on Developing Right Mix of Product, Service and Financial Options The current economic slowdown and credit crisis has not spared the commercial vehicles telematics market, and has, largely, negatively influenced market dynamics. Although there is a section of cash-rich fleets that continue to invest in telematics even during difficult times, a large portion of fleets across Europe are procrastinating or completely avoiding any potential investment. “The current slowdown and credit crunch is dissuading fleet operators from making any potential investment that targets the overhaul of their operations,” explains the analyst. “This might lead to the postponement of system replacement in certain cases and, in others, delays in upgrading from the existing track and trace system to a fleet management system.” Telematics vendors should focus on building a perfect mix of product with service at the right price to reduce the cost of ownership and improve the rate of return on investment. Companies should focus on effective promotions in major markets and emphasise awareness creation in emerging markets to maximise on growth potential. “Ideally, fleet operators will continue to invest when the payback time is less and when telematics vendors extend viable and attractive finance options,” concludes the analyst. “Companies should focus on finding the right product and service and finance option mix to target fleets in the current scenario.” |
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